Analog Devices Reports Fourth Quarter Results Above the High-End of Outlook
Analog Devices, Inc. (Nasdaq: ADI), a leading global high-performance semiconductor company, today announced financial results for its fourth quarter and full year fiscal 2020, which ended October 31, 2020.
"ADI delivered fourth quarter results above the high-end of our outlook. We grew revenue across all of our B2B markets, expanded operating margins and increased EPS by double-digits year-over-year," said Vincent Roche, President and CEO of Analog Devices. "Fiscal 2020 represented a year of strategic progress against an unprecedented backdrop, and our results continue to highlight the insatiable demand for our high-performance analog and mixed signal solutions. Overall, I'm proud of how our global team embraced and learned from this challenging time and continued to execute at a high level to generate and capture value for all stakeholders."
Roche continued, "Looking ahead, our pending acquisition of Maxim Integrated is an opportunity to increase our scale and scope to deliver disruptive innovation for our customers while driving further profitable growth. The combination strengthens our industry leadership position, further diversifying our business across markets and applications and solidifying ADI as the destination for the world's best analog talent. While the macroenvironment remains fluid, we are cautiously optimistic that a broad-based recovery is underway and expect to build on this momentum in fiscal 2021."
Performance for the Fourth Quarter of Fiscal 2020
Results Summary(1)
(in millions, except per-share amounts and percentages)
-------------------------------- -------------------- -------------------------------- ------------------------------ --------------------------------
Three Months Ended
--------------------------------------------------------------------------------------------------------------------------------------------------
Oct 31, 2020 Nov 2, 2019 Change
-------------------------------- -------------------------------- --------------------------------
Revenue $ 1,526 $ 1,443 6 %
Gross margin $ 1,023 $ 942 9 %
Gross margin percentage 67.0 % 65.3 % (2) 170 bps
Operating income $ 462 $ 338 36 %
Operating margin 30.2 % 23.4 % 680 bps
Diluted earnings per share $ 1.04 $ 0.74 41 %
Adjusted Results
Adjusted gross margin $ 1,068 $ 987 8 %
Adjusted gross margin percentage 70.0 % 68.4 % (2) 160 bps
Adjusted operating income $ 636 $ 560 14 %
Adjusted operating margin 41.7 % 38.8 % 290 bps
Adjusted diluted earnings per share $ 1.44 $ 1.19 21 %
-------------------------------- --------------------------------
Three Months Trailing Twelve
Ended Months
-------------------------------- --------------------------------
Cash Generation Oct 31, 2020 Oct 31, 2020
-------------------------------- --------------------------------
Net cash provided by operating activities $ 673 $ 2,008
% of revenue 44.1 % 35.8 %
Capital expenditures $ (30) $ (166)
Free cash flow $ 643 $ 1,843
% of revenue 42.1 % 32.9 %
-------------------------------- --------------------------------
Three Months Trailing Twelve
Ended Months
-------------------------------- --------------------------------
Cash Return Oct 31, 2020 Oct 31, 2020
-------------------------------- --------------------------------
Dividend paid $ (230) $ (886)
Stock repurchases (7) (244)
------------ -------------------- ------------ --------------------
(1) The sum and/or computation of the individual amounts may not equal the total due to rounding.
Outlook for the First Quarter of Fiscal Year 2021
For the first quarter of fiscal 2021, we are forecasting revenue of $1.50 billion, +/- $70 million. At the midpoint of this revenue outlook, we expect reported operating margin of approximately 29.1%, +/- 150 bps, and adjusted operating margin of approximately 40.0%, +/- 100 bps. We are planning for reported EPS to be $0.92, +/- $0.10, and adjusted EPS to be $1.30, +/- $0.10.
Our first quarter fiscal 2021 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 press release. See also "Non-GAAP Financial Information" section for additional information.
Dividend Payment
The ADI Board of Directors has declared a quarterly cash dividend of $0.62 per outstanding share of common stock. The dividend will be paid on December 15, 2020 to all shareholders of record at the close of business on December 4, 2020.
Conference Call Scheduled for Today, Tuesday, November 24, 2020 at 10:00 am ET
ADI will host a conference call to discuss our fourth quarter fiscal 2020 results and short-term outlook today, beginning at 10:00 am ET. Investors may join via webcast, accessible at investor.analog.com, or by telephone (call 800-859-9560, or 706-634-7193 for international calls, ten minutes before the call begins and provide the password "ADI").
