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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (50737)	8/16/2001 6:07:41 PM
From: Proud_Infidel	Respond to of 70976

Analog Devices expects another 5-10% sales drop in current quarter Semiconductor Business News (08/16/01 16:44 p.m. EST) NORWOOD, Mass.-- Analog Devices Inc. today reported a 20% sequential decline in revenues to $479.9 million in the company's fiscal third quarter, ended Aug. 4, compared to $601.4 million in the prior three-month period. Analog Devices' net income was $64.7 million in the just-ended fiscal quarter compared to $116.8 million in the prior second fiscal quarter, ended May 5. The company matched Wall Street's earning consensus at $0.17 per share, according to First Call/Thomson Financial. In the prior fiscal quarter, Analog posted a net income of $0.31 per share. Looking ahead, Analog Devices management said the forecast for the current fourth fiscal quarter remains unchanged. "We still expect a 5-to-10% sequential decline in revenues to about$440 million," said Jerald G. Fishman, president and chief executive officer of the Norwood company. "At this revenue level, we would expect a very modest sequential decline in our gross margin ratio to about 51-or-52% of sales. "We believe operating expenses could again decline sequentially in the fourth quarter. This could result in a fourth-quarter operating margin of approximately 13 to 14% of sales and earnings per share in the range of $0.12 to $0.14," Fishman said. Fishman said the company's analog product revenues accounted for more than 80% of its sales. The analog product revenues dropped 17% sequentially from the prior quarter. "Our DSP [digital signal processor] revenues declined 32% sequentially in the third quarter and are now 62% below their peak," he added. "We expect that our DSP revenues could decline 33% for the year after growing over 100% last year. Our DSP product revenues have been particularly hard hit by the communications industry's widely reported woes."