Slight increase in quarterly revenues of Analog Devices in 2Q09

Precision analog semiconductor IC specialist Analog Devices' sales revenues for the third quarter of it's fiscal 2009 ending August 1, 2009 was $492 million, an increase of 4% from the immediately prior quarter and a decrease of 25% from the same period one year ago.

Operating income from continuing operations was $79 million, or 16.0% of revenue, compared to $58 million, or 12.2% of revenue, in the immediately prior quarter, and $161 million, or 24.5% of revenue, in the year-ago period.

"ADI had a solid third quarter, delivering sequential sales growth of 4% with the largest increases in the automotive and consumer end markets. During the quarter, we also saw order rates from industrial customers begin to improve as inventory reductions subsided," said President and CEO Jerald G. Fishman. "Importantly, we reduced costs for the third consecutive quarter, resulting in a cumulative decline in operating expenses of well over 20% since the end of fiscal 2008. By driving continued competitive advantage through innovation while remaining focused on expense management, we're positioning ADI to achieve solid revenue growth and operating leverage as demand improves."

Mr. Fishman continued, "Given these factors, we expect that our revenue will grow to approximately $510 million to $530 million in the fiscal fourth quarter. While we plan to continue to tightly manage inventory levels, we expect a small increase in utilization, which should result in a gross margin in the fourth quarter of approximately 55.0%. In addition, we plan to continue to closely manage operating expenses and expect them to increase slightly by approximately 1% to 2% in the fourth quarter. As a result, our plan is for diluted EPS from continuing operations to increase again to approximately $0.24 to $0.26 in the fourth quarter."

Analog devices earns more than 70% of its revenue from semiconductor devices like converters (ADC and DAC semiconductor ICs) and amplifiers. The converter category has grown by 4.1% quarter-over-quarter, where as amplifier category sales are still falling at 3.1%.