- Revenue of $2.31 billion, above
the midpoint of our outlook with sequential growth in Industrial,
Consumer, and Communications
- Operating cash flow of $4.0
billion and free cash flow of $2.9
billion on a trailing twelve-month basis
- Returned $574 million to
shareholders through dividends and repurchases in the third
quarter
WILMINGTON, Mass., Aug. 21,
2024 /PRNewswire/ -- Analog Devices, Inc. (Nasdaq:
ADI), a global semiconductor leader, today announced financial
results for its fiscal third quarter 2024, which ended
August 3, 2024.
"ADI's revenue finished above our guided midpoint with stronger
profitability driving earnings per share near the high end of our
outlook," said Vincent Roche, CEO
and Chair. "As we navigate this business cycle's nascent
recovery, our high-performance analog solutions portfolio positions
us well to intersect the strong underlying stream of concurrent
secular trends. Our innovation and customer-centric ethos
will continue to form the foundation for our success and help drive
long-term shareholder value."
"Improved customer inventory levels and order momentum, across
most of our markets, position us to grow again sequentially in our
fourth quarter, increasing our confidence that we are past the
trough of this cycle. However, economic and geopolitical
uncertainty continues to limit the pace of the recovery" said
Richard Puccio, CFO.
Performance for the Third Quarter of Fiscal
2024
|
Results
Summary(1)
|
|
|
|
|
|
|
(in millions, except
per-share amounts and percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Aug. 3,
2024
|
|
Jul. 29,
2023
|
|
Change
|
|
Revenue
|
$
2,312
|
|
$
3,076
|
|
(25) %
|
|
Gross margin
|
$
1,311
|
|
$
1,962
|
|
(33) %
|
|
Gross margin
percentage
|
56.7 %
|
|
63.8 %
|
|
(710 bps)
|
|
Operating
income
|
$
491
|
|
$
929
|
|
(47) %
|
|
Operating
margin
|
21.2 %
|
|
30.2 %
|
|
(900 bps)
|
|
Diluted earnings per
share
|
$
0.79
|
|
$
1.74
|
|
(55) %
|
|
|
|
|
|
|
|
Adjusted
Results(2)
|
|
|
|
|
|
|
Adjusted gross
margin
|
$
1,571
|
|
$
2,222
|
|
(29) %
|
|
Adjusted gross margin
percentage
|
67.9 %
|
|
72.2 %
|
|
(430 bps)
|
|
Adjusted operating
income
|
$
952
|
|
$
1,470
|
|
(35) %
|
|
Adjusted operating
margin
|
41.2 %
|
|
47.8 %
|
|
(660 bps)
|
|
Adjusted diluted
earnings per share
|
$
1.58
|
|
$
2.49
|
|
(37) %
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Trailing Twelve
Months
|
|
Cash
Generation
|
|
|
Aug. 3,
2024
|
|
Aug. 3,
2024
|
|
Net cash provided by
operating activities
|
|
|
$
855
|
|
$
3,989
|
|
% of revenue
|
|
|
37 %
|
|
41 %
|
|
Capital
expenditures
|
|
|
$
(154)
|
|
$
(1,041)
|
|
Free cash
flow(2)
|
|
|
$
701
|
|
$
2,948
|
|
% of revenue
|
|
|
30 %
|
|
30 %
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Trailing Twelve
Months
|
|
Cash
Return
|
|
|
Aug. 3,
2024
|
|
Aug. 3,
2024
|
|
Dividend
paid
|
|
|
$
(456)
|
|
$
(1,767)
|
|
Stock
repurchases
|
|
|
(118)
|
|
(991)
|
|
Total cash
returned
|
|
|
$
(574)
|
|
$
(2,757)
|
|
|
|
|
|
|
|
(1) The sum and/or
computation of the individual amounts may not equal the total due
to rounding.
|
|
(2) Reconciliations of
non-GAAP financial measures to their most directly comparable GAAP
financial measures are provided in the financial tables included in
this press release. See also the "Non-GAAP Financial Information"
section for additional information.
|
Outlook for the Fourth Quarter of Fiscal Year 2024
For the fourth quarter of fiscal 2024, we are forecasting
revenue of $2.40 billion, +/-
$100 million. At the midpoint of this
revenue outlook, we expect reported operating margin of
approximately 22.3%, +/-180 bps, and adjusted operating margin of
approximately 41.0%, +/-100 bps. We are planning for reported EPS
to be $0.85, +/-$0.10, and adjusted EPS to be $1.63, +/-$0.10.
