Analog Devices, Inc (NASDAQ:ADI) reported a third-quarter FY23 revenue decline of 1% year-on-year to $3.08 billion, missing the consensus of $3.10 billion. Adjusted EPS of $2.49 missed the consensus of $2.52.
Analog Devices’ Industrial revenue grew 4% Y/Y to $1.63 billion. Automotive revenue increased 15% Y/Y to $747.6 million.
Communications revenue declined by 23% to $380.5 million, and Consumer revenue decreased by 21% to $319.2 million.
The adjusted gross margin declined by 190 bps to 72.2% as lower revenue weighed on the profits. The adjusted operating margin fell by 230 bps to 47.8%.
Analog Devices held $1.15 billion in cash and equivalents and generated $1.14 billion in operating cash flow.
Dividend: The board declared a quarterly cash dividend of $0.86 per share.
“In a challenging operating environment, ADI executed well, and delivered third quarter results within our expectations. However, the customer inventory adjustments we mentioned last quarter have accelerated as economic conditions deteriorate and our lead times continue to improve,” said Vincent Roche, CEO and Chair.
“Despite the near-term turbulence, we have built a resilient business over many decades defined by our diversified customer and product portfolio and our flexible hybrid manufacturing model.”