ADI
$178.74
Analog Devices
($.07)
(.04%)
Earnings Details
3rd Quarter July 2021
Wednesday, August 18, 2021 7:00:00 AM
Tweet Share Watch
Summary

Analog Devices Beats

Analog Devices (ADI) reported 3rd Quarter July 2021 earnings of $1.72 per share on revenue of $1.8 billion. The consensus earnings estimate was $1.61 per share on revenue of $1.7 billion. The Earnings Whisper number was $1.65 per share. Revenue grew 20.8% on a year-over-year basis.

The company said it expects fourth quarter earnings of $1.61 to $1.83 per share on revenue of $1.71 billion to $1.85 billion. The current consensus earnings estimate is $1.68 per share on revenue of $1.75 billion for the quarter ending October 31, 2021.

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
$1.72
Earnings Whisper
$1.65
Consensus Estimate
$1.61
Reported Revenue
$1.76 Bil
Revenue Estimate
$1.71 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Analog Devices Reports Record Revenue and Earnings for the Third Quarter Fiscal 2021

  • Revenue of $1.76 billion, a new all-time high, with 21% year over year growth
  • All end markets grew sequentially, underscored by record revenue in Industrial and Automotive
  • Operating cash flow of $2.5 billion and free cash flow of $2.2 billion, or 34% of revenue, on a trailing twelve months basis
  • Returned more than $400 million to shareholders in the third quarter through dividends and share repurchases
  • Not included in the original third quarter outlook was $24 million of Automotive revenue and $0.05 of EPS, resulting from an IP licensing agreement

WILMINGTON, Mass.--(BUSINESS WIRE)--Analog Devices, Inc. (Nasdaq: ADI), a leading global high-performance semiconductor company, today announced financial results for its third quarter of fiscal 2021, which ended July 31, 2021.

“ADI delivered record revenue and earnings for the second consecutive quarter with continued gross and operating margin expansion. All markets increased sequentially with our Industrial and Automotive segments once again achieving records,” said Vincent Roche, President and CEO. “Robust bookings across all end markets, combined with lean inventories and ongoing capacity additions will enable us to close this year on a high note and continue to grow into fiscal 2022.”

Roche continued, “The economic recovery continues to take shape with demand still far exceeding supply, underscoring the importance of semiconductors across all industries. We continue to execute soundly, and I have never been more confident about the future of ADI’s franchise as our solutions become more vital in the modern digital age. Our ethos of innovation, deep customer engagements, and alignment with favorable secular growth drivers position us to deliver strong returns in the years to come.”

Performance for the Third Quarter of Fiscal 2021

Results Summary(1)

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

 

 

 

 

 

 

 

Three Months Ended

 

Jul. 31, 2021

 

Aug. 1, 2020

 

Change

Revenue

$

1,759

 

 

$

1,456

 

 

21

%

Gross margin

$

1,221

 

 

973

 

 

25

%

Gross margin percentage

69.4

%

 

66.8

%

 

260 bps

Operating income

$

610

 

 

$

419

 

 

46

%

Operating margin

34.7

%

 

28.8

%

 

590 bps

Diluted earnings per share

$

1.35

 

 

$

0.97

 

 

39

%

 

 

 

 

 

 

Adjusted Results

 

 

 

 

 

Adjusted gross margin

$

1,259

 

 

$

1,018

 

 

24

%

Adjusted gross margin percentage

71.6

%

 

69.9

%

 

170 bps

Adjusted operating income

$

766

 

 

$

616

 

 

24

%

Adjusted operating margin

43.6

%

 

42.3

%

 

130 bps

Adjusted diluted earnings per share

$

1.72

 

 

$

1.36

 

 

26

%

 

 

 

 

 

 

 

 

 

Three Months
Ended

 

Trailing Twelve
Months

Cash Generation

 

 

Jul. 31, 2021

 

Jul. 31, 2021

Net cash provided by operating activities

 

 

$

630

 

 

$

2,467

 

% of revenue

 

 

36

%

 

38

%

Capital expenditures

 

 

$

(86

)

 

$

(243

)

Free cash flow

 

 

$

544

 

 

$

2,224

 

% of revenue

 

 

31

%

 

34

%

 

 

 

 

 

 

 

 

 

Three Months
Ended

 

Trailing Twelve
Months

Cash Return

 

 

Jul. 31, 2021

 

Jul. 31, 2021

Dividend paid

 

