December 1, 2021, 1:34

    Analog Devices forecasts sales above estimates as it adds chipmaking capacity

    Analog Devices forecasts sales above estimates as it adds chipmaking capacity

    Nov 23 (Reuters) – Analog Devices Inc (ADI.O) on Tuesday forecast fiscal first-quarter sales above Wall Street estimates as it said that hundreds of millions of dollars in investments would boost its chipmaking capacity.

    Wilmington, Massachusetts-based ADI makes chips that go into industrial robots, 5G telecommunications equipment and, increasingly, automobiles. The company said it expects fiscal first-quarter sales and adjusted profits with midpoints $2.6 billion and $1.78 per share, versus analyst estimates of $2.49 billion and $1.70 per share, according to IBES data from Refinitiv.

    ADI, which sources chips both from outside factories and its own network of locations, delayed the closure of a California chip factory earlier this year to help meet customer demand during the global chip crunch. It said on Tuesday that it had spent $340 million in fiscal 2021 to expand internal production capacity.

    Register now for FREE unlimited access to reuters.comRegister

    Much of that will happen at a factory in Beaverton, Oregon, that ADI acquired in its $21 billion purchase of Maxim Integrated.

    "We are now putting a serious downpayment to build out that capacity at an existing facility in the Western U.S.," Chief Executive Officer Vincent Roche told Reuters in an interview. "So it's really taking an existing footprint, building it up further, and just bringing more of that critical … capacity internal to ADI."

    For the fiscal fourth quarter ended Oct 30, ADI reported sales of $2.34 billion and adjusted earnings of $1.73 per share, above analyst expectations of $2.31 billion and $1.70 per share.

    Register now for FREE unlimited access to reuters.comRegisterReporting by Stephen Nellis in San Francisco
    Editing by Matthew Lewis


    Related posts

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    We use cookies in order to give you the best possible experience on our website. By continuing to use this site, you agree to our use of cookies. You can find a detailed description in our Privacy Policy.
    Privacy Policy