- Revenue and earnings per share exceed high end of guidance
- Record first quarter revenue of $984 million drives strong
year-on-year margin expansion and cash flow generation
- $1.4 billion in cash flow from operations and $1.2 billion in
free cash flow on a trailing twelve month basis
Company Website:
http://www.analog.com
NORWOOD, Mass. -- (Business Wire)
Analog
Devices, Inc. (NASDAQ: ADI),
today announced financial results for its first quarter of fiscal year
2017, which ended January 28, 2017.
“We have started 2017 with strong and broad-based momentum in our
business,” said Vincent Roche, President and CEO. “Our strategy to focus
on sustainable and differentiated innovation helped drive 28%
year-on-year revenue growth, and our laser focus on operational
execution drove strong year-on-year margin expansion and cash generation
in the first quarter.”
"In addition, we are pleased with the progress we are making to close
the acquisition of Linear Technology, and expect the deal to close by
the end of our second fiscal quarter. The combination with Linear
Technology, we believe, will create an analog industry powerhouse,
capable of creating tremendous value for our customers, employees, and
shareholders.”
“Looking ahead to the April quarter, we are planning for revenue to be
in the range of $870 million to $950 million, with sequential aggregate
strength in our Business to Business (B2B) markets of industrial,
automotive, and communications infrastructure being offset by seasonal
patterns in the portable consumer market. At the mid-point of this
range, we expect revenue to grow 17% over the prior year, which would
represent the 4th consecutive quarter of year-over-year
revenue growth for ADI.”
ADI also announced that its Board of Directors has approved a 7%
increase in its quarterly cash dividend to $0.45 from $0.42 per
outstanding share of common stock, representing an annual dividend per
share of $1.80. The quarterly dividend that was declared by the Board of
Directors will be paid on March 7, 2017 to all shareholders of record at
the close of business on February 24, 2017.
Results for the First Quarter of Fiscal Year
2017
-
Revenue totaled $984 million, down 2% sequentially, and up 28%
year-over-year
-
Revenue in ADI’s B2B markets of industrial, automotive, and
communications infrastructure totaled $714 million, up 1%
sequentially, and up 11% year-over-year
-
GAAP gross margin of 65.9% of revenue; Non-GAAP gross margin of 66.1%
of revenue
-
GAAP operating margin of 27% of revenue; Non-GAAP operating margin of
35% of revenue
-
GAAP diluted EPS of $0.69; Non-GAAP diluted EPS of $0.94
Please refer to the schedules provided for a summary of revenue and
earnings, selected balance sheet information, and the cash flow
statement for the first quarter of fiscal year 2017, as well as the
immediately prior and year-ago quarters. Additional information on
revenue by end market is provided on Schedule D.
Outlook for the Second Quarter of Fiscal Year
2017
The following statements are based on current
expectations, and as indicated, and further explained below, are
presented on a non-GAAP basis where the Company is unable without
unreasonable efforts to forecast items that will be included in reported
GAAP results. These statements are forward-looking 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.
-
Revenue estimated to be in the range of $870 million to $950 million
-
Non-GAAP gross margin expected to increase to between approximately
66.5% and approximately 67%
-
Non-GAAP operating expenses expected to be down approximately 3% to up
approximately 1% sequentially
-
Non-GAAP interest and other expense expected to be approximately $30
million
-
Non-GAAP tax rate expected to be approximately 8%
-
Non-GAAP diluted EPS estimated to be $0.74 to $0.86 per share
With respect to the forward-looking information presented on a non-GAAP
basis, the Company is unable to provide a quantitative reconciliation to
GAAP because the items that would be included or excluded, other than
those described below, are difficult to predict and estimate and are
primarily dependent on future events, including costs relating to the
consummation and planned integration of the Company’s pending
acquisition of Linear Technology Corporation, which is expected to close
by the end of the Company’s second fiscal 2017 quarter. Known
reconciling items are:
-
Non-GAAP gross margin excludes $2.7 million of amortization of
purchased intangible assets and depreciation of step up value on
purchased fixed assets;
-
Non-GAAP operating expenses exclude $18.2 million of amortization of
purchased intangible assets and depreciation of step up value on
purchased fixed assets;
-
Non-GAAP tax rate excludes $1.0 million provision for income taxes
which represents the tax effects of the reconciling items noted in the
two bullets above; and
-
Non-GAAP earnings per share excludes $0.06, which represents the
estimated impact of the amortization of purchased intangible assets
and depreciation of step up value on purchased fixed assets, net of
tax, associated with the non-GAAP adjustments noted above on a per
share basis.