 

$

(255

)

 

$

(968

)

Stock repurchases

 

 

(163

)

 

(516

)

Total cash returned

 

 

$

(418

)

 

$

(1,484

)

 

 

 

 

 

 

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

Outlook for the Fourth Quarter of Fiscal Year 2021

For the fourth quarter of fiscal 2021, we are forecasting revenue of $1.78 billion, +/- $70 million. At the midpoint of this revenue outlook, we expect reported operating margin of approximately 34.2%, +/-140 bps, and adjusted operating margin of approximately 43.7%, +/-100 bps. We are planning for reported EPS to be $1.33, +/-$0.11, and adjusted EPS to be $1.72, +/-$0.11.

Our fourth 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 $0.69 per outstanding share of common stock. The dividend will be paid on September 8, 2021 to all shareholders of record at the close of business on August 27, 2021.

Conference Call Scheduled for Today, Wednesday, August 18, 2021 at 10:00 am ET

ADI will host a conference call to discuss our third quarter fiscal 2021 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 by calling 833-423-0297, ten minutes before the call begins. 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: 1767395, 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 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; restructuring related expense, net3; and charitable foundation contribution4 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; restructuring related expense, net3; and charitable foundation contribution4 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; restructuring related expense, net3; and charitable foundation contribution4 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 items5 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; restructuring related expense, net3; charitable foundation contribution4; and tax related items5 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 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.

2Acquisition 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.

3Restructuring Related Expense, 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.

4Charitable 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.

5Tax Related Items: Income tax effect of the non-GAAP items discussed above and income tax from certain discrete tax items related to the resolution of the IRS audit of Linear’s pre-acquisition federal income tax returns for fiscal year 2015 through fiscal year 2017, other discrete income tax benefits upon filing of our fiscal 2019 federal income tax return and income tax from prior period tax credits. 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 semiconductor 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

 

Nine Months Ended

 

 

Jul. 31, 2021

 

Aug. 1, 2020

 

Jul. 31, 2021

 

Aug. 1, 2020

Revenue

 

$

1,758,853

 

 

$

1,456,136

 

 

$

4,978,718

 

 

$

4,076,761

 

Cost of sales

 

537,669

 

 

483,558

 

 

1,575,526

 

 

1,409,367

 

Gross margin

 

1,221,184

 

 

972,578

 

 

3,403,192

 

 

2,667,394

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

306,617

 

 

260,794

 

 

897,005

 

 

770,280

 

Selling, marketing, general and administrative

 

206,076

 

 

153,753

 

 

597,963

 

 

494,808

 

Amortization of intangibles

 

107,783

 

 

107,077

 

 

323,217

 

 

321,448

 

Special charges, net

 

(8,938

)

 

31,830

 

 

(8,189

)

 

44,286

 

Total operating expenses

 

611,538

 

 

553,454

 

 

1,809,996

 

 

1,630,822

 

Operating income

 

609,646

 

 

419,124

 

 

1,593,196

 

 

1,036,572

 

Nonoperating expense (income):

 

 

 

 

 

 

 

 

Interest expense

 

44,659

 

 

45,914

 

 

130,204

 

 

$

144,712

 

Interest income

 

(300

)

 

(504

)

 

(799

)

 

$

(3,778

)

Other, net

 

(6,991

)

 

685

 

 

(21,090

)

 

$

1,331

 

 

 

37,368

 

 

46,095

 

 

108,315

 

 

142,265

 

Income before income taxes

 

572,278

 

 

373,029

 

 

1,484,881

 

 

894,307

 

Provision for income taxes

 

68,967

 

 

10,364

 

 

170,146

 

 

60,072

 

Net income

 

$

503,311

 

 

$

362,665

 

 

$

1,314,735

 

 

$

834,235

 

 

 

 

 

 

 

 

 

 

Shares used to compute earnings per common share - basic

 

368,476

 

 

368,791

 

 

368,834

 

 

368,417

 

Shares used to compute earnings per common share - diluted

 

371,849

 

 

372,003

 

 

372,457

 

 

371,857

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

$

1.37

 

 

$

0.98

 

 

$

3.56

 

 

$

2.26

 

Diluted earnings per common share

 

$

1.35

 

 

$

0.97

 

 

$

3.53

 

 

$

2.24

 

ANALOG DEVICES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)

 

 

 

Jul. 31, 2021

 

Oct. 31, 2020

Cash & cash equivalents

 

