Stock-based compensation disclosure rule FAS-123R has claimed another victim. Semiconductor designer Analog Devices
That's not the whole problem, of course; weakness in the computer and wireless-handset segments led to slower-than-expected sales growth, and management said that it expects that trend to continue into the next quarter, leading to another slow growth performance.
I don't think that Analog Devices is performing too poorly on its own; instead, I believe the entire semiconductor industry has hit the skids lately. Household names Intel
It's hard to say when the semiconductor downturn will reverse, but I'd be surprised if this sector fell much further. But you know what they say about catching falling knives. Maybe it's best simply to stay away from these stocks until we have solid signs of a recovery. That goes for you too, Analog.
Further Foolish reading:
- One major player is largely getting out of the semiconductor race.
- I'm not the only Fool that thinks the whole industry is flaky.
- Maybe we'd do better to look at the companies that make semiconductor businesses tick?