November 23, 2023 /SemiMedia/ -- Analog Devices (ADI) said in its recently released fourth quarter report that its revenue fell 16% year-on-year to $2.72 billion due to high inventory, but was slightly higher than the $2.7 billion expected by a FactSet survey.

According to ADI's report, only automotive chip revenue grew positively in the fourth quarter, up 14% year-on-year to US$730 million, with automotive accounting for 27% of overall revenue. Industrial revenue accounts for about 50% and is the largest source of revenue. However, revenue in the fourth quarter fell 20% year-on-year to US$1.35 billion.

ADI CEO Vincent Roche said that demand for industrial semiconductors is weak, and almost all applications have seen declines. Only the defense and aerospace industry still maintains a certain demand.

Looking at the full year of fiscal 2023, ADI's revenue was US$12.3 billion, an increase of 2% from the previous year, driven by new records in the industrial and automotive fields. The company's gross profit margin increased by 5% to US$7.9 billion, and its gross profit margin reached 64%. Operating income increased significantly by 17% to $3.8 billion, and operating profit margin reached 31.1%.