WILMINGTON, Mass .– (BUSINESS WIRE) – Analog Devices, Inc. (Nasdaq: ADI), a global semiconductor company, today announced financial results for the second quarter of fiscal 2021, which ended May 1, 2021.
“ADI delivered record results for the quarter that exceeded the high end of our outlook. This reflects the insatiable demand for our products and the disciplined operational execution. Sales rose 26% and gross and operating margins continued to grow, resulting in earnings growth of 43%, ”said Vincent Roche, President and CEO. “The economic recovery has been faster and stronger than originally anticipated and has increased pressure across supply chains around the world. Our decision to strategically invest in additional capacities prior to this demand breakdown has enabled us to move forward quickly and with agility in order to better serve our customers. These investments, combined with the continued momentum in bookings, give us confidence that our second half of the year will be stronger than the first half. "
Roche added, “Semiconductors are the bedrock of the modern digital economy and their role in accelerating digitization across all industries has never been more evident. Our cadre of talented employees does everything possible to achieve what is possible and to achieve maximum customer effect. I am more optimistic than ever about ADI's position in this reorganized world as we create long-term value for everyone involved. "
|
Performance for the second quarter of fiscal 2021 |
|||||||||||
|
Results summary (1) |
|||||||||||
|
(in millions, excluding amounts and percentages per share) |
|||||||||||
|
|
|
|
|
|
|
||||||
|
|
Three months ended |
||||||||||
|
|
May 1, 2021 |
|
May 2, 2020 |
|
change |
||||||
|
revenue |
$ |
1.661 |
|
|
$ |
1.317 |
|
|
26th |
%. |
|
|
Gross margin |
$ |
1.137 |
|
|
$ |
847 |
|
|
34 |
%. |
|
|
Gross Margin Percentage |
68.4 |
%. |
|
64.3 |
%. |
|
|
410 bps |
|||
|
Operating profit |
$ |
520 |
|
|
$ |
344 |
|
|
51 |
%. |
|
|
Operating margin |
31.3 |
%. |
|
26.1 |
%. |
|
|
520 bps |
|||
|
Diluted earnings per share |
$ |
1.14 |
|
|
$ |
0.72 |
|
|
58 |
%. |
|
|
|
|
|
|
|
|
||||||
|
Adjusted results |
|
|
|
|
|
||||||
|
Adjusted gross margin |
$ |
1,177 |
|
|
$ |
891 |
|
|
32 |
%. |
|
|
Adjusted percentage of gross margin |
70.9 |
%. |
|
67.7 |
%. |
|
|
320 bps |
|||
|
Adjusted operating profit |
$ |
694 |
|
|
$ |
501 |
|
|
39 |
%. |
|
|
Adjusted operating margin |
41.7 |
%. |
|
38.0 |
%. |
|
|
370 bps |
|||
|
Adjusted diluted earnings per share |
$ |
1.54 |
|
|
$ |
1.08 |
|
|
43 |
%. |
|
|
|
|
|
|
|
|
||||||
|
|
|
|
Three months |
|
Run after twelve |
||||||
|
Cash generation |
|
|
May 1, 2021 |
|
May 1, 2021 |
||||||
|
Cash generated from operations |
|
|
$ |
736 |
|
|
$ |
2,394 |
|
||
|
% of sales |
|
|
44 |
%. |
|
39 |
%. |
||||
|
Investments |
|
|
$ |
(59 |
) |
|
$ |
(177 |
) |
||
|
Free cash flow |
|
|
$ |
677 |
|
|
$ |
2.217 |
|
||
|
% of sales |
|
|
41 |
%. |
|
36 |
%. |
||||
|
|
|
|
|
|
|
||||||
|
|
|
|
Three months |
|
Run after twelve |
||||||
|
Cash return |
|
|
May 1, 2021 |
|
May 1, 2021 |
||||||
|
Dividend paid |
|
|
$ |
(254 |
) |
|
$ |
(942 |
) |
||
|
Share buybacks |
|
|
(189 |
) |
|
(371 |
) |
||||
|
Total cash returned |
|
|
$ |
(443 |
) |
|
$ |
(1,313 |
) |
||
|
|
|
|
|
|
|
||||||
|
(1) The sum and / or calculation of the individual amounts may not correspond to the total due to rounding. |
|||||||||||
Outlook for the third quarter of the financial year 2021
For the third quarter of fiscal 2021, we forecast revenue of $ 1.7 billion, +/- $ 70 million. In the middle of this revenue outlook, we expect a reported operating margin of approx. 32.9% (+/- 140 basis points) and an adjusted operating margin of approx. 42.5% (+/- 100 basis points). We plan on reported earnings per share of $ 1.23, +/- $ 0.11 and adjusted earnings per share of $ 1.61, +/- $ 0.11.
