ADI Reports Higher Q2 Revenue
Online staff -- 5/16/2002
Electronic News
Analog Devices Inc. (ADI) today reported second-quarter revenue of $413.4 million, a 5 percent increase from the $393 million reported in the previous quarter, but still below the $601.4 million posted for the same period a year ago.
The Norwood, Mass.-based company reported net income for the first quarter of $14.4 million, or 4 cents per diluted share, down from the $24.7 million, or 6 cents per diluted share, which is lower than the $102.5 million, or 27 cents per diluted share, reported a year ago.
The company’s pro forma earnings per share came in at 13 cents per diluted share, up 2 cents sequentially and in line with the company’s forecasts. Pro forma results do not include $17 million in amoritization of intangibles and other acquisition-related expenses or $27 million in charges related to transferring production from older 4-inch fabs to 6- and 8-inch fabs, ADI said.
"Stronger bookings throughout the second quarter led to revenues increasing 5 percent sequentially to $413 million," said Jerald G. Fishman, president and CEO of ADI, in a statement. "Revenue from analog and DSP products both grew 5 percent sequentially, with analog products accounting for 77 percent of the quarter’s total revenues. Revenue from every end-market grew sequentially. The strongest growth was in consumer, computer and wireless communications--all applications that touch consumers. Revenue from OEMs and distributors also both grew sequentially. We were pleased to see renewed growth in the OEM channel, which has been the weakest channel during the downturn."
Orders during the second quarter grew in every region, Fishman added. For the third quarter, ADI is expecting revenue to increase 8 percent sequentially to $445 million.
"Overall, orders requested by customers for delivery within the next 13 weeks rose 40 percent sequentially, while orders requested for delivery within the next 26 weeks increased by more than 50 percent sequentially," Fishman said. "Overall, our book-to-bill ratio increased to over 1.2. As a result, we began the third quarter with a 13-week backlog totaling $270 million, up 40 percent from the starting backlog for the second quarter, giving us markedly improved visibility into the third quarter."
ADI’s gross margin increased 150 basis points during the quarter to 53.4 percent of sales as production volume increased. Operating margin improved 220 basis points to 14.2 percent of sales, the company said.
"Our balance sheet remains strong," Fishman said. "Given the signs of business recovery, we have begun increasing production levels and inventories increased slightly. Our cash balance increased slightly and currently exceeds $2.9 billion. Capital expenditures for the quarter were $15 million. We anticipate maintaining capital expenditures at low levels for the next several quarters, given our still low levels of manufacturing utilization." |
