Norwood, MA (08/19/2008) -
Analog Devices, Inc. (NYSE: ADI), a global leader in high-performance semiconductors for signal processing applications, today announced financial results for the third quarter of fiscal 2008, which ended August 2, 2008.
Revenue for the third quarter of fiscal 2008 was $659 million, an increase of 1.5% from the immediately prior quarter and 7% from the same period one year ago.
Gross margin for the third quarter of fiscal 2008 was $402 million, or 61.0% of revenue, compared to $396 million, or 61.0% of revenue, in the immediately prior quarter, and $373 million, or 60.5% of revenue, for the same period one year ago.
Operating income from continuing operations for the third quarter of fiscal 2008 was $161 million, or 24.5% of revenue, compared to $157 million, or 24.2% of revenue, in the immediately prior quarter, and $145 million, or 23.6% of revenue, in the year ago period.
Diluted earnings per share (EPS) from continuing operations for the third quarter of fiscal 2008 was $0.44, consistent with $0.44 in the immediately prior quarter, and a 16% increase from $0.38 in the same period a year ago.
Diluted EPS from discontinued operations for the third quarter of fiscal 2008 was $0.03.
The Board of Directors declared a cash dividend for the third quarter of fiscal 2008 of $0.20 per outstanding share of common stock which will be paid on Sept. 17, 2008 to all shareholders of record at the close of business on August 29, 2008.
Net cash provided by operating activities in the third quarter of fiscal 2008 was $196 million, or 30% of revenue.
“The third quarter was another solid quarter for ADI. As planned, we delivered growth while sustaining our target gross margin, and continued to expand our operating margin in line with our long-term model,” said Jerald G. Fishman, President and CEO. “The strength of our business, particularly given general economic conditions, reflects the importance of our broad diversification and leading position in markets where customers highly value innovation that helps differentiate their products.”
Revenue by end market in the third quarter of fiscal 2008:
Revenue by product type for the third quarter of fiscal 2008:
Outlook for the fourth quarter of fiscal 2008
The following statements are based on current expectations. These statements are forward looking and actual results may differ materially,including as a result of the important factors discussed at the end of this release.These statements supersede all prior statements regarding business outlook set forth in prior ADI news releases.
Regarding the outlook for the fourth quarter of fiscal 2008, Mr. Fishman said, “Our operating plan for the fourth quarter is for revenue to grow in the range of 0% to 3% sequentially. On a year-over-year basis, this range represents a revenue increase of 6% to 9% for the fourth quarter. Our plan is for gross margin for the fourth quarter to be approximately 61%, with results dependent on the actual mix of business we achieve, and for operating expenses to remain relatively flat on a sequential basis. For the fourth quarter, our operating plan calls for diluted EPS from continuing operations of approximately $0.44 to $0.46. Diluted EPS from discontinued operations is expected to be approximately $0.02.”
Conference Call Scheduled for 5:00
Mr. Fishman will discuss the third quarter's results and the near-term outlook via webcast, accessible at http://investor.analog.com today beginning at 5:00 pm ET. Investors who prefer to join by telephone may call 706-634-7193 ten minutes before the call begins and provide the password "ADI."
A replay will be available almost immediately after the call. The replay may be accessed for up to one week by dialing 800-642-1687 (replay only) and providing the conference ID: 59090227 or by visiting the Analog Devices Investor Relations web site.
Innovation, performance, and excellence are the cultural pillars on which Analog Devices has built one of the longest standing, highest growth companies within the technology sector. Acknowledged industry-wide as the world leader in data conversion and signal conditioning technology, Analog Devices serves over 60,000 customers, representing virtually all types of electronic equipment. Analog Devices is headquartered in Norwood, Massachusetts, with design and manufacturing facilities throughout the world. Analog Devices is included in the S&P 500 Index.
This release may be deemed to contain forward-looking statements which include, among other things, our statements regarding expected revenue, earnings, operating expenses, gross margins, and other financial results, and expected increases in customer demand for our products, 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, are inherently uncertain, involve certain risks, uncertainties, and assumptions that are difficult to predict, and do not give effect to the potential impact of any mergers, acquisitions, divestitures, or business combinations that may be announced or closed after the date hereof. Therefore, actual outcomes and results may differ materially from what is expressed in such forward-looking statements, and such statements should not be relied upon as representing Analog Devices’ expectations or beliefs as of any date subsequent to the date of this press release. We do not undertake any obligation to update forward-looking statements made by us. Important factors that may affect future operating results include: the effects of changes in customer demand for our products and for end products that incorporate our products, competitive pricing pressures, unavailability of raw materials or wafer fabrication, assembly and test capacity, any delay or cancellation of significant customer orders, any inability to manage inventory to meet customer demand, changes in geographic, product or customer mix, adverse changes in economic conditions in the United States and international markets including as a result of ongoing financial market uncertainty, adverse results in litigation matters, and other risk factors described in our most recent filings with the Securities and Exchange Commission. Our results of operations for the periods presented in this release are not necessarily indicative of our operating results for any future periods. Any projections in this release are based on limited information currently available to Analog Devices, which is subject to change. Although any such projections and the factors influencing them will likely change, we will not necessarily update the information, as we will only provide guidance at certain points during the year. Such information speaks only as of the original issuance date of this release.
Analog Devices and the Analog Devices logo are registered trademarks or trademarks of Analog Devices, Inc. All other trademarks mentioned in this document are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Analog Devices and any other company.