Our outlook for fiscal 2021 for the third quarter is based on current expectations and actual results could differ materially due to, among other things, the important factors discussed at the end of this press release. These statements supersede any previous statements regarding our business prospects set out in previous ADI press releases, and ADI disclaims any obligation to update these forward-looking statements.
Adjusted Adjusted Results and Adjusted Expected 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 included in the financial tables included in this press release. Please see the “Non-GAAP Financial Information” section for more information.
Dividend payment
The ADI Board of Directors has approved a quarterly cash dividend of $ 0.69 per outstanding common share. The dividend will be paid out to all registered shareholders on June 8, 2021 at the close of business on May 28, 2021.
Conference call scheduled for today, Wednesday, May 19, 2021 at 10:00 a.m. (CET)
ADI will host a conference call today at 10:00 a.m. ET to discuss our results for the second quarter of fiscal 2021 and the near-term outlook. Investors can register via webcast, at investor.analog.com or by telephone (by calling 800-859-9560 or 706-634-7193 for international calls, ten minutes before the start of the call and specifying the password "ADI").
A replay is available two hours after the call ends. The recording can be accessed for up to two weeks by dialing 855-859-2056 (retry only) and specifying the conference ID: 2534357 or by visiting investor.analog.com.
Non-GAAP Financial Information
This press release contains non-GAAP financial measures that do not conform to or constitute an alternative to generally accepted accounting principles (GAAP) and may differ from non-GAAP financial measures presented by other companies. In addition, these non-GAAP measures are not based on comprehensive accounting rules or principles. These non-GAAP measures have material limitations as they do not reflect all of the amounts associated with the company's results of operations as determined by GAAP and should not be viewed in isolation 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 in including or excluding certain items are not necessarily indicative of results of business that may be expected in the future, or that the company may not, in fact, not record in future items 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 included in the financial tables included in this press release.
Management uses non-GAAP measures internally to assess 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 aid management in consistently evaluating the company's core business and trends across different reporting periods. Management also uses these non-GAAP metrics as the primary measure of performance when communicating with analysts and investors about the company's results and prospects, and believes that presenting these non-GAAP metrics is useful for investors as it is useful to investors delivers the operational results they deliver Management manages the company and enables investors and analysts to evaluate the core business of the company. Management also believes that free cash flow from non-GAAP liquidity measures is useful both internally and to investors as it provides information about the amount of cash generated after investments, which can then be used to repay debt obligations and make investments and certain other activities are available to acquire funds.
The non-GAAP financial measures reported by ADI in this press release include: Adjusted Gross Margin, Adjusted Gross Margin Percentage, Adjusted Operating Expenses, Adjusted Operating Expense Ratio, Adjusted Operating Income, Adjusted Operating Margin, Adjusted Earnings Before Income Taxes, Adjusted Provision for Income Taxes, Adjusted Tax Rate, Adjusted Diluted Earnings Stock (EPS), free cash flow, and free cash flow margin percentage.
Adjusted Gross Margin is defined as the gross margin determined in accordance with GAAP, excluding certain acquisition-related charges1, which are described below. Adjusted Gross Margin percentage equals Adjusted Gross Margin divided by sales.
Adjusted operating expenses are defined as operating expenses determined under GAAP, excluding: certain acquisition-related expenses1; acquisition-related transaction costs2; Restructuring expenses3; and charitable donations4, which are described below. The adjusted operating cost percentage is the adjusted operating expense divided by sales.
Adjusted profit from operations is defined as profit from operations determined in accordance with GAAP, excluding: acquisition-related expenses1; acquisition-related transaction costs2; Restructuring expenses3; and charitable donations4, which are described below. The adjusted operating margin corresponds to the adjusted operating result divided by sales.
Adjusted pre-tax profit is defined as pre-tax profit, which is determined under GAAP, with the exception of: acquisition-related expenses1; acquisition-related transaction costs2; Restructuring expenses3; and charitable donations4, which are described below.
