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© Analog Devices Electronics Production | February 16, 2011

Analog Devices reports 1Q revenue of USD 729 million

Analog Devices reported a revenue of USD 729 million of the 1Q/2011 (ended January 29, 2011), a decrease of 5% from the immediately prior quarter and an increase of 21% from the same period one year ago.
“ADI delivered solid results in the first quarter, with revenue that was in line with our expectations. Our profitability remained strong as we achieved gross margin of 66.2%, operating margin of 35.6%, EPS from continuing operations of USD 0.66, excluding one-time tax benefit items, and operating cash flow that was 30% of sales. Most importantly, business levels stabilized during the first quarter, giving us confidence that 2011 will be another good year for ADI", said Jerald G. Fishman, President and CEO.

Results of Operations for the First Quarter of Fiscal 2011

- Revenue was USD 729 million, a decrease of 5% from the immediately prior quarter and an increase of 21% from the same period one year ago.

- Gross margin was 66.2% of revenue, compared to 67% of revenue in the immediately prior quarter, and 61.1% of revenue in the same period one year ago.

- Operating expenses were USD 223 million, compared to USD 230 million in the immediately prior quarter, and USD 219 million in the same period one year ago, which included a one-time restructuring charge.

- Operating income from continuing operations was USD 259 million, or 35.6% of revenue, compared to USD 286 million, or 37.1% of revenue, in the immediately prior quarter, and USD 149 million, or 24.7% of revenue, in the same period one year ago, which included a one-time restructuring charge.

- Net cash provided by operating activities was USD 217 million, or 30% of revenue. Capital expenditures were USD 26 million, cash dividends paid were USD 66 million, and approximately USD 114 million was used to repurchase 3.1 million shares of ADI stock during the first quarter of fiscal 2011.

- Cash and short-term investments at the end of the first quarter of fiscal 2011 totaled USD 3.0 billion, compared to USD 2.7 billion at the end of the immediately prior quarter.

- Inventory at the end of the first quarter of fiscal 2011 increased by USD 6 million, or 2%, compared to the immediately prior quarter. Days in inventory was 105 days at the end of the first quarter of fiscal 2011, compared to 100 days at the end of the immediately prior quarter.

Outlook for the Second Quarter of Fiscal 2011

Regarding the outlook for the second quarter of fiscal 2011, Mr. Fishman stated, “Order trends were strong in the first quarter. Our book-to-bill ratio, as measured by end customer bookings, was approximately one and our backlog increased slightly. Importantly, orders from our OEM customers increased above fourth quarter levels. These trends, coupled with input from our largest customers that demand is strong across their end markets, give us confidence that the inventory correction is mostly behind us at ADI."

"As a result, we are planning for second quarter revenue to be in the range of USD 730 - 760 million, flat to up 4% sequentially, and up 9 - 14% on a year-to-year basis. We are planning for our gross margin to increase to approximately 66.5% of sales based on our current mix assumptions, and for our operating expenses to grow in the range of 2 - 3% primarily as a result of the annual salary increase which took effect at the beginning of the second quarter. For the balance of the year, we are planning for expenses to grow slower than revenues. ", he finished in saying.

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