Our fourth quarter fiscal 2024 outlook is based on current
expectations and actual results may differ materially as a result
of, among other things, the important factors discussed at the end
of this release. These statements supersede all prior statements
regarding our business outlook set forth in prior ADI news
releases, and ADI disclaims any obligation to update these
forward-looking statements.
The adjusted results and adjusted anticipated results above are
financial measures presented on a non-GAAP basis. Reconciliations
of these non-GAAP financial measures to their most directly
comparable GAAP financial measures are provided in the financial
tables included in this release. See also the "Non-GAAP Financial
Information" section for additional information.
Dividend Payment
The ADI Board of Directors has declared a quarterly cash
dividend of $0.92 per outstanding share of common stock.
The dividend will be paid on September 17, 2024 to all
shareholders of record at the close of business
on September 3, 2024.
Conference Call Scheduled for Today, Wednesday,
August 21, 2024 at 10:00 am
ET
ADI will host a conference call to discuss our third quarter
fiscal 2024 results and short-term outlook today, beginning at
10:00 am ET. Investors may join via
webcast, accessible at investor.analog.com.
Non-GAAP Financial Information
This release includes non-GAAP financial measures that are not
in accordance with, nor an alternative to, U.S. generally accepted
accounting principles (GAAP) and may be different from non-GAAP
measures presented by other companies. In addition, these non-GAAP
measures are not based on any comprehensive set of accounting rules
or principles. These non-GAAP measures have material limitations in
that they do not reflect all of the amounts associated with the
Company's results of operations as determined in accordance with
GAAP and should not be considered in isolation from, or as a
substitute for, the Company's financial results presented in
accordance with GAAP. The Company's use of non-GAAP measures, and
the underlying methodology when including or excluding certain
items, is not necessarily an indication of the results of
operations that may be expected in the future, or that the Company
will not, in fact, record such items in future periods. You are
cautioned not to place undue reliance on these non-GAAP measures.
Reconciliations of these non-GAAP financial measures to their most
directly comparable GAAP financial measures are provided in the
financial tables included in this release.
Management uses non-GAAP measures internally to evaluate the
Company's operating performance from continuing operations against
past periods and to budget and allocate resources in future
periods. These non-GAAP measures also assist management in
evaluating the Company's core business and trends across different
reporting periods on a consistent basis. Management also uses these
non-GAAP measures as primary performance measurements when
communicating with analysts and investors regarding the Company's
earnings results and outlook and believes that the presentation of
these non-GAAP measures is useful to investors because it provides
investors with the operating results that management uses to manage
the Company and enables investors and analysts to evaluate the
Company's core business. Management also believes that free cash
flow, a non-GAAP liquidity measure, is useful both internally and
to investors because it provides information about the amount of
cash generated after capital expenditures that is then available to
repay debt obligations, make investments and fund acquisitions, and
for certain other activities.
The non-GAAP financial measures referenced by ADI in this
release include: adjusted gross margin, adjusted gross margin
percentage, adjusted operating expenses, adjusted operating
expenses percentage, adjusted operating income, adjusted operating
margin, adjusted nonoperating expense (income), adjusted income
before income taxes, adjusted provision for income taxes, adjusted
tax rate, adjusted diluted earnings per share (EPS), free cash
flow, and free cash flow revenue percentage.
Adjusted gross margin is defined as gross margin, determined in
accordance with GAAP, excluding certain acquisition related
expenses1, which are described further below.
Adjusted gross margin percentage represents adjusted gross margin
divided by revenue.
Adjusted operating expenses is defined as operating expenses,
determined in accordance with GAAP, excluding: certain
acquisition related expenses1, acquisition
related transaction costs2, and special
charges, net3, which are described further
below. Adjusted operating expenses percentage represents adjusted
operating expenses divided by revenue.
