Board declares $0.37 per share cash dividend
Company Website:
http://www.analog.com
NORWOOD, Mass. -- (Business Wire)
Analog
Devices, Inc. (NASDAQ: ADI),
a global leader in high-performance semiconductors for signal processing
applications, today announced financial results for its third quarter of
fiscal year 2014, which ended August 2, 2014.
“ADI had another good quarter of revenue growth led by the industrial
and communications infrastructure markets,” said Vincent Roche,
President and CEO. “Profitability and cash flow continued to be strong
and we returned $173 million to shareholders through cash dividends and
share repurchases.”
“Near the end of our third quarter, we completed the acquisition of
Hittite Microwave Corporation which adds critical radio frequency,
microwave and millimeter wave technology to our product portfolio. This
helps ADI bring more complete solutions to our industrial, aerospace and
defense, communications, and automotive customers, where ever-increasing
design challenges are creating significant growth opportunities for
ADI,” Mr. Roche continued. “With the addition of Hittite, we are
planning for revenue in the fourth quarter to be in the range of $790
million to $820 million.”
Results for the Third Quarter of Fiscal Year
2014
The non-GAAP results below exclude Hittite
operations and acquisition-related items.
-
GAAP revenue totaled $728 million; Non-GAAP revenue totaled $722.4, up
4% sequentially
-
GAAP gross margin of 65.4% of revenue; Non-GAAP gross margin of 66.5%
of revenue
-
GAAP operating margin of 27.8%; Non-GAAP operating margin of 32.5% of
revenue
-
GAAP Diluted EPS of $0.57; Non-GAAP diluted EPS of $0.63
Please refer to the schedules provided for a summary of revenue and
earnings, selected balance sheet information, and the cash flow
statement for the third quarter of fiscal year 2014, as well as the
immediately prior and year-ago quarters. Additional information on
revenue by end market and revenue by product type is provided on
Schedules D and E. A more complete table covering prior periods is
available at investor.analog.com.
ADI also announced that the Board of Directors has declared a cash
dividend of $0.37 per outstanding share of common stock. The dividend
will be paid on September 17, 2014 to all shareholders of record at the
close of business on September 5, 2014.
Outlook for the Fourth Quarter of Fiscal Year
2014
The following statements are based on current
expectations, and as indicated, are presented on a non-GAAP basis. 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 increase in the range of $790 million to $820
million
-
Non-GAAP gross margin expected to be approximately 66.2%
-
Non-GAAP operating expenses expected to be between $268 million to
$271 million
-
Non-GAAP interest and other expense expected to be approximately $6
million
-
Non-GAAP tax rate expected to be 15.5% to 16%
-
Non-GAAP diluted EPS estimated to be $0.66 to $0.70/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. Known reconciling items are:
-
Non-GAAP gross margin excludes $8 million of amortization of
intangible assets and $48 million of inventory and fixed asset step-up
charges to record Hittite inventory and fixed assets at fair value, as
part of the purchase accounting for the Hittite acquisition;
-
Non-GAAP operating expenses exclude $5 million of amortization of
intangible assets and $15 million of acquisition-related costs,
primarily for bank and other advisory fees related to the Hittite
acquisition;
-
Non-GAAP interest and other expense excludes $5 million of debt
financing costs; and
-
Non-GAAP tax rate excludes $18-$19 million provision for income taxes
which represents the tax effects of the reconciling items noted in the
three bullets above.
Conference Call Scheduled for 5:00 pm ET
ADI will host a
conference call to discuss the third quarter results and short-term
outlook today, beginning at 5:00 pm 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: 79312911, 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.
Schedule F of this press release provides the reconciliation of the
Company’s historical non-GAAP measures to its GAAP measures.
Management uses non-GAAP revenue, non-GAAP gross margin, non-GAAP
operating expenses, non-GAAP operating income, non-GAAP operating
margins, non-GAAP other expense, and non-GAAP diluted earnings per share
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
understanding and evaluating the Company’s operating results and trends
in the Company’s business.
The following item is excluded from our Non-GAAP revenue:
Hittite Operations: The results of operations of Hittite from
July 22, 2014 through August 2, 2014 have been excluded from our
non-GAAP measures because they are not reflective of ongoing operating
results.