Conference Call Scheduled for Today, Wednesday, February 15, 2017 at
10:00 am ET
ADI will host a conference call to discuss first
quarter fiscal 2017 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 706-634-7193 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: 51678306, 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
and may be different from non-GAAP measures used by other companies. In
addition, these non-GAAP measures are not based on any comprehensive set
of accounting rules or principles.
Schedules E and F of this press release provides the reconciliation
of the Company’s historical non-GAAP measures to their most comparable
GAAP measures.
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 following items are excluded from our non-GAAP gross margin,
non-GAAP operating expenses, non-GAAP operating income, non-GAAP
operating margin, and non-GAAP diluted earnings per share:
Acquisition-Related Expenses: Expenses incurred as a result of
prior period acquisitions primarily include expenses associated with the
fair value adjustments to property, plant and equipment and amortization
of acquisition related intangibles, which include acquired intangibles
such as purchased technology and customer relationships. 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.
The following items are excluded from our non-GAAP operating
expenses, non-GAAP operating income, non-GAAP operating margin, and
non-GAAP diluted earnings per share:
Acquisition-Related Transaction Costs: Costs incurred as a result
of the Hittite acquisition and the proposed Linear Technology
acquisition, including legal, accounting and other professional fees
directly related to these acquisitions. We excluded these costs from our
non-GAAP measures because they relate to specific transactions and are
not reflective of our ongoing financial performance.
Restructuring-Related Expenses: These expenses are incurred in
connection with facility closures, consolidation of manufacturing
facilities, severance, and other cost reduction efforts. We excluded
these expenses from our non-GAAP measures because apart from ongoing
expense savings as a result of such items, these expenses and the
related tax effects have no direct correlation to the operation of our
business in the future.
The following items are excluded from our non-GAAP other expense and
non-GAAP diluted earnings per share:
Loss on Extinguishment of Debt: In the first quarter of fiscal
2016, the Company redeemed its outstanding 3.0% senior unsecured notes
due April 15, 2016. The Company recognized a net loss on debt
extinguishment of approximately $3.3 million, which was comprised of a
make-whole premium and the write off of unamortized debt issuance and
discount costs. We excluded these costs from our non-GAAP measures
because they are not reflective of our ongoing financial performance.
Amortization of Deferred Financing Costs: In the third quarter of
fiscal 2016, in connection with the proposed Linear Technology
acquisition, the Company obtained bridge financing commitments and
incurred financing fees which will be amortized into interest expense
over the term of the bridge financing commitments. In the first quarter
of fiscal 2017, the Company replaced a portion of the bridge financing
commitments with $2.1 billion of senior unsecured notes. As a result,
the Company accelerated $7.2 million of the unamortized bridge financing
commitment fees into interest expense. We excluded these costs from our
non-GAAP measures because they are not reflective of our ongoing
financial performance.
The following items are excluded from our non-GAAP diluted earnings
per share:
Tax-Related Items: Tax adjustments associated with the non-GAAP
items discussed above. In addition, in the first quarter of 2016, the
Company recorded a $7.5 million tax benefit related to the reinstatement
of the R&D tax credit in December 2015, retroactive to January 1,
2015. We excluded these tax-related items from our non-GAAP measures
because they are not associated with the tax expense on our current
operating results.
Analog Devices believes that these non-GAAP measures have material
limitations in that they do not reflect all of the amounts associated
with our results of operations as determined in accordance with GAAP and
that these measures should only be used to evaluate our results of
operations in conjunction with the corresponding GAAP measures. In
addition, our non-GAAP measures may not be comparable to the non-GAAP
measures reported by other companies. The Company’s use of non-GAAP
measures, and the underlying methodology when 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.
Investors should consider our non-GAAP financial measures in conjunction
with the corresponding GAAP measures.
