What a blowout! Hope this carries the Nasdaq today! They beat consensus and whisper numbers!
Wednesday May 17, 6:59 am Eastern Time
Company Press Release
SOURCE: Analog Devices
Analog Devices' Second-Quarter Revenues Increase 71%; EPS Rise 191% To $0.32
* Revenues increased 71% year over year and 19% sequentially. * Gross margin improved 160 basis points sequentially to 55.7% of sales. * OPBT rose 390 basis points sequentially to 27.9% of sales. * Diluted EPS was $0.32, nearly 3 times the year-ago level and up 28% sequentially. * Analog product revenues grew 57% year over year and 15% sequentially. * DSP product revenues increased 134% year over year and 32% sequentially. * New orders strengthened in all major regions and channels worldwide. * Backlog increased by more than 30% sequentially.
NORWOOD, Mass., May 17 /PRNewswire/ -- Analog Devices (NYSE: ADI - news) today announced revenues of $581 million for the second quarter of fiscal 2000, up 71% from the prior year's second quarter and 19% above the immediately prior quarter. Diluted earnings per share increased to $0.32, compared to $0.11 for the year-ago quarter, and were up 28% from $0.25 for the first quarter this year.
( Photo: newscom.com )
``The market shift from data processing to signal processing has created large opportunities for ADI's high-performance analog and DSP technology, particularly within the communications market as wireless and broadband usage accelerates,'' said Jerald G. Fishman, President and CEO. ``Our second-quarter analog revenues grew 57% year over year and 15% sequentially, while our DSP revenues grew 134% year over and year and 32% sequentially. ADI's growth in these two key product areas was again well ahead of the markets' growth, as we continued gaining market share in both product areas.
``Our sales into the communications market continued to accelerate during the second quarter, rising 123% over the same quarter last year and 29% from the immediately prior quarter,'' Mr. Fishman said. ``Communications customers comprised 45% of the second quarter's revenues, up from 34% for the second quarter last year and 40% for the immediately prior quarter. We are benefiting from accelerating demand for increased bandwidth as Internet usage continues to grow dramatically. DSL, cable modems, central office concentrators and optical networking products are all growing rapidly. We are also seeing strong growth for wireless products used in cellular handsets and base stations, as well as for products used in wireless Internet appliances.
``In addition,'' he continued, ``we are seeing strong growth in high-end digital entertainment products used in digital cameras, VCRs, DVD players and high-performance flat panel displays, all areas where we enjoy high market shares. And sales into PCs continue to increase as the analog content per PC increases, with ADI technology providing important functionality in both laptop and desktop PCs.''
Mr. Fishman also said, ``The industrial market continues to be an important source of revenue for ADI. We are the leading supplier for digital motor control components, and revenues for products used in medical imaging and automatic test equipment applications also grew significantly during the second quarter.''
Turning to the quarter's financial performance, Mr. Fishman said, ``Gross margin improved 160 basis points sequentially to 55.7% of sales. The operating expense ratio for the quarter declined to 27.8% of sales from 30.1% for the first quarter, despite increases in R&D and higher sales commissions associated with our strong sales growth. Our higher sales, higher gross margin and a lower operating expense ratio increased our second-quarter operating profit ratio to 27.9% of sales, a record for ADI. Diluted earnings per share increased to a record $0.32, up 191% from the second quarter last year and 28% sequentially, despite an increase in the tax rate to 30% due to rising profits in higher tax jurisdictions. We anticipate that the tax rate will be approximately 30% for the next several quarters.
``Our balance sheet continued to strengthen during the second quarter,'' he added. ``Cash flow totaled $116 million prior to paying off our remaining $80 million of debt, which increased our cash position to $931 million. Days of inventory and accounts receivable also improved during the quarter.''
Looking forward, Mr. Fishman observed, ``2000 is shaping up to be a great year for Analog Devices -- perhaps our best year ever. Our large backlog has given us good visibility and we believe that third-quarter sales could rise 10 to 12% sequentially. This would lead to third-quarter revenues of $640 to $650 million and diluted earnings per share of approximately $0.36 to $0.37. We have also revised upward our revenue expectations for the year. We now believe that our year-over-year revenue growth could exceed 65%, which would result in our fiscal 2000 revenues exceeding $2.4 billion, or approximately $1 billion more than for last year. We also believe we can continue achieving good operating leverage on increasing revenues.
