Analog Devices Announces Financial Results For Fourth Quarter & Fiscal Year 2007
Analog Devices, Inc. announced financial results for the fourth quarter of fiscal 2007, which ended November 3, 2007. Revenue from continuing operations in the fourth quarter of fiscal 2007 increased to $648.5 million, an increase of approximately 6% compared to the same period one year ago and an increase of approximately 2% compared to the immediately prior quarter. Revenue in the fourth quarter excluded $50.3 million from discontinued operations.
"The fourth quarter was a solid quarter for ADI," said Jerald G. Fishman, President and CEO. "Revenue and earnings were in line with our expectations for the quarter. We are entering 2008 with a better balanced product portfolio, capable of good growth and strong profit leverage."
Revenue growth during the fourth quarter was highest for consumer products, which grew by 17% compared to the same period one year ago and grew sequentially by 11%. Sequential growth was driven by very strong sales growth from products used in digital cameras and digital TVs. Revenue from consumer products represented 23% of revenue in the fourth quarter.
Industrial customer revenue represented 46% of revenue in the fourth quarter, increased 4% compared to the same period one year ago, and was approximately equal to the immediately prior quarter. On a sequential basis, revenue within the industrial category increased for the automotive and the defense end markets, decreased for semiconductor automatic test equipment (ATE), and was unchanged for the broad base of industrial customers.
By geographic region, revenue for the fourth quarter increased sequentially in Europe by 9%, in North America by 4%, and in Japan by 5%. Revenue decreased in China by 14%, following very strong sequential growth in the prior quarter, and was relatively unchanged in the rest of Asia Pacific.
Gross margin from continuing operations in the fourth quarter of fiscal 2007 was $379 million, or 58.4% of revenue. Gross margin declined sequentially by 50 basis points due to strong sequential revenue growth from products used in consumer and computer applications, which in aggregate have gross margin below the company average, and sequential revenue declines from products used in semiconductor automatic test equipment (ATE) and communications base station and networking applications, which have gross margin above the company average.