About Analog Devices
Analog Devices designs and manufactures
semiconductor products and solutions. We enable our customers to
interpret the world around us by intelligently bridging the physical and
digital with unmatched technologies that sense, measure and connect.
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 expected revenue,
earnings per share, gross margin, operating expenses, interest and other
expense, tax rate, and other financial results, expected operating
leverage, production and inventory levels,expected market
trends, andexpected customer demand and order rates for our
products, the proposed acquisition of Linear Technology Corporation
(“Linear Technology”), the expected timing to close the transaction,
expected benefits and synergies of the transaction, expected growth
rates of the combined companies, Analog Devices’ expected product
offerings, product development, marketing position and technical
advances resulting from the transaction. 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: 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, the ability to satisfy the
conditions to closing of the proposed transaction with Linear
Technology, on the expected timing or at all; the ability to obtain
required regulatory approvals for the proposed transaction, on the
expected timing or at all, including the potential for regulatory
authorities to require divestitures in connection with the proposed
transaction; the occurrence of any event that could give rise to the
termination of the merger agreement with Linear Technology; the risk of
stockholder litigation relating to the proposed transaction, including
resulting expense or delay; higher than expected or unexpected costs
associated with or relating to the transaction; the risk that expected
benefits, synergies and growth prospects of the transaction may not be
achieved in a timely manner, or at all; the risk that Linear
Technology’s business may not be successfully integrated with Analog
Devices’ following the closing; the risk that Analog Devices and Linear
Technology will be unable to retain and hire key personnel; and the risk
that disruption from the transaction may adversely affect Linear
Technology’s or Analog Devices’ business and relationships with their
customers, suppliers or employees. For additional information about
factors that could cause actual results to differ materially from those
described in the forward-looking statements, please refer to both Analog
Devices’ and Linear Technology’s filings with the Securities and
Exchange Commission (“SEC”), including the risk factors contained in
each of Analog Devices’ and Linear Technology’s most recent Quarterly
Reports 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.
Important Additional Information Will Be Filed With The SEC
In
connection with the proposed transaction, Analog Devices and Linear
Technology have filed and will file relevant information with the SEC,
including a registration statement of Analog Devices on Form S-4 (the
“registration statement”) that includes a prospectus of Analog Devices
and a proxy statement of Linear Technology (the “proxy
statement/prospectus”). INVESTORS AND SECURITY HOLDERS OF LINEAR
TECHNOLOGY ARE URGED TO CAREFULLY READ THE ENTIRE REGISTRATION STATEMENT
AND PROXY STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS FILED WITH
THE SEC, BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT ANALOG
DEVICES, LINEAR TECHNOLOGY AND THE PROPOSED TRANSACTION. A definitive
proxy statement/prospectus has been sent to Linear Technology’s
shareholders. The registration statement, proxy statement/prospectus and
other documents filed by Analog Devices with the SEC may be obtained
free of charge at Analog Devices’ website at www.analog.com
or at the SEC’s website at www.sec.gov.
These documents may also be obtained free of charge from Analog Devices
by requesting them by mail at Analog Devices, Inc., One Technology Way,
P.O. Box 9106, Norwood, MA 02062-9106, Attention: Investor Relations, or
by telephone at (781) 461-3282. The documents filed by Linear Technology
with the SEC may be obtained free of charge at Linear Technology’s
website at www.linear.com
or at the SEC’s website at www.sec.gov.
These documents may also be obtained free of charge from Linear
Technology by requesting them by mail at Linear Technology Corporation,
1630 McCarthy Blvd., Milpitas, CA, 95035-7417, Attention: Investor
Relations, or by telephone at (408) 432-2407.
Non-Solicitation
This communication shall not constitute an
offer to sell or the solicitation of an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be any
sale of securities in any jurisdiction in which such offer, solicitation
or sale would be unlawful prior to registration or qualification under
the securities laws of any such jurisdiction. No offer of securities
shall be made except by means of a prospectus meeting the requirements
of Section 10 of the Securities Act of 1933, as amended.