Safe harbor statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements, including our statements regarding increased revenues and improved operating margins, that are based on our current expectations, beliefs, assumptions, estimates, forecasts and projections about the industry and markets in which Analog Devices operates. The statements contained in this release are not guarantees of future performance and involve certain risks, uncertainties and assumptions which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed in such forward-looking statements. Important factors which may affect future operating results include overall economic conditions, the timing and duration of market upturns and downturns, the continued growth of the markets Analog Devices serves, continuation of growth in the communications market, demand for semiconductors generally and for the Company's products in particular, a reversal or slowdown in the markets or customers served by the Company's products and the adverse effects of building inventories to meet planned growth that fails to materialize, the occurrence and frequency of inventory and lead-time reduction cycles, raw material availability, availability of both internal and external manufacturing capacity, technological and product development risks, competitors' actions and technological innovations and other risk factors described in the Company's most recent annual report on Form 10-K filed with the Securities and Exchange Commission.
Analog Devices is a leading manufacturer of precision high-performance integrated circuits used in analog and digital signal processing applications. Headquartered in Norwood, Massachusetts, the company employs approximately 8,200 people worldwide and has manufacturing facilities in Massachusetts, California, North Carolina, Ireland, the Philippines and Taiwan. Analog Devices' stock is listed on the New York Stock Exchange and the company is included in the S&P 500 Index.
Analog Devices Supplemental Information
Second Quarter, Fiscal 2000
Sales/Earnings Summary
2Q00 2Q99 1Q00
Three Months Ended Apr 29, 2000 May 1, 1999 Jan 29, 2000
Net Sales $580,995 $340,067 $490,277
Cost of Sales 257,184 176,435 225,087
Gross Margin 323,811 163,632 265,190
Percent of Sales 55.7% 48.1% 54.1%
Operating Expenses
R&D 90,702 61,899 83,012
In-process R&D Write-off - 5,140 -
Selling, Marketing and G&A 71,073 49,167 64,524
Operating Income 162,036 47,426 117,654
Other (Income) Expense (12,324) (3,278) (9,411)
Income Before Tax 174,360 50,704 127,065
Provision for Taxes 52,308 11,598 34,058
Net Income 122,052 39,106 93,007
Shares used for EPS - Basic 352,706 334,024 349,352
Shares used for EPS - Diluted 382,321 361,396 374,458
Profit for EPS - Diluted $122,052 $39,587 $93,007
Earnings per Share - Basic $0.35 $0.12 $0.26
Earnings per Share - Diluted $0.32 $0.11 $0.25
Six Months Ended Apr 29, 2000 May 1, 1999
Net Sales $1,071,272 $640,567
Cost of Sales 482,271 339,240
Gross Margin 589,001 301,327
Percent of Sales 55.0% 47.0%
Operating Expenses
R&D 173,714 114,483
In-process R&D Write-off - 5,140
Selling, Marketing and G&A 135,597 95,348
Operating Income 279,690 86,356
Equity in Loss of WaferTech - 1,149
Other (Income) Expense (21,735) (2,858)
Income Before Tax 301,425 88,065
Provision for Taxes 86,366 19,065
Net Income $215,059 $69,000
Shares used for EPS - Basic 351,029 326,584
Shares used for EPS - Diluted 378,389 357,556
Profit for EPS - Diluted $215,059 $70,906
Earnings per Share - Basic $0.61 $0.21
Earnings per Share - Diluted $0.57 $0.20
NOTE: All amounts in thousands except percents and earnings per share. Shares used for earnings per share calculations reflect 2-for-1 stock split effected Feb. 28, 2000.
Selected Balance Sheet Information
Apr 29, 2000 May 1, 1999 Jan 29, 2000
Cash & Short-term
Investments $931,453 $519,095 $895,222
Accts Receivable, Net 351,538 225,127 301,972
Inventories 280,398 259,374 250,184
Other Current Assets 109,236 108,654 111,583
Total Current Assets 1,672,625 1,112,250 1,558,961
PP&E, Net 664,761 660,601 648,785
Investments 260,755 88,376 199,070
Intangible Assets 34,956 30,731 35,337
Other 35,925 46,900 47,180
Total Assets $2,669,022 $1,938,858 $2,489,333
Total Current Liabil. $553,882 $311,948 $565,632
Long-term Debt - 80,000 -
Non-Curr. Lease Oblig. 12,655 23,510 13,218
Other Non-Curr. Liab. 235,346 81,100 164,138
Stockholders' Equity 1,867,139 1,442,300 1,746,345
Total Liab. & Equity $2,669,022 $1,938,858 $2,489,333
Depreciation and Capital Expenditures
2Q00 2Q99 1Q00
Three Months Ended Apr 29, 2000 May 1, 1999 Jan 29, 2000
Deprec. and Amort. $37,443 $35,735 $35,872
Capital Expenditures $52,169 $13,716 $40,677
Six Months Ended Apr 29, 2000 May 1, 1999
Deprec. and Amort. $73,315 $70,891
Capital Expenditures $92,846 $26,009
NOTE: All amounts in thousands except earnings per share.
SOURCE: Analog Devices |
