By Micah Maidenberg

 

Analog Devices Inc. said demand from industrial clients and customers tied to the communications sector helped to drive growth during its latest quarter, but revenue still slipped 2% overall as the global economy continued to wrestle with the coronavirus.

Analog reported $1.46 billion in revenue for its fiscal third quarter that ended Aug. 1, just ahead of the $1.45 billion that the company said last month it expected at the midpoint for the period, but down 2% versus the same quarter last year.

Profit was flat at $362.7 million, or 97 cents a share, compared with $362.4 million, or 97 cents a share, a year earlier. Adjusted earnings, which excludes costs tied to acquisition, rose to $1.36 a share, or 3 cents more than the forecast it released last month for that metric at the midpoint.

The semiconductor industry was buffeted by the broader economic downturn caused by the spread of the coronavirus. Chip maker Texas Instruments Inc. in April said it would build up inventory as it waited for a recovery. Cree Inc. said yesterday that revenue slipped 18% for its latest quarter.

Last month, Analog Devices boosted its financial guidance for its fiscal third quarter, stating then that it had seen stronger-than-expected demand and fewer cancellations of orders from customers.

"Revenue growth was led by strength across our industrial and communications markets," Chief Executive Vincent Roche said on Wednesday.

Analog in July said it would buy Maxim Integrated Products Inc. for more than $20 billion, an all-stock deal that would value the future combined company at about $68 billion.

That transaction would combine the second- and third-biggest companies making analog chips, which are used in power management systems and other products.

 

Write to Micah Maidenberg at micah.maidenberg@wsj.com

 

(END) Dow Jones Newswires

August 19, 2020 08:36 ET (12:36 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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