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:
Hittite Operations: The results of operations of Hittite from
July 22, 2014 through August 2, 2014 have been excluded from our
non-GAAP measures because they are not reflective of ongoing operating
results.
Acquisition-Related Expenses: Expenses incurred as a result of
the Hittite acquisition in the third quarter of fiscal 2014 primarily
include: severance payments, amortization of the fair value adjustment
to inventory; amortization of 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.
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:
The exclusion of these items allows management to evaluate the Company’s
core business and trends across different reporting periods on a
consistent basis. Management presents these Non-GAAP items to enable
investors and analysts to evaluate our core business.
Acquisition-Related Transaction Costs: Costs incurred as a result
of the Hittite acquisition in the third quarter of fiscal 2014 include
legal, accounting and other professional fees directly related to the
Hittite acquisition. 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 other expense and
non-GAAP diluted earnings per share:
Acquisition-Related Debt Costs: The Company incurred debt
financing costs and interest expense during the third quarter of fiscal
2014 on its 90-day term loan facility used to finance the Hittite
acquisition. We excluded these costs from our non-GAAP measures because
they are not reflective of our ongoing financial performance.
Debt Extinguishment Costs: In the third quarter of fiscal 2013,
the Company redeemed its outstanding 5.0% senior unsecured notes due
July 1, 2014. The Company recognized a net loss on debt extinguishment
of approximately $10.2 million, which was comprised of a make-whole
premium, the recognition of unamortized proceeds received on an interest
rate swap associated with the debt and the write off of unamortized debt
issuance and discount costs. We excluded these costs from our non-GAAP
measures because they are one time in nature and have no direct
correlation to the operation of our business in the future.
The following item is excluded from our non-GAAP diluted earnings per
share:
Tax-Related Items. In the third quarter of fiscal 2013, the
Company recorded a one-time $1.7 million tax benefit related to the
release of a tax reserve for an expired tax year. 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.
Management believes that the presentation of non-GAAP revenue, non-GAAP
gross margin, non-GAAP operating expenses, non-GAAP operating income,
non-GAAP operating margins, non-GAAP other expenses and non-GAAP diluted
EPS is useful to investors because it provides investors with the
operating results that management uses to manage the Company.
Analog Devices believes that non-GAAP revenue, non-GAAP gross margin,
non-GAAP operating expenses, non-GAAP operating income, non-GAAP
operating margins, non-GAAP other expenses and non-GAAP diluted EPS 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
Innovation, performance, and excellence
are the cultural pillars on which Analog Devices has built one of the
longest standing, highest growth companies within the technology sector.
Acknowledged industry-wide as the world leader in data conversion and
signal conditioning technology, Analog Devices serves over 60,000
customers, representing virtually all types of electronic equipment.
Analog Devices is headquartered in Norwood, Massachusetts, with design
and manufacturing facilities throughout the world. Analog Devices'
common stock is included in the S&P 500 Index.
This release may be deemed to contain forward-looking statements
intended to qualify for the safe harbor from liability established by
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements include, among other things, our statements
regarding expected revenue, earnings per share, operating expenses,
gross margin, tax rate, and other financial results, expected production
and inventory levels, objectives, plans and goals, expected market
trends, and expected customer demand and order rates for our products,that are based on our current expectations, beliefs, assumptions,
estimates, forecasts, and projections about our business and the
industry and markets in which Analog Devices operates. The statements
contained in this release are not guarantees of future performance, are
inherently uncertain, involve certain risks, uncertainties, and
assumptions that are difficult to predict, and do not give effect to the
potential impact of any mergers, acquisitions, divestitures, or business
combinations that may be announced or closed after the date hereof.
Therefore, actual outcomes and results may differ materially from what
is expressed in such forward-looking statements, and such statements
should not be relied upon as representing Analog Devices’ expectations
or beliefs as of any date subsequent to the date of this press release.
