Robust automotive demand pushes chip maker to profitability

Robust automotive demand pushes chip maker to profitability

Robust automotive demand pushes chip maker to profitability With sales in the communications and industrial space declining, an offset from the automotive market pushed chip maker Analog Devices to profitability in the most recent quarter, according to reports.

The company, which makes analog chips used for managing radio signals, did not disclose the breakdown of its sales, but has indicated that its saw a 6.4% rise in profitability.

Analog Devices counts Apple as its biggest customer, and with the slowdown in this market recently, the company got a boost from car makers as the industry increasingly integrates computer technology in their products.

Last month, the firm acquired fellow chip maker Linear Technology in a $14.8 billion cash and stock deal.

For the fiscal quarter ending on July 30, Analog Devices took in $230 million in profits on the back of $870 million revenues, which inched up 0.7% year on year. Gross margin fell marginally by .01% to 65.8%.