NORWOOD, Mass. — (BUSINESS WIRE) — January 14, 2016 — Analog Devices, Inc. (NASDAQ: ADI), today announced it expects revenue in the first quarter of fiscal 2016 to be in the range of $745 million to $765 million compared to the company’s previous forecast of $805 million to $855 million. The lowered revenue outlook is the result of weaker than forecasted customer demand in the company’s portable consumer business unit, which began in December, and is expected to continue into the second fiscal quarter. Demand trends across ADI’s core markets of industrial, automotive, and communication infrastructure are tracking within the range of prior expectations.

ADI is forecasting non-GAAP gross margin of approximately 62% in the first quarter compared to its original forecast due to an inventory reserve associated with the updated revenue outlook. The company expects its non-GAAP gross margin to return to its model range in the second fiscal quarter of 2016.

Non-GAAP operating expenses in the first quarter are expected to decline significantly to $264 million from the prior quarter’s $292 million.

Non-GAAP net interest expense in the first quarter is expected to be approximately $10 million, and $15 million per quarter thereafter, as a result of the company’s recent $1.25 billion debt offering.

Management will discuss the company’s first quarter 2016 financial results on its call with investors scheduled for February 17, 2016.

Revised Outlook for the First Quarter of Fiscal Year 2016
The following statements are based on current expectations, and as indicated, are presented on a GAAP and non-GAAP basis. These statements are forward-looking and actual results may differ materially, as a result of, among other things, the important factors discussed at the end of this release. These statements supersede all prior statements regarding the company’s business outlook set forth in prior ADI news releases, and ADI disclaims any obligation to update these forward-looking statements.