Adjusted operating income is defined as operating income,
determined in accordance with GAAP, excluding: acquisition
related expenses1, acquisition related
transaction costs2, and special charges,
net3, which are described further below. Adjusted
operating margin represents adjusted operating income divided by
revenue.
Adjusted nonoperating expense (income) is defined as
nonoperating expense (income), determined in accordance with GAAP,
excluding: certain acquisition related expenses1,
which is described further below.
Adjusted income before income taxes is defined as income before
income taxes, determined in accordance with GAAP, excluding:
acquisition related expenses1, acquisition
related transaction costs2, and special charges,
net3, which are described further
below.
Adjusted provision for income taxes is defined as provision for
income taxes, determined in accordance with GAAP, excluding tax
related items4, which are described further below.
Adjusted tax rate represents adjusted provision for income taxes
divided by adjusted income before income taxes.
Adjusted diluted EPS is defined as diluted EPS, determined in
accordance with GAAP, excluding: acquisition related
expenses1, acquisition related transaction
costs2, special charges, net3, and
tax related items4, which are described further
below.
Free cash flow is defined as net cash provided by operating
activities, determined in accordance with GAAP, less additions to
property, plant and equipment, net. Free cash flow revenue
percentage represents free cash flow divided by
revenue.
1Acquisition Related Expenses:
Expenses incurred as a result of current and prior period
acquisitions and primarily include expenses associated with the
fair value adjustments to debt, inventory, property, plant and
equipment and amortization of acquisition related intangibles,
which include acquired intangibles such as purchased technology and
customer relationships. Expenses also include fair value
adjustments associated with the replacement of share-based awards
related to the Maxim Integrated Products, Inc. (Maxim) acquisition.
We excluded these costs from our non-GAAP measures because they
relate to specific transactions and are not reflective of our
ongoing financial performance.
2Acquisition Related Transaction
Costs: Costs directly related to the Maxim acquisition,
including legal, accounting and other professional fees as well as
integration-related costs. We excluded these costs from our
non-GAAP measures because they relate to a specific transaction and
are not reflective of our ongoing financial performance.
3Special Charges, net:
Expenses, net, incurred as part of the integration of Maxim, in
connection with facility closures, consolidation of manufacturing
facilities, severance, other accelerated stock-based compensation
expense and other cost reduction efforts or reorganizational
initiatives. We excluded these expenses from our non-GAAP measures
because apart from ongoing expense savings as a result of such
items, these expenses have no direct correlation to the operation
of our business in the future.
4Tax Related Items: Income tax
effect of the non-GAAP items discussed above, an income tax benefit
from a discrete item related to a federal corporate income tax
relief claim and certain other income tax benefits associated with
prior periods. We excluded the income tax effect of these tax
related items from our non-GAAP measures because they are not
associated with the tax expense on our current operating
results.
About Analog Devices, Inc.
Analog Devices, Inc.
(NASDAQ: ADI) is a global semiconductor leader that bridges the
physical and digital worlds to enable breakthroughs at the
Intelligent Edge. ADI combines analog, digital, and software
technologies into solutions that help drive advancements in
digitized factories, mobility, and digital healthcare, combat
climate change, and reliably connect humans and the world. With
revenue of more than $12 billion in
FY23 and approximately 26,000 people globally working alongside
125,000 global customers, ADI ensures today's innovators stay Ahead
of What's Possible. Learn more at www.analog.com and on LinkedIn
and Twitter (X).
Forward Looking Statements
This press release
contains forward-looking statements, which address a variety of
subjects including, for example, our statements regarding financial
performance; customer inventory rationalization; economic
uncertainty, geopolitical conditions, demand and other market
conditions, business cycles, and supply chains; capital
expenditures and investments; expected revenue, operating margin,
nonoperating expenses, tax rate, earnings per share, and other
financial results; expected market and technology trends and
acceleration of those trends; market size, market share gains,
market position, and growth opportunities; expected product
solutions, offerings, technologies, capabilities, and applications,
including those that may incorporate, or be based upon, software or
artificial intelligence technology; the value and importance of,
and other benefits related to, our product solutions, offerings,
and technologies to our customers, including those that may
incorporate, or be based upon, software or artificial intelligence
technology; future dividends and share repurchases; and other
future events. Statements that are not historical facts, including
statements about our beliefs, plans and expectations, are
forward-looking statements. Such statements are based on our
current expectations and are subject to a number of factors and
uncertainties, which could cause actual results to differ
materially from those described in the forward-looking statements.