A replay will be available two hours after the completion of the call. The replay may be accessed for up to two weeks by dialing 855-859-2056 (replay only) and providing the conference ID: 5297321, or by visiting investor.analog.com.
Non-GAAP Financial Information
This release includes non-GAAP financial measures that are not in accordance with, nor an alternative to, 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 measures to the most directly comparable financial measures calculated and presented in accordance with GAAP 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 the primary performance measurement 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 the non-GAAP liquidity measure free cash flow 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 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 margin percentage.
Adjusted gross margin is defined as gross margin, determined in accordance with GAAP, excluding certain acquisition related expenses(1) 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 expenses(1); acquisition related transaction costs(2); restructuring related expense(3); and charitable foundation contribution(4) 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 expenses(1); acquisition related transaction costs(2); restructuring related expense(3); and charitable foundation contribution(4)which are described further below. Adjusted operating margin represents adjusted operating income divided by revenue.
Adjusted income before income taxes is defined as income before income taxes, determined in accordance with GAAP, excluding: acquisition related expenses(1); acquisition related transaction costs(2); restructuring related expense(3); and charitable foundation contribution(4) 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 items(5) 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 expenses(1); acquisition related transaction costs(2); restructuring related expense(3); charitable foundation contribution(4); and tax related items(5) 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 margin percentage represents free cash flow divided by revenue.
(1)Acquisition Related Expenses: Expenses incurred as a result of current and prior period acquisitions and primarily include expenses associated with the fair value adjustments to 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 severance payments, equity award accelerations, and the fair value adjustment associated with the replacement of share-based awards related to the Linear Technology Corporation (Linear) 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.
(2)Acquisition Related Transaction Costs: Costs directly related to the proposed Maxim Integrated Products, Inc. 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.
(3)Restructuring Related Expense: Expenses incurred 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.
(4)Charitable Foundation Contribution: Expenses incurred in connection with a one time contribution of registered shares of common stock to the Analog Devices Foundation. We excluded this expense from our non-GAAP measures because this expense has no direct correlation to the operation of our business in the future.
(5)Tax Related Items: Income tax effect of the non-GAAP items discussed above and income tax from certain discrete tax items primarily related to the resolution of prior period tax audits, income tax from certain uncertain tax positions, income tax from state valuation allowance adjustments, income tax on certain inventory intra-entity transfers, the impact of a voluntary accounting policy change and other income tax adjustments related to prior periods. We excluded the income tax benefit / provision effect of these tax related items from our non-GAAP measures because they are not associated with the tax expense on our ongoing operating results.
About Analog Devices
Analog Devices (Nasdaq: ADI) is a leading global high-performance analog technology company dedicated to solving the toughest engineering challenges. We enable our customers to interpret the world around us by intelligently bridging the physical and digital with unmatched technologies that sense, measure, power, connect and interpret. Visit http://www.analog.com.
