Analog Devices Reports Fiscal Third Quarter 2024 Financial Results
Analog Devices (ADI) reported its fiscal third quarter 2024 financial results, with revenue of $2.31 billion, above the midpoint of their outlook. The company saw sequential growth in Industrial, Consumer, and Communications sectors. ADI generated $4.0 billion in operating cash flow and $2.9 billion in free cash flow on a trailing twelve-month basis. They returned $574 million to shareholders through dividends and repurchases in Q3.
Despite a 25% year-over-year revenue decline, ADI's CEO Vincent Roche expressed confidence in the company's position to capitalize on secular trends. CFO Richard Puccio noted improved customer inventory levels and order momentum, signaling a potential recovery. For Q4 FY2024, ADI forecasts revenue of $2.40 billion ±$100 million, with adjusted EPS expected at $1.63 ±$0.10.
Analog Devices (ADI) ha riportato i risultati finanziari per il terzo trimestre fiscale del 2024, con un fatturato di 2,31 miliardi di dollari, sopra il punto centrale delle loro previsioni. L'azienda ha registrato una crescita sequenziale nei settori Industriale, Consumer e Comunicazioni. ADI ha generato 4,0 miliardi di dollari di flusso di cassa operativo e 2,9 miliardi di dollari di flusso di cassa libero su base annuale. Ha restituito 574 milioni di dollari agli azionisti tramite dividendi e riacquisti nel terzo trimestre.
Nonostante un calo del fatturato del 25% su base annua, il CEO di ADI Vincent Roche ha espresso fiducia nella posizione dell'azienda per capitalizzare sulle tendenze strutturali. Il CFO Richard Puccio ha osservato un miglioramento dei livelli di inventario dei clienti e un incremento degli ordini, segnando un potenziale recupero. Per il quarto trimestre dell'FY2024, ADI prevede un fatturato di 2,40 miliardi di dollari ±100 milioni, con un EPS rettificato atteso a 1,63 dollari ±0,10.
Analog Devices (ADI) informó sus resultados financieros del tercer trimestre fiscal de 2024, con ingresos de 2.31 mil millones de dólares, superando el punto medio de sus previsiones. La compañía vio un crecimiento secuencial en los sectores Industrial, de Consumo y de Comunicaciones. ADI generó 4.0 mil millones de dólares en flujo de caja operativo y 2.9 mil millones de dólares en flujo de caja libre en una base de doce meses. Regresaron 574 millones de dólares a los accionistas a través de dividendos y recompras en el tercer trimestre.
A pesar de una disminución del 25% en los ingresos año tras año, el CEO de ADI, Vincent Roche, expresó confianza en la posición de la empresa para capitalizar las tendencias seculares. El CFO Richard Puccio señaló niveles de inventario mejorados entre los clientes y un impulso en los pedidos, señalando una posible recuperación. Para el cuarto trimestre del FY2024, ADI pronostica ingresos de 2.40 mil millones de dólares ±100 millones, con un EPS ajustado esperado de 1.63 dólares ±0.10.
아날로그 디바이스(Analog Devices, ADI)는 2024 회계년도 3분기 재무 결과를 발표했으며, 수익이 23억 1천만 달러로 예상치의 중간값을 초과했습니다. 회사는 산업, 소비자 및 통신 부문에서 순차적 성장을 보였습니다. ADI는 지난 12개월 기준으로 40억 달러의 운영 현금 흐름과 29억 달러의 자유 현금 흐름을 생성했습니다. 3분기 동안 5억 7400만 달러를 배당금과 주식 매입을 통해 주주에게 돌아갔습니다.
연간 수익이 25% 감소했음에도 불구하고, ADI의 CEO인 빈센트 로슈(Vincent Roche)는 회사가 지속적인 트렌드를 활용할 수 있는 입장에 있다고 확신을 표현했습니다. CFO 리차드 푸치오(Richard Puccio)는 고객 재고 수준과 주문 선행 지표가 개선되었다고 언급하며, 이는 잠재적인 회복의 신호가 될 수 있음을 알렸습니다. 2024 회계년도 4분기 동안 ADI는 수익을 24억 달러 ±1억 달러로 예상하며, 조정된 EPS는 1.63달러 ±0.10으로 예상하고 있습니다.