The following important factors and uncertainties, among others,
could cause actual results to differ materially from those
described in these forward-looking statements: economic, political,
legal and regulatory uncertainty or conflicts; changes in demand
for semiconductor products; manufacturing delays, product and raw
materials availability and supply chain disruptions; products that
may be diverted from our authorized distribution channels; changes
in export classifications, import and export regulations or duties
and tariffs; our development of technologies and research and
development investments; our future liquidity, capital needs and
capital expenditures; our ability to compete successfully in the
markets in which we operate; our ability to recruit and retain key
personnel; risks related to acquisitions or other strategic
transactions; security breaches or other cyber incidents; adverse
results in litigation matters; reputational damage; changes in our
estimates of our expected tax rates based on current tax law; risks
related to our indebtedness; unanticipated difficulties or
expenditures related to integrating Maxim Integrated Products,
Inc.; the discretion of our Board of Directors to declare dividends
and our ability to pay dividends in the future; factors impacting
our ability to repurchase shares; and uncertainty as to the
long-term value of our common stock. For additional information
about factors that could cause actual results to differ materially
from those described in the forward-looking statements, please
refer to our filings with the Securities and Exchange Commission,
including the risk factors contained in our most recent Annual
Report on Form 10-K. Forward-looking statements represent
management's current expectations and are inherently uncertain.
Except as required by law, we do not undertake any obligation to
update forward-looking statements made by us to reflect subsequent
events or circumstances.
Analog Devices and the Analog Devices logo are registered
trademarks or trademarks of Analog Devices, Inc. All other
trademarks mentioned in this document are the property of their
respective owners.
|
ANALOG DEVICES,
INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
|
(Unaudited)
|
|
(In thousands,
except per share amounts)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Aug. 3,
2024
|
|
Jul. 29,
2023
|
|
Aug. 3,
2024
|
|
Jul. 29,
2023
|
|
Revenue
|
$
2,312,209
|
|
$
3,076,495
|
|
$
6,983,952
|
|
$
9,589,055
|
|
Cost of
sales
|
1,000,970
|
|
1,114,880
|
|
3,018,737
|
|
3,358,553
|
|
Gross margin
|
1,311,239
|
|
1,961,615
|
|
3,965,215
|
|
6,230,502
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research
and development
|
362,671
|
|
423,751
|
|
1,108,960
|
|
1,253,600
|
|
Selling,
marketing, general and administrative
|
257,213
|
|
334,113
|
|
791,420
|
|
984,648
|
|
Amortization of intangibles
|
187,754
|
|
250,719
|
|
567,030
|
|
756,882
|
|
Special
charges, net
|
12,282
|
|
23,539
|
|
34,399
|
|
46,675
|
|
Total operating
expenses
|
819,920
|
|
1,032,122
|
|
2,501,809
|
|
3,041,805
|
|
Operating
income
|
491,319
|
|
929,493
|
|
1,463,406
|
|
3,188,697
|
|
Nonoperating expense
(income):
|
|
|
|
|
|
|
|
|
Interest
expense
|
85,179
