ADI
$162.44
Analog Devices
$1.50
.93%
Earnings Details
2nd Quarter April 2022
Wednesday, May 18, 2022 7:00:00 AM
Tweet Share Watch
Summary

Analog Devices Beats

Analog Devices (ADI) reported 2nd Quarter April 2022 earnings of $2.40 per share on revenue of $3.0 billion. The consensus earnings estimate was $2.12 per share on revenue of $2.8 billion. The Earnings Whisper number was $2.19 per share. Revenue grew 78.9% on a year-over-year basis.

The company said it expects third quarter earnings of $2.32 to $252 per share on revenue of $2.95 billion to $3.15 billion. The current consensus earnings estimate is $2.18 per share on revenue of $2.89 billion for the quarter ending July 31, 2022.

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
$2.40
Earnings Whisper
$2.19
Consensus Estimate
$2.12
Reported Revenue
$2.97 Bil
Revenue Estimate
$2.84 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Analog Devices Reports Record Second Quarter Fiscal 2022 Results

  • Revenue of $2.97 billion with double digit year-over-year growth across all end markets
  • Double digit sequential growth across all B2B end markets
  • Increased share repurchases to $776 million and paid $398 million in dividends, returning a total $1.17 billion to shareholders
  • Operating cash flow of $3.65 billion and free cash flow of $3.20 billion, or 33% of revenue, on a trailing twelve-month basis

WILMINGTON, 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 2022, which ended April 30, 2022.

“ADI delivered its fifth consecutive quarter of record revenue, illustrating the unprecedented demand for our technologies and our ability to increase output in a challenging supply backdrop. Top line strength combined with successful synergy execution enabled adjusted gross margin, operating margin and EPS to achieve new highs,” said Vincent Roche, CEO and Chair. “Despite increasing geopolitical uncertainty and ongoing supply chain disruptions, we enter the second half from a position of strength with increased capacity and continued bookings momentum.”

Roche continued, “Market leadership in numerous secular mega trends such as automation, electrification, and advanced connectivity is a testament to the depth and breadth of our performance leading analog, mixed signal, and power portfolio. Our solutions enable the intelligent edge, accelerating digitalization across industries. Continued efforts to deepen customer relationships, enhance operational resiliency, and our unrelenting focus on innovation, gives me great confidence in our ability to accelerate long term growth while driving positive societal impact.”

Performance for the Second Quarter of Fiscal 2022

Results Summary(1)

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

 

 

 

 

 

 

 

Three Months Ended

 

Apr. 30, 2022

 

May 1, 2021

 

Change

Revenue

$

2,972

 

 

$

1,661

 

 

 

79

%

Gross margin

$

1,945

 

 

 

1,137

 

 

 

71

%

Gross margin percentage

 

65.4

%

 

 

68.4

%

 

(300 bps)

Operating income

$

918

 

 

$

520

 

 

 

77

%

Operating margin

 

30.9

%

 

 

31.3

%

 

(40 bps)

Diluted earnings per share

$

1.49

 

 

$

1.14

 

 

 

31

%

 

 

 

 

 

 

Adjusted Results

 

 

 

 

 

Adjusted gross margin

$

2,205

 

 

$

1,177

 

 

 

87

%

Adjusted gross margin percentage

 

74.2

%

 

 

70.9

%

 

330 bps

Adjusted operating income

$

1,495

 

 

$

694

 

 

 

115

%

Adjusted operating margin

 

50.3

%

 

 

41.7

%

 

860 bps

Adjusted diluted earnings per share

$

2.40

 

 

$

1.54

 

 

 

56

%

 

 

 

 

 

 

 

 

 

Three Months
Ended

 

Trailing Twelve
Months

Cash Generation

 

 

Apr. 30, 2022

 

Apr. 30, 2022

Net cash provided by operating activities

 

 

$

1,222

 

 

$

3,649

 

% of revenue

 

 

 