The adjusted provision for income taxes is defined as the provision for income taxes determined under GAAP, excluding tax items5, which are described below. The adjusted tax rate corresponds to the adjusted provision for income taxes divided by the adjusted earnings before income taxes.
Adjusted diluted EPS is defined as diluted EPS determined under GAAP, excluding: acquisition-related expenses1; acquisition-related transaction costs2; Restructuring expenses3; charitable foundation contribution4; and tax items5, which are described below.
Free cash flow is defined as the cash flow from operating activities calculated in accordance with GAAP, net of additions to property, plant and equipment. The percentage of the free cash flow margin is equal to the free cash flow divided by sales.
1Acquisition-related expenses: expenses incurred as a result of acquisitions in the current and prior periods and mainly include expenses related to adjustments to the fair value of inventories, property, plant and equipment and amortization of acquisition-related intangible assets, including acquired intangible assets such as purchased technology and customer relationships. Expenses also include severance payments, accelerations in stock awards, and fair value adjustments related to the replacement of stock awards related to the acquisition of Linear Technology Corporation (Linear). We have excluded these costs from our non-GAAP measures because they relate to specific transactions and do not reflect our ongoing financial performance.
2Acquisition-related transaction costs: costs directly related to the proposed acquisition of Maxim Integrated Products, Inc., including legal, accounting, and other fees and integration-related costs. We have excluded these costs from our non-GAAP measures because they relate to a specific transaction and do not reflect our ongoing financial performance.
3Restructuring Expenses: Expenses related to plant closures, consolidation of manufacturing facilities, severance payments, other expedited stock-based compensation expenses, and other cost reduction or reorganization initiatives. We have excluded these expenses from our non-GAAP measures because, other than the ongoing cost savings from such items, these expenses are not directly related to future business operations.
4Charitable Foundation Contribution: Expenses related to a one-time contribution of common stock to the Analog Devices Foundation. We have excluded this expense from our non-GAAP metrics as this expense is not directly related to future business operations.
5 Tax-related items: Income tax effect of the non-GAAP items discussed above. We have excluded the income tax benefit / provision effect of these tax items from our non-GAAP measures as they are not related to the tax expense on our operating income.
Via analog devices
Analog Devices (Nasdaq: ADI) is a leading global semiconductor company dedicated to solving the toughest technical challenges. We enable our customers to interpret the world around us by intelligently combining 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 that address a variety of topics, including, for example, our statements regarding our proposed acquisition of Maxim Integrated Products, Inc. (“Maxim”); the effects of the COVID-19 pandemic on our business, financial and earnings position; expected sales, operating margin, tax rate, earnings per share and other financial results; expected market trends, market share gains, operational leverage, production and inventory levels; expected customer demand and order rates for our products and expected