Analog Devices (ADI) a annoncé ses résultats financiers pour le troisième trimestre de l'exercice 2024, avec des revenus de 2,31 milliards de dollars, au-dessus du point médian de leurs prévisions. L'entreprise a connu une croissance séquentielle dans les secteurs industriel, grand public et communications. ADI a généré 4,0 milliards de dollars de flux de trésorerie opérationnels et 2,9 milliards de dollars de flux de trésorerie libre sur une base de douze mois. Elle a restitué 574 millions de dollars aux actionnaires par le biais de dividendes et de rachats au troisième trimestre.
Malgré une baisse de 25 % des revenus par rapport à l'année précédente, le PDG d'ADI, Vincent Roche, a exprimé sa confiance dans la capacité de l'entreprise à tirer parti des tendances structurelles. Le directeur financier Richard Puccio a noté une amélioration des niveaux de stocks des clients et un élan des commandes, signalant une possible reprise. Pour le quatrième trimestre de l'exercice 2024, ADI prévoit des revenus de 2,40 milliards de dollars ±100 millions, avec un BPA ajusté prévu à 1,63 dollar ±0,10.
Analog Devices (ADI) hat seine finanziellen Ergebnisse für das dritte Quartal des Geschäftsjahres 2024 bekannt gegeben, mit Einnahmen von 2,31 Milliarden Dollar, die über dem Mittelpunkt ihrer Prognose liegen. Das Unternehmen verzeichnete ein sequenzielles Wachstum in den Bereichen Industrie, Konsumgüter und Kommunikation. ADI generierte einen 4,0 Milliarden Dollar operativen Cashflow und 2,9 Milliarden Dollar freien Cashflow auf Basis der letzten zwölf Monate. Im dritten Quartal wurden 574 Millionen Dollar an die Aktionäre durch Dividenden und Aktienrückkäufe zurückgegeben.
Trotz eines Rückgangs der Einnahmen um 25 % im Jahresvergleich äußerte ADIs CEO Vincent Roche Vertrauen in die Position des Unternehmens, um von langfristigen Trends zu profitieren. CFO Richard Puccio wies auf verbesserte Kundeninventarniveaus und eine Auftragsdynamik hin, die auf eine potenzielle Erholung hindeutet. Für das vierte Quartal des Geschäftsjahres 2024 prognostiziert ADI Einnahmen von 2,40 Milliarden Dollar ±100 Millionen, mit einem erwarteten bereinigten EPS von 1,63 Dollar ±0,10.
- Revenue of $2.31 billion exceeded the midpoint of the company's outlook
- Sequential growth observed in Industrial, Consumer, and Communications sectors
- Strong cash flow generation with $4.0 billion in operating cash flow and $2.9 billion in free cash flow (TTM)
- Returned $574 million to shareholders through dividends and repurchases in Q3
- Improved customer inventory levels and order momentum indicate potential recovery
- Q4 FY2024 revenue forecast of $2.40 billion suggests sequential growth
- 25% year-over-year revenue decline to $2.31 billion from $3.08 billion
- Gross margin percentage decreased by 710 basis points to 56.7%
- Operating margin fell by 900 basis points to 21.2%
- Diluted earnings per share dropped 55% to $0.79 from $1.74 year-over-year
- Adjusted gross margin percentage declined by 430 basis points to 67.9%
- Adjusted operating margin decreased by 660 basis points to 41.2%
Analog Devices' Q3 FY2024 results show a mixed picture. While revenue of
However, there are positive signs of a potential recovery. The company's Q4 guidance suggests sequential growth, with revenue projected at
Investors should note the strong cash generation, with
The semiconductor industry is showing early signs of recovery, as evidenced by ADI's improved outlook. However, the pace of recovery remains uncertain due to ongoing economic and geopolitical challenges. This aligns with broader industry trends, where demand is gradually picking up after a period of inventory correction.
ADI's focus on high-performance analog solutions positions it well to capitalize on emerging secular trends. The company's diverse end-market exposure, particularly in Industrial and Communications sectors, provides some resilience against market volatility. Investors should monitor ADI's ability to leverage these trends for future growth, especially as the market recovers.
The
- Revenue of
$2.31 billion - Operating cash flow of
$4.0 billion $2.9 billion - Returned
$574 million
"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 | Trailing Twelve | ||||
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 | Trailing Twelve | ||||
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
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
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,
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
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 | |||||||
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 | 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 | |||
(+/- | (+/- | ||
Operating margin | 22.3 % | 41.0 %(1) | |
(+/-180 bps) | (+/-100 bps) | ||
Nonoperating expenses | ~ | ~ | |
Tax rate | |||
Earnings per share | |||
(+/- | (+/- | ||
(1) Includes |
(2) Includes |
(3) Includes |
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
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SOURCE Analog Devices, Inc.
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