Analog Devices Announces Financial Results For Third Quarter 2008
Analog Devices, Inc. announced financial results for the third quarter of fiscal 2008, which ended August 2, 2008. Revenue for the third quarter of fiscal 2008 was $659 million, an increase of 1.5% from the immediately prior quarter and 7% from the same period one year ago. Gross margin for the third quarter of fiscal 2008 was $402 million, or 61.0% of revenue, compared to $396 million, or 61.0% of revenue, in the immediately prior quarter, and $373 million, or 60.5% of revenue, for the same period one year ago.
Operating income from continuing operations for the third quarter of fiscal 2008 was $161 million, or 24.5% of revenue, compared to $157 million, or 24.2% of revenue, in the immediately prior quarter, and $145 million, or 23.6% of revenue, in the year ago period.
Diluted earnings per share (EPS) from continuing operations for the third quarter of fiscal 2008 was $0.44, consistent with $0.44 in the immediately prior quarter, and a 16% increase from $0.38 in the same period a year ago. Diluted EPS from discontinued operations for the third quarter of fiscal 2008 was $0.03.
The Board of Directors declared a cash dividend for the third quarter of fiscal 2008 of $0.20 per outstanding share of common stock which will be paid on Sept. 17, 2008 to all shareholders of record at the close of business on August 29, 2008. Net cash provided by operating activities in the third quarter of fiscal 2008 was $196 million, or 30% of revenue. Capital expenditures for the third quarter of fiscal year 2008 totaled $39 million, or 6% of revenue. Cash dividends paid during the third quarter of fiscal 2008 totaled $58 million. Share repurchases of ADI common stock during the third quarter of fiscal 2008 totaled $28 million.
Cash and short-term investments at the end of the third quarter of fiscal 2008 totaled approximately $1.3 billion. Inventory at the end of the third quarter of fiscal 2008 decreased by 3% compared to the immediately prior quarter. Days cost of sales in inventory was 110 days at the end of the third quarter of fiscal 2008, compared to 115 days at the end of the immediately prior quarter. Accounts receivable at the end of the third quarter of fiscal 2008 decreased by 2% compared to the immediately prior quarter, with days sales outstanding declining from 47 days to 45 days.
"The third quarter was another solid quarter for ADI. As planned, we delivered growth while sustaining our target gross margin, and continued to expand our operating margin in line with our long-term model," said Jerald G. Fishman, President and CEO. "The strength of our business, particularly given general economic conditions, reflects the importance of our broad diversification and leading position in markets where customers highly value innovation that helps differentiate their products."