41

%

 

 

37

%

Capital expenditures

 

 

$

(119

)

 

$

(447

)

Free cash flow

 

 

$

1,103

 

 

$

3,202

 

% of revenue

 

 

 

37

%

 

 

33

%

 

 

 

 

 

 

 

 

 

Three Months
Ended

 

Trailing Twelve
Months

Cash Return

 

 

Apr. 30, 2022

 

Apr. 30, 2022

Dividend paid

 

 

$

(398

)

 

$

(1,386

)

Stock repurchases

 

 

 

(776

)

 

 

(3,612

)

Total cash returned

 

 

$

(1,174

)

 

$

(4,998

)

 

 

 

 

 

 

(1) The sum and/or computation of the individual amounts may not equal the total due to rounding.

Outlook for the Third Quarter of Fiscal Year 2022

For the third quarter of fiscal 2022, we are forecasting revenue of $3.05 billion, +/- $100 million. At the midpoint of this revenue outlook, we expect reported operating margin of approximately 32.2%, +/-130 bps, and adjusted operating margin of approximately 49.5%, +/-70 bps. We are planning for reported EPS to be $1.55, +/-$0.10, and adjusted EPS to be $2.42, +/-$0.10.

Our third quarter fiscal 2022 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 $0.76 per outstanding share of common stock. The dividend will be paid on June 9, 2022 to all shareholders of record at the close of business on May 31, 2022.

Conference Call Scheduled for Today, Wednesday, May 18, 2022 at 10:00 am ET

ADI will host a conference call to discuss our second quarter fiscal 2022 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. The participant dial-in for both domestic and international callers will be available ten minutes before the call begins by calling 833-423-0297. International participants may provide the passcode 8334230297.

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: 6327355, 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 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 margin 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: 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 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 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 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.

3Special Charges, net: Expenses, net, 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.

4Tax Related Items: Income tax effect of the non-GAAP items discussed above and an income tax benefit from a discrete tax item related to the consolidation of certain subsidiaries. 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

Analog Devices, Inc. (Nasdaq: ADI) operates at the center of the modern digital economy, converting real-world phenomena into actionable insight with its comprehensive suite of analog and mixed signal, power management, radio frequency (RF), and digital and sensor technologies. ADI serves 125,000 customers worldwide with more than 75,000 products in the industrial, communications, automotive, and consumer markets. ADI is headquartered in Wilmington, MA. 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 sustained performance; increasing demand and supply; expected revenue, operating margin, earnings per share, and other financial results; expected market trends and acceleration of those trends, market share gains, operating leverage, production and inventory levels; capacity investments; expected customer demand and order rates for our products, expected product offerings and the importance of our product offerings and technologies to our customers; and market 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 estimates of our expected tax rates based on current tax law; adverse results in litigation matters, including the potential for litigation related to the Maxim acquisition; the risk that we will be unable to retain and hire key personnel, including as a result of labor shortages; changes in demand for semiconductors; unanticipated difficulties or expenditures relating to integrating Maxim; uncertainty as to the long-term value of our common stock; the diversion of management time on integrating Maxim's business and operations; our ability to successfully integrate acquired businesses and technologies, including Maxim; and the risk that expected benefits, synergies and growth prospects of acquisitions, including our acquisition of Maxim, 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

 

Six Months Ended

 

Apr. 30, 2022

 

May 1, 2021

 

Apr. 30, 2022

 

May 1, 2021

Revenue

$

2,972,064

 

 

$

1,661,407

 

 

$

5,656,357

 

 

$

3,219,865

 

Cost of sales

 

1,027,544

 

 

 

524,770

 

 

 

2,309,840

 

 

 

1,037,857

 

Gross margin

 

1,944,520

 

 

 

1,136,637

 

 

 

3,346,517

 

 

 

2,182,008

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

 

420,901

 

 

 

302,238

 

 

 

847,681

 

 

 

