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

To: Jim Oravetz who wrote (2809)	2/14/2003 12:06:04 PM
From: Jim Oravetz	Read Replies (1) \| Respond to of 2882

Analog Devices Bucks the Finance Trend Online staff -- Electronic News, 2/13/2003 Analog Devices Inc. (ADI) managed to top its prior guidance by posting fiscal Q1 revenues of $467.4 million, producing earnings of 16 cents per diluted share, the company reported today. Revenues increased 3 percent sequentially and 9 percent year-over-year for the quarter, which ended January 31. Earnings also grew sequentially from 9 cents per diluted share in the prior quarter and from 6 cents per diluted share in the year ago period. The company's quarterly results included $2.8 million of acquisition-related expenses. "Both revenue and earnings were slightly better than we expected when we provided guidance on November 19, 2002, primarily as a result of stronger sales of our wireless analog and DSP products," said Jerald G. Fishman, ADI president and CEO, in a statement. "We have now seen four consecutive quarters of slow but steady sequential revenue growth, which is a good result in a difficult economic environment." ADI reported both analog and DSP sales grew sequentially in its fiscal Q1, with higher growth from DSP products. Orders for shipment in the next 13 weeks grew by about 9 percent sequentially, as did orders in both the OEM and distributor channels, the company said. Its book to bill ratio was slightly above one for the quarter. Orders customers placed on our distributors also grew sequentially Order growth was the strongest in Southeast Asia and in Europe and weaker in North America and Japan, Fishman said. "We currently anticipate that the second quarter will continue the recovery that began four quarters ago," Fishman continued. "With somewhat higher opening backlog and a seasonally stronger period in the second quarter, we are planning for revenues to grow 3 percent to 5 percent sequentially. "If order strength that we have seen in January continues, we could be at the high end of that range," he said. "We continue to be mindful of the uncertain economic environment and note that a large percentage of our orders are still being placed for very short-term delivery, which limits our visibility." The company said it would continue to hold operating expenses relatively flat, along with flat inventories and constrained capital spending. It predicted earnings per share of 17 cents to 18 cents for the current quarter. ADI's gross margins were 54.2 percent of sales in the first quarter of fiscal 2003 while inventories declined $12 million sequentially and days cost in inventory declined to 125 days from 135 days last quarter, the company reported. Inventories at distributors also declined in the first quarter of 2003. In its fiscal Q1 ADI's cash balance increased by $102 million to $3 billion after spending $15 million on capital equipment. ADI's cash balance at the end of the first quarter of fiscal 2003 was $3 billion.