Forward Looking Statements
This press release contains forward-looking statements, which address a variety of subjects including, for example, our statements regarding our proposed acquisition of Maxim Integrated Products, Inc. ("Maxim"); the impact of the COVID-19 pandemic on our business, financial condition and results of operations; expected revenue, operating margin, tax rate, earnings per share, and other financial results; expected market trends, market share gains, operating leverage, production and inventory levels; expected customer demand and order rates for our products and expected product offerings; product development; and marketing position. 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: the uncertainty as to the extent of the duration, scope and impacts of the COVID-19 pandemic; political and economic uncertainty, including any faltering in global economic conditions or the stability of credit and financial markets; erosion of consumer confidence and declines in customer spending; unavailability of raw materials, services, supplies or manufacturing capacity; changes in geographic, product or customer mix; changes in export classifications, import and export regulations or duties and tariffs; changes in our or Maxim's estimates of our respective expected tax rates based on current tax law; our ability to successfully integrate Maxim's businesses and technologies; the risk that the expected benefits and synergies of the proposed transaction and growth prospects of the combined company may not be fully achieved in a timely manner, or at all; adverse results in litigation matters, including the potential for litigation related to the proposed transaction; the risk that we or Maxim will be unable to retain and hire key personnel; the risk associated with the timing of the closing of the proposed transaction, including the risk that the conditions to the transaction are not satisfied on a timely basis or at all or the failure of the transaction to close for any other reason or to close on the anticipated terms, including the anticipated tax treatment; the risk that any regulatory approval, consent or authorization that may be required for the proposed transaction is not obtained or is obtained subject to conditions that are not anticipated; unanticipated difficulties or expenditures relating to the transaction, the response of business partners and retention as a result of the announcement and pendency of the transaction; uncertainty as to the long-term value of our common stock; the diversion of management time on transaction-related matters; our ability to successfully integrate acquired businesses and technologies; and the risk that expected benefits, synergies and growth prospects of acquisitions may not be fully achieved in a timely manner, or at all. 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 ("SEC"), including the risk factors contained in our most recent Quarterly Report on Form 10-Q and 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 Twelve Months Ended
------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------
Oct 31, 2020 Nov 2, 2019 Oct 31, 2020 Nov 2, 2019
----------------------------------- ----------------------------------- ----------------------------------- -----------------------------------
Revenue $ 1,526,295 $ 1,443,219 $ 5,603,056 $ 5,991,065
Cost of sales 503,211 501,028 1,912,578 1,977,315
--------------- -------------------- --------------- -------------------- --------------- -------------------- --------------- --------------------
Gross margin 1,023,084 942,191 3,690,478 4,013,750
Operating expenses:
280,239 277,018 1,050,519 1,130,348
Research and development
165,115 154,799 659,923 648,094
Selling, marketing, general and administrative
108,007 107,225 429,455 429,041
Amortization of intangibles
8,051 64,788 52,337 95,659
Special charges
--------------- -------------------- --------------- -------------------- --------------- -------------------- --------------- --------------------
Total operating expenses 561,412 603,830 2,192,234 2,303,142
Operating income 461,672 338,361 1,498,244 1,710,608
Nonoperating expense (income):
48,593 50,775 193,305 229,075
Interest expense
(527) (1,988) (4,305) (10,229)
Interest income
(3,704) 1,747 (2,373) 6,034
Other, net
--------------- -------------------- --------------- -------------------- --------------- -------------------- --------------- --------------------
44,362 50,534 186,627 224,880
--------------- -------------------- --------------- -------------------- --------------- -------------------- --------------- --------------------
Income before income taxes 417,310 287,827 1,311,617 1,485,728
Provision for income taxes 30,784 10,133 90,856 122,717
--------------- -------------------- --------------- -------------------- --------------- -------------------- --------------- --------------------
Net income $ 386,526 $ 277,694 $ 1,220,761 $ 1,363,011