We do not undertake any obligation to update forward-looking statements
made by us. Important factors that may affect future operating results
include: 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, our ability to successfully integrate acquired
businesses and technologies, adverse results in litigation matters, and
other risk factors described in our most recent filings with the
Securities and Exchange Commission.Our results of operations for
the periods presented in this release are not necessarily indicative of
our operating results for any future periods. Any projections in this
release are based on limited information currently available to Analog
Devices, which is subject to change. Although any such projections and
the factors influencing them will likely change, we will not necessarily
update the information, as we will only provide guidance at certain
points during the year. Such information speaks only as of the original
issuance date of this release.
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, Third Quarter, Fiscal 2014 |
|
|
|
|
|
| |
|
| |
|
| |
Schedule A |
Revenue and Earnings Summary (GAAP) (In thousands,
except per-share amounts) |
| | | | | | | | | | | |
|
| | | | | |
|
| | | | | | Three Months Ended |
| | | | | | 3Q 14 | | | 2Q 14 | | | 3Q 13 |
|
|
|
|
|
| Aug. 2, 2014 |
|
| May 3, 2014 |
|
| Aug. 3, 2013 |
Revenue
| | | | | |
$
|
727,752
| | | |
$
|
694,536
| | | |
$
|
674,172
| |
Year-to-year change
| | | | | | |
8
|
%
| | | |
5
|
%
| | | |
-1
|
%
|
Quarter-to-quarter change
| | | | | | |
5
|
%
| | | |
11
|
%
| | | |
2
|
%
|
Cost of sales (1)
|
|
|
|
|
|
|
251,462
|
|
|
|
|
235,793
|
|
|
|
|
239,110
|
|
Gross margin
| | | | | | |
476,290
| | | | |
458,743
| | | | |
435,062
| |
Gross margin percentage
| | | | | | |
65.4
|
%
| | | |
66.1
|
%
| | | |
64.5
|
%
|
Year-to-year change (basis points)
| | | | | | |
90
| | | | |
210
| | | | |
-110
| |
Quarter-to-quarter change (basis points)
|
|
|
|
|
|
|
-70
|
|
|
|
|
100
|
|
|
|
|
50
|
|
Operating expenses:
| | | | | | | | | | | | |
R&D (1)
| | | | | | |
140,095
| | | | |
136,203
| | | | |
128,892
| |
Selling, marketing and G&A (1)
| | | | | | |
132,989
| | | | |
102,085
| | | | |
97,773
| |
Amortization of Intangibles
|
|
|
|
|
|
|
660
|
|
|
|
|
55
|
|
|
|
|
55
|
|
Total operating expenses
| | | | | | |
273,744
| | | | |
238,343
| | | | |
226,720
| |
Total operating expenses percentage
| | | | | | |
37.6
|
%
| | | |
34.3
|
%
| | | |
33.6
|
%
|
Year-to-year change (basis points)
| | | | | | |
400
| | | | |
-70
| | | | |
-90
| |
Quarter-to-quarter change (basis points)
|
|
|
|
|
|
|
330
|
|
|
|
|
-220
|
|
|
|
|
-140
|
|
Operating income
| | | | | | |
202,546
| | | | |
220,400
| | | | |
208,342
| |
Operating income percentage
| | | | | | |
27.8
|
%
| | | |
31.7
|
%
| | | |
30.9
|
%
|
Year-to-year change (basis points)
| | | | | | |
-310
| | | | |
270
| | | | |
-20
| |
Quarter-to-quarter change (basis points)
|
|
|
|
|
|
|
-390
|
|
|
|
|
310
|
|
|
|
|
190
|
|
Other expense
|
|
|
|
|
|
|
5,158
|
|
|
|
|
3,032
|
|
|
|
|
13,301
|
|
Income before income tax
| | | | | | |
