Analog Devices (ADI) has reported revenue of $3.26 billion (+10 percent), for its second quarter fiscal year 2023, which ended April 29, 2023, led by record results in Industrial and Automotive.
Analog Devices, a global semiconductor leader, has generated revenue of $1.744 billion (+16 percent) from Industrial, $784.775 million (+24 percent) from Automotive, $453.530 million (–4 percent) from Communications and $280.058 million (–22 percent) from Consumer.

OUTLOOK

Analog Devices is forecasting revenue of $3.10 billion for the third quarter of fiscal 2023. This is relatively lower than its second quarter.

“Looking to the second half, we expect revenue to moderate given the continued economic uncertainty and normalizing supply chains,” Analog Devices Chief Executive Vincent Roche said on Wednesday.

Analog Devices expects that its revenue from industrial and auto will be down low to mid-single digits sequentially, communications down around 10 percent sequentially, while consumer will increase sequentially. Op margin is expected to be 48.5 percent, plus or minus 70 bps. The decline in op margin relates to annual merit increases, changing product mix and a reduction of manufacturing utilization given the softer environment.

Analog Devices said its customers are adjusting forecast and rebalancing inventory. Analog Devices said its lead times have improved, with over 70 percent of portfolio now shipping in under 13 weeks. This gives customers high confidence into the timeliness of supply, Analog Devices said.

Analog Devices said its backlog continues to decline, but at just under a year of revenue and it’s still 2x regular levels. Analog Devices said demand quickly deteriorated in Asia, impacting channel sell-through, after a strong start to the second quarter. As a result, Analog Devices plans to reduce channel inventory in Asia Pacific region. In the third quarter, Analog Devices is planning for sell-in to be below sell-through for the total company.

Analog Devices in May said that it would invest 630 million euros ($678.8 million) in a new research and development and manufacturing plant in Ireland, as it looks to boost its production capacity in Europe.