NEW YORK " Analog Devices Inc. said its fiscal fourth quarter net income soared 153 percent with orders for future delivery surging to a two-year high as the chip sector recovery continued to gain momentum.
The DSP and analog IC supplier exceeded analysts' consensus estimate in the three months ended Nov. 1 with revenue rising 22 percent from the year-ago quarter on broad demand from all segments of the company's operation.
Analog Devices earned $88 million, or 23 cents a share, up from $34.8 million, or 9 cents a share, in the fiscal 2002 fourth quarter.
Revenue in the just-ended quarter rose to $557.5 million from $455.7 million in the comparable 2002 quarter and $520.5 million in the fiscal 2003 third quarter.
Analysts were expecting the company to report pro forma earnings per share of 23 cents and revenue of $544 million.
In a strong confirmation of the industry's recovery, Analog Devices said orders for shipment in the next three months rose 30 percent from the immediately preceding quarter.
"We are planning for the recovery that began seven quarters ago for ADI to continue in the first quarter of fiscal 2004," said Jerald Fishman, president and chief executive of Analog Devices, Norwood, Mass., in a statement.
"As a result, we are planning for revenues to grow approximately 5 percent sequentially and for earnings per share to be in the range of 27 cents to 28 cents in the first quarter of fiscal 2004," Fishman said.
The company's latest results included a restructuring charge of $9.2 million associated with the closure of a small optical applications business in Europe, according to Analog Devices.
Restructuring charges in the comparable 2002-quarter were $6.3 million. During that period, the company also took a charge of $2.1 million for investment impairment.