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, First Quarter, Fiscal 2017 |
|
|
Schedule A |
Revenue and Earnings Summary (Unaudited) |
(In thousands, except per-share amounts) |
|
|
|
|
| | Three Months Ended |
| | | | 1Q 17 |
|
|
| 4Q 16 |
|
|
| 1Q 16 |
|
|
|
| Jan. 28, 2017 |
|
|
| Oct. 29, 2016 |
|
|
| Jan. 30, 2016 |
Revenue
| | | |
$
|
984,449
| | | | |
$
|
1,003,623
| | | | |
$
|
769,429
| |
Year-to-year change
| | | |
28
|
%
| | | |
3
|
%
| | | |
—
|
%
|
Quarter-to-quarter change
| | | |
(2
|
)%
| | | |
15
|
%
| | | |
(21
|
)%
|
Cost of sales (1)
|
|
|
|
335,945
|
|
|
|
|
336,936
|
|
|
|
|
292,136
|
|
Gross margin
| | | |
648,504
| | | | |
666,687
| | | | |
477,293
| |
Gross margin percentage
| | | |
65.9
|
%
| | | |
66.4
|
%
| | | |
62.0
|
%
|
Year-to-year change (basis points)
| | | |
390
| | | | |
80
| | | | |
(320
|
)
|
Quarter-to-quarter change (basis points)
|
|
|
|
(50
|
)
|
|
|
|
60
|
|
|
|
|
(360
|
)
|
Operating expenses:
| | | | | | | | | | | | |
R&D (1)
| | | |
183,954
| | | | |
172,926
| | | | |
157,428
| |
Selling, marketing and G&A (1)
| | | |
130,659
| | | | |
118,881
| | | | |
107,462
| |
Amortization of intangibles
| | | |
18,160
| | | | |
17,899
| | | | |
17,358
| |
Special charges
|
|
|
|
49,463
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Total operating expenses
| | | |
382,236
| | | | |
309,706
| | | | |
282,248
| |
Total operating expenses percentage
| | | |
38.8
|
%
| | | |
30.9
|
%
| | | |
36.7
|
%
|
Year-to-year change (basis points)
| | | |
210
| | | | |
(2,360
|
)
| | | |
(160
|
)
|
Quarter-to-quarter change (basis points)
|
|
|
|
790
|
|
|
|
|
(400
|
)
|
|
|
|
(1,780
|
)
|
Operating income
| | | |
266,268
| | | | |
356,981
| | | | |
195,045
| |
Operating income percentage
| | | |
27.0
|
%
| | | |
35.6
|
%
| | | |
25.3
|
%
|
Year-to-year change (basis points)
| | | |
170
| | | | |
2,450
| | | | |
(160
|
)
|
Quarter-to-quarter change (basis points)
|
|
|
|
(860
|
)
|
|
|
|
470
|
|
|
|
|
1,420
|
|
Other expense
|
|
|
|
32,959
|
|
|
|
|
33,547
|
|
|
|
|
12,868
|
|
Income before income tax
| | | |
233,309
| | | | |
323,434
| | | | |
182,177
| |
Provision for income taxes
| | | |
16,180
| | | | |
27,277
| | | | |
17,673
| |
Tax rate percentage
|
|
|
|
6.9
|
%
|
|
|
|
8.4
|
%
|
|
|
|
9.7
|
%
|
Net income
|
|
|
|
$
|
217,129
|
|
|
|
|
$
|
296,157
|
|
|
|
|
$
|
164,504
|
|
| | | | | | | | | | | |
|
Shares used for EPS - basic
| | | |
308,786
| | | | |
307,854
| | | | |
311,166
| |
Shares used for EPS - diluted
