NORWOOD, Mass. -- The market's shift from data processing to signal processing helped drive Analog Devices Inc.'s revenues up 71%, to $581 million for the second quarter of fiscal 2000, the company said here today.
Sequentially, revenues increased 19%. Diluted earnings per share increased to 32 cents, compared to 11 cents for the year-ago quarter, and were up 28% from 25 cents for the first quarter this year.
Much of the growth was in digital signal processing (DSP), which grew 134% from a year ago and 32% sequentially. Analog revenues grew 57% year over year and 15% sequentially,
"ADI's growth in these two key product areas was again well ahead of the markets' growth, as we continued gaining market share in both product areas," said Jerald G. Fishman, president and CEO.
"Our sales into the communications market continued to accelerate during the second quarter, rising 123% over the same quarter last year and 29% from the immediately prior quarter," Fishman added.
Communications customers comprised 45% of ADI's second quarter's revenues, up from 34% for the second quarter last year and 40% for the immediately prior quarter.
"We are benefiting from accelerating demand for increased bandwidth as Internet usage continues to grow dramatically," Fishman went on. "DSL, cable modems, central office concentrators and optical networking products are all growing rapidly. We are also seeing strong growth for wireless products used in cellular handsets and base stations, as well as for products used in wireless Internet appliances.
Other growth areas included digital entertainment products such as digital cameras and DVD players, and high-performance flat panel displays. "And sales into PCs continue to increase as the analog content per PC increases," Fishman also said.
ADI also claimed to be the leading supplier for digital motor control components, and revenues for products used in medical imaging and automatic test equipment applications also grew significantly during the second quarter.
Fishman predicted that third-quarter revenues could hit $640-$650 million, with diluted EPS of 36 or 37 cents.
"We now believe that our year-over-year revenue growth could exceed 65%, which would result in our fiscal 2000 revenues exceeding $2.4 billion, or approximately $1 billion more than for last year," Fishman said.