Analog Devices posts 10% increase in third quarter revenue

Analog Devices's revenues rose 10% in the third quarter as booming sales to business customers more than offset falling sales to consumers for the integrated circuit maker.

Revenue rose to $1.57bn (£1.2bn) in the three months to 4 August from $1.43bn a year earlier. The company said revenue came in higher than its guidance. Net income meanwhile surged to $414.5m from $68.9m.

The company's revenue growth was powered by sales to industrial customers, which climbed 14% to $793.3m. Revenue from communications businesses rose 21% to $323.9m. By contrast, consumer revenue fell 17% to $208.6m.

Vincent Roche, the company’s chief executive, said. "I am particularly pleased with our revenue growth year-over-year which benefited from continued high demand for our products across our B2B (business to business) markets."

The company declared a dividend of 48 cents a share and said it would resume a buyback programme by purchasing $2bn of shares.