====== ========= ==================== ====== ========= ==================== ====== ========= ==================== ====== ========= ====================
Shares used to compute earnings per share - basic 369,284 369,051 368,633 369,133
Shares used to compute earnings per share - diluted 372,322 372,584 371,973 372,871
Basic earnings per common share $ 1.05 $ 0.75 $ 3.31 $ 3.68
ANALOG DEVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
October 31, 2020 October 31, 2020 November 2, 2019
-------------------- ------------------------------------- ------------------------------------
Cash & cash equivalents $ $ 1,055,860 $ 648,322
Accounts receivable 737,536 737,536 635,136
Inventories 608,260 608,260 609,886
Other current assets 116,032 116,032 91,782
-------------------- ----------------- -------------------- ---------------- --------------------
2,517,688 2,517,688 1,985,126
Total current assets
Net property, plant and equipment 1,120,561 1,120,561 1,219,989
Other investments 86,729 86,729 77,324
Goodwill 12,278,425 12,278,425 12,256,880
Intangible assets, net 3,650,280 3,650,280 4,217,224
Deferred tax assets 1,503,064 1,503,064 1,582,382
Other assets 311,856 311,856 53,716
-------------------- ----------------- -------------------- ---------------- --------------------
Total assets $ $ 21,468,603 $ 21,392,641
==================== ======= ========== ==================== ====== ========== ====================
Other current liabilities $ $ 1,364,986 $ 1,208,965
Debt, current -- -- 299,667
Long-term debt 5,145,102 5,145,102 5,192,252
Deferred income taxes 1,919,595 1,919,595 2,088,212
Other non-current liabilities 1,040,975 1,040,975 894,357
Shareholders' equity 11,997,945 11,997,945 11,709,188
-------------------- ----------------- -------------------- ---------------- --------------------
Total liabilities & equity $ $ 21,468,603 $ 21,392,641
==================== ======= ========== ==================== ====== ========== ====================
ANALOG DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
----------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------
Three Months Ended Twelve Months Ended
------------------------------------------------------------------------------------------ --------------------------------------------------------------------------------------------
Oct 31, 2020 Nov 2, 2019 Oct 31, 2020 Nov 2, 2019
------------------------------------ ---------------------------------- ------------------------------------ ------------------------------------
Cash flows from operating activities:
$ 386,526 $ 277,694 $ 1,220,761 $ 1,363,011
Net income
Adjustments to reconcile net income to net cash provided by operations:
57,053 61,636 233,775 240,677
Depreciation
145,163 143,528 577,148 570,574
Amortization of intangibles
36,557 37,580 149,518 150,300
Stock-based compensation expense
-- 9,800 -- 14,167
Non-cash impairment included in special charges
(71,146) (35,809) (113,948) (91,253)
Deferred income taxes
-- -- 40,000 --
Non-cash contribution to charitable foundation
(257) 14,206 5,418 40,907
Other non-cash activity
118,702 149,270 (104,185) (35,283)
Changes in operating assets and liabilities
---------------- -------------------- -------------- -------------------- ---------------- -------------------- ---------------- --------------------
286,072 380,211 787,726 890,089
Total adjustments
---------------- -------------------- -------------- -------------------- ---------------- -------------------- ---------------- --------------------
Net cash provided by operating activities 672,598 657,905 2,008,487 2,253,100
---------------- -------------------- -------------- -------------------- ---------------- -------------------- ---------------- --------------------
44.1 % 45.6 % 35.8 % 37.6 %
Percent of revenue
Cash flows from investing activities:
(29,888) (51,076) (165,692) (275,372)
Additions to property, plant and equipment
(1,433) (11,170) (14,196) (11,170)
Payments for acquisitions, net of cash acquired
579 (1,512) (635) (6,644)
Change in other assets
---------------- -------------------- -------------- -------------------- ---------------- -------------------- ---------------- --------------------
Net cash used for investing activities (30,742) (63,758) (180,523) (293,186)
---------------- -------------------- -------------- -------------------- ---------------- -------------------- ---------------- --------------------
Cash flows from financing activities:
-- -- 395,646 1,250,000
Proceeds from debt
-- -- -- (1,250,000)
Early termination of debt
-- -- 350,000 75,000
Proceeds from revolver
-- -- (350,000) (75,000)
Payments on revolver
(450,000) (200,000) (750,000) (850,000)
Debt repayments
(229,597) (200,196) (886,155) (777,481)
Dividend payments to shareholders
(7,222) (172,389) (244,487) (613,005)
Repurchase of common stock
10,653 10,388 68,403 116,523
Proceeds from employee stock plans
-- 5,087 (4,015) (2,831)
Change in other financing activities
