A recording of this conference call will be available today, within about 2 hours of this call's completion, and will remain available via telephone playback for one week. This webcast will also be archived at our IR website. Participating in today's call are Jerry Fishman, President and CEO; Dave Zinsner, Vice President of Finance and CFO; Robbie McAdams, Vice President of Core Products and technologies; and Vincent Roche, Vice President of Strategic Market Segments and Worldwide Sales.During the first part of the call, Jerry and Dave will present our fourth quarter and full year 2011 results, as well as our short-term outlook. The remainder of the time will be devoted to answering questions from our analysts and investor participants. During today's call, we may refer to non-GAAP financial measures that have been adjusted for certain nonrecurring items, in order to provide investors with useful information regarding our results of operations and business trends. We have included reconciliations of these non-GAAP measures, to the most directly comparable GAAP measures in today's earnings release, which is posted on the IR website. In addition, we have updated the schedules on our IR website, which include the historical quarterly and annual summary of P&Ls for continuing operations, as well as historical quarterly and annual information called revenue from continuing operations by end markets and product type. Please note that effective Q4, we changed the revenue classifications of our handset and computer businesses. Our headset revenues, previously included in communications, has been moved to consumer, which is aligned with how this business is managed internally. As a result, our communications revenue category, now consists solely of comms infrastructure, which is also aligned with our internal management of this business. In addition, we folded our computer business, too small to be broken out on its own, into consumer, which have most resembled in terms of market dynamics, products and in some cases, customer.
On our latest web schedules we restated the last 12 fiscal quarters to reflect these changes. Next, I'd ask you to please note that the information we're about to discuss, includes forward-looking statements intended to qualify for the Safe Harbor from liability, established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include risks and uncertainties, and our actual results could differ materially from those we will be discussing. Factors that could contribute to such differences include, but are not limited to those described in our SEC filings, including our most recent quarterly report on Form 10-Q.The forward-looking information that is provided on this call, represents our outlook as of today, and we do not undertake any obligation to update the forward-looking statements made by us. Subsequent events and developments may cause our outlook to change. Therefore, this conference call will have some time-sensitive information, that may be accurate only as of the date of the live broadcast, which is November 21, 2011. With that, I'll turn the call over to ADI's CEO, Jerry Fishman. Jerald G. Fishman Well, good afternoon and thanks for joining us on today's call. As you read in this afternoon's earnings release, ADI's revenues for Q2 were about $716 million, which was down $0.60 sequentially, and 7% year-over-year, and at the low end of the guidance that we've provided to you last quarter. Our sequential revenue decrease was primarily, the result of declines in industrial and communications sector revenues. Our Q4 revenues in automotive increased sequentially, and consumer revenues was seasonally stronger than in Q3. For the year, our total revenues increased 8.4% to just about $3 billion. Although our full year revenue was right on our plan for our fiscal 2011, the quarter-to-quarter volatility was very pronounced, mostly as a result of industry supply imbalances, that dominated the landscape through much of the year, along with European sovereign debt and U.S. deficit concerns that have been more recently concerns in the market, and have created industry-wide uncertainty, in virtually every geography.
Perceived supply disruptions early in the year, quickly turned into excess inventory, at customers and distributors in the second half of the year. As a result, early in the year, order rates for our products were well above consumption rates, and in the second half of the year, order rates appeared to be well below consumption rates. While we have too many years in this business, we see it's very unusual for order rates to very closely match consumption, in any particular period. 2011 was extreme, and that excess demand turned into excess supply so quickly.Despite the volatility during 2011, ADI had a very good year in aggregate. As I mentioned earlier, revenues grew in line with our long-term model, and reached just about $3 billion for the first time in our history. Gross margin increased once again to 66.4% for the year, and operating expenses grew only 2% on an 8.4% sales increase. As a result, our non-GAAP diluted earnings grew to $2.72, which is a 15% increase from the prior year. Read the rest of this transcript for free on seekingalpha.com