ADI
$109.48
Analog Devices
$4.38
4.17%
Earnings Details
2nd Quarter April 2019
Wednesday, May 22, 2019 7:15:00 AM
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Summary

Analog Devices Beats but Guides Lower

Analog Devices (ADI) reported 2nd Quarter April 2019 earnings of $1.36 per share on revenue of $1.5 billion. The consensus earnings estimate was $1.30 per share on revenue of $1.5 billion. The Earnings Whisper number was $1.33 per share. Revenue grew 0.9% on a year-over-year basis.

The company said it expects third quarter earnings of $1.15 to $1.29 per share on revenue of $1.40 billion to $1.50 billion. The current consensus earnings estimate is $1.38 per share on revenue of $1.56 billion for the quarter ending July 31, 2019.

Analog Devices Inc is engaged in the design, manufacture and marketing of a portfolio of high-performance analog, mixed-signal and digital signal processing integrated circuits used in all types of electronic equipment.

Results
Reported Earnings
$1.36
Earnings Whisper
$1.33
Consensus Estimate
$1.30
Reported Revenue
$1.53 Bil
Revenue Estimate
$1.50 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Analog Devices Reports Second Quarter Fiscal 2019 Results with Revenue and EPS at the High-End of Guidance

  • Revenue of $1.53 billion led by strong growth in our communication applications across multiple markets
  • B2B revenue increased year-over-year for the 12th consecutive quarter
  • Operating Cash Flow of $2.4 billion and Free Cash Flow of $2.1 billion on a trailing twelve months basis
  • Returned over $300 million to shareholders in the second quarter through dividends and share repurchases

NORWOOD, Mass.--(BUSINESS WIRE)-- Analog Devices, Inc. (Nasdaq: ADI), a leading global high-performance analog technology company, today announced financial results for its second quarter of fiscal 2019, which ended May 4, 2019.

“We continue to execute exceptionally well in an uncertain environment,” said Vincent Roche, President and CEO. “Revenue and EPS came in at the high-end of our guidance, led by strong growth in our communication applications across multiple markets. All told, B2B revenue increased year-over-year for the 12th consecutive quarter.”

“The world around us remains volatile and uncertain, but when I take a step back and look past the geopolitical noise, I am confident that the macrotrends propelling our markets forward are creating unprecedented demand for the technologies we provide. We remain well-positioned to continue to deliver sustainable profitable growth and strong shareholder returns over the long-term.”

Performance for the Second Quarter of Fiscal 2019

Results Summary
(in millions, except per-share amounts and percentages)

     
Three Months Ended
May 4,
2019
  May 5,
2018 (1)
  Change
Revenue $ 1,527 $ 1,564 (2 )%
Gross margin $ 1,034 $ 1,072 (4 )%
Gross margin percentage 67.7 % 68.6 % (90 bps)
Operating income $ 470 $ 503 (7 )%
Operating margin 30.8 % 32.1 % (130 bps)
Diluted earnings per share $ 0.98 $ 1.06 (8 )%
Adjusted Results
Adjusted gross margin $ 1,077 $ 1,117 (4 )%
Adjusted gross margin percentage 70.6 % 71.5 % (90 bps)
Adjusted operating income $ 634 $ 675 (6 )%
Adjusted operating margin 41.5 % 43.2 % (170 bps)
Adjusted diluted earnings per share $ 1.36 $ 1.50 (9 )%
 
 

Cash Generation

(in millions, except percentages)

   

Three Months
Ended

Trailing Twelve
Months

May 4,
2019

May 4,
2019

Net cash provided by operating activities

$

671

$

2,378

% of revenue (1)

44

%

39

%

Capital expenditures

$

(75

)

$

(304

)

Free cash flow

$

596

$

2,074

% of revenue (1)

39

%

34

%

 
 

Cash Return

(in millions)

   

Three Months
Ended

Trailing Twelve
Months

May 4,
2019

May 4,
2019

Dividend paid

$

(200

)

$

(735

)

Stock repurchases

 

(102

)

(525

)

Total cash returned

$

(302

)

$

(1,260

)

 

(1) Prior year balances have been restated to reflect the adoption of the new revenue recognition standard in the first quarter of fiscal 2019.

Outlook for the Third Quarter of Fiscal Year 2019

Our third quarter guidance takes into account the estimated impact on ADI from the U.S. Government’s recently announced export restrictions on a large communications company. At this time, we have ceased shipments of products to that company, and we are currently reviewing our ability to resume shipments under the recently announced temporary general license.

For the third quarter of fiscal 2019, we are forecasting revenue of $1.45 billion, +/- $50 million. At the midpoint of this revenue outlook, we expect reported operating margins of approximately 29.7%, and adjusted operating margins of approximately 40.5%. We are planning for reported EPS to be $0.86, +/- $0.07, and adjusted EPS to be $1.22, +/- $0.07.