| | | |
313,076
| | | | |
311,633
| | | | |
314,793
| |
| | | | | | | | | | | |
|
Earnings per share - basic
| | | |
$
|
0.70
| | | | |
$
|
0.96
| | | | |
$
|
0.53
| |
Earnings per share - diluted
| | | |
$
|
0.69
| | | | |
$
|
0.95
| | | | |
$
|
0.52
| |
| | | | | | | | | | | |
|
Dividends paid per share
|
|
|
|
$
|
0.42
|
|
|
|
|
$
|
0.42
|
|
|
|
|
$
|
0.40
|
|
| | | | | | | | | | | |
|
(1) Includes stock-based compensation expense as follows:
| | | | | | | | | | | | |
Cost of sales
| | | |
$
|
1,944
| | | | |
$
|
1,886
| | | | |
$
|
2,092
| |
R&D
| | | |
$
|
7,021
| | | | |
$
|
7,007
| | | | |
$
|
6,704
| |
Selling, marketing and G&A
| | | |
$
|
7,564
| | | | |
$
|
6,341
| | | | |
$
|
6,813
| |
| | | | | | | | | | | | | | | | | |
|
|
Analog Devices, First Quarter, Fiscal 2017 |
|
Schedule B |
Selected Balance Sheet Information (Unaudited) |
(In thousands) |
|
|
|
|
| 1Q 17 |
|
|
| 4Q 16 |
|
|
| 1Q 16 |
|
|
|
| Jan. 28, 2017 |
|
|
| Oct. 29, 2016 |
|
|
| Jan. 30, 2016 |
Cash & short-term investments
| | | |
$
|
6,317,066
| | | | |
$
|
4,055,793
| | | | |
$
|
3,789,468
|
Accounts receivable, net
| | | |
472,511
| | | | |
477,609
| | | | |
375,087
|
Inventories (1)
| | | |
365,586
| | | | |
376,555
| | | | |
404,852
|
Other current assets
|
|
|
|
78,570
|
|
|
|
|
64,906
|
|
|
|
|
74,727
|
Total current assets
| | | |
7,233,733
| | | | |
4,974,863
| | | | |
4,644,134
|
PP&E, net
| | | |
628,924
| | | | |
636,116
| | | | |
633,362
|
Investments
| | | |
48,690
| | | | |
48,089
| | | | |
46,321
|
Goodwill
| | | |
1,677,399
| | | | |
1,679,116
| | | | |
1,631,233
|
Intangible assets, net
| | | |
529,516
| | | | |
549,368
| | | | |
564,839
|
Other
|
|
|
|
85,109
|
|
|
|
|
82,726
|
|
|
|
|
78,192
|
Total assets
|
|
|
|
$
|
10,203,371
|
|
|
|
|
$
|
7,970,278
|
|
|
|
|
$
|
7,598,081
|
| | | | | | | | | | | |
|
Deferred income on shipments to distributors, net
| | | |
$
|
356,666
| | | | |
$
|
351,538
| | | | |
$
|
298,272
|
Other current liabilities
| | | |
454,960
| | | | |
431,396
| | | | |
295,833
|
Long-term debt
| | | |
3,805,400
| | | | |
1,732,177
| | | | |
1,730,948
|
Non-current liabilities
| | | |
279,914
| | | | |
289,549
| | | | |
278,166
|
Shareholders' equity
|
|
|
|
5,306,431
|
|
|
|
|
5,165,618
|
|
|
|
|
4,994,862
|
Total liabilities & equity
|
|
|
|
$
|
10,203,371
|
|
|
|
|
$
|
7,970,278
|
|
|
|
|
$
|
7,598,081
|
(1) Includes $2,553, $2,486, and $2,853 related to stock-based
compensation in 1Q17, 4Q16, and 1Q16, respectively.