590,388

 

Selling, marketing, general and administrative

 

305,308

 

 

 

206,612

 

 

 

602,673

 

 

 

391,887

 

Amortization of intangibles

 

253,476

 

 

 

107,786

 

 

 

506,843

 

 

 

215,434

 

Special charges, net

 

46,674

 

 

 

311

 

 

 

106,402

 

 

 

749

 

Total operating expenses

 

1,026,359

 

 

 

616,947

 

 

 

2,063,599

 

 

 

1,198,458

 

Operating income

 

918,161

 

 

 

519,690

 

 

 

1,282,918

 

 

 

983,550

 

Nonoperating expense (income):

 

 

 

 

 

 

 

Interest expense

 

49,548

 

 

 

43,066

 

 

 

101,512

 

 

$

85,545

 

Interest income

 

(563

)

 

 

(290

)

 

 

(781

)

 

$

(499

)

Other, net

 

(10,069

)

 

 

929

 

 

 

(20,613

)

 

$

(14,099

)

Total nonoperating expense (income)

 

38,916

 

 

 

43,705

 

 

 

80,118

 

 

 

70,947

 

Income before income taxes

 

879,245

 

 

 

475,985

 

 

 

1,202,800

 

 

 

912,603

 

Provision for income taxes

 

95,972

 

 

 

53,080

 

 

 

139,450

 

 

 

101,179

 

Net income

$

783,273

 

 

$

422,905

 

 

$

1,063,350

 

 

$

811,424

 

 

 

 

 

 

 

 

 

Shares used to compute earnings per common share - basic

 

522,370

 

 

 

368,823

 

 

 

523,831

 

 

 

369,013

 

Shares used to compute earnings per common share - diluted

 

526,264

 

 

 

372,418

 

 

 

528,203

 

 

 

372,762

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

1.50

 

 

$

1.15

 

 

$

2.03

 

 

$

2.20

 

Diluted earnings per common share

$

1.49

 

 

$

1.14

 

 

$

2.01

 

 

$

2.18

 

ANALOG DEVICES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)

 

 

Apr. 30, 2022

 

Oct. 30, 2021

Cash & cash equivalents

$

1,737,733

 

$

1,977,964

Accounts receivable

 

1,608,254

 

 

1,459,056

Inventories

 

1,075,297

 

 

1,200,610

Other current assets

 

212,905

 

 

740,687

Total current assets

 

4,634,189

 

 

5,378,317

Net property, plant and equipment

 

2,094,148

 

 

1,979,051

Goodwill

 

26,923,756

 

 

26,918,470

Intangible assets, net

 

14,258,728

 

 

15,267,170

Deferred tax assets

 

2,325,317

 

 

2,267,269

Other assets

 

564,514

 

 

511,794

Total assets

$

50,800,652

 

$

52,322,071

 

 

 

 

Other current liabilities

$

2,326,212

 

$

2,253,649

Debt, current

 

 

 

516,663

Long-term debt

 

6,253,215

 

 

6,253,212

Deferred income taxes

 

3,873,084

 

 

3,938,830

Other non-current liabilities

 

1,248,359

 

 

1,367,175

Shareholders' equity

 

37,099,782

 

 

37,992,542

Total liabilities & equity

$

50,800,652

 

$

52,322,071

ANALOG DEVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

Apr. 30, 2022

 

May 1, 2021

 

Apr. 30, 2022

 

May 1, 2021

Cash flows from operating activities:

 

 

 

 

 

 

 

Net income

$

783,273

 

 

$

422,905

 

 

$

1,063,350

 

 

$

811,424

 

Adjustments to reconcile net income to net cash provided by operations:

 

 

 

 

 

 

 

Depreciation

 

71,851

 

 

 

52,466

 

 

 

137,016

 

 

 

108,775

 

Amortization of intangibles

 

504,255

 

 

 

145,701

 

 

 

1,008,900

 

 

 

