Total revenue for the first quarter of fiscal 2007 at Analog Devices was $692 million, which included $657 million of product revenue and $35 million of revenue from a one-time technology license. Product revenue for the first quarter of fiscal year 2007 increased approximately 6% compared to the same period one year ago and increased approximately 2% compared to the immediately prior quarter. Net income for the first quarter of fiscal 2007, under generally accepted accounting principles (GAAP), was $153 million, or 22% of total revenue, compared to $121 million for the same period one year ago and $138 million for the immediately prior quarter.

Analysis by end market

Industrial market

Revenue from customers in the industrial market represented approximately 44% of product revenue in the first quarter of fiscal 2007. Revenue from the industrial market, which includes factory automation, medical and scientific instrumentation, automotive, security, and defense applications, increased by 3% compared to the immediately prior quarter and increased by 14% compared to the same period one year ago. Comparing the first quarter of fiscal 2007 to the immediately prior quarter, revenue from automotive and defense applications increased, while other areas of the industrial market were approximately flat.

Communications market

Revenue from customers in the communications market represented approximately 26% of product revenue in the first quarter of fiscal 2007. Revenue from the communications market increased by 7% compared to the immediately prior quarter and declined by 9% compared to the same period one year ago. Comparing the first quarter of fiscal 2007 to the immediately prior quarter, revenue from base station and wireless handset applications increased, while revenue from other areas of the communications market was approximately flat or decreased.

Consumer market

Revenue from customers in the consumer market represented approximately 20% of product revenue in the first quarter of fiscal 2007. Revenue from the consumer market increased by 3% compared to the immediately prior quarter and increased by 35% compared to the same period one year ago primarily as a result of increased sales to manufacturers of digital home applications, including flat screen televisions and new video game controllers.

Computer market

Revenue from customers in the computer market represented approximately 10% of product revenue in the first quarter of fiscal 2007. Revenue from the computer market declined by 14% compared to the immediately prior quarter and declined by 20% compared to the same period one year ago primarily as a result of ADI's strategy to refocus power management products on portable applications and also due to a generally weak computer market in the first quarter of fiscal 2007.

Analysis By Product Category

Analog products

Revenue from analog products totaled approximately $547 million, or 83% of product revenue, an increase of 1% compared to the immediately prior quarter and an increase of 13% compared to the same period one year ago. During the first quarter of fiscal 2007, revenue from converter and amplifier products represented approximately 61% of product revenue and, compared to the immediately prior quarter, revenue from converter and amplifier products declined slightly. Compared to the same period one year ago, revenue from converter and amplifier products increased by 13% and 14%, respectively.

Revenue from other analog products such as micro-electro mechanical systems (MEMS) products and radio frequency (RF) integrated circuits increased significantly in the first quarter of fiscal 2007 compared to both the immediately prior quarter and the same period one year ago.

DSP products

Revenue from digital signal processing (DSP) products totaled approximately $110 million, or 17% of product revenue, an increase of 9% compared to the immediately prior quarter and a decrease of 20% compared to the same period one year ago. A significant portion of the year-to-year decline was due to the divestiture of the DSP-based digital subscriber line (DSL) application-specific integrated circuit (ASIC) and network processor product line. Compared to the immediately prior quarter, DSP wireless chipset revenue increased in the first quarter of fiscal 2007 after declining in the prior quarter when customers' inventory corrections negatively impacted DSP product revenue.

DSP wireless chipset revenue comprised 7% of product revenue in the first quarter of fiscal 2007. During the first quarter of fiscal 2007, revenue from general-purpose DSP products represented 9% of product revenue, was approximately flat compared to the immediately prior quarter and increased by 18% compared to the same period one year ago.