Printer Friendly

ANALOG DEVICES POSTS 1991 REVENUES OF $538 MILLION, EARNINGS OF $8.2 MILLION

 ANALOG DEVICES POSTS 1991 REVENUES OF $538 MILLION,
 EARNINGS OF $8.2 MILLION
 NORWOOD, Mass., Dec. 4 /PRNewswire/ -- Analog Devices (NYSE: ADI) today announced sales of $537.7 million for the year ended Nov. 2, 1991, 11 percent above the prior year. Fiscal 1990 included only 12 weeks of revenues from Precision Monolithics, which was acquired by Analog in August 1990. Sales for the fourth quarter were $132.3 million, below the $138.5 million posted for the year-earlier period, but up from the third quarter's $130.3 million.
 Net income for the year was $8.2 million, or 17 cents per share. This compares to a net loss of $12.9 million for fiscal 1990, or 28 cents per share. Net income for fiscal 1991 was adversely impacted by a $7 million restructuring charge taken in the fourth quarter, which resulted in a $2.7 million or 6 cents per share loss for the quarter. Last year's fourth quarter included an $18.5 million restructuring charge and a $12 million reserve taken against the company's ADE venture capital portfolio.
 Gross margin for the fourth quarter was 48.5 percent of sales, compared to 47.0 percent for the year-earlier period, which included a one-time $3.0 million inventory adjustment related to the PMI acquisition, but equal to the immediately preceding quarter's gross margin ratio. Gross margin for the year was 49.3 percent, down slightly compared to the prior year's 49.7 percent. Operating expenses as a percent of sales -- exclusive of restructuring charges -- were 44.9 percent for the fourth quarter, vs. 44.4 percent for the fourth quarter a year ago and 46.7 percent for the immediately-prior quarter.
 Operating profit for the fourth quarter was 3.5 percent of sales, exclusive of the restructuring charge. With the restructuring charge included, Analog recorded a $2.3 million operating loss for the fourth quarter.
 "Fiscal 1991 was a year of significant change for Analog Devices in terms of positioning the company for a successful future," said Ray Stata, chairman and chief executive officer, "even though our financial results did not show as much improvement as we had hoped. We had targeted better bottom line performance through a combination of increased revenues and reduced costs, and while we did both, the semiconductor industry's decline in the second half of the year held revenue growth below our plans. Analog's linear IC bookings showed a very strong increase in the first half of the fiscal year, but softened in the second half, much in line with overall trends in the linear IC market. Our older assembled products declined approximately 19 percent year-to-year due to a combination of life cycle and economic effects. "Nonetheless," he continued, "we made substantial progress during the year in restructuring the company to prepare it for the challenges of the '90s. We successfully integrated Precision Monolithics into Analog's semiconductor operations, consolidated four divisions into the Industrial Electronics Division, combined two divisions to form the System IC Products Division, placed all of Analog's standard IC products in distribution in the U.S. and Canada, set up a European sales headquarters in Munich, Germany, and established centralized distribution in Europe.
 "On Nov. 4th, the board of directors, with my enthusiastic recommendation and support, elected Jerry Fishman, who had been executive vice president, to the position of president and chief operating officer, reporting to me," noted Stata. "On that same day, Joe McDonough became Analog's chief financial officer following Joe Hinchey's retirement. Tom Urwin, vice president of manufacturing, was elected an officer of the corporation, and eight senior managers were promoted to vice president. Finally, Senior Vice President Mel Sallen stepped down as an officer of the corporation in anticipation of his retirement in 1992. Collectively, these management changes have put in place the next generation of leadershipat Analog Devices."
 Jerry Fishman said, "Given lower-than-planned revenues for the fourth quarter and continuing concern about industry prospects for at least the first part of 1992, we have decided to continue our aggressive restructuring program in order to further reduce our fixed expense base and mitigate inflationary cost increases. These additional programs will focus on further streamlining our sales and administration functions in support of our goal to reduce S,G&A expenses to a level closer to industry standards, and on improvements in our manufacturing operations, including increased use of offshore manufacturing. The $7 million restructuring charge taken in the fourth quarter, when fully implemented, is expected to provide annual cost savings at least equal to the restructuring charge."
 Regarding the near-term outlook, Jerry commented, "The decline in bookings experienced by both Analog Devices and the entire linear IC industry beginning last April appears to have bottomed out during the fourth fiscal quarter. In fact, we saw a distinct rise in domestic bookings in October across all product lines, although it came too late to significantly impact fourth quarter sales. Bookings from Europe were down slightly quarter-to-quarter. Orders from Japan were essentially flat to the third quarter, although they grew approximately 20 percent year-over-year, excluding orders for PMI products. "We're encouraged that the upward trend in domestic bookings that started in October has continued thus far in the first quarter of fiscal 1992," Fishman noted, "and that bookings from Europe picked up in November after declining in each of the two previous quarters. Furthermore, many of our special-purpose mixed-signal and DSP products have met with considerable market success, and we expect them to contribute significantly to ADI's fiscal 1992 results. Finally, we anticipate that by mid-'92 the impact of our move into distribution, which was negative in fiscal 1991 due to the high percentage of converted customers rather than new customers, will begin to make a positive contribution to both sales growth and profits."
 Ray Stata concluded by saying, "Analog's below-par operating profits in recent years have resulted primarily from the large investments that have been made to diversify the company's business. That is, we have been expanding our traditional focus on standard linear function ICs such as op amps and data converters used in military and industrial applications to include much more complex, market- and application-specific ICs aimed at much faster-growing markets. We believe that these markets, including computer peripherals, communications equipment, high-end consumer products and automobiles, will continue to provide us with a broad range of high-growth opportunities that will prove to be an excellent match for our evolving mixed-signal VLSI capability. During fiscal 1992 and 1993 we will focus on those specific opportunities where we believe we have a clear competitive advantage that will allow us to maintain market leadership and achieve profitable, long-term growth."
 Analog Devices is a leading manufacturer of precision high-performance integrated circuits used in analog and digital signal processing applications. The company employs approximately 5,200 people worldwide and has manufacturing facilities in Massachusetts, California, North Carolina, Ireland, Japan, the Philippines and Taiwan.
 ANALOG DEVICES
 Sales/Earnings Summary
 Three Months Ended
 Nov 2, 1991 Nov 3, 1990 Aug 3, 1991
 Bookings $136,307 $138,749 $134,311
 Net Sales 132,258 138,477 130,261
 Gross Margin 64,126 65,152 63,213
 Percent of Sales 48.5 pct 47.0 pct 48.5 pct
 Operating Expenses
 R&D 22,939 22,210 22,621
 Selling, Marketing & G&A 36,507 39,263 38,186
 Total Oper. Exp. 59,446 61,473 60,807
 Restructuring Exp. 7,000 18,510 0
 Operating Income (Loss) (2,320) (14,831) 2,406
 Interest Expense, Net 1,008 886 764
 Other Expense 1,120 12,683 1,053
 Income (Loss) Before Tax (4,448) (28,400) 589
 Provision (Credit) Taxes (1,800) (4,780) 0
 Net Income (Loss) ($2,648) ($23,620) $589
 Shares used for EPS 47,065 46,611 47,192
 Earnings (Loss) per Share ($0.06) ($0.51) $0.01
 Year Ended
 Nov 2, 1991 Nov 3, 1990
 Bookings $552,489 $484,391
 Net Sales 537,738 485,214
 Gross Margin 265,314 240,960
 Percent of Sales 49.3 pct 49.7 pct
 Operating Expenses
 R&D 89,001 80,306
 Selling, Marketing, G&A 151,936 135,926
 Total Oper. Exp. 240,937 216,232
 Restructuring Exp. 7,000 18,510
 Operating Income 17,377 6,218
 Interest Expense, Net 4,007 360
 Other Expense 3,988 19,421
 Income (Loss) Before Tax 9,382 (13,563)
 Provision (Credit) Taxes 1,179 (650)
 Net Income (Loss) 8,203 ($12,913)
 Shares used for EPS 46,886 46,943
 Earnings (Loss) per Share $0.17 ($0.28)
 Selected Balance Sheet Information
 Nov 2, 1991 Nov 3, 1990 Aug 3, 1991
 Cash & S.T. Invest. $16,532 $8,287 $10,545
 Accts Receivable, Net 95,104 97,592 90,310
 Inventories 117,066 107,647 110,414
 Other Current Assets 20,184 18,874 14,747
 Total Current Assets 248,886 232,400 226,016
 PP&E, Net 223,962 223,862 226,201
 Intangible Assets 25,833 25,837 24,383
 Other 4,636 5,089 5,044
 Total Assets $503,317 $487,188 $481,644
 Total Current Liabil. $97,000 $106,346 $85,184
 Long-term Debt 35,874 22,808 25,630
 Non-Curr. Lease Oblig. 945 1,321 1,019
 Other Non-Curr. Liab. 15,053 13,989 13,993
 Stockholders' Equity 354,445 342,724 355,818
 Total Liab. & Equity $503,317 $487,188 $481,644
 Depreciation and Capital Expenditures
 Three Months Ended
 Nov 2, 1991 Nov 3, 1990 Aug 3, 1991
 Deprec. and Amort. $13,502 $14,169 $13,330
 Capital Expenditures $10,994 $12,335 $12,736
 Year Ended
 Nov 2, 1991 Nov 3, 1990
 Deprec. and Amort. $52,705 $46,776
 Capital Expenditures $52,270 $39,029
 ----
 NOTE: All amounts in thousands except gross margin percent and earnings per share.
 Fiscal 1991 totaled 52 weeks, vs. 53 weeks for fiscal 1990.
 -0- 12/4/91
 /CONTACT: James O. Fishbeck, director of corporate communications, Analog Devices, 617-461-3282/
 (ADI) CO: Analog Devices ST: Massachusetts IN: CPR SU: ERN


