Printer Friendly


 NORWOOD, Mass., Dec. 1 /PRNewswire/ -- Analog Devices (NYSE: ADI) today announced sales of $666.3 million for the year ended Oct. 30, 1993, 17 percent above fiscal 1992's sales. Net income was $44.5 million, or three times the $14.9 million posted for the prior year. Earnings per share were $0.88, versus $0.31 for fiscal 1992.
 Sales for the fourth quarter were $179.0 million, up 20 percent from the year-earlier period and 3 percent above those for the third quarter. Net income for the fourth quarter was $14.0 million, double that of the fourth quarter last year, and earnings per share were $0.28, up 87 percent from last year's fourth quarter and 17 percent better than those for the third quarter of fiscal 1993.
 Gross margin for fiscal 1993 improved to 47.3 percent of sales compared to the 46.8 percent posted for the prior year. Gross margin for the fourth quarter was 47.4 percent, down slightly from the fourth quarter last year but up slightly from the third quarter of fiscal 1993. Operating expenses for the year were 37.9 percent of sales, down substantially from 42.2 percent for last year. Operating expenses for the fourth quarter were 36.9 percent of sales, marking the ninth consecutive quarter that the operating expense ratio declined.
 Operating profit for the year was 9.4 percent of sales, more than double the 4.6 percent of sales posted last year. Operating profit for the fourth quarter was 10.5 percent of sales, the eighth consecutive quarter that this ratio exhibited quarter-to-quarter improvement.
 "During fiscal 1993 we continued the trend in improved financial performance that we established during fiscal 1992," said Ray Stata, chairman of the board and CEO. "As a result, we not only achieved very favorable year-over-year comparisons, but also established all-time annual records for bookings, sales and profits. We're also pleased to report that bookings, sales and profits for the fourth quarter set all-time quarterly highs.
 "In addition to our improved financial performance," continued Stata, "fiscal 1993 was an especially significant year for Analog Devices because of the progress we made on our strategy of pursuing high- growth opportunities for system-level integrated circuits used in products sold into the computer and communications markets. Sales of system-level ICs exceeded our expectations, growing by more than 70 percent to $175 million, or 26 percent of our total sales. Much of this success came from sales of baseband converters and DSP ICs used as voice signal processors in base stations and handsets used in the pan-European GSM digital cellular telephone system; application-specific standard products for read-channel signal processing and servo head positioning in hard disk drives; and sound codecs and DSP ICs used in sound processing applications in PCs. At the same time, bookings for our standard linear ICs, or SLICs, grew 14 percent, reaffirming our belief that this product line will continue providing Analog Devices a growing, stable profitable base for many years to come."
 "Other significant events that occurred during fiscal 1993," observed Stata, "included the establishment of an RF (radio frequency) group that will focus on developing technology and products to be used in the "front ends" of wireless communications products; an agreement with Media Vision to provide them our DSP and audio codec products; and a grant from the federal government, along with Dragon Systems, that will be used to develop technology designed to implement continuous speech recognition in future generations of personal computing products."
 "Orders, which were strong throughout the year, totaled $698 million," said President and Chief Operating Officer Jerry Fishman. "We're also pleased to report that orders for the fourth quarter reached $183 million, representing a sequential increase of $3 million. We believe that this order pattern provides a clear indication of the market's continuing acceptance of our products.