Our third quarter fiscal 2019 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 $0.54 per outstanding share of common stock. The dividend will be paid on June 11, 2019 to all shareholders of record at the close of business on May 31, 2019.

Conference Call Scheduled for Today, Wednesday, May 22, 2019 at 10:00 am ET

ADI will host a conference call to discuss our second quarter fiscal 2019 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 706-634-7193 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: 4736779, 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.

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 restructuring related expense3 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 restructuring related expense3 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 expenses1; acquisition-related transaction costs2; and restructuring related expense3 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 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, restructuring related expense3 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 margin 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 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 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 Linear Technology 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.

3Restructuring-Related Expense: Expenses incurred in connection with facility closures, consolidation of manufacturing facilities, severance, and other cost reduction efforts. 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: Tax adjustments associated with the non-GAAP items discussed above, discrete tax items including tax expense or benefit related to prior periods, tax expense or benefit related to the impact of the Tax Cuts and Jobs Act of 2017, and uncertain tax positions. We excluded 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

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 expected revenue, operating margin, earnings per share, and other financial results, expected market trends, market share gains, operating leverage, production and inventory levels, and expected customer demand and order rates for our products 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: 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 estimates of our expected tax rate based on current tax law; higher than expected or unexpected costs associated with or relating to the acquisition of Linear Technology and the integration of the businesses; the risk that expected benefits, synergies and growth prospects of the acquisition may not be fully achieved in a timely manner, or at all; the risk that Linear Technology’s business may not be successfully integrated with Analog Devices’; the risk that we will be unable to retain and hire key personnel; and the risk that disruption resulting from the acquisition may adversely affect our business and relationships with our customers, suppliers or employees. 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.

(ADI-WEB)

For more information, please contact: Mr. Michael Lucarelli, Director of Investor Relations, Analog Devices, Inc. 781-461-3282 (phone); investor.relations@analog.com (email).

ANALOG DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)

         
Three Months Ended Six Months Ended
May 4, 2019  

May 5, 2018
(2)

May 4, 2019  

May 5, 2018
(2)

Revenue $ 1,526,602 $ 1,563,502 $ 3,067,703 $ 3,130,372
Cost of sales (1) 492,510   491,112   993,955   986,299  
Gross margin 1,034,092 1,072,390 2,073,748 2,144,073
Operating expenses:
Research & development (1) 285,846 289,472 573,228 578,069
Selling, marketing and general and administrative (1) 163,128 172,146 330,470 349,054
Amortization of intangibles 107,261 107,129 214,585 214,148
Special charges 8,162   1,089   29,944   58,407  
Total operating expenses 564,397 569,836 1,148,227 1,199,678
Operating income 469,695 502,554 925,521 944,395
Nonoperating expense (income):
Interest expense 59,701 64,792 118,429 132,822
Interest income (2,928 ) (1,912 ) (5,616 ) (4,004 )
Other, net 4,525   (451 ) 4,365   105  
61,298   62,429   117,178   128,923  
Income before income tax 408,397 440,125 808,343 815,472
Provision for income taxes 40,460   39,797   85,400   121,904  
Net income $ 367,937   $ 400,328   $ 722,943   $ 693,568  
 
Shares used to compute earnings per share - basic 369,246 370,384 368,974 369,685
Shares used to compute earnings per share - diluted 373,342 374,778 372,912 374,430
Basic earnings per common share

$

0.99 $ 1.08 $ 1.95 $ 1.87
Diluted earnings per common share $ 0.98 $ 1.06 $ 1.93 $ 1.84
 

(1) Includes stock-based compensation expense as follows:

 

Cost of sales

$

5,389

$

3,820

$

10,473

$

8,041

R&D

$

19,567

$

22,018

$

38,492

$

41,746

Selling, marketing and G&A

$

15,273

$

13,076

$

27,657

$

27,029

 

(2) Balances have been restated to reflect the full retrospective adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers.

ANALOG DEVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share and per share amounts)

         
May 4, 2019 November 3, 2018 (1)
Cash & cash equivalents $ 713,601 $ 816,591
Accounts receivable 685,978 639,717
Inventories 608,085 586,760
Other current assets 72,825   69,058
Total current assets 2,080,489 2,112,126
Net property, plant and equipment 1,211,467 1,154,328
Investments 74,277 68,583
Goodwill 12,250,370 12,252,604
Intangible assets, net 4,489,182 4,778,192
Deferred tax assets 1,610,109 9,665
Other 60,431   62,868
Total assets $ 21,776,325   $ 20,438,366
 
Other current liabilities $ 990,870 984,748
Debt, current 374,165 67,000
Long-term debt 5,612,365 6,265,674
Deferred income taxes 2,228,822 990,409
Other non-current liabilities 827,845 862,362
Shareholders' equity 11,742,258   11,268,173
Total liabilities & equity $ 21,776,325   $ 20,438,366

 

(1) Balances have been restated to reflect the full retrospective adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers.

