2_800x533_L_1412602635.jpg)
Investing.com -- Shares in Analog Devices Inc (O:ADI) fell mildly in after-hours trading after the Massachusetts-based multinational semiconductor lowered its first quarter revenue guidance on Thursday afternoon.
For the opening quarter of fiscal year 2016, Analog Devices now anticipates sales in a range of $745 to $765 million, down from previous estimates between $805 million and $865 million. Earlier, trading in Analog Devices shares were halted late in Thursday's session after the company cited "weaker than forecasted customer demand" in its portable consumer business unit for the lower outlook. The new division, which was launched last month, is expected to last through the second quarter of this year, the company said. At the same time, the company reiterated that core demand among its automotive, industrial and communication infrastructure have met its expectations throughout the quarter.
In other revisions, Analog Devices lowered its gross margin forecast to 62%, due in part to an increase in its inventory reserve related to the updated guidance. The company also expects to incur non-GAAP operating expenses of $264 million on the quarter, down significantly from $292 million in the same period a year earlier. Finally, Analog Devices anticipates that non-GAAP interest expenses could swell to as much as $15 million for the first quarter, before falling back to $10 million for the remaining quarters of the year. The increased interest payments, the company said, stem from its recent $1.25 billion debt offering.
In late-November, Analog Devices was named as one of the world's 100 most innovative corporations in 2015 by Thomson Reuters. It marked the fourth time in five years, the company received inclusion on the illustrious list.
Analog Devices, a key supplier for Apple Inc (O:AAPL), is the provider of the 3D force touch controller for the iPhone 6S. Last week, Japan's Nikkei reported that weak sales for the iPhone 6S could force Apple to cut production on the model.
Shares in Analog Devices fell 1.20 or 2.38% to 49.30 in after-hours.