Analog Devices announced financial results for the fourth quarter of fiscal 2007, which ended November 3, 2007. Revenue from continuing operations in the fourth quarter of fiscal 2007 increased to $648.5 million, an increase of approximately 6% compared to the same period one year ago and an increase of approximately 2% compared to the immediately prior quarter. Revenue in the fourth quarter excluded $50.3 million from discontinued operations.
Revenue growth during the fourth quarter was highest for consumer products, which grew by 17% compared to the same period one year ago and grew sequentially by 11%. Sequential growth was driven by very strong sales growth from products used in digital cameras and digital TVs. Revenue from consumer products represented 23% of revenue in the fourth quarter. Industrial customer revenue represented 46% of revenue in the fourth quarter, increased 4% compared to the same period one year ago, and was approximately equal to the immediately prior quarter. On a sequential basis, revenue within the industrial category increased for the automotive and the defense end markets, decreased for semiconductor automatic test equipment (ATE), and was unchanged for the broad base of industrial customers. Communications customer revenue represented 21% of revenue in the fourth quarter, increased 9% from the same quarter last year, and declined sequentially by 7%. After strong growth last quarter, revenue from base station and networking customers declined sequentially. Computer customer revenue was 10% of revenue in the fourth quarter and declined 8% from the same quarter last year. Revenue from computer customers grew 13% sequentially, in-line with industry trends.
By geographic region, revenue for the fourth quarter increased sequentially in Europe by 9%, in North America by 4%, and in Japan by 5%. Revenue decreased in China by 14%, following very strong sequential growth in the prior quarter, and was relatively unchanged in the rest of Asia Pacific.
Operating profit and net cash
Operating profit from continuing operations for the fourth quarter of fiscal 2007 totaled $121 million, or 18.7% of revenue. Operating profit was reduced by $25 million, or 3.9% of revenue, as a result of restructuring-related expenses. Non-GAAP operating profit was 22.6% of revenue, which was equal to the prior quarter. Net cash provided by operating activities in the fourth quarter of fiscal 2007 totaled $183 million, or 28.2% of revenue. Capital expenditures for the fourth quarter of fiscal year 2007 totaled $33 million, or 5% of revenue.
Summary for the fiscal year 2007
Product revenue grew 7% in fiscal year 2007 and totaled $2.5 billion. Product revenue excludes the one-time payment of $35 million received in the first quarter of fiscal 2007 in exchange for granting a license of certain intellectual property rights to a third party. Analog product revenue represented 90% of product revenue for ADI and increased 9% in fiscal 2007. Converter product revenue represented 44% of product revenue and increased 8% for the year. Amplifier product revenue represented 22% of product revenue and increased 5% for the year. Power management and reference revenue represented 8% of product revenue and declined 6% for the year. Excluding the CPU voltage regulation and PC thermal monitoring product line, which is planned to be divested, revenue declined 2% for the year. Revenue from other analog products, such as Micro-Electro Mechanical Systems (MEMS) and Radio Frequency (RF) products, represented 16% of product revenue and increased 27% for the year. General-purpose digital signal processing (DSP) product revenue represented 9% of product revenue and increased 4% for the year.
2007 End Market Highlights
More than $1 billion in revenue, or 47% of product revenue, came from the broad based industrial end market in fiscal year 2007, a 7% increase year-to-year. Medical, security, automotive, defense, and instrumentation applications all contributed to growth during the year. Revenue from consumer applications was 22% of product revenue and grew significantly during 2007, increasing 23%, with digital TVs, digital cameras, home theatre and video games as the primary drivers. Revenue from communications applications was 22% of product revenue and increased 7% during 2007. Revenue from computer applications was 9% of product revenue and declined 17% year-to-year, primarily as a result of the Company’s decision to deemphasize power management products used in desktop and laptop computers.
Net cash provided by operating activities totaled $820 million, or 32.2% of total revenue in fiscal year 2007, compared to $621 million, or 26.5% of total revenue, in the prior year.