|
|
|
| |
Analog Devices, First Quarter, Fiscal 2017 |
| | | |
|
Schedule C |
Cash Flow Statement (Unaudited) |
(In thousands) |
| | | |
|
| | | | Three Months Ended |
| | | | 1Q 17 |
|
|
| 4Q 16 |
|
|
| 1Q 16 |
| | | | Jan. 28, 2017 |
|
|
| Oct. 29, 2016 |
|
|
| Jan. 30, 2016 |
Cash flows from operating activities:
| | | | | | | | | | | | |
Net Income
| | | |
$
|
217,129
| | | | |
$
|
296,157
| | | | |
$
|
164,504
| |
Adjustments to reconcile net income
| | | | | | | | | | | | |
to net cash provided by operations:
| | | | | | | | | | | | |
Depreciation
| | | |
34,379
| | | | |
34,116
| | | | |
33,209
| |
Amortization of intangibles
| | | |
19,947
| | | | |
19,547
| | | | |
18,347
| |
Stock-based compensation expense
| | | |
16,529
| | | | |
15,234
| | | | |
15,609
| |
Loss on extinguishment of debt
| | | |
—
| | | | |
—
| | | | |
3,290
| |
Other non-cash activity
| | | |
13,071
| | | | |
22,199
| | | | |
744
| |
Excess tax benefit - stock options
| | | |
(8,102
|
)
| | | |
(3,273
|
)
| | | |
(986
|
)
|
Deferred income taxes
| | | |
(7,055
|
)
| | | |
(12,941
|
)
| | | |
(7,717
|
)
|
Changes in operating assets and liabilities
|
|
|
|
28,594
|
|
|
|
|
115,945
|
|
|
|
|
(7,295
|
)
|
Total adjustments
|
|
|
|
97,363
|
|
|
|
|
190,827
|
|
|
|
|
55,201
|
|
Net cash provided by operating activities
|
|
|
|
314,492
|
|
|
|
|
486,984
|
|
|
|
|
219,705
|
|
Percent of revenue
|
|
|
|
31.9
|
%
|
|
|
|
48.5
|
%
|
|
|
|
28.6
|
%
|
| | | | | | | | | | | |
|
Cash flows from investing activities:
| | | | | | | | | | | | |
Purchases of short-term available-for-sale investments
| | | |
(326,908
|
)
| | | |
(1,841,330
|
)
| | | |
(1,632,014
|
)
|
Maturities of short-term available-for-sale investments
| | | |
1,844,380
| | | | |
1,364,419
| | | | |
1,409,538
| |
Sales of short-term available-for-sale investments
| | | |
287,601
| | | | |
42,645
| | | | |
47,950
| |
Additions to property, plant and equipment
| | | |
(28,337
|
)
| | | |
(41,224
|
)
| | | |
(23,128
|
)
|
Payments for acquisitions, net of cash acquired
| | | |
(1,036
|
)
| | | |
(80,967
|
)
| | | |
—
| |
Change in other assets
|
|
|
|
(5,946
|
)
|
|
|
|
(472
|
)
|
|
|
|
(6,711
|
)
|
Net cash used for investing activities
|
|
|
|
1,769,754
|
|
|
|
|
(556,929
|
)
|
|
|
|
(204,365
|
)
|
| | | | | | | | | | | |
|
Cash flows from financing activities:
| | | | | | | | | | | | |
Payments of senior unsecured notes
| | | |
—
| | | | |
—
| | | | |
(378,156
|
)
|
Proceeds from (payments of) derivative instruments
| | | |
3,904
| | | | |
—
| | | | |
(33,430
|
)
|
Proceeds from debt
| | | |
2,072,306
| | | | |
—
| | | | |
1,235,331
| |
Payments for deferred financing fees
| | | |
(5,625
|
)
| | | |
(4,375
|
)
| | | |
—
| |
Dividend payments to shareholders
| | | |
(129,683
|
)
| | | |
(129,643
|
)
| | | |
(124,658
|
)
|
Repurchase of common stock
| | | |
(3,106
|
)
| | | |
(1,412
|
)
| | | |
(131,977
|
)
|
Proceeds from employee stock plans
| | | |
34,432
| | | | |
22,154
| | | | |
6,229
| |
Excess tax benefit - stock options
| | | |
8,102
| | | | |
3,273
| | | | |
986
| |
Contingent consideration payment
| | | |
—
| | | | |
(1,409
|
)
| | | |
—
| |
Change in other financing activities
|
|
|
|
2,221
|
|
|
|
|
45
|
|
|
|
|
(2,544
|
)
|
Net cash provided by (used for) financing activities
|
|
|
|
1,982,551
|
|
|
|
|
(111,367
|
)
|
|
|
|
571,781
|
|
Effect of exchange rate changes on cash
|
|
|
|
(666
|
)
|
|
|
|
(1,226
|
)
|
|
|
|
(1,032
|
)
|
| | | | | | | | | | | |
|
Net increase (decrease) in cash and cash equivalents
| | | |
4,066,131
| | | | |
(182,538
|
)
| | | |
586,089
| |
Cash and cash equivalents at beginning of period
|
|
|
|
921,132
|
|
|
|
|
1,103,670
|
|
|
|
|
884,353
|
|
Cash and cash equivalents at end of period
|
|
|
|
$
|
4,987,263
|
|
|
|
|
$
|
921,132
|
|
|
|
|
$
|
1,470,442
|
|
| | | | | | | | | | | | | | | | | |
|
|
|
|
| |
Analog Devices, First Quarter, Fiscal 2017 |
|
Schedule D |
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 evolve and improve, 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 |
| | | | Jan. 28, 2017 |
|
|
| Oct. 29, 2016 |
|
|
| Jan. 30, 2016 |
| | | | Revenue |
|
|
| % |
|
|
| Q/Q % |
|
|
| Y/Y % | | | | Revenue | | | | Revenue |
Industrial
| | | |
$
|
401,481
| |
|
|
|
41%
|
|
|
|
1%
|
|
|
|
15%
| | | |
$
|
395,825
| | | | |
$
|
348,402
|
Automotive
| | | |
138,585
| | | | |
14%
| | | |
(2)%
| | | |
10%
| | | |
141,459
| | | | |
126,355
|
Consumer
| | | |
270,408
| | | | |
27%
| | | |
(8)%
| | | |
113%
| | | |
294,470
| | | | |
126,838
|
Communications
| | | |
173,975
|
|
|
|
|
18%
| | | |
1%
| | | |
4%
| | | |
171,929
|
| | | |
167,834
|
Total Revenue | | | | $ | 984,449 |
|
|
|
| 100% | | | | (2)% | | | | 28% | | | | $ | 1,003,683 |
| | | | $ | 769,429 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Analog Devices, First Quarter, Fiscal 2017 |
|
|
|
| | | | |
Schedule E |
Reconciliation from GAAP to Non-GAAP Revenue and Earnings
Measures (In thousands, except per-share amounts)
(Unaudited)
|
See "Non-GAAP Financial Information" in this press release for
a description of the items excluded from our non-GAAP
measures.
|
| | | |
|
|
|
|
| | | | Three Months Ended |
| | | | 1Q 17 |
|
|
| 4Q 16 |
|
|
| 1Q 16 |
| | | | Jan. 28, | | | | Oct. 29, | | | | Jan. 30, |
| | | | 2017 | | | | 2016 | | | | 2016 |
| | | | | | | | | | | | | | |
|
GAAP Gross Margin | | | | $ | 648,504 | | | | | $ | 666,687 | | | | | $ | 477,293 | |
Gross Margin Percentage | | | | | 65.9 | % | | | | | 66.4 | % | | | | | 62 | % |
Acquisition-Related Expenses
| | | |
|
2,178
|
|
|
|
|
|
2,040
|
|
|
|
|
|
1,445
|
|
Non-GAAP Gross Margin | | | | $ | 650,682 |
|
|
|
| $ | 668,727 |
|
|
|
| $ | 478,738 |
|
Gross Margin Percentage | | | | | 66.1 | % | | | | | 66.6 | % | | | | | 62.2 | % |
| | | | | | | | | | | | | | |
|
GAAP Operating Expenses | | | | $ | 382,236 | | | | | $ | 309,706 | | | | | $ | 282,248 | |
Percent of Revenue | | | | | 38.8 | % | | | | | 30.9 | % | | | | | 36.7 | % |
Acquisition-Related Expenses
| | | | |
(18,232
|
)
| | | | |
(17,999
|
)
| | | | |
(17,457
|
)
|
Acquisition-Related Transaction Costs
| | | | |
(8,011
|
)
| | | | |
(5,210
|
)
| | | | |
—
| |
Restructuring-Related Expense
| | | |
|
(49,463
|
)
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
Non-GAAP Operating Expenses | | | | $ | 306,530 |
|
|
|
| $ | 286,497 |
|
|
|
| $ | 264,791 |
|