197,388
| | | | |
217,368
| | | | |
195,041
| |
Provision for income taxes
| | | | | | |
16,782
| | | | |
29,935
| | | | |
18,802
| |
Tax rate percentage
|
|
|
|
|
|
|
8.5
|
%
|
|
|
|
13.8
|
%
|
|
|
|
9.6
|
%
|
Net income
|
|
|
|
|
|
$
|
180,606
|
|
|
|
$
|
187,433
|
|
|
|
$
|
176,239
|
|
| | | | | | | | | | | |
|
Shares used for EPS - basic
| | | | | | |
314,190
| | | | |
313,488
| | | | |
309,117
| |
Shares used for EPS - diluted
| | | | | | |
318,876
| | | | |
318,347
| | | | |
315,307
| |
| | | | | | | | | | | |
|
Earnings per share - basic
| | | | | |
$
|
0.57
| | | |
$
|
0.60
| | | |
$
|
0.57
| |
Earnings per share - diluted
| | | | | |
$
|
0.57
| | | |
$
|
0.59
| | | |
$
|
0.56
| |
| | | | | | | | | | | |
|
Dividends paid per share
|
|
|
|
|
|
$
|
0.37
|
|
|
|
$
|
0.37
|
|
|
|
$
|
0.34
|
|
| | | | | | | | | | | |
|
(1) Includes stock-based compensation expense as follows:
| | | | | | | | | | | | |
Cost of sales
| | | | | |
$
|
1,724
| | | |
$
|
1,417
| | | |
$
|
1,672
| |
R&D
| | | | | |
$
|
5,415
| | | |
$
|
4,278
| | | |
$
|
5,536
| |
Selling, marketing and G&A
| | | | | |
$
|
6,331
| | | |
$
|
4,847
| | | |
$
|
5,539
| |
| | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | |
|
|
|
Analog Devices, Third Quarter, Fiscal 2014 |
|
Schedule B |
Selected Balance Sheet Information (GAAP) |
(In thousands) |
|
|
|
|
|
| |
|
| |
|
| |
| | | | | | 3Q 14 | | | 2Q 14 | | | 3Q 13 |
|
|
|
|
|
| Aug. 2, 2014 |
|
| May 3, 2014 |
|
| Aug. 3, 2013 |
Cash & short-term investments
| | | | | |
$
|
4,932,259
| | |
$
|
4,807,225
| | |
$
|
4,450,293
|
Accounts receivable, net
| | | | | | |
394,762
| | | |
360,847
| | | |
345,437
|
Inventories (1) (2)
| | | | | | |
415,098
| | | |
298,432
| | | |
284,342
|
Other current assets
|
|
|
|
|
|
|
181,765
|
|
|
|
171,528
|
|
|
|
164,418
|
Total current assets
| | | | | | |
5,923,884
| | | |
5,638,032
| | | |
5,244,490
|
PP&E, net
| | | | | | |
609,937
| | | |
545,485
| | | |
492,421
|
Investments
| | | | | | |
32,022
| | | |
30,080
| | | |
20,056
|
Goodwill
| | | | | | |
1,631,890
| | | |
287,341
| | | |
280,591
|
Intangible assets, net
| | | | | | |
695,832
| | | |
28,442
| | | |
28,607
|
Other
|
|
|
|
|
|
|
79,900
|
|
|
|
65,571
|
|
|
|
72,461
|
Total assets
|
|
|
|
|
|
$
|
8,973,465
| | |
$
|
6,594,951
| | |
$
|
6,138,626
|
| | | | | | | | | | | |
|
Deferred income on shipments to distributors, net
| | | | | |
$
|
285,832
| | |
$
|
267,933
| | |
$
|
259,003
|
Current debt
| | | | | | |
1,995,398
| | | |
-
| | | |
-
|
Other current liabilities
| | | | | | |
341,296
| | | |
303,269
| | | |
232,806
|
Long-term debt, non-current
| | | | | | |
872,652
| | | |
872,515
| | | |
872,104
|
Non-current liabilities
| | | | | | |
471,090
| | | |
219,711
| | | |
131,477
|
Shareholders' equity
|
|
|
|
|
|
|
5,007,197
|
|
|
|
4,931,523
|
|
|
|
4,643,236
|
Total liabilities & equity
|
|
|
|
|
|
$
|
8,973,465
|
|
|
$
|
6,594,951
|
|
|
$
|
6,138,626
|
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
(1) Includes $2,094, $1,982, and $2,126 related to stock-based
compensation in 3Q14, 2Q14, and 3Q13, respectively.