290,745

 

Stock-based compensation expense

 

70,996

 

 

 

40,358

 

 

 

157,935

 

 

 

76,996

 

Cost of goods sold for inventory acquired

 

 

 

 

 

 

 

271,396

 

 

 

 

Deferred income taxes

 

(88,341

)

 

 

(21,017

)

 

 

(122,992

)

 

 

(48,292

)

Non-cash operating lease costs

 

(35,520

)

 

 

 

 

 

(27,697

)

 

 

8,040

 

Other

 

(654

)

 

 

2,431

 

 

 

(10,225

)

 

 

(12,122

)

Changes in operating assets and liabilities

 

(84,054

)

 

 

93,517

 

 

 

(399,463

)

 

 

(71,263

)

Total adjustments

 

438,533

 

 

 

313,456

 

 

 

1,014,870

 

 

 

352,879

 

Net cash provided by operating activities

 

1,221,806

 

 

 

736,361

 

 

 

2,078,220

 

 

 

1,164,303

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Additions to property, plant and equipment

 

(118,779

)

 

 

(59,170

)

 

 

(229,912

)

 

 

(126,558

)

Other

 

5,186

 

 

 

(1,526

)

 

 

13,010

 

 

 

(9,210

)

Net cash used for investing activities

 

(113,593

)

 

 

(60,696

)

 

 

(216,902

)

 

 

(135,768

)

Cash flows from financing activities:

 

 

 

 

 

 

 

Early termination of debt

 

 

 

 

 

 

 

(519,116

)

 

 

 

Dividend payments to shareholders

 

(397,544

)

 

 

(254,429

)

 

 

(760,189

)

 

 

(483,608

)

Repurchase of common stock

 

(776,840

)

 

 

(188,814

)

 

 

(852,860

)

 

 

(345,871

)

Proceeds from employee stock plans

 

11,582

 

 

 

23,752

 

 

 

20,054

 

 

 

43,672

 

Other

 

14,617

 

 

 

(94

)

 

 

26,657

 

 

 

2,399

 

Net cash used for financing activities

 

(1,148,185

)

 

 

(419,585

)

 

 

(2,085,454

)

 

 

(783,408

)

Effect of exchange rate changes on cash

 

(12,694

)

 

 

1,073

 

 

 

(16,095

)

 

 

4,229

 

Net (decrease) increase in cash and cash equivalents

 

(52,666

)

 

 

257,153

 

 

 

(240,231

)

 

 

249,356

 

Cash and cash equivalents at beginning of period

 

1,790,399

 

 

 

1,048,063

 

 

 

1,977,964

 

 

 

1,055,860

 

Cash and cash equivalents at end of period

$

1,737,733

 

 

$

1,305,216

 

 

$

1,737,733

 

 

$

1,305,216

 

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

 

April 30, 2022

 

May 1, 2021

 

Revenue

 

% of Revenue1

 

Y/Y%

 

Revenue

 

% of Revenue1

Industrial

$

1,501,111

 

51

%

 

54

%

 

$

975,706

 

59

%

Automotive

 

633,926

 

21

%

 

145

%

 

 

258,943

 

16

%

Communications

 

473,074

 

16

%

 

70

%

 

 

278,650

 

17

%

Consumer

 

363,953

 

12

%

 

146

%

 

 

148,108

 

9

%

Total revenue

$

2,972,064

 

100

%

 

79

%

 

$

1,661,407

 

100

%

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

April 30, 2022

 

May 1, 2021

 

Revenue

 

% of revenue1

 

Y/Y %

 

Revenue

 

% of revenue1

Industrial

$

2,847,838

 

50

%

 

55

%

 

$

1,833,198

 

57

%

Automotive

 

1,184,927

 

21

%

 

134

%

 

 

505,748

 

16

%

Communications

 

885,450

 

16

%

 

58

%

 

 

560,904

 

17

%

Consumer

 

