FEBRUARY 14--Analog Devices (ADI; Norwood, MA;www.analog.com) announced revenues of $467.4 million for the first quarter of FY2003, ended February 1. Revenues increased 19% from the first quarter of FY2002 and 3% from the immediately prior quarter. The quarter's diluted earnings per share (EPS) under generally accepted accounting principles (GAAP) were $0.16, up from $0.06 in the same period a year ago and $0.09 in the prior quarter.
During the first quarter of FY2003, ADI adopted the new goodwill accounting rules (FAS142). As a result, ADI no longer has charges related to the amortization of goodwill. Expenses under GAAP for the first quarter of FY2003 continue to include $2.8 million of acquisition-related expenses. Excluding these charges, first-quarter non-GAAP diluted EPS were $0.17 and non-GAAP operating profit before tax was 16.4% of sales. In future quarters, ADI expects to continue to incur acquisition-related expenses of approximately $2.8 million per quarter in its GAAP financial statements. ADI is no longer including separate pro forma financial schedules as a supplement to the financial statements.
Gross margins were 54.2% of sales in the first quarter of FY2003, while inventories declined $12 million sequentially, and days cost in inventory declined to 125 days from 135 days last quarter. Inventories at distributors also declined in the first quarter of 2003. Accounts receivable days sales outstanding declined to 45 days from 46 days last quarter. In the first quarter of FY2003 the cash balance increased by $102 million after spending $15 million on capital equipment. ADI's cash balance at the end of the first quarter of FY2003 was $3 billion.
