ADI
$165.22
Analog Devices
($1.87)
(1.12%)
Earnings Details
Quarter October 2022
Tuesday, November 22, 2022 7:00:00 AM
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Summary

Analog Devices Beats

Analog Devices (ADI) reported Quarter October 2022 earnings of $2.73 per share on revenue of $3.2 billion. The consensus earnings estimate was $2.58 per share on revenue of $3.2 billion. The Earnings Whisper number was $2.64 per share. Revenue grew 38.8% on a year-over-year basis.

The company said it expects first quarter earnings of $2.50 to $2.70 per share on revenue of $3.05 billion to $3.25 billion. The current consensus earnings estimate is $2.45 per share on revenue of $3.05 billion for the quarter ending January 31, 2023.

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
$2.73
Earnings Whisper
$2.64
Consensus Estimate
$2.58
Reported Revenue
$3.25 Bil
Revenue Estimate
$3.15 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Analog Devices Reports Record Fourth Quarter and Fiscal 2022 Results

  • Fourth quarter revenue of $3.25 billion with all markets growing sequentially
  • Fiscal 2022 revenue of $12 billion; B2B markets of Industrial, Automotive, and Communications each achieved records
  • Fiscal 2022 operating cash flow of $4.5 billion and free cash flow of $3.8 billion, or 31% of revenue, after investing a record $699 million in capital expenditures
  • Returned $4.6 billion to shareholders through $3.1 billion of share repurchases and $1.5 billion of dividends in fiscal 2022

WILMINGTON, Mass.--(BUSINESS WIRE)--Analog Devices, Inc. (Nasdaq: ADI), a global semiconductor leader, today announced financial results for its fourth quarter and fiscal year 2022, which ended October 29, 2022.

“ADI delivered its seventh consecutive quarter of record revenue, bringing 2022 to a strong close. Our B2B markets of Industrial, Automotive and Communications reached all-time highs, while our Consumer business delivered another year of strong growth. Our team’s execution, combined with strong operating leverage, enabled the most profitable year in ADI’s history,” said Vincent Roche, CEO and Chair. “While the economic backdrop continues to cause demand uncertainty, we are well-positioned in the near-term with stabilizing orders, a strong backlog, and continued design win momentum.”

Roche continued, “ADI has successfully navigated many business cycles over our nearly six-decade history, and today, our business is more resilient than ever. We have increased our scale and diversification, added more manufacturing agility, and fortified our customer brand. These strengths enable ADI to maintain our unwavering commitment to innovation and develop breakthrough solutions at the intelligent edge, while delivering long-term value for all stakeholders.”

Performance for the Fourth Quarter and Fiscal 2022

Results Summary(1)

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Twelve Months Ended

 

Oct 29,
2022

 

Oct 30,
2021

 

Change

 

Oct 29,
2022

 

Oct 30,
2021

 

Change

Revenue

$

3,248

 

 

$

2,340

 

 

39

%

 

$

12,014

 

 

$

7,318

 

 

 

64

%

Gross margin

$

2,143

 

 

$

1,122

 

 

91

%

 

$

7,532

 

 

$

4,525

 

 

 

66

%

Gross margin percentage

 

66.0

%

 

 

47.9

%

 

1,810 bps

 

 

62.7

%

 

 

61.8

%

 

90 bps

Operating income

$

1,102

 

 

$

99

 

 

1,013

%

 

$

3,279

 

 

$

1,692

 

 

 

94

%

Operating margin

 

33.9

%

 

 

4.2

%

 

2,970 bps

 

 

27.3

%

 

 

23.1

%

 

420 bps

Diluted earnings per share

$

1.82

 

 

$

0.16

 

 

1,038

%

 

$

5.25

 

 

$

3.46

 

 

 

52

%

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Results

 

 

 

 

 

 

 

 

 

 

 

Adjusted gross margin

$

2,403

 

 

$

1,660

 

 

45

%

 

$

8,842

 

 

$

5,186

 

 

 

70

%

Adjusted gross margin percentage

 

74.0

%

 

 

70.9

%

 

310 bps

 

 

73.6

%

 