$

1,480,701

 

 

$

1,055,860

 

Accounts receivable

 

823,163

 

 

737,536

 

Inventories

 

657,520

 

 

608,260

 

Other current assets

 

129,071

 

 

116,032

 

Total current assets

 

3,090,455

 

 

2,517,688

 

Net property, plant and equipment

 

1,173,674

 

 

1,120,561

 

Other investments

 

105,562

 

 

86,729

 

Goodwill

 

12,278,898

 

 

12,278,425

 

Intangible assets, net

 

3,248,802

 

 

3,650,280

 

Deferred tax assets

 

1,425,293

 

 

1,503,064

 

Other assets

 

318,506

 

 

311,856

 

Total assets

 

$

21,641,190

 

 

$

21,468,603

 

 

 

 

 

 

Other current liabilities

 

$

1,468,665

 

 

$

1,364,986

 

Debt, current

 

1,324,677

 

 

 

Long-term debt

 

3,824,819

 

 

5,145,102

 

Deferred income taxes

 

1,776,308

 

 

1,919,595

 

Other non-current liabilities

 

982,758

 

 

1,040,975

 

Shareholders' equity

 

12,263,963

 

 

11,997,945

 

Total liabilities & equity

 

$

21,641,190

 

 

$

21,468,603

 

ANALOG DEVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

 
 

Three Months Ended

 

Nine Months Ended

 

 

Jul. 31, 2021

 

Aug. 1, 2020

 

Jul. 31, 2021

 

Aug. 1, 2020

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

503,311

 

 

$

362,665

 

 

$

1,314,735

 

 

$

834,235

 

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

 

 

 

 

 

 

 

 

Depreciation

 

50,162

 

 

57,598

 

 

158,937

 

 

176,722

 

Amortization of intangibles

 

145,989

 

 

143,865

 

 

436,734

 

 

431,985

 

Stock-based compensation expense

 

41,687

 

 

39,560

 

 

118,683

 

 

112,961

 

Gain on sale of property, plant and equipment

 

(13,557

)

 

 

 

(13,557

)

 

 

Deferred income taxes

 

(24,286

)

 

(7,412

)

 

(72,578

)

 

(42,802

)

Non-cash contribution to charitable foundation

 

 

 

 

 

 

 

40,000

 

Other

 

(2,843

)

 

1,874

 

 

(14,965

)

 

5,675

 

Changes in operating assets and liabilities

 

(70,422

)

 

(40,950

)

 

(133,644

)

 

(222,887

)

Total adjustments

 

126,730

 

 

194,535

 

 

479,610

 

 

501,654

 

Net cash provided by operating activities

 

630,041

 

 

557,200

 

 

1,794,345

 

 

1,335,889

 

Percent of revenue

 

36

%

 

38

%

 

36

%

 

33

%

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Proceeds from other investments

 

3,649

 

 

 

 

22,215

 

 

 

Additions to property, plant and equipment

 

(86,341

)

 

(20,804

)

 

(212,899

)

 

(135,804

)

Proceeds from sale of property, plant and equipment

 

35,714

 

 

 

 

35,714

 

 

 

Payments for acquisitions, net of cash acquired

 

 

 

(12,763

)

 

(24,950

)

 

(12,763

)

Changes in other assets

 

(534

)

 

70

 

 

(3,360

)

 

(1,214

)

Net cash used for investing activities

 

(47,512

)

 

(33,497

)

 

(183,280

)

 

(149,781

)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from debt

 

 

 

 

 

 

 

395,646

 

Payments on revolver

 

 

 

 

 

 

 

(350,000

)

Proceeds from revolver

 

 

 

 

 

 

 

350,000

 

Debt repayments

 

 

 

 

 

 

 

(300,000

)

Dividend payments to shareholders

 

(254,506

)

 

(228,798

)

 

(738,114

)

 

(656,558

)

Repurchase of common stock

 

(163,281

)

 

(17,651

)

 

(509,152

)

 

(237,265

)

Proceeds from employee stock plans

 

11,676

 

 

26,853

 

 

55,348

 

 

57,750

 

Changes in other financing activities

 

(447

)

 

436

 

 

1,952

 

 

(4,015

)

Net cash used for financing activities

 

(406,558

)

 

(219,160

)

 

(1,189,966

)

 

(744,442

)

Effect of exchange rate changes on cash

 

(486

)

 

784

 

 

3,742

 

