Analog Devices Inc (NASDAQ:ADI) Q4 2017 Earnings Conference Call - Final Transcript

Nov 21, 2017 • 10:00 am ET


Analog Devices Inc (NASDAQ:ADI) Q4 2017 Earnings Conference Call - Final Transcript


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Vincent Roche

our battery formation and test equipment solutions experienced both cyclical and secular growth as we gained additional dollar content in our customer systems and added new customers in this expanding market, which is forecasted to grow 5 times by 2022.

The factory automation sector also grew strongly during the year as customers made both Brownfield and Greenfield upgrades to manufacturing equipment. Here ADI's technology solutions are enabling value creation for our customers by helping reduce [technical difficulty] time, boost productivity and make manufacturing more flexible and configurable.

In healthcare applications, our optical sensor based solutions also grew strongly over the prior year, led by vital signs monitoring and imaging applications. In the automotive market, which represented of 15% of revenue in fiscal 2017, we made excellent progress on the promise of autonomous driving with new innovations and radar technology, where our solutions provides superior range and resolution capability beyond anything available in the market today.

And in automotive infotainment applications, we hit an important milestone for our A to B Audio Bus solution, surpassing 1 million units shipped in the year across platforms of many automotive OEMs including Ford.

The communications market represented 18% of revenue in fiscal '17. Within this market, we've experienced a 10-fold revenue increase over the past four years for our software defined radio solutions, which have become the market leader from macro sales massive MIMO and small cell.

The consumer market represented 21% of revenue for the year and also grew strongly led by portable applications.

As we often say, look favors the prepared minds, and we've been preparing and investing for this moment for many, many decades. And across our business, we are creating, capturing and retaining value by leveraging our culture of innovation to solve our customers' biggest and most pressing challenges. Building on a very strong 2017, we believe we can continue to drive long-term profitable growth by investing at the cutting edge to grow our core franchises and by extending our reach with our customers.

So with that, I'd like to turn the call over to ADI's new CFO, Prashant. In his short-time here, Prashant has hit the ground running, providing me and the organization with his keen strategic insights. And I'm very confident that with his operational focus and financial discipline, we will increase shareholder value further.

Prashanth Mahendra-Rajah

Thank you, Vince. Good morning everyone. And let me add my welcome to our fourth quarter earnings call. I'm very excited to be joining Analog Devices and to be joining Vince's leadership team. This is a Company with tremendous legacy of innovation, and I look forward to helping to drive the business and deliver against our long-term financial model.

In my eight weeks here, I've been deeply impressed with the quality of our ADI's technology, the dedication of our employees and the depth of our customer relationships. I have met many of you by phone already and I look forward to getting on the road and meeting you in-person.

Now getting to our