product offers; 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 that could cause actual results to differ materially from those described in the forward-looking statements. Important factors and uncertainties, including but not limited to the following, could cause actual results to differ materially from those described in these forward-looking statements: the uncertainty as to the extent, scope and impact of the COVID-19 pandemic; political and economic uncertainty, including any volatile global economic conditions or the stability of credit and financial markets; Erosion of consumer confidence and decline in customer spending; Unavailability of raw materials, services, supplies or production capacities; 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 applicable tax law; our ability to successfully integrate Maxim's businesses and technology; the risk that the anticipated benefits and synergies of the proposed transaction and the combined company's growth prospects may not be achieved in a timely manner or in full; adverse litigation outcomes, including the potential for litigation related to the Proposed Transaction; the risk that we or Maxim may not be able to retain and hire key personnel; the risk associated with the time the proposed Transaction was completed, including the risk that the terms of the Transaction will not be met in time or at all, or the failure of the Transaction to complete for any other reason or to complete the Transaction Conditions, including expected tax treatment; the risk that regulatory approval, consent or approval that may be required for the proposed transaction will not be obtained or will be obtained under unexpected conditions; unexpected difficulties or expenses related to the transaction, business partner response and loyalty due to the announcement and dependency of the transaction; Uncertainty about the long-term value of our common stock; the diversion of management time in transaction-related matters; our ability to successfully integrate acquired businesses and technologies; and the risk that the expected benefits, synergies and growth prospects from acquisitions may not be achieved in a timely manner or not at all. For more 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 report contained in our most recent quarterly report on Form 10-Q and Annual Report on Form 10-K. Forward-looking statements reflect management's current expectations and are inherently uncertain. Unless required by law, we do not assume any obligation to update any forward-looking statements from us to reflect future 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 INCOME STATEMENTS |
|||||||||||||||
|
(Unchecked) |
|||||||||||||||
|
(In thousands, excluding amounts per share) |
|||||||||||||||
|
|
Three months ended |
|
Six months ended |
||||||||||||
|
|
May 1, 2021 |
|
May 2, 2020 |
|
May 1, 2021 |
|
May 2, 2020 |
||||||||
|
revenue |
$ |
1,661,407 |
|
|
$ |
1,317,060 |
|
|
$ |
3,219,865 |
|
|
$ |
2,620,625 |
|
|
Cost of sales |
524.770 |
|
|
470.386 |
|
|
1,037,857 |
|
|
925,809 |
|
||||
|
Gross margin |
1,136,637 |
|
|
846.674 |
|
|
2,182,008 |
|
|
1,694,816 |
|
||||
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
|
Research and Development |
302.238 |
|
|
252,413 |
|
|
590.388 |
|
|
509.486 |
|
||||
|
Sales, marketing, general and administrative |
206.612 |
|
|
141,775 |
|
|
391.887 |
|
|
341.055 |
|
||||
|
Amortization of intangible assets |
107.786 |
|
|
107.146 |
|
|
215.434 |
|
|
214.371 |
|
||||
|
Special charges |
311 |
|
|
1,320 |
|
|
749 |
|
|
12,456 |
|
||||
|
Business expense |
616.947 |
|
|
502.654 |
|
|
1,198,458 |
|
|
1,077,368 |
|
||||
|
Operating profit |
519,690 |
|
|
344.020 |
|
|
983,550 |
|
|
617,448 |
|
||||
|
Non-operating expenses (income): |
|
|
|
|
|
|
|
||||||||
|
Interest expenses |
43,066 |
|
|
49,985 |
|
|
85,545 |
|
|
98,798 |
|
||||
|
Interest income |
(290 |
) |
|
(1.334 |
) |
|
(499 |
) |
|
(3.274 |
) |
||||
|
Others, net |
929 |
|
|
308 |
|
|
(14,099 |
) |
|
646 |
|
||||
|
|
43,705 |
|
|
48,959 |
|
|
70,947 |
|
|
96.170 |
|
||||
|
Earnings before taxes |
475.985 |
|
|
295.061 |
|
|
912.603 |
|
|
521.278 |
|
||||
|
Provision for income taxes |
53,080 |
|
|
27,365 |
|
|
101.179 |
|
|
49,708 |
|
||||
|
Net income |
$ |
422.905 |
|
|
$ |
267.696 |
|
|
$ |
811.424 |
|
|
$ |
471,570 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Shares for calculating earnings per common share – basis |
368,823 |
|
|
368.217 |
|
|
369.013 |
|
|
368.229 |
|
||||
|
Shares used to calculate earnings per ordinary share – diluted |
372,418 |
|
|
371,305 |
|
|
372,762 |
|
|
371.784 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Basic earnings per ordinary share |
$ |
1.15 |
|
|
$ |
0.73 |
|
|
$ |
2.20 |
|
|
$ |
1.28 |
|
|
Diluted earnings per common share |
$ |
1.14 |
|
|
$ |
0.72 |
|
|
$ |
2.18 |
|
|
$ |
1.27 |
|
|
ANALOG DEVICES, INC. |
|||||||
|
CONDENSED CONSOLIDATED COMPENSATION SHEETS |
|||||||
|
(Unchecked) |
|||||||
|
(In thousands) |
|||||||
|
|
May 1, 2021 |
|
October 31, 2020 |
||||
|
Cash and cash equivalents |
$ |
1,305,216 |
|
|
$ |
1,055,860 |
|
|
requirements |
814.135 |
|
|
737,536 |
|
||
|
Stocks |
641.202 |
|
|
608,260 |
|
||
|
Other current assets |
142.247 |
|
|
116.032 |
|
||
|
Total current assets |
2,902,800 |
|
|
2,517,688 |
|
||
|
Property, plant and equipment |
1,160,586 |
|
|
1,120,561 |
|
||
|
Other investments |
94.033 |
|
|
86,729 |
|
||
|
Goodwill |
12,282,465 |
|
|
12,278,425 |
|
||
|
Intangible assets, net |
3,393,546 |
|
|
3,650,280 |
|
||
|
Deferred tax claims |
1,448,018 |
|
|
1,503,064 |
|
||
|
Other assets |
306.769 |
|
|
311,856 |
|
||
|
Total assets |
$ |
21,588,217 |
|
|
$ |
21,468,603 |
|
|
|
|
|
|
||||
|
Other current liabilities |
$ |
1,452,378 |
|
|
$ |
1,364,986 |
|
|
Debt, currently |
1,324,451 |
|
|
– – |
|
||
|
Long-term liabilities |
3,823,595 |
|
|
5,145,102 |
|
||
|
Deferred income taxes |
1,833,520 |
|
|
1,919,595 |
|
||
|
Other not current encumbrances |
987.169 |
|
|
1,040,975 |
|
||
|
Equity |
12,167,104 |
|
|
11,997,945 |
|
||
|
Total liabilities & equity |
$ |
21,588,217 |
|
|
$ |
21,468,603 |
|
|
ANALOG DEVICES, INC. |
|||||||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||||||||
|
(Unchecked) |
|||||||||||||||
|
(In thousands) |
|||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three months ended |
|
Six months ended |
||||||||||||
|
|
May 1, 2021 |
|
May 2, 2020 |
|
May 1, 2021 |
|
May 2, 2020 |
||||||||
|
The cash flow from operating activities: |
|
|
|
|
|
|
|
||||||||
|
Net income |
$ |
422.905 |
|
|
$ |
267.696 |
|
|
$ |
811.424 |
|
|
$ |
471,570 |
|
|
Adjustments to reconcile the net result with the cash flow from operating activities: |
|
|
|
|
|
|
|
||||||||
|
depreciation |
52.466 |
|
|
59.261 |
|
|
108,775 |
|
|
119.124 |
|
||||
|
Amortization of intangible assets |
145.701 |
|
|
144.051 |
|
|
290.745 |
|
|
288.120 |
|
||||
|
Share-based compensation expense |
40.358 |
|
|
35,900 |
|
|
76,996 |
|
|
73,401 |
|
||||
|
Deferred income taxes |
(21.017 |
) |
|
(21.408 |
) |
|
(48, 292 |
) |
|
(35,390 |
) |
||||
|
Donation in kind to a charitable foundation |
– – |
|
|
– – |
|
|
– – |
|
|
40,000 |
|
||||
|
Other non-cash activities |
2,431 |
|
|
1.469 |
|
|
(12.122 |
) |
|
3.801 |
|
||||
|
Changes in operating assets and liabilities |
93,517 |
|
|
(57.928 |
) |
|
(63.223 |
) |
|
(181.937 |
) |
||||
|
Overall adjustments |
313,456 |
|
|
161,345 |
|
|
352.879 |
|
|
307.119 |
|
||||
|
Cash generated from operations |
736,361 |
|
|
429.041 |
|
|
1,164,303 |
|
|
778.689 |
|
||||
|
Percent of sales |
44 |
%. |
|
33 |
%. |
|
36 |
%. |
|
30th |
%. |
||||
|
Cash flow from investing activities: |
|
|
|
|
|
|
|
||||||||
|
Income from other investments |
– – |
|
|
– – |
|
|
18,566 |
|
|
– – |
|
||||
|
Additions to property, plant and equipment |
(59.170 |
) |
|
(60, 161 |
) |
|
(126.558 |
) |
|
(115,000 |
) |
||||
|
Cash payment for the purchase of assets |
– – |
|
|
– – |
|
|
(22,522 |
) |
|
– – |
|
||||
|
Payments for acquisitions minus cash acquired |
– – |
|
|
– – |
|
|
(2,428 |
) |
|
– – |
|
||||
|
Changes in Other Assets |
(1.526 |
) |
|
(1.391 |
) |
|
(2.826 |
) |
|
(1.284 |
) |
||||
|
Cash flow from investing activities |
(60, 696 |
) |
|
(61.552 |
) |
|
(135.768 |
) |
|
(116, 284 |
) |
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Cash flow from financing activities: |
|
|
|
|
|
|
|
||||||||
|
Income from debt |
– – |
|
|
395,646 |
|
|
– – |
|
|
395,646 |
|
||||
|
Payments on revolvers |
– – |
|
|
(350,000 |
) |
|
– – |
|
|
(350,000 |
) |
||||
|
Revolver proceeds |
– – |
|
|
350,000 |
|
|
– – |
|
|
350,000 |
|
||||
|
Debt repayments |
– – |
|
|
(300,000 |
) |
|
– – |
|
|
(300,000 |
) |
||||
|
Dividend payments to shareholders |
(254,429 |
) |
|
(228.600 |
) |
|
(483,608 |
) |
|
(427,760 |
) |
||||
|
Buyback of common shares |
(188.814 |
) |
|
(113.584 |
) |
|
(345,871 |
) |
|
(219.614 |
) |
||||
|
Income from employee share plans |
23,752 |
|
|
14,784 |
|
|
43,672 |
|
|
30,897 |
|
||||
|
Changes in other financing activities |
(94 |
) |
|
(3.956 |
) |
|
2,399 |
|
|
(4.451 |
) |
||||
|
Net cash flow from financing activities |
(419.585 |
) |
|
(235.710 |
) |
|
(783,408 |
) |
|
(525.282 |
) |
||||
|
Effect of Changes in Exchange Rates on Cash |
1,073 |
|
|
(1,250 |
) |
|
4.229 |
|
|
(508 |
) |
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Net increase in cash and cash equivalents |
257,153 |
|
|
130.529 |
|
|
249,356 |
|
|
136.615 |
|
||||
|
Cash and cash equivalents at the beginning of the period |
1,048,063 |
|
|
654,408 |
|
|
1,055,860 |
|
|
648,322 |
|
||||
|
Cash and cash equivalents at the end of the reporting period |
$ |
1,305,216 |
|
|
$ |
784.937 |
|
|
$ |
1,305,216 |
|
|
$ |
784.937 |
|
ANALOG DEVICES, INC.
REVENUE TRENDS BY FINAL MARKET
(Unchecked)
(In thousands)
The categorization of sales by end market is determined from a variety of data points, including the technical characteristics of the product, the customer information "sold to", the customer information "shipped to" and the end customer product or application for which our product is used. As data systems for collecting and tracking this data and our methodology evolve and improve, the categorization of products by end market may vary over time. In this case, we classify sales for previous periods by end market. Such reclassifications usually do not materially change the size or underlying trends of the results in any end market.
|
|
Three months ended |
||||||||||||
|
|
May 1, 2021 |
|
May 2, 2020 |
||||||||||
|
|
revenue |
|
% of sales * |
|
Y / Y% |
|
revenue |
|
% of sales * |
||||
|
Industrial |
$ |
972.177 |
|
|
59% |
|
36% |
|
$ |
716.364 |
|
|
54% |
|
communication |
276.960 |
|
|
17% |
|
-% |
|
276,575 |
|
|
21% |
||
|
automobile |
257,586 |
|
|
16% |
|
42% |
|
181.211 |
|
|
14% |
||
|
consumer |
154.684 |
|
|
9% |
|
8th% |
|
142.910 |
|
|
11% |
||
|
Total sales |
$ |
1,661,407 |
|
|
100% |
|
26% |
|
$ |
1,317,060 |
|
|
100% |
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Six months ended |
||||||||||||
|
|
May 1, 2021 |
|
May 2, 2020 |
||||||||||
|
|
revenue |
|
% of sales * |
|
Y / Y% |
|
revenue |
|
% of sales * |
||||
|
Industrial |
$ |
1,828,140 |
|
|
57% |
|
30% |
|
$ |
1,405,224 |
|
|
54% |
|
communication |
557.786 |
|
|
17% |
|
8th% |
|
517.872 |
|
|
20% |
||
|
automobile |
503.501 |
|
|
16% |
|
30% |
|
386.618 |
|
|
fifteen% |
||
|
consumer |
330,438 |
|
|
10% |
|
6% |
|
310.911 |
|
|
12% |
||
|
Total sales |
$ |
3,219,865 |
|
|
100% |
|
23% |
|
$ |
2,620,625 |
|
|
100% |
|
|
|
|
|
|
|
|
|
|
|
||||
|
* The sum of the individual percentages may not equal the total due to rounding. |
|||||||||||||
|
ANALOG DEVICES, INC. |
|||||||||||||||
|
Reconciliation from GAAP to non-GAAP results |
|||||||||||||||
|
(Unchecked) |
|||||||||||||||
|
(In thousands, excluding amounts per share) |
|||||||||||||||
|
|
Three months ended |
|
Six months ended |
||||||||||||
|
|
May 1, 2021 |
|
May 2, 2020 |
|
May 1, 2021 |
|
May 2, 2020 |
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Gross margin |
$ |
1,136,637 |
|
|
$ |
846.674 |
|
|
$ |
2,182,008 |
|
|
$ |
1,694,816 |
|
|
Gross Margin Percentage |
68.4 |
%. |
|
64.3 |
%. |
|
67.8 |
%. |
|
64.7 |
%. |
||||
|
acquisition cost |
40,711 |
|
|
44,395 |
|
|
85,709 |
|
|
89.411 |
|
||||
|
Adjusted gross margin |
$ |
1,177,348 |
|
|
$ |
891.069 |
|
|
$ |
2,267,717 |
|
|
$ |
1,784,227 |
|
|
Adjusted percentage of gross margin |
70.9 |
%. |
|
67.7 |
%. |
|
70.4 |
%. |
|
68.1 |
%. |
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Operating expenses |
$ |
616.947 |
|
|
$ |
502.654 |
|
|
$ |
1,198,458 |
|
|
$ |
1,077,368 |
|
|
Percent of sales |
37.1 |
%. |
|
38.2 |
%. |
|
37.2 |
%. |
|
41.1 |
%. |
||||
|
acquisition cost |
(109.903 |
) |
|
(111.057 |
) |
|
(220, 203 |
) |
|
(222.838 |
) |
||||
|
Acquisition-related transaction costs |
(23.008 |
) |
|
– – |
|
|
(38, 244 |
) |
|
– – |
|
||||
|
Charitable foundation contribution |
– – |
|
|
– – |
|
|
– – |
|
|
(40,000 |
) |
||||
|
Restructuring expenses |
(311 |
) |
|
(1,320 |
) |
|
(749 |
) |
|
(12,456 |
) |
||||
|
Adjusted operating expenses |
$ |
483.725 |
|
|
$ |
390.277 |
|
|
$ |
939.262 |
|
|
$ |
802.074 |
|
|
Adjusted percentage of operating costs |
29.1 |
%. |
|
29.6 |
%. |
|
29.2 |
%. |
|
30.6 |
%. |
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Operating profit |
$ |
519,690 |
|
|
$ |
344.020 |
|
|
$ |
983,550 |
|
|
$ |
617,448 |
|
|
Operating margin |
31.3 |
%. |
|
26.1 |
%. |
|
30.5 |
%. |
|
23.6 |
%. |
||||
|
acquisition cost |
150.614 |
|
|
155.452 |
|
|
305.912 |
|
|
312.249 |
|
||||
|
Acquisition-related transaction costs |
23.008 |
|
|
– – |
|
|
38.244 |
|
|
– – |
|
||||
|
Charitable foundation contribution |
– – |
|
|
– – |
|
|
– – |
|
|
40,000 |
|
||||
|
Restructuring expenses |
311 |
|
|
1,320 |
|
|
749 |
|
|
12,456 |
|
||||
|
Adjusted operating profit |
$ |
693.623 |
|
|
$ |
500,792 |
|
|
$ |
1,328,455 |
|
|
$ |
982.153 |
|
|
Adjusted operating margin |
41.7 |
%. |
|
38.0 |
%. |
|
41.3 |
%. |
|
37.5 |
%. |
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Provision for income taxes |
$ |
53,080 |
|
|
$ |
27,365 |
|
|
$ |
101.179 |
|
|
$ |
49,708 |
|
|
Tax-related items |
22,983 |
|
|
21,867 |
|
|
45,780 |
|
|
50.147 |
|
||||
|
Adjusted provision for income taxes |
$ |
76.063 |
|
|
$ |
49.232 |
|
|
$ |
146,959 |
|
|
$ |
99,855 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Earnings before taxes |
475.985 |
|
|
295.061 |