SH -- NE007 -- 9240 12/04/91 13:20 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 4, 1991
Words:1676
Previous Article:DELTA AIR OUTLINES PAN AM TICKET ACCEPTANCE PROCEDURES
Next Article:FORD DIVISION REPORTS 10-DAY SALES
Topics:


Related Articles
ANALOG DEVICES POSTS 1991 REVENUES OF $538 MILLION, EARNINGS OF $8.2 MILLION
LATTICE SEMICONDUCTOR ANNOUNCES THIRD-QUARTER RESULTS; REVENUES UP 21 PERCENT, NET INCOME UP 41 PERCENT
ANALOG DEVICES POSTS IMPROVED RESULTS FOR SECOND QUARTER OF FISCAL 1992
ANALOG DEVICES POSTS RECORD-HIGH QUARTERLY SALES AND ORDERS; EARNINGS SHOW CONTINUED IMPROVEMENT
ANALOG DEVICES' SALES UP 14 PERCENT; NET INCOME RISES 160 PERCENT
ANALOG DEVICES' EARNINGS RISE 68% ON 16% SALES GAIN; THREE-FOR-TWO-STOCK SPLIT DECLARED
ANALOG DEVICES' FIRST QUARTER EARNINGS INCREASE 55% ON 15% SALES INCREASE
ANALOG DEVICES REPORTS PRELIMINARY RESULTS FOR FOURTH QUARTER
ANALOG DEVICES' EARNINGS RISE 60% ON 22% SALES GAIN; THREE-FOR-TWO STOCK SPLIT DECLARED
Analog Devices Posts Sequentially Improved Results; Sees Demand Continuing to Stengthen

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters