Analog Units Studies Report Income and Earnings for the Second Quarter Fiscal 2021

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

WILMINGTON, Mass.–(BUSINESS WIRE)–Analog Devices, Inc. (Nasdaq: ADI), a leading global semiconductor company, today announced financial results for its second quarter of fiscal 2021, which ended May 1, 2021.

“ADI delivered record quarterly results that exceeded the high end of our outlook, reflecting the insatiable demand for our products and disciplined operational execution. Revenue increased 26% and gross and operating margins continued to expand, leading to earnings growth of 43%,” said Vincent Roche, President and CEO. “The economic recovery has materialized faster and stronger than initially anticipated, increasing pressure across supply chains globally. Our decision to strategically invest in additional capacity ahead of this demand inflection has enabled us to move with speed and agility to better serve our customers. These investments combined with continued momentum in bookings give us confidence that our second half will be stronger than the first half.”

Roche added, “Semiconductors are the bedrock of the modern digital economy and their importance to accelerating digitalization across all industries has never been more apparent. Our cadre of talented employees continues to push the edge of what is possible and deliver maximum customer impact. I am more optimistic than ever about ADI’s position in this reordered world as we create long-term value for all stakeholders.”

Performance for the Second Quarter of Fiscal 2021

Results Summary(1)

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

 

 

 

 

 

 

 

Three Months Ended

 

May 1, 2021

 

May 2, 2020

 

Change

Revenue

$

1,661

 

 

$

1,317

 

 

26

%

Gross margin

$

1,137

 

 

$

847

 

 

34

%

Gross margin percentage

68.4

%

 

64.3

%

 

 

410 bps

Operating income

$

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 gross margin percentage

70.9

%

 

67.7

%

 

 

320 bps

Adjusted operating income

$

694

 

 

$

501

 

 

39

%

Adjusted operating margin

41.7

%

 

38.0

%

 

 

370 bps

Adjusted diluted earnings per share

$

1.54

 

 

$

1.08

 

 

43

%

 

 

 

 

 

 

 

 

 

Three Months

Ended

 

Trailing Twelve

Months

Cash Generation

 

 

May 1, 2021

 

May 1, 2021

Net cash provided by operating activities

 

 

$

736

 

 

$

2,394

 

% of revenue

 

 

44

%

 

39

%

Capital expenditures

 

 

$

(59

)

 

$

(177

)

Free cash flow

 

 

$

677

 

 

$

2,217

 

% of revenue

 

 

41

%

 

36

%

 

 

 

 

 

 

 

 

 

Three Months

Ended

 

Trailing Twelve

Months

Cash Return

 

 

May 1, 2021

 

May 1, 2021

Dividend paid

 

 

$

(254

)

 

$

(942

)

Stock repurchases

 

 

(189

)

 

(371

)

Total cash returned

 

 

$

(443

)

 

$

(1,313

)

 

 

 

 

 

 

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

Outlook for the Third Quarter of Fiscal Year 2021

For the third quarter of fiscal 2021, we are forecasting revenue of $1.7 billion, +/- $70 million. At the midpoint of this revenue outlook, we expect reported operating margin of approximately 32.9%, +/-140 bps, and adjusted operating margin of approximately 42.5%, +/-100 bps. We are planning for reported EPS to be $1.23, +/-$0.11, and adjusted EPS to be $1.61, +/-$0.11.

Our third 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 June 8, 2021 to all shareholders of record at the close of business on May 28, 2021.

Conference Call Scheduled for Today, Wednesday, May 19, 2021 at 10:00 am ET

ADI will host a conference call to discuss our second 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 (call 800-859-9560, or 706-634-7193 for international calls, ten minutes before the call begins and provide the password “ADI”).

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: 2534357, 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 expense3; 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 expense3; 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 expense3; 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 expense3; 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: Expenses 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. We excluded the income tax benefit/provision effect of these tax related items from our non-GAAP measures because they are not associated with the tax expense on our ongoing 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

 

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

 

Selling, marketing, general and administrative

206,612

 

 

141,775

 

 

391,887

 

 

341,055

 

Amortization of intangibles

107,786

 

 

107,146

 

 

215,434

 

 

214,371

 

Special charges

311

 

 

1,320

 

 

749

 

 

12,456

 

Total operating expenses

616,947

 

 

502,654

 

 

1,198,458

 

 

1,077,368

 

Operating income

519,690

 

 

344,020

 

 

983,550

 

 

617,448

 

Nonoperating expense (income):

 

 

 

 

 

 

 

Interest expense

43,066

 

 

49,985

 

 

85,545

 

 

98,798

 

Interest income

(290

)

 

(1,334

)

 

(499

)

 

(3,274

)

Other, net

929

 

 

308

 

 

(14,099

)

 

646

 

 

43,705

 

 

48,959

 

 

70,947

 

 

96,170

 

Income before income 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 used to compute earnings per common share – basic

368,823

 

 

368,217

 

 

369,013

 

 

368,229

 

Shares used to compute earnings per common share – diluted

372,418

 

 

371,305

 

 

372,762

 

 

371,784

 

 

 

 

 

 

 

 

 

Basic earnings per common 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 BALANCE SHEETS

(Unaudited)

(In thousands)

 

 

May 1, 2021

 

Oct. 31, 2020

Cash & cash equivalents

$

1,305,216

 

 

$

1,055,860

 

Accounts receivable

814,135

 

 

737,536

 

Inventories

641,202

 

 

608,260

 

Other current assets

142,247

 

 

116,032

 

Total current assets

2,902,800

 

 

2,517,688

 

Net 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 assets

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, current

1,324,451

 

 

 

Long-term debt

3,823,595

 

 

5,145,102

 

Deferred income taxes

1,833,520

 

 

1,919,595

 

Other non-current liabilities

987,169

 

 

1,040,975

 

Shareholders’ 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

(Unaudited)

(In thousands)

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

May 1, 2021

 

May 2, 2020

 

May 1, 2021

 

May 2, 2020

Cash flows from operating activities:

 

 

 

 

 

 

 

Net income

$

422,905

 

 

$

267,696

 

 

$

811,424

 

 

$

471,570

 

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

 

 

 

 

 

 

 

Depreciation

52,466

 

 

59,261

 

 

108,775

 

 

119,124

 

Amortization of intangibles

145,701

 

 

144,051

 

 

290,745

 

 

288,120

 

Stock-based compensation expense

40,358

 

 

35,900

 

 

76,996

 

 

73,401

 

Deferred income taxes

(21,017

)

 

(21,408

)

 

(48,292

)

 

(35,390

)

Non-cash contribution to charitable foundation

 

 

 

 

 

 

40,000

 

Other non-cash activity

2,431

 

 

1,469

 

 

(12,122

)

 

3,801

 

Changes in operating assets and liabilities

93,517

 

 

(57,928

)

 

(63,223

)

 

(181,937

)

Total adjustments

313,456

 

 

161,345

 

 

352,879

 

 

307,119

 

Net cash provided by operating activities

736,361

 

 

429,041

 

 

1,164,303

 

 

778,689

 

Percent of revenue

44

%

 

33

%

 

36

%

 

30

%

Cash flows from investing activities:

 

 

 

 

 

 

 

Proceeds from other investments

 

 

 

 

18,566

 

 

 

Additions to property, plant and equipment

(59,170

)

 

(60,161

)

 

(126,558

)

 

(115,000

)

Cash paid for asset acquisition

 

 

 

 

(22,522

)

 

 

Payments for acquisitions, net of cash acquired

 

 

 

 

(2,428

)

 

 

Changes in other assets

(1,526

)

 

(1,391

)

 

(2,826

)

 

(1,284

)

Net cash used for investing activities

(60,696

)

 

(61,552

)

 

(135,768

)

 

(116,284

)

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

Proceeds from debt

 

 

395,646

 

 

 

 

395,646

 

Payments on revolver

 

 

(350,000

)

 

 

 

(350,000

)

Proceeds from revolver

 

 

350,000

 

 

 

 

350,000

 

Debt repayments

 

 

(300,000

)

 

 

 

(300,000

)

Dividend payments to shareholders

(254,429

)

 

(228,600

)

 

(483,608

)

 

(427,760

)

Repurchase of common stock

(188,814

)

 

(113,584

)

 

(345,871

)

 

(219,614

)

Proceeds from employee stock plans

23,752

 

 

14,784

 

 

43,672

 

 

30,897

 

Changes in other financing activities

(94

)

 

(3,956

)

 

2,399

 

 

(4,451

)

Net cash used for financing activities

(419,585

)

 

(235,710

)

 

(783,408

)

 

(525,282

)

Effect of exchange rate changes 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 beginning of period

1,048,063

 

 

654,408

 

 

1,055,860

 

 

648,322

 

Cash and cash equivalents at end of period

$

1,305,216

 

 

$

784,937

 

 

$

1,305,216

 

 

$

784,937

 

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

 

May 1, 2021

 

May 2, 2020

 

Revenue

 

% of revenue*

 

Y/Y %

 

Revenue

 

% of revenue*

Industrial

$

972,177

 

 

59%

 

36%

 

$

716,364

 

 

54%

Communications

276,960

 

 

17%

 

—%

 

276,575

 

 

21%

Automotive

257,586

 

 

16%

 

42%

 

181,211

 

 

14%

Consumer

154,684

 

 

9%

 

8%

 

142,910

 

 

11%

Total revenue

$

1,661,407

 

 

100%

 

26%

 

$

1,317,060

 

 

100%

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

May 1, 2021

 

May 2, 2020

 

Revenue

 

% of revenue*

 

Y/Y %

 

Revenue

 

% of revenue*

Industrial

$

1,828,140

 

 

57%

 

30%

 

$

1,405,224

 

 

54%

Communications

557,786

 

 

17%

 

8%

 

517,872

 

 

20%

Automotive

503,501

 

 

16%

 

30%

 

386,618

 

 

15%

Consumer

330,438

 

 

10%

 

6%

 

310,911

 

 

12%

Total revenue

$

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 OF GAAP TO NON-GAAP RESULTS

(Unaudited)

(In thousands, except per share amounts)

 

 

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 related expenses

40,711

 

 

44,395

 

 

85,709

 

 

89,411

 

Adjusted gross margin

$

1,177,348

 

 

$

891,069

 

 

$

2,267,717

 

 

$

1,784,227

 

Adjusted gross margin percentage

70.9

%

 

67.7

%

 

70.4

%

 

68.1

%

 

 

 

 

 

 

 

 

Operating expenses

$

616,947

 

 

$

502,654

 

 

$

1,198,458

 

 

$

1,077,368

 

Percent of revenue

37.1

%

 

38.2

%

 

37.2

%

 

41.1

%

Acquisition related expenses

(109,903

)

 

(111,057

)

 

(220,203

)

 

(222,838

)

Acquisition related transaction costs

(23,008

)

 

 

 

(38,244

)

 

 

Charitable foundation contribution

 

 

 

 

 

 

(40,000

)

Restructuring related expense

(311

)

 

(1,320

)

 

(749

)

 

(12,456

)

Adjusted operating expenses

$

483,725

 

 

$

390,277

 

 

$

939,262

 

 

$

802,074

 

Adjusted operating expenses percentage

29.1

%

 

29.6

%

 

29.2

%

 

30.6

%

 

 

 

 

 

 

 

 

Operating income

$

519,690

 

 

$

344,020

 

 

$

983,550

 

 

$

617,448

 

Operating margin

31.3

%

 

26.1

%

 

30.5

%

 

23.6

%

Acquisition related expenses

150,614

 

 

155,452

 

 

305,912

 

 

312,249

 

Acquisition related transaction costs

23,008

 

 

 

 

38,244

 

 

 

Charitable foundation contribution

 

 

 

 

 

 

40,000

 

Restructuring related expense

311

 

 

1,320

 

 

749

 

 

12,456

 

Adjusted operating income

$

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

 

 

 

 

 

 

 

 

 

Income before income taxes

475,985

 

 

295,061

 

 

912,603

 

 

521,278

 

Effective tax rate

11.2

%

 

9.3

%

 

11.1

%

 

9.5

%

Acquisition related expenses

150,614

 

 

155,452

 

 

305,912

 

 

312,249

 

Acquisition related transaction costs

23,008

 

 

 

 

38,244

 

 

 

Charitable foundation contribution

 

 

 

 

 

 

40,000

 

Restructuring related expense

311

 

 

1,320

 

 

749

 

 

12,456

 

Adjusted income 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 related expenses

0.40

 

 

0.42

 

 

0.82

 

 

0.84

 

Acquisition related transaction costs

0.06

 

 

 

 

0.10

 

 

 

Charitable foundation contribution

 

 

 

 

 

 

0.11

 

Restructuring related expense

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 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

 

May 1, 2021

 

May 1, 2021

 

Jan. 30, 2021

 

Oct 31, 2021

 

Aug. 1, 2020

Revenue

$

6,202,296

 

 

$

1,661,407

 

 

$

1,558,458

 

 

$

1,526,295

 

 

$

1,456,136

 

Net cash provided by operating activities

$

2,394,100

 

 

$

736,361

 

 

$

427,941

 

 

$

672,598

 

 

$

557,200

 

% of Revenue

39

%

 

44

%

 

27

%

 

44

%

 

38

%

Capital expenditures

$

(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 Revenue

36

%

 

41

%

 

23

%

 

42

%

 

37

%

ANALOG DEVICES, INC.

RECONCILIATION OF PROJECTED GAAP TO NON-GAAP RESULTS

(Unaudited)

 

 

Three Months Ending July 31, 2021

 

Reported

 

Adjusted

Revenue

$1.7 Billion

 

$1.7 Billion

 

(+/- $70 Million)

 

(+/- $70 Million)

Operating margin

32.9%

 

42.5% (1)

 

(+/-140 bps)

 

(+/-100 bps)

Nonoperating expense

~ $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 $163 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 $0.38 of adjustments related to the net impact of $0.44 of acquisition related expenses and acquisition related transaction costs, as well as $0.06 of tax effects on those items.

(ADI-WEB)