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Profit Doubles at Analog Devices

The chipmaker also guides above analysts' third-quarter estimates.
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Analog Devices' (ADI) - Get Analog Devices Inc. Report second-quarter profit more than doubled as the company saw demand accelerate during the three-month period.

The semiconductor company said net income rose to $152.6 million, or 39 cents a share, from $71.3 million, or 19 cents a share, a year earlier.

Revenue rose 35% to $678.5 million from $501.9 million a year ago.

Both earnings per share and revenue beat a Thomson First Call consensus analyst estimate that called for earnings of 35 cents a share on revenue of $662 million.

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In addition, Analog said it expects third-quarter earnings of 43 cents to 45 cents a share on revenue of $725 million to $745 million, well above analysts' estimates of 38 cents a share on $695.5 million.

The company said it saw second-quarter growth across each of its major end-markets. The highest growth came from consumer electronics and from the industrial market, which represents a wide range of customers designing factory automation systems, test equipment, medical electronics and scientific instrumentation. Analog also experienced "good" revenue growth from the communications and computer markets.

Analog said the strongest revenue growth was from North America, but Europe, Japan, and the rest of Asia also had "good" growth.

Gross margins rose to 59.2% of sales in the second quarter, a 210-basis point improvement over the 57.1% achieved a year ago. In addition, operating expenses as a percentage of sales decreased to 31.5%, a sequential improvement of 150 basis points. As a result, operating margins rose sequentially by 360 basis points to 27.7% of sales.