 

70.9

%

 

270 bps

Adjusted operating income

$

1,659

 

 

$

1,009

 

 

64

%

 

$

5,939

 

 

$

3,104

 

 

 

91

%

Adjusted operating margin

 

51.1

%

 

 

43.1

%

 

800 bps

 

 

49.4

%

 

 

42.4

%

 

700 bps

Adjusted diluted earnings per share

$

2.73

 

 

$

1.73

 

 

58

%

 

$

9.57

 

 

$

6.46

 

 

 

48

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Trailing Twelve
Months

Cash Generation

 

 

 

 

Oct 29, 2022

 

Oct 29, 2022

Net cash provided by operating activities

 

 

 

 

$

1,149

 

 

$

4,475

 

% of revenue

 

 

 

 

 

35

%

 

 

37

%

Capital expenditures

 

 

 

 

$

(305

)

 

$

(699

)

Free cash flow

 

 

 

 

$

845

 

 

$

3,776

 

% of revenue

 

 

 

 

 

26

%

 

 

31

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Trailing Twelve
Months (2)

Cash Return

 

 

 

 

Oct 29, 2022

 

Oct 29, 2022

Dividend paid

 

 

 

 

$

(390

)

 

$

(1,545

)

Stock repurchases

 

 

 

 

 

(818

)

 

 

(3,077

)

Total cash returned

 

 

 

 

$

(1,209

)

 

$

(4,622

)

 

 

 

 

 

 

 

 

 

 

 

 

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

(2) Includes $500 million of stock repurchases, which were prepaid in the fourth quarter of fiscal 2021 as part of our accelerated share repurchase program.

Outlook for the First Quarter of Fiscal Year 2023

For the first quarter of fiscal 2023, we are forecasting revenue of $3.15 billion, +/- $100 million. At the midpoint of this revenue outlook, we expect reported operating margin of approximately 33.4%, +/- 130 bps and adjusted operating margin of approximately 50.0%, +/- 70 bps. We are planning for reported EPS to be $1.71, +/- $0.10, and adjusted EPS to be $2.60, +/- $0.10.

Our first quarter fiscal 2023 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 December 15, 2022 to all shareholders of record at the close of business on December 5, 2022.

Conference Call Scheduled for Today, Tuesday, November 22, 2022 at 10:00 am ET

ADI will host a conference call to discuss our fourth quarter and fiscal year 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 as follows:

Participant Dial-In (toll free): 1-833-630-1956
International Participant Dial-In: 1-412-317-1837

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 revenue percentage.

Adjusted gross margin is defined as gross margin, determined in accordance with GAAP, excluding certain acquisition related expenses1, which are described further below. Adjusted gross margin percentage represents adjusted gross margin divided by revenue.

Adjusted operating expenses is defined as operating expenses, determined in accordance with GAAP, excluding: certain acquisition related expenses1, acquisition related transaction costs2 and special charges, net3, which are described further below. Adjusted operating expenses percentage represents adjusted operating expenses divided by revenue.

Adjusted operating income is defined as operating income, determined in accordance with GAAP, excluding: acquisition related expenses1, acquisition related transaction costs2, and special charges, net3, which are described further below. Adjusted operating margin represents adjusted operating income divided by revenue.

Adjusted nonoperating expense (income) is defined as nonoperating expense (income), determined in accordance with GAAP, excluding: certain acquisition related expenses1 and loss on extinguishment of debt4 which are described further below.

Adjusted income before income taxes is defined as income (loss) before income taxes, determined in accordance with GAAP, excluding: acquisition related expenses1, acquisition related transaction costs2, special charges, net3, and loss on extinguishment of debt4, which are described further below.

Adjusted provision for income taxes is defined as provision for (benefit from) 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, special charges, net3, loss on extinguishment of debt4, 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 revenue percentage represents free cash flow divided by revenue.