738,142

 

13

%

 

131

%

 

 

320,015

 

10

%

Total revenue

$

5,656,357

 

100

%

 

76

%

 

$

3,219,865

 

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

 

Six Months Ended

 

Apr. 30, 2022

 

May 1, 2021

 

Apr. 30, 2022

 

May 1, 2021

Gross margin

$

1,944,520

 

 

$

1,136,637

 

 

$

3,346,517

 

 

$

2,182,008

 

Gross margin percentage

 

65.4

%

 

 

68.4

%

 

 

59.2

%

 

 

67.8

%

Acquisition related expenses

 

260,748

 

 

 

40,711

 

 

 

789,363

 

 

 

85,709

 

Adjusted gross margin

$

2,205,268

 

 

$

1,177,348

 

 

$

4,135,880

 

 

$

2,267,717

 

Adjusted gross margin percentage

 

74.2

%

 

 

70.9

%

 

 

73.1

%

 

 

70.4

%

 

 

 

 

 

 

 

 

Operating expenses

$

1,026,359

 

 

$

616,947

 

 

$

2,063,599

 

 

$

1,198,458

 

Percent of revenue

 

34.5

%

 

 

37.1

%

 

 

36.5

%

 

 

37.2

%

Acquisition related expenses

 

(260,904

)

 

 

(109,903

)

 

 

(523,104

)

 

 

(220,203

)

Acquisition related transaction costs

 

(8,537

)

 

 

(23,008

)

 

 

(21,429

)

 

 

(38,244

)

Special charges, net

 

(46,674

)

 

 

(311

)

 

 

(106,402

)

 

 

(749

)

Adjusted operating expenses

$

710,244

 

 

$

483,725

 

 

$

1,412,664

 

 

$

939,262

 

Adjusted operating expenses percentage

 

23.9

%

 

 

29.1

%

 

 

25.0

%

 

 

29.2

%

 

 

 

 

 

 

 

 

Operating income

$

918,161

 

 

$

519,690

 

 

$

1,282,918

 

 

$

983,550

 

Operating margin

 

30.9

%

 

 

31.3

%

 

 

22.7

%

 

 

30.5

%

Acquisition related expenses

 

521,652

 

 

 

150,614

 

 

 

1,312,467

 

 

 

305,912

 

Acquisition related transaction costs

 

8,537

 

 

 

23,008

 

 

 

21,429

 

 

 

38,244

 

Special charges, net

 

46,674

 

 

 

311

 

 

 

106,402

 

 

 

749

 

Adjusted operating income

$

1,495,024

 

 

$

693,623

 

 

$

2,723,216

 

 

$

1,328,455

 

Adjusted operating margin

 

50.3

%

 

 

41.7

%

 

 

48.1

%

 

 

41.3

%

 

 

 

 

 

 

 

 

Nonoperating expense (income)

 

38,916

 

 

 

43,705

 

 

 

80,118

 

 

 

70,947

 

Acquisition related expenses

 

2,288

 

 

 

 

 

 

4,587

 

 

 

 

Adjusted nonoperating expense (income)

$

41,204

 

 

$

43,705

 

 

$

84,705

 

 

$

70,947

 

 

 

 

 

 

 

 

 

Income before income taxes

$

879,245

 

 

$

475,985

 

 

$

1,202,800

 

 

$

912,603

 

Acquisition related expenses

 

519,364

 

 

 

150,614

 

 

 

1,307,880

 

 

 

305,912

 

Acquisition related transaction costs

 

8,537

 

 

 

23,008

 

 

 

21,429

 

 

 

38,244

 

Special charges, net

 

46,674

 

 

 

311

 

 

 

106,402

 

 

 

749

 

Adjusted income before income taxes

$

1,453,820

 

 

$

649,918

 

 

$

2,638,511

 

 

$

1,257,508

 

 

 

 

 

 

 

 

 

Provision for income taxes

$

95,972

 

