Question-and-Answer Session
Operator
(Operator Instructions)
We’ll take our first question from Craig Ellis from Citigroup.
Craig Ellis - Citigroup
Thanks and good afternoon, everybody. Just looking at some of the details of the business, in analog it looks like, at least in our model, that that business is growing a little bit more slowly than it did back in calendar 2005. With the strength in the 16-bit business and microcontrollers overall, do you expect reacceleration as you move into the back-half of the year and next year?
Steve Sanghi
It is correct that the analog business this year has grown slower than it grew back in 2005. If you compare it to really where all the other analog companies are coming in, every single company is actually still down year over year. Microchip's business is not down year over year in analog, although growing slower. That was the first part of your question, but the second part is does it accelerate with more 16-bit.
We do have larger dollar content around 16-bit applications with our own analog products versus with 8-bit products. Number one because there is more analog around it and number two, 16-bit application is a new world, so there is not an incumbent and we can get in first, while in 8-bit applications, some other analog guy may already be there.
So driven by all those factors, yes, we are doing better with attachment with the 16-bit, and as the 16-bit business gets larger and grows further, gets significantly meaningful, it would help accelerate the analog.
Craig Ellis - Citigroup
That’s helpful, Steve and then with regard to the outlook, in the just completed quarter, there was broad-based growth across the different product lines. Do you expect the modest growth that you are guiding to to be similarly broad-based?
Steve Sanghi
Yes, I mean, as we look at internally, we are only guiding flat to 2% so it is pretty hard to triangulate but internally, none of the divisions currently are looking at a negative. Now, when you are zero to 2, these are small numbers but we don’t really look at any division to go down substantially in any way.
Craig Ellis - Citigroup
Lastly for me, given the 5%-plus dividend increase relative to the revenue growth, it seems like you are saying that you view the revenue deceleration as a temporal issue. Is that correct?
Steve Sanghi
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