turn around in dsp chip suggest overall upturn in dsp industry on the horizon
Analog Devices' First Quarter Revenues and Earnings Increase
Sequentially
PR Newswire - February 17, 1999 08:14
NORWOOD, Mass., Feb. 17 /PRNewswire/ -- Analog Devices (NYSE: ADI) today revenues of $301 million for the first quarter of fiscal 1999,
which ended January 30, up $3 million from the immediately prior
quarter.
"First-quarter revenues increased slightly over the fourth quarter,
despite the 11-week holiday quarter," said Jerald G. Fishman, Presidenttand CEO. "Gross margin improved by 120 basis points and we maintained tight control over operating expenses. As a result, operating profit improved sequentially from 11% of sales to 13%, and net income rose to $30 million, or 10% of sales. Diluted earnings per share increased $0.02 sequentially to $0.18.
"Our balance sheet continued to strengthen during the first quarter," he said. "Operating cash flow was $56 million and total cash flow,
including the reduction of our investment in WaferTech, was $160
million. Capital expenditures were reduced to $12 million and
inventories declined $5 million."
Mr. Fishman noted that overall order trends were very encouraging during the first quarter, particularly in January. "OEM orders rose 10% sequentially, reaching a book-to-bill ratio of 1.1. Our OEM backlog increased by more than $20 million, increasing our visibility for second-quarter revenues. Bookings that our distributors received from their customers increased sequentially for the first time in many
quarters, and as a result, our book-to-bill ratio through distribution
exceeded 1.0.
"The communications market was our strongest market segment during the
first quarter," he continued. "Communications customers represented 39% ofour OEM revenues, up from 21% a year ago, as revenues from this segment grew 60% compared to the same period last year. Revenues from PC OEMs also increased as our power management and monitoring products continue to gainmarket share. Industrial customers, including ATE, continued to be weak,although we did see some signs of improvement late in the quarter. Overall,non-ATE analog revenues grew 3% sequentially and DSP revenues grew 6% sequentially. ATE and assembled product revenues both declined sequentially, as expected. |