---------------- -------------------- -------------- -------------------- ---------------- -------------------- ---------------- --------------------
Net cash used for financing activities (676,166) (557,110) (1,420,608) (2,126,794)
---------------- -------------------- -------------- -------------------- ---------------- -------------------- ---------------- --------------------
Effect of exchange rate changes on cash (94) (879) 182 (1,389)
---------------- -------------------- -------------- -------------------- ---------------- -------------------- ---------------- --------------------
Net (decrease) increase in cash and cash equivalents (34,404) 36,158 407,538 (168,269)
Cash and cash equivalents at beginning of period 1,090,264 612,164 648,322 816,591
---------------- -------------------- -------------- -------------------- ---------------- -------------------- ---------------- --------------------
Cash and cash equivalents at end of period $ 1,055,860 $ 648,322 $ 1,055,860 $ 648,322
======= ========= ==================== ======= ======= ==================== ======= ========= ==================== ======= ========= ====================
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
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Oct 31, 2020 Nov 2, 2019
------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------
Revenue % of revenue* Y/Y % Revenue % of revenue*
----------------------------------- -------------------- -------------------- ----------------------------------- --------------------
Industrial $ 811,226 53% 9% $ 745,672 52%
Communications 312,649 20% 19% 262,808 18%
Automotive 229,781 15% 2% 226,057 16%
Consumer 172,639 11% (17)% 208,682 14%
--------------- -------------------- -------------------- --------------- -------------------- --------------------
Total revenue $ 1,526,295 100% 6% $ 1,443,219 100%
====== ========= ==================== ==================== ====== ========= ==================== ====================
----------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----------------------------------- -------------------- --------------------
Twelve Months Ended
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Oct 31, 2020 Nov 2, 2019
------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------
Revenue % of revenue* Y/Y % Revenue % of revenue*
----------------------------------- -------------------- -------------------- ----------------------------------- --------------------
Industrial $ 2,987,542 53% (1)% $ 3,011,411 50%
Communications 1,195,946 21% (8)% 1,294,960 22%
Automotive 779,276 14% (16)% 930,613 16%
Consumer 640,292 11% (15)% 754,081 13%
--------------- -------------------- -------------------- --------------- -------------------- --------------------
Total revenue $ 5,603,056 100% (6)% $ 5,991,065 100%
====== ========= ==================== ==================== ====== ========= ==================== ====================
ANALOG DEVICES, INC.
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(Unaudited)
(In thousands, except per share amounts)
--------------------------------------------- --------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------
Three Months Ended Twelve Months Ended
------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------------------
Oct 31, 2020 Nov 2, 2019 Oct 31, 2020 Nov 2, 2019
------------------------------------ ---------------------------------- ----------------------------------- ------------------------------------
Gross margin $ 1,023,084 $ 942,191 $ 3,690,478 $ 4,013,750
67.0 % 65.3 % 65.9 % 67.0 %
Gross margin percentage
44,741 44,822 179,374 175,266
Acquisition related expenses
---------------- -------------------- -------------- -------------------- --------------- -------------------- ---------------- --------------------
Adjusted gross margin $ 1,067,825 $ 987,013 $ 3,869,852 $ 4,189,016
======= ========= ==================== ======= ======= ==================== ====== ========= ==================== ======= ========= ====================
70.0 % 68.4 % 69.1 % 69.9 %
Adjusted gross margin percentage
Operating expenses $ 561,412 $ 603,830 $ 2,192,234 $ 2,303,142
36.8 % 41.8 % 39.1 % 38.4 %
Percent of revenue
(110,963) (112,219) (444,261) (451,511)
Acquisition related expenses
(10,977) -- (20,098) --
Acquisition related transaction costs
-- -- (40,000) --
Charitable foundation contribution
(8,050) (64,788) (52,337) (95,659)
Restructuring related expense
---------------- -------------------- -------------- -------------------- --------------- -------------------- ---------------- --------------------
Adjusted operating expenses $ 431,422 $ 426,823 $ 1,635,538 $ 1,755,972
======= ========= ==================== ======= ======= ==================== ====== ========= ==================== ======= ========= ====================
28.3 % 29.6 % 29.2 % 29.3 %
Adjusted operating expenses percentage
Operating income $ 461,672 $ 338,361 $ 1,498,244 $ 1,710,608
30.2 % 23.4 % 26.7 % 28.6 %
Operating margin
155,704 157,041 623,635 626,777