1Acquisition Related Expenses: Expenses incurred as a result of current and prior period acquisitions and primarily include expenses associated with the fair value adjustments to debt, inventory, property, plant and equipment and amortization of acquisition related intangibles, which include acquired intangibles such as purchased technology and customer relationships. Expenses also include fair value adjustments associated with the replacement of share-based awards related to the Maxim Integrated Products, Inc. (Maxim) and Linear Technology Corporation (Linear) acquisitions. 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 as part of the integration of the Acquisition, 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.

4Loss on Extinguishment of Debt: Expenses incurred related to the extinguishment of debt including make-whole premiums and other related fees, as well as the acceleration of unamortized debt costs and previously deferred derivative hedge losses. We excluded these costs from our non-GAAP measures because they are not reflective of our ongoing financial performance.

5Tax Related Items: Income tax effect of the non-GAAP items discussed above, income tax from certain discrete tax items related to an intra-entity transfer of intangible assets, an income tax benefit from discrete tax items related to the consolidation of certain subsidiaries, and certain other income tax benefits associated with prior periods. We excluded the income tax effect of these tax related items from our non-GAAP measures because they are not associated with the tax expense on our current operating results.

About Analog Devices

Analog Devices, Inc. (NASDAQ: ADI) is a global semiconductor leader that bridges the physical and digital worlds to enable breakthroughs at the Intelligent Edge. ADI combines analog, digital, and software technologies into solutions that help drive advancements in digitized factories, mobility, and digital healthcare, combat climate change, and reliably connect humans and the world. With more than 24,000 people globally working alongside 125,000 global customers, ADI ensures today’s innovators stay Ahead of What’s Possible. Learn more at 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 2023 performance, momentum, and business resilience; increasing supply; expected revenue, operating margin, earnings per share, and other financial results; expected market trends, market share gains, long-term value and growth, operating leverage, production and inventory levels; expected customer demand and order rates for our products, expected product offerings and future innovations and solutions; 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 Annual Report on Form 10-K. Forward-looking statements represent management’s current expectations and are inherently uncertain. Except as required by law, we do not undertake any obligation to update forward-looking statements made by us to reflect subsequent events or circumstances.

Analog Devices and the Analog Devices logo are registered trademarks or trademarks of Analog Devices, Inc. All other trademarks mentioned in this document are the property of their respective owners.

 

ANALOG DEVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In thousands, except per share amounts)

 

 

Three Months Ended

 

Twelve Months Ended

 

Oct 29, 2022

 

Oct 30, 2021

 

Oct 29, 2022

 

Oct 30, 2021

Revenue

$

3,247,716

 

 

$

2,339,568

 

 

$

12,013,953

 

 

$

7,318,286

 

Cost of sales

 

1,104,901

 

 

 

1,217,748

 

 

 

4,481,479

 

 

 

2,793,274

 

Gross margin

 

2,142,815

 

 

 

1,121,820

 

 

 

7,532,474

 

 

 

4,525,012

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

 

421,008

 

 

 

399,121

 

 

 

1,700,518

 

 

 

1,296,126

 

Selling, marketing, general and administrative

 

336,560

 

 

 

317,455

 

 

 

1,266,175

 

 

 

915,418

 

Amortization of intangibles

 

252,865

 

 

 

213,594

 

 

 

1,012,572

 

 

 

536,811

 

Special charges, net

 

29,906

 

 

 

92,645

 

 

 

274,509

 

 

 

84,456

 

Total operating expenses

 

1,040,339

 

 

 

1,022,815

 

 

 

4,253,774

 

 

 

2,832,811

 

Operating income

 

1,102,476

 

 

 

99,005

 

 

 

3,278,700

 

 

 

1,692,201

 

Nonoperating expense (income):

 

 

 

 

 

 

 

Interest expense

 

47,707

 

 

 

54,621

 

 

 

200,408

 

 

 

184,825

 

Loss on extinguishment of debt

 

 

 

 

215,150

 

 

 

 

 

 

215,150

 

Interest income

 

(4,328

)

 

 

(421

)

 

 

(6,906

)

 

 

(1,220

)

Other, net

 

11,085

 

 

 

(14,178

)

 

 

(13,551

)

 

 

(35,268

)

Total nonoperating expense

 

54,464

 

 

 

255,172

 

 

 

179,951

 

 

