Earnings Call Excerpt
Analog Devices, Inc., (ADI)
Q2 2006 Earnings Conference Call
May 11, 2006, 4:30 p.m. EST
Executives:
Maria Tagliaferro, Director of Corporate Communication
Jerald Fishman, President and Chief Executive Officer
Joseph McDonough, Vice President for Finance and CFO
Analysts:
William Lewis, JP Morgan Securities
Steven Smigi, Raymond James
Adam Parker, Sanford Bernstein
Doug Freedman, American Technology Research
Rohit Pandey, HSBC Securities
Tom Thornhill, UBS
Romit Shah, Lehman Brothers
William Conroy, Sanders Morris
Michael Masdea, Credit Suisse
Sumit Dhanda, Banc of America Securities
Jeremy Kwan, Piper Jaffray
Louis Gerhardy, Morgan Stanley
Seogju Lee, Goldman Sachs
Ross Seymore, Deutsche Bank
Craig Ellis, Citigroup
Presentation
Operator
Good afternoon. My name is James and I will be your conference facilitator. At this time, I would like to welcome everyone to the Analog Devices Second Quarter 2006 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the opening remarks, there will be a question and answer period with our analyst participants. If you would like to ask a question at that time simply press ?*? then the ?1? on your telephone keypad. If you would like to withdraw your question press ?*? then the ?2? on your telephone keypad. Thank you. Ms. Tagliaferro, you may begin your conference.
Maria Tagliaferro, Director of Corporate Communication
Thank you. Hello, this is Maria Tagliaferro, Director of Corporate Communications for Analog Devices. If you don’t yet have our second quarter 2006 release you can access it by visiting our website at analog.com and clicking on the headline displayed on the homepage. The conference call is also being broadcast live on the internet and a recording of the call will be available within about two hours of its conclusion, and we’ll leave that available via telephone and on the internet for playback for about one week.
Participating in today’s call are Jerry Fishman, our President and CEO, and Joe McDonough, Vice President for Finance and CFO. We have schedule this call for about 60 minutes and we’ll begin in a moment with Mr. Fishman’s opening remarks, and then the remainder of the call will be devoted to answering questions from our analyst participants. In fact analysts participants in today’s call can press ?*? and ?1? beginning right now to queue up for questions.
There is an important announcement I’d like to make today and point to those of you listening and those of you who have accessed our financials on the web today, that the results of the second quarter for fiscal 2006 reported today are in accordance with GAAP and include a gain of $13 million related to the sale of our DSP-based DSL ASIC and network processor product line, $17 million stock option expense, and expenses of $6 million associated with the previously announced restructuring action related the closure of our California wafer Fab. In order to help investors compared current results to our history and thereby better understand the underlying trends in our business, our comments during today’s call will at times make reference to results which exclude these items. We have included in our press release details of these stock option expenses and restructuring related items for all quarters from fourth quarter of fiscal 2005 through the second quarter of fiscal 2006. We’ve also provided estimates to these items and other items for the remaining two quarters of fiscal 2006. Investors may also download this information in spreadsheet format from the investor relations page of our website.
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