|
|
69,346
|
|
239,423
|
|
193,051
|
|
Interest
income
|
(26,432)
|
|
(8,794)
|
|
(50,870)
|
|
(32,198)
|
|
Other,
net
|
9,581
|
|
(5,880)
|
|
13,841
|
|
(8,373)
|
|
Total nonoperating
expense (income)
|
68,328
|
|
54,672
|
|
202,394
|
|
152,480
|
|
Income before income
taxes
|
422,991
|
|
874,821
|
|
1,261,012
|
|
3,036,217
|
|
Provision for (benefit
from) income taxes
|
30,759
|
|
(2,198)
|
|
103,811
|
|
220,068
|
|
Net income
|
$
392,232
|
|
$
877,019
|
|
$
1,157,201
|
|
$
2,816,149
|
|
|
|
|
|
|
|
|
|
Shares used to compute
earnings per common share - basic
|
496,338
|
|
500,018
|
|
496,077
|
|
503,951
|
|
Shares used to compute
earnings per common share - diluted
|
498,794
|
|
503,503
|
|
498,689
|
|
507,804
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
0.79
|
|
$
1.75
|
|
$
2.33
|
|
$
5.59
|
|
Diluted earnings per
common share
|
$
0.79
|
|
$
1.74
|
|
$
2.32
|
|
$
5.55
|
|
ANALOG DEVICES,
INC.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
(In
thousands)
|
|
|
Aug. 3,
2024
|
|
Oct. 28,
2023
|
|
Cash, cash equivalents
and short-term investments
|
$
2,545,699
|
|
$
958,061
|
|
Accounts
receivable
|
1,127,158
|
|
1,469,734
|
|
Inventories
|
1,427,936
|
|
1,642,214
|
|
Other current
assets
|
342,143
|
|
314,013
|
|
Total current
assets
|
5,442,936
|
|
4,384,022
|
|
Net property, plant and
equipment
|
3,395,748
|
|
3,219,157
|
|
Goodwill
|
26,909,775
|
|
26,913,134
|
|
Intangible assets,
net
|
9,997,707
|
|
11,311,957
|
|
Deferred tax
assets
|
2,105,430
|
|
2,223,272
|
|
Other assets
|
766,778
|
|
742,936
|
|
Total assets
|
$
48,618,374
|
|
$
48,794,478
|
|
|
|
|
|
Other current
liabilities
|
$
1,779,935
|
|
$
2,154,695
|
|
Debt,
current
|
899,251
|
|
499,052
|
|
Commercial paper
notes
|
547,443
|
|
547,224
|
|
Long-term
debt
|
6,655,723
|
|
5,902,457
|
|
Deferred income
taxes
|
2,743,015
|
|
3,127,852
|
|
Other non-current
liabilities
|
802,898
|
|
998,076
|
|
Shareholders'
equity
|
35,190,109
|
|
35,565,122
|
|
Total liabilities &
shareholders' equity
|
$
48,618,374
|
|
$
48,794,478
|
|
ANALOG DEVICES,
INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Unaudited)
|
|
(In
thousands)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Aug. 3,
2024
|
|
Jul. 29,
2023
|
|
Aug. 3,
2024
|
|
Jul. 29,
2023
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net
income
|
$
392,232
|
|
$
877,019
|
|
$
1,157,201
|
|
$
2,816,149
|
|
Adjustments to
reconcile net income to net cash
provided by operations:
|
|
|
|
|
|
|
|
|
Depreciation
|
92,358
|
|
86,204
|
|
265,530
|
|
251,785
|
|
Amortization of
intangibles
|
437,949
|
|
501,488
|
|
1,318,325
|
|
1,505,201
|
|
Stock-based
compensation expense
|
64,051
|
|
82,970
|
|
192,262
|
|
227,113
|
|
Deferred income
taxes
|
(105,218)
|
|
(151,283)
|
|
(269,566)
|
|
(431,393)
|
|
Other
|
10,456
|
|
16,362
|
|
23,826
|
|
19,130
|
|
Changes in
operating assets and liabilities
|
(36,801)
|
|
(270,306)
|
|
114,134
|
|
(757,645)
|
|
Total
adjustments
|
462,795
|
|
265,435
|
|
1,644,511
|
|
814,191
|
|
Net cash provided by
operating activities
|
855,027
|
|
1,142,454
|
|
2,801,712
|
|
3,630,340
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Purchases of
short-term investments
|
(14,784)
|
|
—
|
|
(438,901)
|
|
—
|
|
Additions to