 

363,487

 

Income (loss) before income taxes

 

1,048,012

 

 

 

(156,167

)

 

 

3,098,749

 

 

 

1,328,714

 

Provision for (benefit from) income taxes

 

111,786

 

 

 

(231,854

)

 

 

350,188

 

 

 

(61,708

)

Net income

$

936,226

 

 

$

75,687

 

 

$

2,748,561

 

 

$

1,390,422

 

 

 

 

 

 

 

 

 

Shares used to compute earnings per share - basic

 

512,231

 

 

 

483,345

 

 

 

519,226

 

 

 

397,462

 

Shares used to compute earnings per share - diluted

 

515,757

 

 

 

487,781

 

 

 

523,178

 

 

 

401,288

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

1.83

 

 

$

0.16

 

 

$

5.29

 

 

$

3.50

 

Diluted earnings per common share

$

1.82

 

 

$

0.16

 

 

$

5.25

 

 

$

3.46

 

 

ANALOG DEVICES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)

 

 

October 29, 2022

 

October 30, 2021

Cash & cash equivalents

$

1,470,572

 

$

1,977,964

Accounts receivable

 

1,800,462

 

 

1,459,056

Inventories

 

1,399,914

 

 

1,200,610

Other current assets

 

267,044

 

 

740,687

Total current assets

 

4,937,992

 

 

5,378,317

Net property, plant and equipment

 

2,401,304

 

 

1,979,051

Other investments

 

122,285

 

 

127,856

Goodwill

 

26,913,134

 

 

26,918,470

Intangible assets, net

 

13,265,406

 

 

15,267,170

Deferred tax assets

 

2,264,888

 

 

2,267,269

Other assets

 

397,341

 

 

383,938

Total assets

$

50,302,350

 

$

52,322,071

 

 

 

 

Other current liabilities

$

2,442,655

 

$

2,253,649

Debt, current

 

 

 

516,663

Long-term debt

 

6,548,625

 

 

6,253,212

Deferred income taxes

 

3,622,538

 

 

3,938,830

Other non-current liabilities

 

1,223,209

 

 

1,367,175

Shareholders' equity

 

36,465,323

 

 

37,992,542

Total liabilities & equity

$

50,302,350

 

$

52,322,071

 

 

 

 

ANALOG DEVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

 

 

Three Months Ended

 

Twelve Months Ended

 

Oct 29, 2022

 

Oct 30, 2021

 

Oct 29, 2022

 

Oct 30, 2021

Cash flows from operating activities:

 

 

 

 

 

 

 

Net income

$

936,226

 

 

$

75,687

 

 

$

2,748,561

 

 

$

1,390,422

 

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

 

 

 

 

 

 

 

Depreciation

 

70,703

 

 

 

72,338

 

 

 

283,338

 

 

 

231,275

 

Amortization of intangibles

 

501,911

 

 

 

406,625

 

 

 

2,014,161

 

 

 

843,359

 

Cost of goods sold for inventory acquired

 

 

 

 

331,083

 

 

 

271,396

 

 

 

331,083

 

Stock-based compensation expense

 

80,678

 

 

 

124,928

 

 

 

323,487

 

 

 

243,611

 

Non-cash impairment charge

 

 

 

 

 

 

 

91,953

 

 

 

 

Loss on extinguishment of debt

 

 

 

 

215,150

 

 

 

 

 

 

215,150

 

Non-cash operating lease costs

 

(26,129

)

 

 

2,377

 

 

 

(44,087

)

 

 

19,232

 

Deferred income taxes

 

(121,627

)

 

 

(334,429

)

 

 

(326,755

)

 

 

(406,922

)

Other

 

8,426

 

 

 

6,813

 

 

 

(2,987

)

 

 

(24,086

)

Changes in operating assets and liabilities

 

(300,852

)

 

 

40,154

 

 

 

(883,665

)

 

 

(108,055

)

Total adjustments

 

213,110

 

 

 

865,039

 

 

 

1,726,841

 

 

 

1,344,647

 

Net cash provided by operating activities

 

1,149,336

 

 

 

940,726

 

