SAN FRANCISCO—Analog Devices Inc. (ADI) Monday reported sales for the quarter ending Oct. 30 that beat consensus analysts' expectations, but the company said it expects sales to decline sequentially in the current quarter.
Jerald Fishman, ADI's president and CEO, said through a statement that order patterns at ADI weakened in August and September, but recovered substantially in August. "Overall, customer feedback indicates that end demand remains strong in most end markets," Fishman said. "In this environment, we would expect to operate with less backlog and higher turns during the [fiscal] first quarter."
For the first quarter of ADI's fiscal 2011, which closes in late January, the company expects revenues to decline 4 to 7 percent sequentially to between $715 million and $740 million. Fishman said the guidance is " indicative of typical industrial seasonality coupled with potentially lower consumer demand."
For the fourth quarter of fiscal 2010, ADI reported sales of $770 million, up 7 percent compared with the previous quarter and up 35 percent compared with the fourth quarter of fiscal 2009. ADI reported a net income in accordance with generally accepted accounting principles (GAAP) for the quarter of $225 million, up 13 percent compared with the previous quarter and up 113 percent compared with the year-ago quarter.
Consensus analysts' expectations called for ADI to report sales for the quarter of about $756 million, according to Yahoo Finance.
“The fourth quarter culminated a very strong year for ADI in which we achieved record revenue, profitability, and cash flow," Fishman said.
For its fiscal 2010, which also closed on Oct. 30, ADI posted revenue of $2.8 billion, up 37 percent from $2 billion in fiscal 2009. The company reported a net income for the fiscal year of $712.1 billion, up 187 percent compared to fiscal 2009.
Also Monday, ADI (Norwood, Mass.) said that an administrative law judge with the U.S. Trade Commission has concluded that patents that Knowles Electronics has accused ADI of violating were invalid. The ruling means that ADI should not be prohibited from importing or selling its microphones, the company said.
ADI expects the ITC judge to issue a ruling in early January on a separate complaint brought by ADI against Knowles.
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