Acquisition related expenses
10,977 -- 20,098 --
Acquisition related transaction costs
-- -- 40,000 --
Charitable foundation contribution
8,050 64,788 52,337 95,659
Restructuring related expense
---------------- -------------------- -------------- -------------------- --------------- -------------------- ---------------- --------------------
Adjusted operating income $ 636,403 $ 560,190 $ 2,234,314 $ 2,433,044
======= ========= ==================== ======= ======= ==================== ====== ========= ==================== ======= ========= ====================
41.7 % 38.8 % 39.9 % 40.6 %
Adjusted operating margin
Provision for income taxes $ 30,784 $ 10,133 $ 90,856 $ 122,717
26,878 35,903 106,291 104,470
Income tax effect of adjustments above
-- 20,302 25,951 61,227
Income tax from certain discrete tax items
---------------- -------------------- -------------- -------------------- --------------- -------------------- ---------------- --------------------
Adjusted provision for income taxes $ 57,662 $ 66,338 $ 223,098 $ 288,414
======= ========= ==================== ======= ======= ==================== ====== ========= ==================== ======= ========= ====================
Income before income taxes $ 417,310 $ 287,827 $ 1,311,617 $ 1,485,728
7.4 % 3.5 % 6.9 % 8.3 %
Effective tax rate
155,704 157,041 623,635 626,777
Acquisition related expenses
10,977 -- 20,098 --
Acquisition related transaction costs
-- -- 40,000 --
Charitable foundation contribution
8,050 64,788 52,337 95,659
Restructuring related expense
---------------- -------------------- -------------- -------------------- --------------- -------------------- ---------------- --------------------
Adjusted income before income taxes $ 592,041 $ 509,656 $ 2,047,687 $ 2,208,164
======= ========= ==================== ======= ======= ==================== ====== ========= ==================== ======= ========= ====================
Adjusted tax rate 9.7 % 13.0 % 10.9 % 13.1 %
Diluted EPS $ 1.04 $ 0.74 $ 3.28 $ 3.65
0.42 0.42 1.68 1.68
Acquisition related expenses
0.03 -- 0.05 --
Acquisition related transaction costs
-- -- 0.11 --
Charitable foundation contribution
0.02 0.17 0.14 0.26
Restructuring related expense
(0.07) (0.10) (0.29) (0.28)
Income tax effect of adjustments above
-- (0.05) (0.07) (0.16)
Income tax from certain discrete tax items
---------------- -------------------- -------------- -------------------- --------------- -------------------- ---------------- --------------------
* 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
Twelve
Months
----------------------------------- ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Oct 31, 2020 Oct 31, 2020 Aug 1, 2020 May 2, 2020 Feb 1, 2020
----------------------------------- --------------------------------- -------------------------------- -------------------------------- --------------------------------
Revenue $ 5,603,056 $ 1,526,295 $ 1,456,136 $ 1,317,060 $ 1,303,565
Net cash provided by operating activities $ 2,008,487 $ 672,598 $ 557,200 $ 429,041 $ 349,648
% of Revenue 36 % 44 % 38 % 33 % 27 %
Capital expenditures $ (165,692) $ (29,888) $ (20,804) $ (60,161) $ (54,839)
Free cash flow $ 1,842,795 $ 642,710 $ 536,396 $ 368,880 $ 294,809
ANALOG DEVICES, INC.
RECONCILIATION OF PROJECTED GAAP TO NON-GAAP RESULTS
(Unaudited)
--------------------- ------------------------------------ ------------------------------------------------------
Three Months Ending January 30, 2021 Three Months Ending January 30, 2021
------------------------------------ ------------------------------------------------------
Reported Reported Adjusted
------------------------------------ ----------------- -----------------
Revenue $1.50 Billion $1.50 Billion $1.50 Billion
(+/- $70 Million) (+/- $70 Million) (+/- $70 Million)
Operating margin 29.1% 29.1% 40.0% (1)
(+/-150 bps) (+/-150 bps) (+/-100 bps)
Nonoperating expenses $43 Million $43 Million $43 Million
Tax rate 12% to 14% 12% to 14% 12% to 14% (2)
Earnings per share $0.92 $0.92 $1.30 (3)
(1) Includes $163 million of adjustments related to acquisition related expenses and acquisition related transaction costs as previously defined in the Non-GAAP Financial Information section of this press release. (2) Includes $23 million of tax effects associated with the adjustment for acquisition related expenses and acquisition related transaction costs noted above. (3) Includes $0.38 of adjustments related to the net impact of $0.44 of acquisition related expenses and acquisition related transaction costs, as well as $0.06 of tax effects on those items.
(ADI WEB)
View source version on businesswire.com: https://www.businesswire.com/news/home/20201124005320/en/
SOURCE: Analog Devices, Inc.
Investor Contact: Analog Devices, Inc. Mr. Michael Lucarelli Sr. Director of Investor Relations 781-461-3282 investor.relations@analog.com Media Contacts: Teneo Ms. Andrea Calise 917-826-3804 andrea.calise@teneo.com Teneo Ms. Megan Fenton 917-860-0356 megan.fenton@teneo.com