Analog Devices Inc (NASDAQ:ADI) Q1 2017 Earnings Conference Call - Final Transcript

Feb 15, 2017 • 10:00 am ET


Analog Devices Inc (NASDAQ:ADI) Q1 2017 Earnings Conference Call - Final Transcript


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Vincent Roche

previously introduced high-speed signal processing platforms achieved record revenue based on our integrated transceiver platforms, which helped our communications infrastructure customers and beyond efficiently address the challenges of accelerating global data consumption.

These solutions are equally well-suited to and are increasingly finding their way into a diversity of applications in the industrial instrumentation, aerospace and defense, and indeed the automotive markets. In factory automation, our software configurable input/output solutions are enabling our customers to create flexible and agile platforms that can be readily expanded and reconfigured to support more sensing and control channels on automated factory floors.

In addition, in motor control and robotics applications, our measurement, control and isolation products are driving improvements in motor efficiency, precision and reliability, while maintaining the highest levels of safety and industrial robustness. ADI's healthcare solutions span both B2B and consumer applications.

On the B2B side, we're enabling higher channel counts and throughput in high-performance imaging systems that lower our customers' overall cost per channel but importantly drive higher ADI content per system. And on the consumer side of healthcare, our vital signs monitoring technology is enabling highly accurate and ultra-low-power measurements of critical health parameters, improving personal wellness and overall quality of life for the end consumer.

Healthcare for ADI is now a high-growth business with its annualized growth rate running in the double digits. In automotive, our 77 gigahertz RF CMOS radar solution offers a robust platform for ADAS and autonomous driving, giving customers the ability to capture objects earlier, more reliably and with greater precision, and over much longer distances. And our investments in cost-effective, high-performing silicon-based LIDAR solutions are turbocharging our efforts in this area. These are the types of innovations that ADI is bringing to the market to better serve our customers' needs, and our industry and the market is taking notice indeed.

In recognition of our overall innovation efforts, ADI received the 2017 IEEE Innovation Award and was once again selected by Thomson Reuters as one of the 100 most innovative companies in the world. It has been said that innovation distinguishes between a leader and a follower, and ADI is very much at the cutting edge of innovation. This value forms the bedrock of our company's culture and belief system, and is shared equally by Linear Technology.

So with that, let me give you a brief update on the status of the proposed acquisition of LTC. Thus far, we have received six out of seven regulatory approvals needed to close the transaction, and our integration planning teams have been hard at work to combine the best of both ADI and Linear Tech in order to present one face to the customer on day one. I also am delighted that Bob Swanson, the Founder and the Executive Chairman of Linear Tech plans to join ADI's board after the deal closes.

So we're all very excited about the combination of ADI and Linear Tech, which we believe will create an analog industry powerhouse that will accelerate innovation and