 

276

 

 

 

 

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

175,485

 

 

305,327

 

 

424,841

 

 

441,942

 

Cash and cash equivalents at beginning of period

 

1,305,216

 

 

784,937

 

 

1,055,860

 

 

648,322

 

Cash and cash equivalents at end of period

 

$

1,480,701

 

 

$

1,090,264

 

 

$

1,480,701

 

 

$

1,090,264

 

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

 

 

July 31, 2021

 

August 1, 2020

 

 

Revenue

 

% of Revenue1

 

Y/Y%

 

Revenue

 

% of Revenue1

Industrial

 

$

1,001,867

 

 

57%

 

29%

 

$

778,361

 

 

53%

Communications

 

288,743

 

 

16%

 

(21)%

 

363,304

 

 

25%

Automotive2

 

290,077

 

 

16%

 

80%

 

161,489

 

 

11%

Consumer

 

178,166

 

 

10%

 

16%

 

152,982

 

 

11%

Total revenue

 

$

1,758,853

 

 

100%

 

21%

 

$

1,456,136

 

 

100%

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

July 31, 2021

 

August 1, 2020

 

 

Revenue

 

% of revenue1

 

Y/Y %

 

Revenue

 

% of revenue1

Industrial

 

$

2,829,648

 

 

57%

 

30%

 

$

2,184,413

 

 

54%

Communications

 

847,632

 

 

17%

 

(4)%

 

880,633

 

 

22%

Automotive2

 

793,443

 

 

16%

 

45%

 

548,002

 

 

13%

Consumer

 

507,995

 

 

10%

 

10%

 

463,713

 

 

11%

Total revenue

 

$

4,978,718

 

 

100%

 

22%

 

$

4,076,761

 

 

100%

 

 

 

 

 

 

 

 

 

 

 

1) The sum of the individual percentages may not equal the total due to rounding.

2) Includes $24.1 million of revenue immediately recognized in the third quarter of fiscal 2021 from an intellectual property licensing agreement.

ANALOG DEVICES, INC.

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

(Unaudited)

(In thousands, except per share amounts)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

Jul. 31, 2021

 

Aug. 1, 2020

 

Jul. 31, 2021

 

Aug. 1, 2020

Gross margin

 

$

1,221,184

 

 

$

972,578

 

 

$

3,403,192

 

 

$

2,667,394

 

Gross margin percentage

 

69.4

%

 

66.8

%

 

68.4

 

 

65.4

%

Acquisition related expenses

 

37,945

 

 

45,222

 

 

123,653

 

 

134,633

 

Adjusted gross margin

 

$

1,259,129

 

 

$

1,017,800

 

 

$

3,526,845

 

 

$

2,802,027

 

Adjusted gross margin percentage

 

71.6

%

 

69.9

%

 

70.8

%

 

68.7

%

 

 

 

 

 

 

 

 

 

Operating expenses

 

$

611,538

 

 

$

553,454

 

 

$

1,809,996

 

 

$

1,630,822

 

Percent of revenue

 

34.8

%

 

38.0

%

 

36.4

%

 

40.0

%

Acquisition related expenses

 

(109,434

)

 

(110,460

)

 

(329,637

)

 

(333,298

)

Acquisition related transaction costs

 

(18,326

)

 

(9,121

)

 

(56,570

)

 

(9,121

)

Charitable foundation contribution

 

 

 

 

 

 

 

(40,000

)

Restructuring related expense, net

 

8,938

 

 

(31,830

)

 

8,189

 

 

(44,287

)

Adjusted operating expenses

 

$

492,716

 

 

$

402,043

 

 

$

1,431,978

 

 

$

1,204,116

 

Adjusted operating expenses percentage

 

28.0

%

 

27.6

%

 

28.8

%

 

29.5

%

 

 

 

 

 

 

 

 

 

Operating income

 

$

609,646

 

 

$

419,124

 

 

$

1,593,196

 

 

$

1,036,572

 

Operating margin

 

34.7

%

 

28.8

%

 

32.0

%

 

25.4

%

Acquisition related expenses

 

147,379

 

 

155,682

 

 

453,290

 

 

467,931

 

Acquisition related transaction costs

 

18,326

 

 

9,121

 

 

56,570

 

 

9,121

 

Charitable foundation contribution

 

 

 

 

 

 

 

40,000

 

Restructuring related expense, net

 

(8,938

)

 

31,830

 