 

 

4,475,402

 

 

 

2,735,069

 

Percent of revenue

 

35

%

 

 

40

%

 

 

37

%

 

 

37

%

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Additions to property, plant and equipment, net

 

(304,512

)

 

 

(130,777

)

 

 

(699,308

)

 

 

(343,676

)

Cash received from acquisition of Maxim, net of cash paid

 

 

 

 

2,450,550

 

 

 

 

 

 

2,450,550

 

Other

 

(1,821

)

 

 

7,032

 

 

 

41,940

 

 

 

36,651

 

Net cash (used for) provided by investing activities

 

(306,333

)

 

 

2,326,805

 

 

 

(657,368

)

 

 

2,143,525

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

Proceeds from debt

 

296,130

 

 

 

3,939,640

 

 

 

296,130

 

 

 

3,939,640

 

Early termination of debt

 

 

 

 

(3,591,982

)

 

 

(519,116

)

 

 

(3,591,982

)

Payments on revolver

 

 

 

 

(400,000

)

 

 

(400,000

)

 

 

(400,000

)

Proceeds from revolver

 

 

 

 

400,000

 

 

 

400,000

 

 

 

400,000

 

Payment on derivative instrument

 

 

 

 

(153,161

)

 

 

 

 

 

(153,161

)

Prepayment for stock repurchases

 

 

 

 

(500,000

)

 

 

 

 

 

(500,000

)

Dividend payments to shareholders

 

(390,345

)

 

 

(371,230

)

 

 

(1,544,552

)

 

 

(1,109,344

)

Repurchase of common stock

 

(818,182

)

 

 

(2,095,992

)

 

 

(2,577,015

)

 

 

(2,605,144

)

Proceeds from employee stock plans

 

3,873

 

 

 

7,757

 

 

 

33,887

 

 

 

63,105

 

Other

 

21,664

 

 

 

(4,730

)

 

 

19,946

 

 

 

(2,778

)

Net cash used for financing activities

 

(886,860

)

 

 

(2,769,698

)

 

 

(4,290,720

)

 

 

(3,959,664

)

Effect of exchange rate changes on cash

 

(10,531

)

 

 

(570

)

 

 

(34,706

)

 

 

3,174

 

 

 

 

 

 

 

 

 

Net (decrease) increase in cash and cash equivalents

 

(54,388

)

 

 

497,263

 

 

 

(507,392

)

 

 

922,104

 

Cash and cash equivalents at beginning of period

 

1,524,960

 

 

 

1,480,701

 

 

$

1,977,964

 

 

$

1,055,860

 

Cash and cash equivalents at end of period

$

1,470,572

 

 

$

1,977,964

 

 

$

1,470,572

 

 

$

1,977,964

 

 

 

 

 

 

 

 

 

ANALOG DEVICES, INC.
REVENUE TRENDS BY END MARKET
(Unaudited)
(In thousands)

The categorization of revenue by end market is determined using a variety of data points including the technical characteristics of the product, the “sold to” customer information, the "ship to" customer information and the end customer product or application into which our product will be incorporated. As data systems for capturing and tracking this data and our methodology evolves and improves, the categorization of products by end market can vary over time. When this occurs, we reclassify revenue by end market for prior periods. Such reclassifications typically do not materially change the sizing of, or the underlying trends of results within, each end market.

 

Three Months Ended

 

Oct 29, 2022

 

Oct 30, 2021

 

Revenue

 

% of revenue*

 

Y/Y %

 

Revenue

 

% of revenue*

Industrial

$

1,661,517

 

51%

 

40%

 

$

1,185,409

 

51%

Automotive

 

672,329

 

21%

 

49%

 

 

452,311

 

19%

Communications

 

501,984

 

15%

 

42%

 

 

354,746

 

15%

Consumer

 

411,886

 

13%

 

19%

 

 

347,102

 

15%

Total revenue

$

3,247,716

 

100%

 

39%

 

$

2,339,568

 

100%

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

 

Oct 29, 2022

 

Oct 30, 2021

 

Revenue

 

% of revenue*

 

Y/Y %

 

