I would like to point out that there were 14 weeks of activity in the first quarter of fiscal 2012, that compares to a typical 13 weeks in a quarter. From time to time during today's conference call, we will point out the impact of this additional week on historical and projected trends.The 14-week quarter occurs because ADI follows a fiscal year calendar of 52 weeks per year. As a result, there is an extra week approximately every fifth or sixth year, and to adjust for that one day difference between our fiscal year and the typical 365-day calendar year. Finally, I'd ask you to please note that the information that we're about to discuss includes forward-looking statements, intended to qualify for the Safe Harbor from liabilities 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 which was filed today. 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 include time-sensitive information that may be accurate only as of the date of the live broadcast, which is February 22, 2012. With that, I'll turn the call over to opening remarks from our CEO, Jerry Fishman. Jerald G. Fishman Well good afternoon to everybody. As you can tell from our press release, our revenues in the first quarter totaled about $648 million, which was a decline of 9.5% sequentially and 11% year-over-year. And although within the range we provided last quarter, it was at the lower end of that guidance range.
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. In the first quarter, our sales, into virtually every end market except automotive, declined sequentially and year-over-year. In the first quarter, automotive sales actually increased 6% sequentially and 26% year-over-year as ADI continued to benefit from increased ADI dollar content per vehicle and increased vehicle unit sales worldwide. We would expect that our automotive sales to remain strong in our second quarter. Industrial revenues declined 8% sequentially in Q1 for the third consecutive quarter of declines. The decline was very broad-based across customer tiers and geographies and of course industrial automation, energy instrumentation and health care applications. As has been the case now for several quarters, order rates from industrial customers appear to be well below consumption rates for our products for the first 2 months of our first quarter, but have recently been showing some good signs of improvement, which of course is very welcome news for us, since the industrial market represented 45% of our revenues in Q1 and remains our highest margin business. Based on these trends, we expect that industrial revenues will increase in the second quarter after now 3 quarters of sequential decline. Read the rest of this transcript for free on seekingalpha.com