Analog Devices moved up $3.75, or 8 percent, to $48.25 Monday after the chipmaker landed a contract with Siemens AG to provide processors for its GSM phones and terminal products.
Analog Devices (NYSE: ADI) said it will deliver its SoftFone DSP-based baseband processor and Othello direct-conversion RF chipset for use in the new phones. The phones will offer extended battery life and wireless Internet access.
"We are pleased that a well-established top-tier GSM handset supplier like Siemens has chosen our GSM solution, including the SoftFone DSP and Othello," said CEO Jerry Fishman in a prepared release.
Financial terms of the deal were not disclosed.
In its latest quarter, Analog Devices easily hurdled analysts' estimates, earning $164.5 million, or 43 cents a share, on sales of $701 million.
First Call Corp. consensus expects it to earn 50 cents a share in its fourth quarter and $2.41 a share in fiscal 2001.
Analog Devices shares soared up to a 52-week high of $103 in August after falling to a low of $27.06 last November.
Sixteen of the 18 analysts tracking the stock rate it either a "buy" or "strong buy."