Revenue

 

% of revenue*

Industrial

$

6,069,332

 

51%

 

51%

 

$

4,026,909

 

55%

Automotive

 

2,515,513

 

21%

 

102%

 

 

1,248,169

 

17%

Communications

 

1,880,697

 

16%

 

56%

 

 

1,206,867

 

16%

Consumer

 

1,548,411

 

13%

 

85%

 

 

836,341

 

11%

Total revenue

$

12,013,953

 

100%

 

64%

 

$

7,318,286

 

100%

 

 

 

 

 

 

 

 

 

 

*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

 

Twelve Months Ended

 

Oct 29, 2022

 

Oct 30, 2021

 

Oct 29, 2022

 

Oct 30, 2021

 

 

 

 

 

 

 

 

Gross margin

$

2,142,815

 

 

$

1,121,820

 

 

$

7,532,474

 

 

$

4,525,012

 

Gross margin percentage

 

66.0

%

 

 

47.9

%

 

 

62.7

%

 

 

61.8

%

Acquisition related expenses

 

259,696

 

 

 

537,784

 

 

 

1,309,687

 

 

 

661,438

 

Adjusted gross margin

$

2,402,511

 

 

$

1,659,604

 

 

$

8,842,161

 

 

$

5,186,450

 

Adjusted gross margin percentage

 

74.0

%

 

 

70.9

%

 

 

73.6

%

 

 

70.9

%

 

 

 

 

 

 

 

 

Operating expenses

$

1,040,339

 

 

$

1,022,815

 

 

$

4,253,774

 

 

$

2,832,811

 

Percent of revenue

 

32.0

%

 

 

43.7

%

 

 

35.4

%

 

 

38.7

%

Acquisition related expenses

 

(259,565

)

 

 

(223,151

)

 

 

(1,042,317

)

 

 

(552,789

)

Acquisition related transaction costs

 

(7,120

)

 

 

(56,289

)

 

 

(33,966

)

 

 

(112,859

)

Special charges, net

 

(29,906

)

 

 

(92,645

)

 

 

(274,509

)

 

 

(84,456

)

Adjusted operating expenses

$

743,748

 

 

$

650,730

 

 

$

2,902,982

 

 

$

2,082,707

 

Adjusted operating expenses percentage

 

22.9

%

 

 

27.8

%

 

 

24.2

%

 

 

28.5

%

 

 

 

 

 

 

 

 

Operating income

$

1,102,476

 

 

$

99,005

 

 

$

3,278,700

 

 

$

1,692,201

 

Operating margin

 

33.9

%

 

 

4.2

%

 

 

27.3

%

 

 

23.1

%

Acquisition related expenses

 

519,261

 

 

 

760,935

 

 

 

2,352,004

 

 

 

1,214,227

 

Acquisition related transaction costs

 

7,120

 

 

 

56,289

 

 

 

33,966

 

 

 

112,859

 

Special charges, net

 

29,906

 

 

 

92,645

 

 

 

274,509

 

 

 

84,456

 

Adjusted operating income

$

1,658,763

 

 

$

1,008,874

 

 

$

5,939,179

 

 

$

3,103,743

 

Adjusted operating margin

 

51.1

%

 

 

43.1

%

 

 

49.4

%

 

 

42.4

%

 

 

 

 

 

 

 

 

Nonoperating expense (income)

$

54,464

 

 

$

255,172

 

 

$

179,951

 

 

$

363,487

 

Acquisition related expenses

 

2,288

 

 

 

3,842

 

 

 

9,163

 

 

 

3,842

 

Loss on extinguishment of debt

 

 

 

 

(215,150

)

 

 

 

 

 

(215,150

)

Adjusted nonoperating expense (income)

$

56,752

 

 

$

43,864

 

 

 

189,114

 

 

$

152,179

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

$

1,048,012

 

 

$

(156,167

)

 

$

3,098,749

 

 

$

1,328,714

 

Acquisition related expenses

 

516,973

 

 

 

757,093

 

 

 

2,342,841

 

 

 

1,210,385

 

Acquisition related transaction costs

 

7,120

 