 

(8,189

)

 

44,287

 

Adjusted operating income

 

$

766,413

 

 

$

615,757

 

 

$

2,094,867

 

 

$

1,597,911

 

Adjusted operating margin

 

43.6

%

 

42.3

%

 

42.1

%

 

39.2

%

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

$

68,967

 

 

$

10,364

 

 

$

170,146

 

 

$

60,072

 

Tax related items

 

20,686

 

 

55,217

 

 

66,466

 

 

105,364

 

Adjusted provision for income taxes

 

$

89,653

 

 

$

65,581

 

 

$

236,612

 

 

$

165,436

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

$

572,278

 

 

$

373,029

 

 

$

1,484,881

 

 

$

894,307

 

Effective tax rate

 

12.1

%

 

2.8

%

 

11.5

%

 

6.7

%

Acquisition related expenses

 

147,379

 

 

155,682

 

 

453,290

 

 

467,931

 

Acquisition related transaction costs

 

18,326

 

 

9,121

 

 

56,570

 

 

9,121

 

Charitable foundation contribution

 

 

 

 

 

 

 

40,000

 

Restructuring related expense, net

 

(8,938

)

 

31,830

 

 

(8,189

)

 

44,287

 

Adjusted income before income taxes

 

$

729,045

 

 

$

569,662

 

 

$

1,986,552

 

 

$

1,455,646

 

Adjusted tax rate

 

12.3

%

 

11.5

%

 

11.9

%

 

11.4

%

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$

1.35

 

 

$

0.97

 

 

$

3.53

 

 

$

2.24

 

Acquisition related expenses

 

0.40

 

 

0.42

 

 

1.22

 

 

1.26

 

Acquisition related transaction costs

 

0.05

 

 

0.02

 

 

0.15

 

 

0.02

 

Charitable foundation contribution

 

 

 

 

 

 

 

0.11

 

Restructuring related expense, net

 

(0.02

)

 

0.09

 

 

(0.02

)

 

0.12

 

Tax related items

 

(0.06

)

 

(0.15

)

 

(0.18

)

 

(0.28

)

Adjusted diluted EPS*

 

$

1.72

 

 

$

1.36

 

 

$

4.70

 

 

$

3.47

 

 

* 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

 

 

Jul. 31, 2021

 

Jul. 31, 2021

 

May 1, 2021

 

Jan. 30, 2021

 

Oct 31, 2020

Revenue

 

$

6,505,013

 

 

$

1,758,853

 

 

$

1,661,407

 

 

$

1,558,458

 

 

$

1,526,295

 

Net cash provided by operating activities

 

$

2,466,941

 

 

$

630,041

 

 

$

736,361

 

 

$

427,941

 

 

$

672,598

 

% of Revenue

 

38

%

 

36

%

 

44

%

 

27

%

 

44

%

Capital expenditures

 

$

(242,787

)

 

$

(86,341

)

 

$

(59,170

)

 

$

(67,388

)

 

$

(29,888

)

Free cash flow

 

$

2,224,154

 

 

$

543,700

 

 

$

677,191

 

 

$

360,553

 

 

$

642,710

 

% of Revenue

 

34

%

 

31

%

 

41

%

 

23

%

 

42

%

ANALOG DEVICES, INC.

RECONCILIATION OF PROJECTED GAAP TO NON-GAAP RESULTS

(Unaudited)

 

 

 

Three Months Ending October 30, 2021

 

 

Reported

 

Adjusted

Revenue

 

$1.78 Billion

 

$1.78 Billion

 

 

(+/- $70 Million)

 

(+/- $70 Million)

Operating margin

 

34.2%

 

43.7% (1)

 

 

(+/-140 bps)

 

(+/-100 bps)

Nonoperating expense

 

~ $43 Million

 

~ $43 Million

Tax rate

 

11% to 13%

 

11% to 13% (2)

Earnings per share

 

$1.33

 

$1.72 (3)

 

(+/- $0.11)

 

(+/- $0.11)

 

(1) Includes $169 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. This excludes acquisition related transaction costs that are contingent upon closing of the proposed Maxim Integrated Products, Inc. acquisition as we cannot reasonably predict the timing of this transaction.
(2) Includes $23 million of tax effects associated with the adjustments for acquisition related expenses and acquisition related transaction costs noted above.
(3) Includes $0.39 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)

For more information, please contact:

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

Source: Analog Devices, Inc.