Product variety; a place on the international circuitAnalog Devices is the one of the world's largest manufacturers of analog and digital semiconductors. These standard linear integrated circuits, or SLICs, account for over half of the company's revenues. Other company sectors include the Computer Products Division, which produces audio, data communications and video goods; the Communications Division, maker of cellular phones; the Transportation and Industrial Products Division, which primarily produces accelerometers for automobile airbags; and the Assembled Products Division, which combines integrated circuits with other components to make devices such as input/output subsystems.
Analog Devices' diverse product line and its reputation for quality have kept the company on a steep track to success. The company won the "Innovation of the Year" award from EDN Magazine for the third time in 1998 for its ADXL202 accelerometer, followed by manager of Northwest Labs, Dr. Barrie Gilbert, receiving the "Innovator of the Year" award in 1999. Analog Devices' revenue soared to $1.45 billion in fiscal '99, up $200 million from the previous year.
The company is strong internationally, having emphasized international sales since its founding in 1965. With sales offices in 18 countries, Analog Devices today earns 54 percent of its revenue from European and Asian sales and is targeting new products and new markets for the future.
Intel-ligent new strategy
At the end of 1998, because of declining chip prices, Analog Devices profits fell, as did the price of its stock. But the company has regained its edge thanks in part to timely acquisitions and partnerships. In September 1998, Analog Devices announced a partnership with Applied Microelectronics, Inc. In February 1999, Analog acquired White Mountain DSP, a leading supplier of emulators for digital signal processors, and Edinburgh Portable Compilers, a Scottish company specializing in software compilers for high performance, embedded applications. Analog also partnered with Intel Corp. that month to design a DSP structural core.
Gone Cellular
With the rising demand for wireless messaging, Analog Devices is devoting a larger portion of its R&D to the communications market. Analog presented its amazing chipset, Othello, in September 1999, which adds significant battery life to cell phones using RF (radio frequency) technology. In April 2000, Analog formed an alliance with Cadence Design Systems to provide companies with DSP technology, key to the quality of cellular phones. The escalating demand in this sector could bring Analog an increase in sales of 70 percent or greater by 2001. With the expanding cellular phone industry, Analog Devices believes it's on a path of continued future success.
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