(2) Includes $103,795 of acquired inventory in 3Q14
|
|
Analog Devices, Third Quarter, Fiscal 2014 |
|
|
|
|
|
| |
|
| |
|
| |
Schedule C |
Cash Flow Statement (GAAP) |
(In thousands) |
|
| | | | | |
|
| | | | | | Three Months Ended |
| | | | | | 3Q 14 | | | 2Q 14 | | | 3Q 13 |
| | | | | | Aug. 2, 2014 | | | May 3, 2014 | | | Aug. 3, 2013 |
Cash flows from operating activities:
| | | | | | | | | | | | |
Net Income
| | | | | |
$
|
180,606
| | | |
$
|
187,433
| | | |
$
|
176,239
| |
Adjustments to reconcile net income
| | | | | | | | | | | | |
to net cash provided by operations:
| | | | | | | | | | | | |
Depreciation
| | | | | | |
28,353
| | | | |
27,459
| | | | |
27,448
| |
Amortization of intangibles
| | | | | | |
1,610
| | | | |
55
| | | | |
55
| |
Stock-based compensation expense
| | | | | | |
13,470
| | | | |
10,542
| | | | |
12,747
| |
Loss on extinguishment of debt
| | | | | | |
-
| | | | |
-
| | | | |
10,205
| |
Other non-cash activity
| | | | | | |
1,006
| | | | |
1,400
| | | | |
310
| |
Excess tax benefit - stock options
| | | | | | |
(9,322
|
)
| | | |
(4,423
|
)
| | | |
(6,265
|
)
|
Deferred income taxes
| | | | | | |
(6,380
|
)
| | | |
1,068
| | | | |
(739
|
)
|
Changes in operating assets and liabilities
|
|
|
|
|
|
|
4,099
|
|
|
|
|
14,824
|
|
|
|
|
25
|
|
Total adjustments
|
|
|
|
|
|
|
32,836
|
|
|
|
|
50,925
|
|
|
|
|
43,786
|
|
Net cash provided by operating activities (1)
|
|
|
|
|
|
|
213,442
|
|
|
|
|
238,358
|
|
|
|
|
220,025
|
|
Percent of total revenue
|
|
|
|
|
|
|
29.3
|
%
|
|
|
|
34.3
|
%
|
|
|
|
32.6
|
%
|
| | | | | | | | | | | |
|
Cash flows from investing activities:
| | | | | | | | | | | | |
Purchases of short-term available-for-sale investments
| | | | | | |
(1,028,781
|
)
| | | |
(2,275,241
|
)
| | | |
(2,123,826
|
)
|
Maturities of short-term available-for-sale investments
| | | | | | |
1,815,862
| | | | |
1,966,158
| | | | |
1,493,806
| |
Sales of short-term available-for-sale investments
| | | | | | |
1,298,044
| | | | |
189,267
| | | | |
216,312
| |
Additions to property, plant and equipment
| | | | | | |
(42,315
|
)
| | | |
(44,058
|
)
| | | |
(30,068
|
)
|
Payments for acquisitions, net of cash acquired
| | | | | | |
(1,943,704
|
)
| | | |
-
| | | | |
(2,475
|
)
|
Change in other assets
|
|
|
|
|
|
|
(340
|
)
|
|
|
|
(6,076
|
)
|
|
|
|
(1,540
|
)
|
Net cash provided by (used for) investing activities
|
|
|
|
|
|
|
98,766
|
|
|
|
|
(169,950
|
)
|
|
|
|
(447,791
|
)
|
| | | | | | | | | | | |
|
Cash flows from financing activities:
| | | | | | | | | | | | |
Payment of senior unsecured notes
| | | | | | |
-
| | | | |
-
| | | | |
(392,790
|
)
|
Proceeds from debt
| | | | | | |
1,995,398
| | | | |
-
| | | | |
493,880
| |
Proceeds from derivative instruments
| | | | | | |
-
| | | | |
-
| | | | |
10,952
| |
Dividend payments to shareholders
| | | | | | |
(116,098
|
)
| | | |
(115,795
|
)
| | | |
(104,923
|
)
|
Repurchase of common stock
| | | | | | |
(57,394
|
)
| | | |
(22,614
|
)
| | | |
-
| |
Proceeds from employee stock plans
| | | | | | |
36,045
| | | | |
62,936
| | | | |
89,653
| |
Excess tax benefit - stock options
| | | | | | |
9,322
| | | | |
4,423
| | | | |
6,265
| |
Contingent consideration payment
| | | | | | |
(1,803
|
)
| | | |
-
| | | | |
-
| |
Change in other financing activities
|
|
|
|
|
|
|
5,406
|
|
|
|
|
(11,284
|
)
|
|
|
|
(10,643
|
)
|
Net cash provided by (used for) financing activities