property, plant and equipment, net
|
(153,886)
|
|
(324,574)
|
|
(565,053)
|
|
(785,070)
|
|
Other
|
(3,396)
|
|
(2,173)
|
|
10,710
|
|
(2,254)
|
|
Net cash used for
investing activities
|
(172,066)
|
|
(326,747)
|
|
(993,244)
|
|
(787,324)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from
debt
|
—
|
|
—
|
|
1,087,856
|
|
—
|
|
Early
termination of debt
|
—
|
|
—
|
|
—
|
|
(65,688)
|
|
Proceeds from
commercial paper notes
|
2,326,091
|
|
2,392,874
|
|
7,709,492
|
|
2,646,509
|
|
Payments of
commercial paper notes
|
(2,326,883)
|
|
(2,101,799)
|
|
(7,709,273)
|
|
(2,101,799)
|
|
Repurchase of
common stock
|
(117,980)
|
|
(686,510)
|
|
(520,712)
|
|
(2,494,018)
|
|
Dividend
payments to shareholders
|
(456,485)
|
|
(430,467)
|
|
(1,338,703)
|
|
(1,251,121)
|
|
Proceeds from
employee stock plans
|
52,019
|
|
45,990
|
|
116,355
|
|
113,002
|
|
Other
|
6,614
|
|
(64,158)
|
|
(5,512)
|
|
(11,227)
|
|
Net cash used for
financing activities
|
(516,624)
|
|
(844,070)
|
|
(660,497)
|
|
(3,164,342)
|
|
Net increase (decrease)
in cash and cash equivalents
|
166,337
|
|
(28,363)
|
|
1,147,971
|
|
(321,326)
|
|
Cash and cash
equivalents at beginning of period
|
1,939,695
|
|
1,177,609
|
|
958,061
|
|
1,470,572
|
|
Cash and cash
equivalents at end of period
|
$
2,106,032
|
|
$
1,149,246
|
|
$
2,106,032
|
|
$
1,149,246
|
|
ANALOG DEVICES,
INC.
|
|
REVENUE TRENDS BY
END MARKET
|
|
(Unaudited)
|
|
(In
thousands)
|
|
|
The categorization of
revenue by end market is determined using a variety of data points
including the technical characteristics of the product, the "sold
to" customer information, the "ship to" customer information and
the end customer product or application into which our product will
be incorporated. As data systems for capturing and tracking this
data and our methodology evolves and improves, the categorization
of products by end market can vary over time. When this occurs, we
reclassify revenue by end market for prior periods. Such
reclassifications typically do not materially change the sizing of,
or the underlying trends of results within, each end
market.
|
|
|
Three Months
Ended
|
|
August 3,
2024
|
|
July 29,
2023
|
|
Revenue
|
|
% of
Revenue1
|
|
Y/Y%
|
|
Revenue
|
|
% of
Revenue1
|
|
Industrial
|
$
1,058,704
|
|
46 %
|
|
(37) %
|
|
$
1,683,843
|
|
55 %
|
|
Automotive
|
670,304
|
|
29 %
|
|
(8) %
|
|
727,315
|
|
24 %
|
|
Communications
|
266,599
|
|
12 %
|
|
(26) %
|
|
358,520
|
|
12 %
|
|
Consumer
|
316,602
|
|
14 %
|
|
3 %
|
|
306,817
|
|
10 %
|
|
Total
revenue
|
$
2,312,209
|
|
100 %
|
|
(25) %
|
|
$
3,076,495
|
|
100 %
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
August 3,
2024
|
|
July 29,
2023
|
|
Revenue
|
|
% of
Revenue1
|
|
Y/Y %
|
|
Revenue
|
|
% of
Revenue1
|
|
Industrial
|
$
3,252,757
|
|
47 %
|
|
(38) %
|
|
$
5,252,078
|
|
55 %
|
|
Automotive
|
2,082,869
|
|
30 %
|
|
(3) %
|
|
2,146,320
|
|
22 %
|
|
Communications
|
811,150
|
|
12 %
|
|
(36) %
|
|
1,273,265
|
|
13 %
|
|
Consumer
|
837,176
|
|
12 %
|
|
(9) %
|
|
917,392
|
|
10 %
|
|
Total
revenue
|
$
6,983,952
|
|
100 %
|
|
(27) %
|
|
$
9,589,055
|
|
100 %
|
|
|
|
|
|
|
|
|
|
|
|
|
1) The sum of the
individual percentages may not equal the total due to
rounding.
|
|
ANALOG DEVICES,
INC.
