Great work BV. Here is Briefing.com's take:
Analog Devices (ADI) 82 7/8: It's back, way back, it could be, it is! Even Harry Caray would be proud of the home run hit by Analog Devices.... As we expected, the company reported better-than-expected JulQ EPS after the close yesterday representing the eighth consecutive qtr of beating the Street. ADI is trading up $5 in the pre-market after reporting adjusted EPS of $0.43 vs consensus of $0.37 on revenues of $701 million, up 85% yoy and 21% sequentially....But that's not all as the company guided estimates higher for its fiscal Q4 (ending Oct) to $0.49 to $0.50 from the current consensus of $0.41. ADI also expects sequential revenue growth of 12%-14% to $785 to $800 mln...Hopefully, this news will continue the recent chip rally over the last two days which followed a downturn in the sector after an analyst in early July warned of a potential cycle peak...Morgan Stanley was the latest to defend the sector yesterday arguing that the sector still has 18-24 months to run - Briefing.com agrees with this assessment...The main thrust of the anti-peak argument is that there are many more outlets for chips than when it was a PC-centric environment. ADI makes a strong case as its sales to the communications market accounted for 45% of JulQ sales and sales to that market are growing more strongly than overall sales (up 131% yoy and 23% sequentially)....ADI also performed very well operationally as gross margin improved 140 basis pts sequentially to 57.1% and operating margin rose 340 basis pts sequentially to 31.3% as a result of its cost reduction and yield enhancement programs....We expect estimate increases as a result of this report for fiscal 2001 especially in light of the company's increasing exposure to the burgeoning communications market. -- Robert J. Reid, Briefing.com
Re: TXN and cell phones. Yes, NOK and ERICY have standardized on TXN DSP's, however, there are typically over 400 parts (many resistors and capacitors) in a phone. Lot's of other functions ADI parts can do. The Othello chip set saves many parts and more importantly, POWER. Increased functionality means saving power where ever possible.
I'm a little surprised at the TXN bashing. They are still a much larger company. The BBrown buy was, IMO, a very nice pickup for them. They competed head to head in many ADI product areas. BB will add profits to TXN operations.
I guess Fishmen is entitled to a little crowing.
Jim |
