Analog Devices Reports First Quarter Fiscal 2021 Results at the High End of Guidance

first_img Facebook May 2, 2020 WhatsApp Charitable foundation contribution 513,087 % 22,796 1,558 463,860 44.1 % (14,553 24 ANALOG DEVICES, INC. — 50,623 Repurchase of common stock — — 20 $ Gross margin $ 428 Gross margin Three Months Ended * The sum of the individual per share amounts may not equal the total due to rounding. (Unaudited) Gross margin percentage ~ $44 Million $ 687,685 ) $ (199,160 373,106 Adjusted 427,941 % (156,741 % 155,297 — % ) 455,423 Cost of sales 648,322 (1) The sum and/or computation of the individual amounts may not equal the total due to rounding. 19 574,714 % 89 311,856 $ $ $ 1,090 5,145,102 % Total current assets 226,217 Adjusted gross margin percentage $ Cash Return ) ) Dividend payments to shareholders % % 438 $ Jan. 30, 2021 42 11,136 Adjusted gross margin ) $ Adjusted operating expenses 2,332 380 bps $ 434,151 Trailing Twelve Months $ Adjusted income before income taxes Total revenue Other non-current liabilities ) (106,030 Cash Generation Diluted earnings per share 70.0 (20,804 1,045,371 Operating margin 2,493 1,090,368 % 27 $ Feb. 1, 2020 $ Capital expenditures Operating expenses (67 1,066,192 Previous articleAir Techniques Announces New Aerosol Reduction Studies in Course Offering at The Virtual Chicago Midwinter MeetingNext articleAbiomed Announces Appointment of Dr. Myron Rolle to Board of Directors Digital AIM Web Support 0.04 — (111,782) Income tax effect of adjustments above 361 % Jan. 30, 2021 Pinterest 23 $ ) % $ ) Total assets (67,388 22 Three Months Ended (54,732 ) 427,941 848,142 44 Acquisition related expenses (+/- $0.08) (157 % Goodwill 826,964 Income tax effect of adjustments above 27 (386 Income before income taxes $ (438) ) $ 557,200 $ Proceeds from other investments (209 (In thousands, except per share amounts) Effective tax rate $ Industrial Revenue 388,519 1,558,458 (Unaudited) % $ $ Aug. 1, 2020 Research and development 131,074 Operating expenses: Adjusted tax rate Operating margin 91,720 Diluted EPS % 40.7 $ ) ) 156,798 Automotive Trailing Twelve Months Shares used to compute earnings per common share – diluted 436,618 ANALOG DEVICES, INC. 21,440,110 Operating income 4,747,347 273,428 Acquisition related expenses (296 1,048,063 48,813 Results Summary (1) Capital expenditures ) % of Revenue ) Revenue CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS % Acquisition related expenses 27,242 481 37 Jan. 30, 2021 Net cash used for investing activities % $ 16,113 Operating income Other non-cash activity Three Months Ended Jan. 30, 2021 203,874 $ Special charges Charitable foundation contribution 11,136 1,045 372,264 18 (In thousands, except per share amounts) 1.05 Additions to property, plant and equipment $ $ Three Months Ending May 1, 2021 205,712 % % 1,364,986 CONDENSED CONSOLIDATED BALANCE SHEETS Local NewsBusiness 3,650,280 % 0.55 2,086,780 ANALOG DEVICES, INC. 145,044 (Unaudited) — $ TAGS  481,362 Revenue 618,640 368,880 % Effect of exchange rate changes on cash % (75,071 Selling, marketing, general and administrative 368,241 Net property, plant and equipment (in millions, except per-share amounts and percentages) 40.7 Operating margin 1,503,064 Other current assets ) 65.1 12,278,425 Intangible assets, net % 273 145,774 338 (229,179 1,303,565 % Revenue 855,454 % 21,440,110 Amortization of intangibles Changes in other financing activities Jan. 30, 2021 % of revenue 742 $ Three Months Ended 199,280 1,466,489 13 273,428 65.1 Net income $ 1,862,068 % Outlook for the Second Quarter of Fiscal Year 2021 For the second quarter of fiscal 2021, we are forecasting revenue of $1.60 billion, +/- $50 million. At the midpoint of this revenue outlook, we expect reported operating margin of approximately 30.6%, +/-110 bps, and adjusted operating margin of approximately 41.0%, +/-70 bps. We are planning for reported EPS to be $1.06, +/-$0.08, and adjusted EPS to be $1.44, +/-$0.08. Our second 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 March 9, 2021 to all shareholders of record at the close of business on February 26, 2021. Conference Call Scheduled for Today, Wednesday, February 17, 2021 at 10:00 am ET ADI will host a conference call to discuss our first quarter fiscal 2021 results and short-term outlook today, beginning at 10:00 am ET. Investors may join via webcast, accessible at, 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: 3567727, or by visiting 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 expenses 1; acquisition related transaction costs 2; restructuring related expense 3; and charitable foundation contribution 4 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 expenses 1; acquisition related transaction costs 2; restructuring related expense 3; and charitable foundation contribution 4 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 expenses 1; acquisition related transaction costs 2; restructuring related expense 3; and charitable foundation contribution 4 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 items 5 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 expenses 1; acquisition related transaction costs 2; restructuring related expense 3; charitable foundation contribution 4; and tax related items 5 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. 1 Acquisition 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. 2 Acquisition 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. 3 Restructuring 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. 4 Charitable 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. 5 Tax 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 high-performance analog technology 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 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. 107,225 Restructuring related expense Adjusted operating income 23 (54,839 (In thousands) (40,000) $ % 411,796 — 12,087,746 Provision for income taxes (In thousands) % Jan. 30, 2021 % Cash flows from operating activities: % of Revenue 40,000 Long-term debt 100 608,260 1.04 349,648 Debt, current % 1,055,860 48,099 893 Stock-based compensation expense ANALOG DEVICES, INC. Interest income $ (27,275 (916 5,857,949 Three Months Ended 2,087 Facebook $ % 11.7 429,041 436,618 % of revenue 22,343 Total liabilities & equity Consumer 536,396 68.5 $ 70 $ 1,048,063 % Percent of revenue 27 Adjusted operating margin 257,073 Other, net Cash flows from investing activities: 438 Accounts receivable Charitable foundation contribution 245,250 11,997,945 Reported (0.08) (60,161 Analog Devices Reports First Quarter Fiscal 2021 Results at the High End of Guidance (22,522 1.04 (157,057 % Dividend paid $ 880 bps Restructuring related expense $ ) $ Acquisition related transaction costs WILMINGTON, Mass.–(BUSINESS WIRE)–Feb 17, 2021– Analog Devices, Inc. (Nasdaq: ADI), a leading global high-performance semiconductor company, today announced financial results for its first quarter of fiscal 2021, which ended January 30, 2021. “ADI delivered strong first quarter results at the high end of our outlook, reflecting the diversity of our business and our alignment to the most important secular growth trends,” said Vincent Roche, President and CEO. “Revenue increased 20% year-over-year with growth across all market segments, including a record quarter for our Industrial business. While the economic backdrop remains uncertain, we are confident that a broad-based recovery is underway given continued momentum in ADI’s bookings and lean inventories across the industry.” Roche continued, “ADI remains focused on addressing our customers’ toughest challenges and providing breakthrough solutions, pushing the edge of what is possible. At the same time, we are passionately driven to deliver a positive impact on the world around us, enabling a more connected, safer and sustainable future, while creating value for all stakeholders.” Performance for the First Quarter of Fiscal 2021 Tax rate (0.06) 2,624,741 Acquisition related expenses 150 bps Shares used to compute earnings per common share – basic ) Earnings per share ) (15,236) (67,388 Shareholders’ equity 29.8 Deferred income taxes Proceeds from employee stock plans % 30.6% Net cash provided by operating activities (15,028 (495 ) Feb. 1, 2020 (363,823 47,211 (289,572 ) 12,282,751 Communications $ (29,888 156,798 Changes in other assets 144,069 % 29.8 RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW 3,535,475 (1,299 $ $ Jan. 30, 2021 635 Adjustments to reconcile net income to net cash provided by operations: Other current liabilities Feb. 1, 2020 Jan. 30, 2021 % of revenue* 1,304 21.0 37,501 0.55 $ 55 Inventories 288,150 Adjusted provision for income taxes 848,142 0.03 $ 1,526,295 Free cash flow $ $ Twitter $ 16 438 (229 (110,300) 21.0 185,275 (+/-70 bps) $ 464 3,156 1,919,595 ) 16 % 11,136 Adjusted Results $ % $ % Three Months Ended ) 1.03 ) $ ) Operating income 241,804 $1.06 388,519 % $ (7,797 6,086 Adjusted diluted earnings per share $ RECONCILIATION OF GAAP TO NON-GAAP RESULTS — $ 0.42 Oct. 31, 2020 Feb. 1, 2020 107 39,422 1,277,537 Non-cash contribution to charitable foundation 36 Gross margin percentage 67.1 % 11 $ Total adjustments 44,997 $ Adjusted gross margin 19 $ Cash and cash equivalents at beginning of period 23 168,364 Nonoperating expense (income): % of revenue* Adjusted operating margin % Jan. 30, 2021 ) Other investments $ $ ) 40,000 0.11 — $ (Unaudited) — (In thousands) (Unaudited) % ANALOG DEVICES, INC. $ Net cash used for financing activities Acquisition related transaction costs 1,040,975 5 (11,136) Gross margin 70,895 $ 33 Twitter 642,710 37.3 % Provision for income taxes (2,428 21,468,603 (13,982 (124,009 $ $ Jan. 30, 2021 463,860 19,920 $ Oct. 31, 2020 32 $ 654,408 ANALOG DEVICES, INC. $ — Feb. 1, 2020 2,517,688 $ 107,648 — Cash and cash equivalents at end of period ) $ 634,831 $ Net cash provided by operating activities (1,212 $ ) Interest expense % 399,220 Depreciation 48,099 41% (1) — 848 Revenue 28,280 *The sum of the individual percentages may not equal the total due to rounding. Restructuring related expense $ 226,217 Trailing Twelve Months Income before income taxes % % ) 11.0 36,638 $ % Cash flows from financing activities: 21,468,603 Change 33 15,236 0.42 29.2 $ 1,558,458 22,343 % ~ $44 Million 20 (+/-110 bps) 607,589 $ Net income 56,309 1,120,561 Adjusted operating expenses percentage Other assets % 581,511 ) $1.44 (3) % 0.55 40 % 455,537 Acquisition related transaction costs (178 1,909 70.0 $ 1.04 100 116,032 $ ) $ 68.5 ) Adjusted operating income 1.44 $ Three Months Ended 11% to 13% 1.44 (+/- $0.08) 1,055,860 Deferred income taxes % 36 (1) Includes $166 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. (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) View source version on CONTACT: Investor Contact: Analog Devices, Inc. Mr. Michael Lucarelli Sr. Director of Investor Relations 781-461-3282 [email protected] Contacts: Teneo Ms. Andrea Calise 917-826-3804 [email protected] Ms. Megan Fenton 917-860-0356 [email protected] KEYWORD: MASSACHUSETTS UNITED STATES NORTH AMERICA INDUSTRY KEYWORD: SEMICONDUCTOR ENGINEERING TECHNOLOGY OTHER TECHNOLOGY MANUFACTURING HARDWARE SOURCE: Analog Devices, Inc. Copyright Business Wire 2021. PUB: 02/17/2021 08:00 AM/DISC: 02/17/2021 08:01 AM Adjusted diluted EPS* 893,158 Three Months Ended 11.7 176,705 309,720 Acquisition related expenses Amortization of intangibles 1,558,458 $ Percent of revenue $ 1,456,136 18,566 1,317,060 Jan. 30, 2021 574,714 By Digital AIM Web Support – February 17, 2021 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. Restructuring related expense 1,129,214 672,598 Cash paid for asset acquisition ) Diluted earnings per common share Total cash returned 581,511 Jan. 30, 2021 281,049 Adjusted gross margin percentage % 9.9 % 38 Revenue (+/- $50 Million) 155,297 203,874 % (178,241 $ 53 Free cash flow $ % Net (decrease) increase in cash and cash equivalents $ $ Net cash provided by operating activities $ 16 40,000 ) Payments for acquisitions, net of cash acquired 0.55 86,729 737,536 36.9 Total operating expenses % CONDENSED CONSOLIDATED STATEMENTS OF INCOME Charitable foundation contribution Acquisition related transaction costs Basic earnings per common share 1,303,565 $ % Deferred tax assets Y/Y % ) ) Changes in operating assets and liabilities Nonoperating expense 36.9 (Unaudited) $1.60 Billion RECONCILIATION OF PROJECTED GAAP TO NON-GAAP RESULTS 360,553 31.6 (1,940 28 $ $1.60 Billion 369,203 1,908,539 1,045,371 % 42,479 % 33 27 Cash & cash equivalents 59,863 (+/- $50 Million) $ % 11% to 13% (2) % 67.1 200 bps 15,236 Stock repurchases 0.00 $ $ 45,016 Pinterest WhatsApp 1.03last_img read more