|
|
RECONCILIATION OF
GAAP TO NON-GAAP RESULTS
|
|
(Unaudited)
|
|
(In thousands,
except per share amounts)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Aug. 3,
2024
|
|
Jul. 29,
2023
|
|
Aug. 3,
2024
|
|
Jul. 29,
2023
|
|
Gross margin
|
$
1,311,239
|
|
$
1,961,615
|
|
$
3,965,215
|
|
$
6,230,502
|
|
Gross margin
percentage
|
56.7 %
|
|
63.8 %
|
|
56.8 %
|
|
65.0 %
|
|
Acquisition related
expenses
|
259,296
|
|
260,557
|
|
778,821
|
|
787,383
|
|
Adjusted gross
margin
|
$
1,570,535
|
|
$
2,222,172
|
|
$
4,744,036
|
|
$
7,017,885
|
|
Adjusted gross
margin percentage
|
67.9 %
|
|
72.2 %
|
|
67.9 %
|
|
73.2 %
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
$
819,920
|
|
$
1,032,122
|
|
$
2,501,809
|
|
$
3,041,805
|
|
Percent of
revenue
|
35.5 %
|
|
33.5 %
|
|
35.8 %
|
|
31.7 %
|
|
Acquisition related
expenses
|
(188,882)
|
|
(254,719)
|
|
(571,504)
|
|
(770,071)
|
|
Acquisition related
transaction costs
|
—
|
|
(1,837)
|
|
—
|
|
(7,069)
|
|
Special charges,
net
|
(12,282)
|
|
(23,539)
|
|
(34,399)
|
|
(46,675)
|
|
Adjusted operating
expenses
|
$
618,756
|
|
$
752,027
|
|
$
1,895,906
|
|
$
2,217,990
|
|
Adjusted
operating expenses percentage
|
26.8 %
|
|
24.4 %
|
|
27.1 %
|
|
23.1 %
|
|
|
|
|
|
|
|
|
|
Operating
income
|
$
491,319
|
|
$
929,493
|
|
$
1,463,406
|
|
$
3,188,697
|
|
Operating
margin
|
21.2 %
|
|
30.2 %
|
|
21.0 %
|
|
33.3 %
|
|
Acquisition related
expenses
|
448,178
|
|
515,276
|
|
1,350,325
|
|
1,557,454
|
|
Acquisition related
transaction costs
|
—
|
|
1,837
|
|
—
|
|
7,069
|
|
Special charges,
net
|
12,282
|
|
23,539
|
|
34,399
|
|
46,675
|
|
Adjusted operating
income
|
$
951,779
|
|
$
1,470,145
|
|
$
2,848,130
|
|
$
4,799,895
|
|
Adjusted
operating margin
|
41.2 %
|
|
47.8 %
|
|
40.8 %
|
|
50.1 %
|
|
|
|
|
|
|
|
|
|
Nonoperating expense
(income)
|
$
68,328
|
|
$
54,672
|
|
$
202,394
|
|
$
152,480
|
|
Acquisition related
expenses
|
2,150
|
|
2,150
|
|
6,450
|
|
11,593
|
|
Adjusted nonoperating
expense (income)
|
$
70,478
|
|
$
56,822
|
|
$
208,844
|
|
$
164,073
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
$
422,991
|
|
$
874,821
|
|
$
1,261,012
|
|
$
3,036,217
|
|
Acquisition related
expenses
|
446,028
|
|
513,126
|
|
1,343,875
|
|
1,545,861
|
|
Acquisition related
transaction costs
|
—
|
|
1,837
|
|
—
|
|
7,069
|
|
Special charges,
net
|
12,282
|
|
23,539
|
|
34,399
|
|
46,675
|
|
Adjusted income before
income taxes
|
$
881,301
|
|
$
1,413,323
|
|
$
2,639,286
|
|
$
4,635,822
|
|
|
|
|
|
|
|
|
|
Provision for (benefit
from) income taxes
|
$
30,759
|
|
$
(2,198)
|
|
$
103,811
|
|
$
220,068
|
|
Effective income tax
rate
|
7.3 %
|
|
(0.3) %
|
|
8.2 %
|
|
7.2 %
|
|
Tax related items
|
64,036
|
|
160,500
|
|
188,995
|
|
317,591
|
|
Adjusted provision for
income taxes
|
$
94,795
|
|
$
158,302
|
|
$
292,806
|
|
$
537,659
|
|
Adjusted tax
rate
|
10.8 %
|
|
11.2 %
|
|
11.1 %
|
|
11.6 %
|
|
|
|
|
|
|
|
|
|
Diluted EPS
|
$
0.79
|
|
$
1.74
|
|
$
2.32
|
|
$
5.55
|
|
Acquisition related
expenses
|
0.89
|
|
1.02
|
|
2.69
|
|
3.04
|
|
Acquisition related
transaction costs
|
—
|
|
—
|
|
—
|
|
0.01
|
|
Special charges,
net
|
0.02
|
|
0.05
|
|
0.07
|
|
0.09
|
|
Tax related
items
|
(0.13)
|
|
(0.32)
|
|
(0.38)
|
|
(0.63)
|
|
Adjusted diluted
EPS*
|
$
1.58
|
|
$
2.49
|
|
$
4.71
|
|
$
8.07
|
|
|
* The sum of the
individual per share amounts may not equal the total due to
rounding.
