Sector: Technology|Industry: Semiconductors|Market Cap: $107.50B|Employees: 24K
Analog Devices, Inc. is a leading global semiconductor company providing solutions for various applications by designing, manufacturing, and marketing high-performance analog, mixed-signal, and digital signal processing technologies. The company's core business model centers around integrated circuits (ICs), software, and subsystems, generating revenue from diverse end markets such as industrial, automotive, communications, and consumer sectors. Analog Devices holds a strong market position due to its technological innovation, customer-centric approach, and deep domain expertise.
Revenue decreased by 4% to $2.42 billion, primarily due to one less week of operations in the current quarter compared to the prior year and customer inventory reductions. The Industrial end market decline is also due to the continued reduction in customers' inventory balances.
Net income decreased to $391.3 million, a 15% decrease compared to the prior year. This was driven by a $94.7 million decrease in operating income, partially offset by a $16.8 million decrease in nonoperating expense (income) and a $6.4 million decrease in provision for income taxes.
Gross margin percentage increased by 30 basis points to 59.0%, primarily due to a decrease in amortization expense related to acquired intangible assets. This improvement occurred despite a 4% decrease in revenue.