DOW JONES NEWSWIRES

Analog Devices Inc. (ADI) cut its fiscal first-quarter guidance because of weak demand from consumers and customers' cuts in their inventories.

Shares fell more than 6% after hours, though recently they were back up to $18.77, unchanged from the Tuesday closing price. The stock price has fallen 48% since its 52-week high in May.

The announcement is one of a long line of chip makers' predictions of large drops in sales as the market for computers and other consumer electronics soured amid a sharp drop in discretionary spending last fall.

Analog Devices now expects earnings from continuing operations of 15 cents to 17 cents a share, excluding restructuring charges, and a revenue decline of 25% to 30% sequentially.

In November, the semiconductor maker had predicted earnings from continuing operations of 22 cents to 23 cents a share, excluding restructuring charges, and revenue down about 20% sequentially.

Analysts' latest estimates were for per-share earnings of 22 cents on revenue of $520.7 million, according to a poll by Thomson Reuters.

Analog Devices expects to report fiscal first-quarter results Feb. 18.

-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975; Kathy.Shwiff@dowjones.com

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