 

 

56,289

 

 

 

33,966

 

 

 

112,859

 

Special charges, net

 

29,906

 

 

 

92,645

 

 

 

274,509

 

 

 

84,456

 

Loss on extinguishment of debt

 

 

 

 

215,150

 

 

 

 

 

 

215,150

 

Adjusted income before income taxes

$

1,602,011

 

 

$

965,010

 

 

$

5,750,065

 

 

$

2,951,564

 

 

 

 

 

 

 

 

 

Provision for (benefit from) income taxes

$

111,786

 

 

$

(231,854

)

 

$

350,188

 

 

$

(61,708

)

Effective tax rate

 

10.7

%

 

 

(148.5

)%

 

 

11.3

%

 

 

(4.6

)%

Tax related items

 

83,853

 

 

 

354,377

 

 

 

394,755

 

 

 

420,844

 

Adjusted provision for income taxes

$

195,639

 

 

$

122,524

 

 

$

744,943

 

 

$

359,136

 

Adjusted tax rate

 

12.2

%

 

 

12.7

%

 

 

13.0

%

 

 

12.2

%

 

 

 

 

 

 

 

 

Diluted EPS

$

1.82

 

 

$

0.16

 

 

$

5.25

 

 

$

3.46

 

Acquisition related expenses

 

1.01

 

 

 

1.55

 

 

 

4.50

 

 

 

3.02

 

Acquisition related transaction costs

 

0.01

 

 

 

0.12

 

 

 

0.06

 

 

 

0.28

 

Special charges, net

 

0.06

 

 

 

0.19

 

 

 

0.52

 

 

 

0.21

 

Loss on extinguishment of debt

 

 

 

 

0.44

 

 

 

 

 

 

0.54

 

Tax related items

 

(0.16

)

 

 

(0.73

)

 

 

(0.75

)

 

 

(1.05

)

Adjusted diluted EPS*

$

2.73

 

 

$

1.73

 

 

$

9.57

 

 

$

6.46

 

* 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

 

Oct 29, 2022

 

Oct 29, 2022

 

Jul. 30, 2022

 

Apr. 30, 2022

 

Jan. 29, 2022

Revenue

$

12,013,953

 

 

$

3,247,716

 

 

$

3,109,880

 

 

$

2,972,064

 

 

$

2,684,293

 

Net cash provided by operating activities

$

4,475,402

 

 

$

1,149,336

 

 

$

1,247,846

 

 

$

1,221,806

 

 

$

856,413

 

% of Revenue

 

37

%

 

 

35

%

 

 

40

%

 

 

41

%

 

 

32

%

Capital expenditures

$

(699,308

)

 

$

(304,512

)

 

$

(164,884

)

 

$

(118,779

)

 

$

(111,133

)

Free cash flow

$

3,776,094

 

 

$

844,824

 

 

$

1,082,962

 

 

$

1,103,027

 

 

$

745,280

 

% of Revenue

 

31

%

 

 

26

%

 

 

35

%

 

 

37

%

 

 

28

%

 

ANALOG DEVICES, INC.

RECONCILIATION OF PROJECTED GAAP TO NON-GAAP RESULTS

(Unaudited)

 

 

Three Months Ending January 28, 2023

 

Reported

 

Adjusted

Revenue

$3.15 Billion

 

$3.15 Billion

 

(+/- $100 Million)

 

(+/- $100 Million)

Operating margin

33.4%

 

50.0% (1)

 

(+/-130 bps)

 

(+/-70 bps)

Nonoperating expenses

~ $50 Million

 

~ $50 Million

Tax rate

12% - 14%

 

12% - 14% (2)

Earnings per share

$1.71

 

$2.60 (3)

 

(+/- $0.10)

 

(+/- $0.10)

(1) Includes $518 million of adjustments related to acquisition related expenses and $5 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 $0.89 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, Investor Relations and FP&A
781-461-3282
investor.relations@analog.com

Media Contacts:
Analog Devices, Inc.
Ms. Ferda Millan
Global PR & External Communications
Ferda.Millan@analog.com

Source: Analog Devices, Inc.