SAN FRANCISCOAnalog Devices Inc. (ADI) beat its revenue target for the fiscal second quarter by a wide margin, even as sales declined 27 percent compared to the same period of 2008, the company said Tuesday (May 19).
ADI reported revenue of $474.7 million for the quarter ended May 2, significantly better than the company's target range for the quarter of $429 million to $453 million outlined in February. ADI (Norwood, Mass.) said the results were better than planned thanks to increased sales to communications infrastructure and consumer customers and a general abatement of inventory reductions by customers.
Analysts had been expecting on average that ADI would post revenue of about $427 million for the quarter, the company's second quarter of fiscal 2009.
"Orders to ADI and our distributors recovered significantly in the second quarter, as customer inventory reductions subsided," said Jerald Fishman, ADI president and CEO, in a statement. ADI's second quarter book-to-bill ratio, as measured by end customer bookings, was slightly above one for the first time since the third quarter of fiscal 2008, Fishman said.
Revenue declined a fraction of a percent compared to the previous quarter, when ADI reported sales of $476.6 million.
ADI posted a fiscal second quarter net income of $51.8 million, down 65 percent from the same period of last year. The profit was up more than 107 percent compared to the previous quarter.
Gross margin for the quarter was 55.1, in line with previous company guidance. Gross margin was down from 56.4 percent in the prior quarter and 61 percent in the year-ago period, primarily due to lower manufacturing utilization and end market revenue mix, ADI said.
ADI reported diluted earnings per share for the quarter of 18 cents, which includes a 3 cent per share impact from restructuring, the company said, down from 44 cents in the year-ago quarter but up from 8 cents in the previous quarter.
ADI said it expects revenue for the fiscal third quarter to be approximately flat with the second quarter. The company guided for earnings of 17 to 19 cents per share on a diluted basis.
"Our lead times remain short and we are still receiving a significant portion of new orders as turns orders, thereby limiting visibility," Fishman said.