Analog Devices Inc. announced that its quarter-by-quarter revenues were down 4% in the third quarter of fiscal 2011, compared to the previous quarter. Despite the downturn, revenues were up 5% compared to the same quarter last year.
"After an unusually robust second quarter in which our revenue grew by 9% sequentially, revenue in the third quarter declined by 4% on a sequential basis while increasing 5% year-over-year," said Jerald G. Fishman, President and CEO. "Nevertheless, most end markets remained relatively stable during the third quarter and we believe that most of the revenue shortfall was the result of supply chain recalibration, not a change in underlying demand."
The company reported a gross margin of 67.2%, operating margin of 36.8%, diluted EPS of $0.71, and operating cash flow of $257 million.
According to Fishman, "The third quarter results were mostly influenced by what we believe were temporary issues. That being said, we are concerned that growing uncertainty about the global economy could cause our customers to become more cautious in the short term and that could reduce our revenue in the fourth quarter. This is, of course, difficult to precisely forecast. Therefore, our guidance for the fourth quarter has a wider range than is typical for ADI."