ANALOG DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
(In thousands)

         
Three Months Ended Six Months Ended
May 4, 2019  

May 5, 2018
(1)

May 4, 2019  

May 5, 2018
(1)

Cash flows from operating activities:
Net Income $ 367,937 $ 400,328 $ 722,943 $ 693,568
Adjustments to reconcile net income to net cash provided by operations:
Depreciation 59,142 56,589 117,435 113,004
Amortization of intangibles 142,233 142,954 284,525 285,004
Stock-based compensation expense 40,229 38,914 76,622 76,816
Non-cash portion of special charge 4,367
Deferred income taxes (37,495 ) (28,037 ) (21,843 ) (705,640 )
Other non-cash activity 11,736 3,342 18,429 10,104
Changes in operating assets and liabilities 87,100   104,404   (159,829 ) 634,326  
Total adjustments 302,945   318,166   319,706   413,614  
Net cash provided by operating activities 670,882   718,494   1,042,649   1,107,182  
Percent of revenue 43.9 % 46.0 % 34.0 % 35.4 %
Cash flows from investing activities:
Additions to property, plant and equipment (75,209 ) (53,900 ) (166,202 ) (117,122 )
Payments for acquisitions, net of cash acquired (52,339 ) (52,339 )
Change in other assets 637   249   (4,585 ) (1,029 )
Net cash used for investing activities (74,572 ) (105,990 ) (170,787 ) (170,490 )
 
Cash flows from financing activities:
Proceeds from debt 743,778 743,778
Proceeds from revolver 75,000
Payments on revolver (75,000 )
Debt repayments (250,000 ) (1,200,000 ) (350,000 ) (1,620,000 )
Dividend payments to shareholders (199,501 ) (178,282 ) (377,217 ) (345,001 )
Repurchase of common stock (101,522 ) (21,978 ) (328,615 ) (29,908 )
Proceeds from employee stock plans 67,678 27,745 86,907 65,557
Contingent consideration payment (3,000 ) (542 ) (4,000 ) (542 )
Change in other financing activities (2,575 ) (866 ) (2,144 ) 7,945  
Net cash used for financing activities (488,920 ) (630,145 ) (975,069 ) (1,178,171 )
Effect of exchange rate changes on cash 347   (3,392 ) 217   158  
 
Net increase (decrease) in cash and cash equivalents 107,737 (21,033 ) (102,990 ) (241,321 )
Cash and cash equivalents at beginning of period 605,864   827,550   816,591   1,047,838  
Cash and cash equivalents at end of period $ 713,601   $ 806,517   $ 713,601   $ 806,517  
 

 

(1) Balances have been restated to reflect the full retrospective adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers.

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 evolve and improve, 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
May 4, 2019     May 5, 2018 (1)
Revenue   % of revenue*   Y/Y % Revenue   % of revenue*
Industrial $ 763,455 50% (6)% $ 810,732 52%
Automotive 249,765 16% —% 250,919 16%
Consumer 153,745 10% (32)% 227,077 15%
Communications 359,637   24% 31% 274,774   18%
Total revenue $ 1,526,602   100% (2)% $ 1,563,502   100%
                 
Six Months Ended
May 4, 2019 May 5, 2018 (1)
Revenue % of revenue* Y/Y % Revenue % of revenue*
Industrial $ 1,488,077 49% (6)% $ 1,590,445 51%
Automotive 511,319 17% (1)% 515,791 16%
Consumer 362,966 12% (26)% 491,711 16%
Communications 705,341   23% 32% 532,425   17%
Total revenue $ 3,067,703   100% (2)% $ 3,130,372   100%

 

(1) Balances have been restated to reflect the full retrospective adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers.
*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 Six Months Ended
May 4, 2019   May 5, 2018 (1) May 4, 2019   May 5, 2018 (1)
Gross margin $ 1,034,092 $ 1,072,390 $ 2,073,748 $ 2,144,073
Gross margin percentage 67.7 % 68.6 % 67.6 % 68.5 %
Acquisition related expenses 43,255   44,743   88,750   88,519  
Adjusted gross margin $ 1,077,347   $ 1,117,133   $ 2,162,498   $ 2,232,592  
Adjusted gross margin percentage 70.6 % 71.5 % 70.5 % 71.3 %
 