|
|
ANALOG DEVICES,
INC.
|
|
RECONCILIATION OF
NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH
FLOW
|
|
(Unaudited)
|
|
(In
thousands)
|
|
|
Trailing
Twelve
Months
|
|
Three Months
Ended
|
|
Aug. 3,
2024
|
|
Aug. 3,
2024
|
|
May 4,
2024
|
|
Feb. 3,
2024
|
|
Oct. 28,
2023
|
|
Revenue
|
$
9,700,436
|
|
$
2,312,209
|
|
$
2,159,039
|
|
$
2,512,704
|
|
$
2,716,484
|
|
Net cash provided by
operating activities
|
$
3,989,006
|
|
$ 855,027
|
|
$ 807,853
|
|
$
1,138,832
|
|
$
1,187,294
|
|
% of Revenue
|
41 %
|
|
37 %
|
|
37 %
|
|
45 %
|
|
44 %
|
|
Capital
expenditures
|
$
(1,041,446)
|
|
$
(153,886)
|
|
$
(188,189)
|
|
$
(222,978)
|
|
$
(476,393)
|
|
Free cash
flow
|
$
2,947,560
|
|
$ 701,141
|
|
$ 619,664
|
|
$ 915,854
|
|
$ 710,901
|
|
% of Revenue
|
30 %
|
|
30 %
|
|
29 %
|
|
36 %
|
|
26 %
|
|
|
|
|
|
|
|
|
|
|
|
ANALOG DEVICES,
INC.
|
|
RECONCILIATION OF
PROJECTED GAAP TO NON-GAAP RESULTS
|
|
(Unaudited)
|
|
|
Three Months Ending
November 2, 2024
|
|
Reported
|
|
Adjusted
|
|
Revenue
|
$2.4 Billion
|
|
$2.4 Billion
|
|
(+/- $100
Million)
|
|
(+/- $100
Million)
|
|
Operating
margin
|
22.3 %
|
|
41.0 %(1)
|
|
(+/-180 bps)
|
|
(+/-100 bps)
|
|
Nonoperating
expenses
|
~ $60
Million
|
|
~ $60
Million
|
|
Tax rate
|
10% - 12%
|
|
11% - 13%
(2)
|
|
Earnings per
share
|
$0.85
|
|
$1.63 (3)
|
|
(+/- $0.10)
|
|
(+/- $0.10)
|
|
|
(1) Includes $450
million of adjustments related to acquisition related expenses as
previously defined in the Non-GAAP Financial Information section of
this press release.
|
|
(2) Includes $59
million of tax effects associated with the adjustment for
acquisition related expenses noted above.
|
|
(3) Includes $0.78 of
adjustments related to the net impact of acquisition related
expenses and the tax effects on those items.
|
For more information, please contact:
Investor Contact:
Analog Devices, Inc.
Mr. Michael Lucarelli
Vice President, Investor Relations and FP&A
781-461-3282
investor.relations@analog.com
Media Contact:
Analog Devices, Inc.
Ms. Ferda Millan
Global PR & External Communications
Ferda.Millan@analog.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/analog-devices-reports-fiscal-third-quarter-2024-financial-results-302227039.html
SOURCE Analog Devices, Inc.