Sumit Dhanda - Banc of America Securities
You are talking about a 15% to 20% growth model. I do not want to belabor this fact, but ADI has really underperformed the rest of the analog peer group here recently. 2006, your revenues are basically going to be flat with 2004, and even just the broader market has grown faster than you have over the last two years.
Help me understand exactly what it is that you are doing so differently which will help you to get back to the promised land.
Jerald G. Fishman
First of all, we are getting out of some product areas that we do not think are strategically relevant. We had a very, very strong 2004, so those comparisons are a little bit challenging for us.
I think generically, the fastest-growing part of the analog business over the last two years specifically has been in power management... We have significantly upped our investment level in that business because in order to grow with the kinds of rates we want to, we have to be a larger factor in that business. I think if you look at what the market enabled in the converter and amplifier business, our share, the share that is reported by the external market people, have been in fact growing in some cases, and flat in other cases, so I do not think it is a question of our products not doing well over the last year. It is a question that the power management part of the analog business has been not a large part of our sales, and will become a larger part of our sales in the future.
I think in the overall sense, a large part of the growth for some of our competitors in the last year has been in the handset business, where we have not had a lot of growth for all the reasons that we talked about. On the other hand now, the handset business is a much smaller percentage of our business than it has been in the past, and we see a lot of opportunities to grow that business, particularly on the analog side in the future.
I would say there are a lot of reasons for optimism about the future. None of it is a certainty, but I think a model for analog of about 15% a year, which is what we have been saying, is about the right model…we can grow our earnings a lot faster than our sales by some of the things that we have done and some things that we will do in the future.