John Barton, an analyst at Cowen and Co. LLC:

''As expected, ADI indicated overall booking trends remained solid throughout 3Q09 (July) and into the first two weeks of August. Backlog was up sequentially and the book-bill ratio exceeded 1.0. The company highlighted strength from the automotive and consumer end markets during the quarter as well as improved order trends from industrial customers as order trends begin to reflect true end market consumption. As a result, management provided 4Q09 (October) revenue guidance $510-530 million, up 3.7-7.7 percent sequentially which compares to our revenue estimate of $502 million.''

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Craig Berger, an analyst with FBR:

''Analog Devices reports solid top line results that could be perceived positively for analog chip stocks; gross margin miss is likely company specific.

Order rates strengthened throughout ADI's 2Q and have remained strong during the first two weeks of August. Finally, management suggested that industrial shipments into distributors are still below consumption levels, while consumer shipments into distributors are above consumption levels as distributors replenish consumer inventory ahead of an uptick in holiday seasonal demand. Management indicated that distributor inventory in 2Q did not decline in aggregate.''

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Doug Freedman, analyst for Broadpoint AmTech:

''We are impressed by ADI's commitment to ongoing control of expenses while unwinding $20 million in temporary costs. We believe multiple tailwinds to the gross margin (utilizations, fab consolidation, mix) will likely provide additional leverage as lagging industrial and communication markets recover.

Due to inventory corrections, base station revenue declined in China (while larger non-China base station revenue was flat). However, revenue is expected to improve, led by orders from restocking China customers in this multi-year growth market. Industrial markets are returning to growth as inventory levels have normalized. A gradually broader end-market recovery lies ahead (with communications lagging). Automotive markets experienced a strong snap-back (up 21 percent sequentially).''