 

$

53,080

 

 

$

139,450

 

 

$

101,179

 

Effective tax rate

 

10.9

%

 

 

11.2

%

 

 

11.6

%

 

 

11.1

%

Tax related items

 

95,828

 

 

 

22,983

 

 

 

210,217

 

 

 

45,780

 

Adjusted provision for income taxes

$

191,800

 

 

$

76,063

 

 

$

349,667

 

 

$

146,959

 

Adjusted tax rate

 

13.2

%

 

 

11.7

%

 

 

13.3

%

 

 

11.7

%

 

 

 

 

 

 

 

 

Diluted EPS

$

1.49

 

 

$

1.14

 

 

$

2.01

 

 

$

2.18

 

Acquisition related expenses

 

0.99

 

 

 

0.40

 

 

 

2.48

 

 

 

0.82

 

Acquisition related transaction costs

 

0.02

 

 

 

0.06

 

 

 

0.04

 

 

 

0.10

 

Special charges, net

 

0.09

 

 

 

0.00

 

 

 

0.20

 

 

 

0.00

 

Tax related items

 

(0.18

)

 

 

(0.06

)

 

 

(0.40

)

 

 

(0.12

)

Adjusted diluted EPS*

$

2.40

 

 

$

1.54

 

 

$

4.33

 

 

$

2.98

 

* 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

 

Apr. 30, 2022

 

Apr. 30, 2022

 

Jan. 29, 2022

 

Oct. 30, 2021

 

Jul. 31, 2021

Revenue

$

9,754,778

 

 

$

2,972,064

 

 

$

2,684,293

 

 

$

2,339,568

 

 

$

1,758,853

 

Net cash provided by operating activities

$

3,648,986

 

 

$

1,221,806

 

 

$

856,413

 

 

$

940,726

 

 

$

630,041

 

% of Revenue

 

37

%

 

 

41

%

 

 

32

%

 

 

40

%

 

 

36

%

Capital expenditures

$

(447,030

)

 

$

(118,779

)

 

$

(111,133

)

 

$

(130,777

)

 

$

(86,341

)

Free cash flow

$

3,201,956

 

 

$

1,103,027

 

 

$

745,280

 

 

$

809,949

 

 

$

543,700

 

% of Revenue

 

33

%

 

 

37

%

 

 

28

%

 

 

35

%

 

 

31

%

ANALOG DEVICES, INC.

RECONCILIATION OF PROJECTED GAAP TO NON-GAAP RESULTS

(Unaudited)

 

 

Three Months Ending July 30, 2022

 

Reported

 

Adjusted

Revenue

$3.05 Billion

 

$3.05 Billion

 

(+/- $100 Million)

 

(+/- $100 Million)

Operating margin

32.2%

 

49.5% (1)

 

(+/-130 bps)

 

(+/-70 bps)

Nonoperating expense

~ $50 Million

 

~ $50 Million

Tax rate

13%-14%

 

13%-14% (2)

Earnings per share

$1.55

 

$2.42 (3)

 

(+/- $.10)

 

(+/- $.10)

(1) Includes $520 million of adjustments related to acquisition related expenses and $6 million of adjustments related to acquisition related transaction costs as previously defined in the Non-GAAP Financial Information section of this press release.

(2) Includes $71 million of tax effects associated with the adjustments for acquisition related expenses and acquisition related transaction costs noted above.

(3) Includes $0.87 of adjustments related to the net impact of acquisition related expenses and acquisition related transaction costs, as well as the tax effects on those items.

(ADI-WEB)

Investor Contact:
Analog Devices, Inc.
Mr. Michael Lucarelli
Vice President of Investor Relations and FP&A
781-461-3282
investor.relations@analog.com

Media Contact:
Analog Devices, Inc.
Mr. Michael Schneider
Chief Communications Officer
973-868-1000
corpcomm@analog.com

Source: Analog Devices, Inc.