Analog Devices Inc, Norwood, Massachusetts-based maker of integrated circuits for analog and digital signal processing applications, has reported third-quarter net income of $54.6m on revenue up 28.1% at $378.8m, compared to net income of $9.1m in the year-ago quarter. Earnings per share for the quarter rose to $0.30, beating the First call consensus by a penny, from $0.06 a year ago. Results for the year-ago period include a restructuring charge of $17m and a $3.6m equity loss.
The company said orders continued to strengthen throughout the quarter and backlog increased by well over $50m. As a result, it began the fourth fiscal quarter with over 75% of the quarter’s anticipated revenues in backlog. Analog IC revenues increased 8% sequentially, following a 14% sequential rise in the second quarter, while revenues for DSP products grew 30% sequentially, and were up 85% year-over-year. Revenues from communications OEMs grew 30% sequentially and now account for about 40% of total OEM sales.
Gross margin for the quarter was 49.7% of sales, up from 45.3% a year ago and 48.1% in the preceding quarter. As a result of the margin improvement and sales growth, operating profit improved to $67m or 17.6% of sales, up from 15.5% last quarter. For the nine- month period, net income rose 120% to $123.6m on revenue up 9.3% at 1.02bn, while EPS rose 106% to $0.70. Six-month results include a $5.1m acquisition-related charge and year-ago results include $31m in one-time charges and a $13.1m gain on the sale of a business, as well as a net negative effect of $37.1m from a change in accounting principles.
