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Technology Stocks : ADI: The SHARCs are circling! -- Ignore unavailable to you. Want to Upgrade?

To: oldirtybastard who wrote (2386)	11/7/2000 12:50:52 PM
From: BostonView	Read Replies (2) \| Respond to of 2882

Let's turn the funeral into a pep-rally! From the CEO: The continuing convergence of computing and communications has created an exciting growth environment for Analog Devices, as the new era of signal processing replaces data processing as the semiconductor industry’s primary growth engine. Signal processing is the technology that allows real-world, real-time analog signals, such as voice and video images, to be processed in both analog and digital forms for transmission, storage, display and monitoring. High-performance analog and DSP are the key technologies comprising signal processing technology. Given the rapidly growing demand for end products that require signal processing technology, it is not surprising that the five-year forecasted growth rates for these two product groups are amongst the highest in the semiconductor industry. Since high-performance analog and DSP are Analog Devices’ core strengths, this has created vast new opportunities for ADI and has become the primary factor in our accelerated revenue growth. With Internet and cellular usage exploding, the communications market has clearly emerged as ADI’s largest and fastest-growing served market. Our revenues for products going into communications applications have risen to approximately 45% of our total revenues as of the second quarter of fiscal 2000, up from 15% a few years ago. Products used in DSL modems, cable modems and central office concentrators are among those contributing to this growth. Strong growth for wireless products used in cellular handsets and base stations, as well for products used in wireless Internet appliances, are also making significant contributions. Sales of products for optical networking applications are also growing rapidly. Furthermore, we believe that products based on our Othello direct conversion radio technology, which reduces the cost, size and power consumption of the radio portion of wireless handsets and other wireless products while simultaneously improving their performance, will show rapid growth over the next several quarters. We have continued to see strong growth for products used in high-end digital entertainment products. These include products used in digital cameras, VCRs, DVD players and high-performance flat panel displays, all high-growth applications that require high-performance signal processing products. Our sales into the PC market have continued to increase as the analog content per PC increases in response to the need for ever-higher performance signal processing components in PCs. Finally, the industrial market continues to be an important source of revenue for ADI, as it has for many years. We have become the leading supplier of digital products used to control the speed of AC motors in response to varying load requirements, which results in substantial energy savings. And we have continued to see good growth for products used in medical imaging and automatic test equipment applications. Looking beyond 2000, we believe we are well positioned for continued growth. We believe we are in the right markets with the right technology at the right time and have the organizational strength to execute our plans. We look forward to continuing to provide great products to our customers and solid returns to our shareholders. Jerry Fishman CEO, Analog Devices July 17, 2000