Semiconductor company Analog Devices, Inc. (NASDAQ: ADI) reported lower revenues and adjusted profit for the fourth quarter of 2023.
Q4 earnings, excluding special items, declined 26% year-over-year to $2.01 per share from $2.73 per share last year. On a reported basis, net income plunged to $498.4 million or $1.0 per share from $936.2 million or $1.82 per share last year.
The bottom line performance was negatively impacted by a 16% fall in revenues to $2.71 billion in Q4 from $3.25 billion in the prior-year period.
“As outlined last quarter, we expect customer inventory digestion to persist into the first half of the year, a reflection of our return to normal lead times and the challenging macro landscape. Despite that backdrop, the robustness of our business model and our continued focus on execution excellence will buttress our operating margins and free cash flow through the cycle,” said the company’s CEO Vincent Roche.