News & Analysis

ADI upbeat despite Q4 revenues reverse

22nd November 2023
Mick Elliott
0

Analog Devices (ADI) Q4 revenues dipped 12% year on year and 16% sequentially to $2.7 billion. Full year revenues rose 2 % to $12.3 billion.

Full year revenues rose 2 % to $12.3 billion.

Industrial sector sales of $1.35 billion, which represented 50% of revenues in Q4, fell 19% sequentially and 20% year on year.

The company says order momentum slowed in the second half of the year, while all market sectors were affected by a slowdown in Q4, except aerospace/defence.

ADI interim Chief Financial Officer Jim Mollica cited inventory adjustments across the company’s diverse customer base. In the full year industrial revenues jumped 6%.

Automotive sales of $731.4 million, represented 27% of quarterly revenue, and were up 14% year-over-year. For the year, Automotive also achieved a third straight record result, increasing 19%.

Mollica highlighted strong growth in functionally safe power, battery management and in cabin connectivity solutions, up more than 30%.

Communications of $340.1 million represented 13% of quarterly revenue, and declined 6% sequentially.

Consumer sales of $291.3 million dropped 6% sequentially.

For the fourth quarter, ADI delivered revenue and profitability above the midpoint of our outlook, despite the difficult macroeconomic environment. For the year, 2023 was our third consecutive year of record revenue, led by the strength of our Industrial and Automotive businesses,” said Vincent Roche (pictured), CEO and Chairman of ADI. “As outlined last quarter, we expect customer inventory digestion to persist into the first half of the year, a reflection of our return to normal lead times and the challenging macro landscape. Despite that backdrop, the robustness of our business model and our continued focus on execution excellence will buttress our operating margins and free cash flow through the cycle.

Added Roche, “Long-term, the opportunities ahead for ADI remain strongly positive. Our product portfolio is designed to take advantage of numerous secular trends, our opportunity pipeline is robust and expanding, and our commitment to strategic investment in innovation, customer engagement, and supply resiliency remains undeterred.”

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