Operating expenses $ 564,397 $ 569,836 $ 1,148,227 $ 1,199,678
Percent of revenue 37.0 % 36.4 % 37.4 % 38.3 %
Acquisition related expenses (112,824 ) (123,196 ) (222,656 ) (241,174 )
Acquisition related transaction costs (3,871 ) (12,607 )
Restructuring related expense (8,162 ) (1,089 ) (29,944 ) (58,407 )
Adjusted operating expenses $ 443,411   $ 441,680   $ 895,627   $ 887,490  
Adjusted operating expenses percentage 29.0 % 28.2 % 29.2 % 28.4 %
 
Operating income $ 469,695 $ 502,554 $ 925,521 $ 944,395
Operating margin 30.8 % 32.1 % 30.2 % 30.2 %
Acquisition related expenses 156,079 167,939 311,406 329,693
Acquisition related transaction costs 3,871 12,607
Restructuring related expense 8,162   1,089   29,944   58,407  
Adjusted operating income $ 633,936   $ 675,453   $ 1,266,871   $ 1,345,102  
Adjusted operating margin 41.5 % 43.2 % 41.3 % 43.0 %
 
Provision for income taxes $ 40,460 $ 39,797 $ 85,400 $ 121,904
Income tax on non discrete tax items above 22,740 5,163 47,640 17,144
Income tax on prior period tax liabilities (624 ) (624 )
Income tax of uncertain tax positions 3,750 3,750
Income tax one time transitional tax 7,500 (687,061 )
Income tax on deferred tax recalibration     5,060   639,698  
Adjusted provision for income taxes $ 63,200   $ 48,086   $ 145,600   $ 94,811  
 
Income before income taxes 408,397 440,125 808,343 815,472
Effective tax rate 9.9 % 9.0 % 10.6 % 14.9 %
Acquisition related expenses 156,079 167,939 311,406 329,693
Acquisition related transaction costs 3,871 12,607
Restructuring related expense 8,162   1,089   29,944   58,407  
Adjusted income before income taxes $ 572,638   $ 613,024   $ 1,149,693   $ 1,216,179  
Adjusted tax rate 11.0 % 7.8 % 12.7 % 7.8 %
 
Diluted EPS $ 0.98 $ 1.06 $ 1.93 $ 1.84
Acquisition related expenses 0.42 0.45 0.84 0.88
Acquisition related transaction costs 0.01 0.03
Restructuring related expense 0.02 0.08 0.16
Income tax on non discrete tax items above (0.06 ) (0.01 ) (0.13 ) (0.05 )
Income on prior period tax liabilities
Income of uncertain tax positions (0.01 ) (0.01 )
Income tax one time transitional tax (0.02 ) 1.83
Income tax on deferred tax recalibration     (0.01 ) (1.71 )
Adjusted diluted EPS (2) $ 1.36   $ 1.50   $ 2.69   $ 2.96  
 

(1) Balances have been restated to reflect the full retrospective adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers.
(2) 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
May 4,
2019
May 4,
2019
  Feb 2,
2019
  Nov 3,
2018
  Aug. 4,
2018
Revenue (1) $ 6,162,020 $ 1,526,602 $ 1,541,101 $ 1,536,128 $ 1,558,189
Net cash provided by operating activities $ 2,377,828 $ 670,882 $ 371,767 $ 714,441 $ 620,738
% of Revenue 39 % 44 % 24 % 47 % 40 %
Capital expenditures $ (303,956 ) $ (75,209 ) $ (90,993 ) $ (86,004 ) $ (51,750 )
Free cash flow $ 2,073,872 $ 595,673 $ 280,774 $ 628,437 $ 568,988
% of Revenue 34 % 39 % 18 % 41 % 37 %

 

(1) Balances have been restated to reflect the full retrospective adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers.

ANALOG DEVICES, INC.
RECONCILIATION OF PROJECTED GAAP TO NON-GAAP RESULTS
(Unaudited)

       
Three Months Ending Aug. 3, 2019
Reported     Adjusted
Revenue $1.45 Billion $1.45 Billion
(+/- $50 Million) (+/- $50 Million)
Operating margin 29.7% 40.5% (1)
(+/-100 bps) (+/-70 bps)
Tax rate 13% to 15% 13% to 15% (2)
Earnings per share $0.86 $1.22 (3)
(+/- $0.07) (+/- $0.07)
 

(1) Includes $157 million of adjustments related to acquisition related expenses as previously defined in the Non-GAAP Financial Information section of this press release.
(2) Includes $22 million of tax effects associated with the adjustment for acquisition related expenses above.
(3) Includes $0.36 of adjustments related to the net impact of $0.42 of acquisition related expenses and $0.06 of tax effects on those acquisition related expenses.

Analog Devices, Inc.
Mr. Michael Lucarelli, 781-461-3282
Director of Investor Relations
investor.relations@analog.com

Source: Analog Devices, Inc.