 "Our improved financial performance for fiscal 1993 was partly due to the sales increase that resulted from our bookings strength, which provided leverage on fixed costs," continued Fishman. "R&D expense grew 7 percent during fiscal 1993, while revenues grew 17 percent. As a result, R&D expense for the year declined to 14.1 percent of sales, down from 15.5 percent for the previous year. We made even more progress on SMG&A expenses, which grew just 5 percent in fiscal 1993. As a result, this ratio declined to 23.8 percent for the year, down from 26.7 percent of sales for fiscal 1992, and it fell to 22.9 percent of sales for the fourth quarter."
 "Fiscal 1993 was a very rewarding year for Analog Devices and its customers, employees and shareholders," concluded Stata. "We believe we can build on this success during fiscal 1994 and make further progress toward model performance by continuing our winning strategy of pursuing key opportunities for system-level ICs in the computer and communications markets, maintaining the growth and profitability of our SLIC business through the introduction of new SLIC products and continued tight expense control to ensure that expenses grow more slowly than sales."
 Analog Devices is a leading manufacturer of precision high-performance integrated circuits used in analog and digital signal processing applications. The company employs approximately 5,300 people worldwide and has manufacturing facilities in Massachusetts, California, North Carolina, Ireland, Japan, the Philippines and Taiwan.
 Analog Devices Supplemental Information
 Fourth Quarter and Fiscal Year 1993
 Sales/Earnings Summary
 Three Months Ended
 Oct. 30, 1993 Oct. 31, 1992 July 31, 1993
 Bookings $183,000 $152,000 $179,980
 Net Sales 179,000 148,819 173,104
 Gross Margin 84,834 71,376 81,726
 Percent of Sales 47.4 pct. 48.0 pct. 47.2 pct.
 Operating Expenses
 R&D 24,954 21,825 24,307
 Selling, Mrktg and G&A 41,075 39,205 40,184
 Total Oper. Expenses 66,029 61,030 64,491
 Operating Income 18,805 10,346 17,235
 Interest Expense, Net 1,341 1,346 1,599
 Other Expense 373 554 375
 Income Before Tax 17,091 8,446 15,261
 Provision for Taxes 3,076 1,400 3,099
 Net Income $14,015 $7,046 $12,162
 Shares used for EPS 50,869 48,215 50,847
 Earnings per Share $0.28 $0.15 $0.24
 Fiscal Year Ended
 Oct. 30,1993 Oct. 31, 1992
 Bookings $697,846 $580,476
 Net Sales 666,319 567,315
 Gross Margin 315,467 265,637
 Percent of Sales 47.3 pct. 46.8 pct.
 Operating Expenses
 R&D 94,107 88,172
 Selling, Mrktg and G&A 158,675 151,293
 Total Oper. Expenses 252,782 239,465
 Operating Income 62,685 26,172
 Interest Expense, Net 5,767 5,109
 Other Expense 1,393 2,098
 Income Before Tax 55,525 18,965
 Provision for Taxes 11,068 4,030
 Net Income $44,457 $14,935
 Shares used for EPS 50,463 47,749
 Earnings per Share $0.88 $0.31
 Selected Balance Sheet Information
 Oct. 30, 1993 Oct. 31, 1992 July 31, 1993
 Cash & Cash Equiv. $80,668 $17,730 $61,231
 Accts Receivable, Net 145,663 111,732 126,229
 Inventories 150,422 142,453 152,416
 Other Current Assets 26,447 25,051 23,628
 Total Current Assets 403,200 296,966 363,504
 PP&E, Net 248,430 237,423 246,113
 Intangible Assets 21,306 23,387 21,819
 Other 5,556 4,091 5,286
 Total Assets $678,492 $561,867 $636,722
 Total Current Liabil. $132,835 $99,562 $101,324
 Long-term Debt 100,000 70,000 100,000
 Non-Curr. Lease Oblig. 297 632 383
 Other Non-Curr. Liabil. 13,342 16,656 18,339
 Stockholders' Equity 432,018 375,017 416,676
 Total Liabil. & Equity $678,492 $561,867 $636,722
 Depreciation and Capital Expenditures
 Three Months Ended
 Oct. 30,1993 Oct. 31, 1992 July 31, 1993
 Deprec. and Amort. $15,874 $14,157 $14,829
 Capital Expenditures $18,148 $17,661 $17,549
 Year Ended
 Oct. 30, 1993 Oct. 31, 1992
 Deprec. and Amort. $59,813 $54,950
 Capital Expenditures $67,155 $65,654
 NOTE: All amounts in thousands except gross margin percent and
 earnings per share
 -0- 12/1/93
 /CONTACT: James O. Fishbeck, director of corporate communications of Analog Devices, 617-461-3282/

CO: Analog Devices ST: Massachusetts IN: CPR SU: ERN

CM-JL -- NE003 -- 9149 12/01/93 10:03 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 1, 1993

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters