Analog sales, profits up

SAN FRANSICO: Contrary to consensus analyst expectations, Analog Devices Inc. saw sales for the quarter ended July 31 growing by 46 per cent year-to-year,  revealed the company.

ADI posted sales for the quarter amounting to $720 million, up 8 per cent compared to the previous quarter and up 46 per cent compared to the year-ago quarter. Net income for the quarter was $199.5 million, up 19 p.c compared to the previous quarter and up 205 p.c compared with the same period of 2009.

According to Yahoo Finance, analysts had expected an average sales posting of  $702 million for the quarter. However, the company had a strong third quarter, delivering sequential sales growth of 8 percent. The largest increases took place in the industrial and communications infrastructure markets, say ADI sources.

The sources affirmed that ADI maintains good control over lead times in the quarter, with 98 percent of shipments occurring within eight weeks and that they are fully able to maintain this level of service and can meet any additional upside in demand while keeping lead-times short.

They also stated that with this higher opening backlog entering the company's fourth quarter of fiscal 2010, ADI expects revenue growth for the quarter to be between $740 million and $770 million.