This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Analog Devices Management Discusses Q2 2012 Results - Earnings Call Transcript

The industrial end markets, which are typically seasonally strong for ADI in the second quarter turned even better performance than we had planned and grew about 12% sequential. All of the major application areas within industrial grew sequentially, and it was led by over 20% sequential growth in both instrumentation and in energy.

Health care and industrial automation, which includes process control, as well as defense, aerospace and security, also grew sequentially in the second quarter.

In general, indications in the industrial market are that customers have stopped depleting inventory and our current orders more closely matched consumption levels, certainly much more closely than had been the case over the last few quarters.

In the industrial market, ADI is well recognized as the best brand amongst the wide range of industrial applications, and many of these applications we now believe have the potential for above market growth rates in the future.

Revenues also increased sequentially from communications infrastructure customers, as both wired and wireless applications grew about 3% sequentially. Communications order rates began very slowly in the early parts of Q2, but improved significantly toward the end of the quarter.

For the past few quarters, operators have worked to increase capacity at minimal cost by implementing software upgrades rather than hardware upgrades. But to date, networks in many regions of the world are very much overloaded, and operators find it difficult to respond to significantly higher bandwidth requirements from applications, such as streaming video by using existing equipment. As a result of new equipment upgrade cycles, ADI's leading technology portfolio and very strong customer relationships with the largest market shareholders in the infrastructure market, we expect our sales into communications applications to grow throughout the second half of our fiscal year and also into 2013.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,598.20 -91.66 -0.52%
S&P 500 2,098.04 -5.80 -0.28%
NASDAQ 5,115.3820 -12.8990 -0.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs