Analog Units reviews document gross sales and earnings for fiscal yr 2021 of the second quarter

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. "

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.



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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.

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