ADI Posts Strong Quarter
Staff Reporter -- 5/12/2006
Electronic News
Analog Devices Inc. saw solid sales growth in its fiscal Q2, driven by end-application businesses from industrial instrumentation to consumer electronics to wireless infrastructure.
The Norwood, Mass.-based company reported revenue of $643.9 million, up 7 percent from the same period last year and up 4 percent sequentially.
ADI posted net income of $145.8 million or 39 cents per diluted share. That compared to $120.6 million or 32 cents per diluted share in Q1
Q2 earnings included a gain of $13 million related to the previously-announced sale of the digital signal processing (DSP)-based digital subscriber line (DSL) application-specific integrated circuit (ASIC) and network processor product line; expenses of $6 million included in cost of sales and related to previously-announced restructuring actions; and $17 million of non-cash stock option expense. These items reduced diluted earnings per share by 2 cents in Q2.
"The second quarter was a good quarter for ADI, led by strong growth in sales to our industrial instrumentation, consumer electronics, and wireless infrastructure customers," said Jerald G. Fishman, president and CEO, in a statement. "Data converter, amplifier, and general-purpose DSP products were the fastest-growing product categories compared to the immediately prior quarter."
Gross margin for Q2 was 59.1 percent of sales. In The gross margin was reduced by $6.9 million, or 1.1 percent of sales, as a result of stock option expense and previously announced manufacturing restructuring-related expense.
ADI is forecasting a strong Q3.
"Orders and backlog increased significantly during the second quarter,” said Fishman. “Our OEM customers and our distributors are signaling significant increases in demand for our analog and DSP products. In aggregate, we are planning for revenue in the range of $675 million to $685 million."
ADI is planning for gross margin in the third quarter to be approximately the same as in Q2.
Diluted earnings per share are expected to be in the range of 38 cents per share to 39 cents per share in Q3. That includes about 6 cents per share for stock option expenses, previously-announced restructuring expenses, and expenses associated with a previously-announced acquisition.
Days cost of sales in inventory is planned to decline in the third quarter compared to the second quarter.
MEMS Plays in Nintendo’s Wii
Staff Reporter -- 5/10/2006
Electronic News
Nintendo has revealed major technology-forward elements of its previously enigmatic Nintendo Wii (formerly known as Revolution) -- controllers that operate cable-free in a three-dimensional landscape using MEMS technology.
STMicroelectronics and Analog Devices Inc. are both providing micro electro-mechanical systems (MEMS) technology to the Wii (pronounced “we”) controllers. MEMS technology, micron-sized structures that interact with the physical world, allows the Wii controller to respond to changes in direction, speed and acceleration, down to the most delicate movements of its players, Nintendo said from the E3 gaming show this week.
Controller sensors can detect the motion and tilt of a player’s hand in all three dimensions and convert it into immediate game action. Specifically, the controllers use embedded acceleration sensors to enable players’ wrist, arm and hand movements to interact with the games. Tilt measurements allow users to move characters, while the three-axis acceleration sensing easily transforms the controller that can be held in one hand into a virtual sword, gearshift or musical instrument.
Central to the Wii console’s design is multi-axis linear acceleration sensing. ADI’s ADXL330 has a three-axis motion signal processing performance to allow the gamer’s body motion to control his actions in the game in real time. When the new controller is picked up and manipulated, it provides a quick element of interaction, sensing motion, depth and positioning dictated by the acceleration of the controller itself.
“For the industry’s first mainstream game controller using MEMS acceleration sensors, we turned to Analog Devices, an industry leader whose acceleration sensors are used by Nintendo for popular games like Kirby’s Tilt ’N Tumble for Game Boy Color,” said Genyo Takeda, senior managing director/general manager, Nintendo’s integrated R&D division, in a statement. “We selected the ADXL330 because its accuracy, small size, and extremely low power consumption were critical to the Wii console’s design objectives and key for a wireless controller that will revolutionize the gaming industry.”
The acceleration sensor’s miniature dimensions (5x5x1.5mm3) significantly contribute to the light TV-control-shaped hand piece. Ultra-low power consumption of ST’s MEMS devices prolongs the battery life of the controller and the high thermal stability avoids unwanted motion sensing in varying temperature conditions, the company said. The design of the sensor also provides high immunity to vibration and a shock resistance up to 10,000g.
“With ST’s 3-axis accelerometer, Nintendo is revolutionizing the gaming world by putting players into the action,” said Benedetto Vigna, MEMS business unit director, STMicroelectronics, in a statement. “This valuable partnership confirms our conviction that MEMS sensors open up fascinating possibilities for intuitive man-machine interaction in consumer applications, which can also allow non-expert players to enjoy the excitement of the game.”
Linking the controller movement to the main Wii console is Broadcom Corp.’s Bluetooth and Wi-Fi technologies. The Wii console is the first major gaming platform on the market to introduce Bluetooth technology as a standard feature, eliminating the cables between the console, hand-held game controllers and other accessories. Broadcom Bluetooth technology used in the controllers significantly increases the level of performance in the game controller, with special enhancements that provide low latency to accommodate the fast rate of interaction between the controller and the console.
The Wii console also includes Broadcom's single-chip 54g Wi-Fi solution, which provides a wireless link for playing online or multi-player games. The console also includes Broadcom BroadRange technology, which allows users to maintain higher data rates further from the access point. Broadcom's family of 54g chipsets are featured in the leading brands of networking equipment, PCs, broadband modems and consumer electronics.
|
