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ANALOG DEVICES POSTS IMPROVED RESULTS FOR SECOND QUARTER OF FISCAL 1992

 ANALOG DEVICES POSTS IMPROVED RESULTS
 FOR SECOND QUARTER OF FISCAL 1992
 NORWOOD, Mass., May 20 /PRNewswire/ -- Analog Devices (NYSE: ADI) today announced record-high sales of $142.9 million for the second fiscal quarter ended May 2, 1992, slightly above last year's second quarter and up 9 percent compared to $131.3 million for this year's first quarter. Net income was $3.9 million, or 8 cents per share, vs. $6.6 million or 14 cents per share for the year-earlier period, and a loss of $1.0 million or 2 cents per share for the immediately prior quarter.
 At $146.9 million, orders for the second quarter also set a record, up 2 percent compared to $143.7 million for last year's second quarter and 10 percent above the $133.2 million posted for the immediately prior quarter.
 Ray Stata, Chairman of the Board and CEO, noted that much of the bookings improvement came from North America, where orders came in 10 percent higher than those for the first quarter. "At over $72 million," he said, "North American orders accounted for nearly 50 percent of total worldwide bookings. We also saw renewed strength in European bookings, which rose more than 15 percent over the first quarter, led by strength in Germany with signs of recovery in both France and the U.K.
 "Orders from Japan declined only slightly compared to the sharp decline that occurred in the first quarter," continued Stata, "but Japan was still down 20 percent from the second quarter a year ago, reflecting the continuing economic difficulties in that part of the world. However, orders from Pacific Rim countries other than Japan increased 35 percent over the first quarter, although from a small base.
 "Approximately 35 percent of our worldwide bookings came through distributors in the second quarter, compared to 32 percent in the first quarter," observed Stata. "Our distribution strategy is working better than expected as our distributors have become familiar with our business and have been trained in our products. We're now seeing signs of increased market share as we make more effective use of this sales channel, and we believe this trend is gaining momentum."
 President and COO Jerry Fishman said, "We're pleased with the progress we made on improving gross margin to 47.0 percent of sales in the second quarter, compared to the abnormally low 44.5 percent we posted for the first quarter. In addition to being aided by higher sales, this ratio improved in direct response to the actions we're taking to improve worldwide manufacturing operations.
 "Specifically," he continued, "we are seeing the benefit of lower wafer costs on our system-level IC products, and we expect further benefit in the third quarter and beyond as shipments of products built using these lower cost wafers become an increasingly larger percentage of our total IC shipments. As a result, we believe we are on target in achieving a continuously improving gross margin ratio each quarter."
 Fishman noted that operating expenses were flat in dollars to last year's second quarter. "Much of the $2 million increase we saw relative to the first quarter," he said, "was due to the one-week holiday shutdown we had during the first quarter. Our R&D and SMG&A ratios both declined in the second quarter for the third consecutive quarter, with the R&D ratio falling to 15.7 percent of sales and the SMG&A ratio to 26.3 percent."
 "Several very positive events occurred during the second quarter in addition to our improved financial results," commented Ray Stata. "We continued to build and strengthen our management team: Ron Bohlin joined Analog as Vice President, Corporate Marketing and Business Development, coming to us from McKinsey and Company. Frank Weigold, previously President and COO at Unitrode, joined Analog to head up the just-formed Transportation and Industrial Products Division, which includes our micro-machined accelerometer. And Brian McAloon, who has been with Analog since 1987, was promoted to Vice President, Sales. In his new role Brian will be responsible for all of Analog's worldwide sales except those in Japan.
 "Also during the second quarter Analog Devices became a member of the Fortune 500, Fortune Magazine's list of the 500 largest U.S.-based industrial corporations. And we were named as the Midsize Semiconductor Supplier-of-the-Year for the second consecutive year by Dataquest, a leading semiconductor market research organization. Ours is the only company to have received this award twice; we're especially pleased to be so honored because this award is determined by customer surveys that rank semiconductor suppliers on on-time delivery, quality, price, technical support and customer service."
 With fiscal 1991 revenues of $538 million, Analog Devices is a Fortune 500 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 Supplemental Information
 Second Quarter, Fiscal 1992
 Sales/Earnings Summary
 Three Months Ended
 May 2, 1992 May 4, 1991 Feb 1, 1992
 Bookings $146,916 $143,672 $133,175
 Net Sales 142,898 142,125 131,306
 Gross Margin 67,128 71,388 58,450
 Percent of Sales 47.0 pct. 50.2 pct. 44.5 pct.
 Operating Expenses
 R&D 22,419 22,012 22,225
 Selling, Mrktg and G&A 37,607 38,732 35,820
 Total Oper. Exp. 60,026 60,744 58,045
 Operating Income 7,102 10,644 405
 Interest Exp. 1,567 1,180 1,361
 Other Expense 365 1,170 316
 Income (Loss) Before Tax 5,170 8,294 (1,272)
 Provision (Credit) for Taxes 1,275 1,742 (300)
 Net Income (Loss) $3,895 $6,552 ($972)
 Shares used for EPS 47,574 47,013 46,881
 Earnings (Loss) per Share $0.08 $0.14 ($0.02)
 Six Months Ended
 May 2, 1992 May 4, 1991
 Bookings $280,091 $281,871
 Net Sales 274,204 275,219
 Gross Margin 125,578 137,975
 Percent of Sales 45.8 pct. 50.1 pct.
 Operating Expenses
 R&D 44,644 43,441
 Selling, Mrktg and G&A 73,427 77,243
 Total Oper. Exp. 118,071 120,684
 Operating Income 7,507 17,291
 Interest Expense 2,928 2,395
 Other Expense 681 1,655
 Income Before Tax 3,898 13,241
 Provision for Taxes 975 2,979
 Net Income $2,923 $10,262
 Shares used for EPS 47,227 46,643
 Earnings per Share $0.06 $0.22
 Selected Balance Sheet Information
 May 2, 1992 May 4, 1991 Feb 1, 1992
 Cash & S.T. Invest. $11,184 $7,352 $8,891
 Accts Receivable, Net 95,500 99,705 96,689
 Inventories 124,265 107,815 121,205
 Other Current Assets 22,392 16,156 22,709
 Total Current Assets 253,341 231,028 249,494
 PP&E, Net 232,579 226,091 230,614
 Intangible Assets 24,433 24,588 24,956
 Other 3,682 5,004 4,836
 Total Assets $514,035 $486,711 $509,900
 Total Current Liabil. $81,769 $99,549 $85,015
 Long-term Debt 58,315 20,486 54,155
 Non-Curr. Lease Oblig. 791 1,093 869
 Other Non-Curr. Liab. 14,705 13,906 15,350
 Stockholders' Equity 358,455 351,677 354,511
 Total Liab. & Equity $514,035 $486,711 $509,900
 Depreciation and Capital Expenditures
 Three Months Ended
 May 2, 1992 May 4, 1991 Feb 1, 1992
 Deprec. and Amort. $13,499 $12,845 $13,309
 Capital Expenditures $15,601 $13,907 $18,989
 Six Months Ended
 May 2, 1992 May 4, 1991
 Deprec. and Amort. $26,808 $25,873
 Capital Expenditures $34,590 $28,540


NOTE: All amounts in thousands except gross margin percent
 and earnings per share
 -0- 5/20/92
 /CONTACT: James O. Fishbeck, Director of Corporate Communications, 617-461-3282.
 (ADI) CO: Analog Devices ST: Massachusetts IN: CPR SU: ERN


SH -- NE002 -- 2286 05/20/92 11:08 EDT
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