Analog Devices Sees Orders Strengthening

Analog Devices (ADI-NYSE) Revenue $692 million, including $35 million technology license fee; Q1 Diluted EPS: $0.44 GAAP and $0.40 non-GAAP.  Estimates were $0.41 EPS & $652 million revenues.  Gross margin for the first quarter was (Non-GAAP) 59.0% of product revenue, down from 59.2% last year and down from 59.4% last quarter.

OUTLOOK: Non-GAAP diluted EPS is planned to be $0.37 to $0.42.  Revenue for the second quarter is planned to be approximately $640 to $670 million and Non-GAAP gross margins are planned to be approximately 58.5% to 59% of revenue. ESTIMATES ARE $0.42 and $660.75 million.

Jerald Fishman CEO said: "Orders from customers and distributors began strengthening in January and have continued to be strong, which we believe is a positive sign of improving industry conditions.  Therefore, we are planning for good growth in our second fiscal quarter."

The street must have been braced for atrocious numbers because shares are up 4.9% in after-hours at $34.95, and that is after closing up 1% at $33.32 in regular trading.  The 52-week range is $26.07 to $39.81.  It is good to see a chip stock that can actually trade higher after earnings, but these guys could sure use a name change.

Jon C. Ogg
February 21, 2007