Percent of Revenue | | | | | 31.1 | % | | | | | 28.5 | % | | | | | 34.4 | % |
| | | | | | | | | | | | | | |
|
GAAP Operating Income/Margin | | | | $ | 266,268 | | | | | $ | 356,981 | | | | | $ | 195,045 | |
Percent of Revenue | | | | | 27 | % | | | | | 35.6 | % | | | | | 25.3 | % |
Acquisition-Related Expenses
| | | | |
20,410
| | | | | |
20,039
| | | | | |
18,902
| |
Acquisition-Related Transaction Costs
| | | | |
8,011
| | | | | |
5,210
| | | | | |
—
| |
Restructuring-Related Expense
| | | |
|
49,463
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
Non-GAAP Operating Income/Margin | | | | $ | 344,152 |
|
|
|
| $ | 382,230 |
|
|
|
| $ | 213,947 |
|
Percent of Revenue | | | | | 35 | % | | | | | 38.1 | % | | | | | 27.8 | % |
| | | | | | | | | | | | | | | | | |
|
GAAP Other Expense (Income) | | | | $ | 32,959 | | | | | $ | 33,547 | | | | | $ | 12,868 | |
Percent of Revenue | | | | | 3.3 | % | | | | | 3.3 | % | | | | | 1.7 | % |
Amortization of Deferred Financing Costs
| | | | |
(7,214
|
)
| | | | |
(13,665
|
)
| | | | |
—
| |
Loss on Extinguishment of Debt
| | | |
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
(3,289
|
)
|
Non-GAAP Other Expense | | | | $ | 25,745 |
|
|
|
| $ | 19,882 |
|
|
|
| $ | 9,579 |
|
Percent of Revenue | | | | | 2.6 | % | | | | | 2 | % | | | | | 1.2 | % |
| | | | | | | | | | | | | | |
|
GAAP Diluted EPS | | | | $ | 0.69 | | | | | $ | 0.95 | | | | | $ | 0.52 | |
Acquisition-Related Expenses
| | | | |
0.07
| | | | | |
0.06
| | | | | |
0.06
| |
Acquisition-Related Transaction Costs
| | | | |
0.03
| | | | | |
0.02
| | | | | |
—
| |
Restructuring-Related Expense
| | | | |
0.16
| | | | | |
—
| | | | | |
—
| |
Amortization of Deferred Financing Costs
| | | | |
0.02
| | | | | |
0.04
| | | | | |
—
| |
Income Tax Effect of Above Items
| | | | |
(0.03
|
)
| | | | |
(0.02
|
)
| | | | |
—
| |
Loss on Extinguishment of Debt
| | | | |
—
| | | | | |
—
| | | | | |
0.01
| |
Impact of the Reinstatement of the R&D Tax Credit
| | | |
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
(0.02
|
)
|
Non-GAAP Diluted EPS (1) | | | | $ | 0.94 |
|
|
|
| $ | 1.05 |
|
|
|
| $ | 0.56 |
|
(1) The sum of the individual per share amounts may not equal the total
due to rounding
|
Analog Devices, First Quarter, Fiscal 2017 |
|
Schedule F |
SUPPLEMENTAL CASH FLOW MEASURES (Unaudited) |
(In thousands) |
|
|
|
|
|
| | | | Three Months Ended |
| | | | 1Q 17 |
|
|
| 4Q 16 |
|
|
| 1Q 16 |
| | | | Jan. 28, 2017 |
|
|
| Oct. 29, 2016 |
|
|
| Jan. 30, 2016 |
Net cash provided by operating activities
| | | |
$
|
314,492
| | | | |
$
|
486,984
| | | | |
$
|
219,705
| |
% of Revenue
| | | |
31.9
|
%
| | | |
48.5
|
%
| | | |
28.6
|
%
|
Capital expenditures
| | | |
(28,337
|
)
|
|
|
|
(41,224
|
)
|
|
|
|
(23,128
|
)
|
Free cash flow
| | | |
$
|
286,155
|
|
|
|
|
$
|
445,760
|
|
|
|
|
$
|
196,577
|
|
% of revenue
| | | |
29.1
|
%
| | | |
44.4
|
%
| | | |
25.5
|
%
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170215005337/en/
Contacts:
Analog Devices, Inc.
Mr. Ali Husain, 781-461-3282
781-461-3491
(fax)
Treasurer and Director of Investor Relations
investor.relations@analog.com
Source: Analog Devices, Inc.
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