Continuing inventory reduction by both our customers and distributors in November and December, coupled with lower capital spending by many of our customers, reduced orders on ADI and that continued the trend that began about 6 or 9 months ago. Nevertheless and happily, order rates and orders began accelerating in January and have continued strong into February, which leads us to believe that our first quarter may represent the sales gross margin and operating margin trough of this cycle for ADI. And we expect to resume growth in our second quarter, which began in early February.We believe that customer and distributor inventories are reaching levels commensurate with the now revised outlooks and many of our larger customers have become marginally more optimistic and are beginning to free up some of their capital budgets. I'll provide a few more specifics on the short-term outlook towards the end of the call.
Analog Devices' CEO Discusses Q1 2012 Results - Earnings Call Transcript
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