|
|
912.603 |
|
|
521.278 |
|
||||
|
Effective tax rate |
11.2 |
%. |
|
9.3 |
%. |
|
11.1 |
%. |
|
9.5 |
%. |
||||
|
acquisition cost |
150.614 |
|
|
155.452 |
|
|
305.912 |
|
|
312.249 |
|
||||
|
Acquisition-related transaction costs |
23.008 |
|
|
– – |
|
|
38.244 |
|
|
– – |
|
||||
|
Charitable foundation contribution |
– – |
|
|
– – |
|
|
– – |
|
|
40,000 |
|
||||
|
Restructuring expenses |
311 |
|
|
1,320 |
|
|
749 |
|
|
12,456 |
|
||||
|
Adjusted earnings before income taxes |
$ |
649.918 |
|
|
$ |
451.833 |
|
|
$ |
1,257,508 |
|
|
$ |
885.983 |
|
|
Adjusted tax rate |
11.7 |
%. |
|
10.9 |
%. |
|
11.7 |
%. |
|
11.3 |
%. |
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Diluted EPS |
$ |
1.14 |
|
|
$ |
0.72 |
|
|
$ |
2.18 |
|
|
$ |
1.27 |
|
|
acquisition cost |
0.40 |
|
|
0.42 |
|
|
0.82 |
|
|
0.84 |
|
||||
|
Acquisition-related transaction costs |
0.06 |
|
|
– – |
|
|
0.10 |
|
|
– – |
|
||||
|
Charitable foundation contribution |
– – |
|
|
– – |
|
|
– – |
|
|
0.11 |
|
||||
|
Restructuring expenses |
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
0.03 |
|
||||
|
Tax-related items |
(0.06 |
) |
|
(0.06 |
) |
|
(0.12 |
) |
|
(0.13 |
) |
||||
|
Adjusted Diluted EPS * |
$ |
1.54 |
|
|
$ |
1.08 |
|
|
$ |
2.98 |
|
|
$ |
2.11 |
|
|
* The sum of the amounts per person and share may not correspond to the total due to rounding. |
|||||||||||||||
|
ANALOG DEVICES, INC. |
|||||||||||||||||||
|
Reconciliation of net cash made available through operational activities to free the flow of cash |
|||||||||||||||||||
|
(Unchecked) |
|||||||||||||||||||
|
(In thousands) |
|||||||||||||||||||
|
|
|
|
|
||||||||||||||||
|
|
Chasing |
|
Three months ended |
||||||||||||||||
|
|
May 1, 2021 |
|
May 1, 2021 |
|
January 30, 2021 |
|
October 31, 2021 |
|
August 1, 2020 |
||||||||||
|
revenue |
$ |
6,202,296 |
|
|
$ |
1,661,407 |
|
|
$ |
1,558,458 |
|
|
$ |
1,526,295 |
|
|
$ |
1,456,136 |
|
|
Cash generated from operations |
$ |
2,394,100 |
|
|
$ |
736,361 |
|
|
$ |
427,941 |
|
|
$ |
672,598 |
|
|
$ |
557.200 |
|
|
% of sales |
39 |
%. |
|
44 |
%. |
|
27 |
%. |
|
44 |
%. |
|
38 |
%. |
|||||
|
Investments |
$ |
(177, 250 |
) |
|
$ |
(59.170 |
) |
|
$ |
(67.388 |
) |
|
$ |
(29,888) |
) |
|
$ |
(20.804 |
) |
|
Free cash flow |
$ |
2,216,850 |
|
|
$ |
677.191 |
|
|
$ |
360.553 |
|
|
$ |
642.710 |
|
|
$ |
536,396 |
|
|
% of sales |
36 |
%. |
|
41 |
%. |
|
23 |
%. |
|
42 |
%. |
|
37 |
%. |
|||||
|
ANALOG DEVICES, INC. |
|||
|
Reconciliation of projected GAAP to non-GAAP results |
|||
|
(Unchecked) |
|||
|
|
Three months to July 31, 2021 |
||
|
|
Reported |
|
customized |
|
revenue |
$ 1.7 billion |
|
$ 1.7 billion |
|
|
(+/- $ 70 million) |
|
(+/- $ 70 million) |
|
Operating margin |
32.9% |
|
42.5% (1) |
|
|
(+/- 140 bps) |
|
(+/- 100 bps) |
|
Non-operational costs |
~ $ 43 million |
|
~ $ 43 million |
|
tax rate |
11% to 13% |
|
11% to 13% (2) |
|
Earnings per share |
$ 1.23 |
|
$ 1.61 (3) |
|
|
(+/- $ 0.11) |
|
(+/- $ 0.11) |
|
(1) Includes adjustments of $ 163 million for acquisition-related charges 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 dependent on the completion of the proposed acquisition of Maxim Integrated Products, Inc., as we cannot reasonably predict the timing of this transaction. |
|
(2) Includes tax effects of $ 23 million related to the aforementioned adjustments for acquisition-related expenses and acquisition-related transaction costs. |
|
(3) Includes adjustments of $ 0.38 for the net impact of $ 0.44 for acquisition-related costs and acquisition-related transaction costs and $ 0.06 for tax effects on these items. |
(ADI-WEB)