SUNNYVALE, Calif. (AP) — Chip maker Maxim Integrated Products Inc. said Thursday that its profit declined 20 percent in its fiscal second quarter, hurt by weaker sales as customers continued to reduce inventory.
Bookings began to pick up last month, however, so management forecast revenue will return to normal trends in the March quarter.
The company reported net income of $88.1 million, or 29 cents a share, for the three months ended Dec. 31. That compares with net income of $109.6 million, or 36 cents a share, in the comparable period last year.
Excluding the restructuring, severance and other special items, Maxim earned 34 cents a share.
On that basis, the company edged out analysts' consensus forecast of 33 cents a share.
Revenue fell 7 percent to $591.4 million from $612.9 million a year earlier. Analysts were looking for $597.2 million.
CEO Tunc Doluca said in a statement that its customers maintained a cautious outlook during the quarter and kept reducing inventory, particularly in the distribution channel.
The company's backlog at the start of the current quarter was $365 million. Based on that, Maxim anticipates its fiscal third-quarter earnings per share will range from 25 cents to 29 cents, excluding special items. It expects revenue will range from $555 million to $585 million.
Analysts are anticipating adjusted earnings of 33 cents a share on $583.7 million in revenue.
Maxim also said in its report that it will pay a dividend of 22 cents a share on March 7 to shareholders of record as of Feb. 22.
Shares ended regular trading down 19 cents at $27.37. The stock fell another 92 cents, or 3.4 percent, to $26.45 in aftermarket trading.
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