ADI Q3 drops 19%

Net income increased to $121.4 million or 21% of sales for the third quarter, up 3% from $117.6 million in the second quarter. Summarizing the third quarter results by end market, Mr. Fishman said, "Sales to medical, defence and industrial instrumentation customers increased in the third quarter compared to the immediately prior quarter, but were offset by declines in sales to automatic test equipment (ATE) and automotive customers. Overall, the industrial markets totalled approximately 41% of sales in the third quarter. The computer market had the strongest sequential growth in the third quarter and was approximately 16% of sales. Our revenue from consumer customers also increased sequentially and represented 16% of sales in the third quarter. The communications market was generally weak due to lower sales of products used in wireless and broadband applications. Communications customers represented approximately 27% of sales in the third quarter." For the fourth quarter, Analog Devices expects sales to grow sequentially 1 to 4 percent, with earnings per share of 32 to 34 cents.