|
|
|
|
|
|
|
1,870,876
|
|
|
|
|
(82,334
|
)
|
|
|
|
92,394
|
|
Effect of exchange rate changes on cash
|
|
|
|
|
|
|
(433
|
)
|
|
|
|
(511
|
)
|
|
|
|
(191
|
)
|
| | | | | | | | | | | |
|
Net increase (decrease) in cash and cash equivalents
| | | | | | |
2,182,651
| | | | |
(14,437
|
)
| | | |
(135,563
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
|
|
|
|
402,790
|
|
|
|
|
417,227
|
|
|
|
|
595,631
|
|
Cash and cash equivalents at end of period
|
|
|
|
|
|
$
|
2,585,441
|
|
|
|
$
|
402,790
|
|
|
|
$
|
460,068
|
|
| | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | |
|
(1) Includes $18,303 of net cash used by operating activities for
Hittite operations in 3Q14
|
|
Analog Devices, Third Quarter, Fiscal 2014 |
|
|
|
|
|
| |
|
| |
|
| |
|
| |
|
|
| |
|
| |
Schedule D |
Revenue Trends by End Market |
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. The
results below are inclusive of the Hittite acquisition from the
acquisition date, July 22, 2014 and the consumer end market results
are reflective of the sale of the Company's microphone product line
in the fourth quarter of fiscal 2013.
|
| | | | | |
|
| | | | | | Three Months Ended |
| | | | | | Aug. 2, 2014 | | | | May 3, 2014 | | | Aug. 3, 2013 |
| | | | | | Revenue |
|
| % |
|
|
| Q/Q % |
|
| Y/Y % | | | | Revenue | | | Revenue |
Industrial*
| | | | | |
$
|
350,578
| | |
48
|
%
| | |
8
|
%
| | |
12
|
%
| | | |
$
|
325,802
| | |
$
|
312,970
|
Automotive
| | | | | | |
130,052
| | |
18
|
%
| | |
-4
|
%
| | |
8
|
%
| | | | |
135,828
| | | |
120,925
|
Consumer
| | | | | | |
80,870
| | |
11
|
%
| | |
4
|
%
| | |
-19
|
%
| | | | |
77,821
| | | |
100,254
|
Communications*
| | | | | |
|
166,252
|
|
|
23
|
%
| | |
7
|
%
| | |
19
|
%
| | | |
|
155,085
| | |
|
140,023
|
Total Revenue | | | | | | $ | 727,752 |
|
| 100 | % | | | 5 | % | | | 8 | % | | | | $ | 694,536 | | | $ | 674,172 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
* Includes $2,296 and $3,096 of revenue in 3Q14 related to Hittite in
the industrial and communications end markets, respectively.
|
|
Analog Devices, Third Quarter, Fiscal 2014 |
|
|
|
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Schedule E |
Revenue Trends by Product Type |
The categorization of our products into broad categories is based on
the characteristics of the individual products, the specification of
the products and in some cases the specific uses that certain
products have within applications. The categorization of products
into categories is therefore subject to judgment in some cases and
can vary over time. In instances where products move between product
categories we reclassify the amounts in the product categories for
all prior periods. Such reclassifications typically do not
materially change the sizing of, or the underlying trends of results
within, each product category. The results below are inclusive of
the Hittite acquisition from the acquisition date, July 22, 2014,
and the other analog product category market results are reflective
of the sale of the Company's microphone product line in the forth
quarter of fiscal 2013.
|
| | | | | |
|
|
|
|
| | | | | | Three Months Ended |
|
|
|
| | | | | | Aug. 2, 2014 | | | May 3, 2014 | | | Aug. 3, 2013 |
| | | | | | Revenue |
|
| % |
|
|
| Q/Q % |
|
| Y/Y % | | | Revenue | | | Revenue |
Converters
| | | | | |
$
|
327,538
| | |
45
|
%
| | |
3
|
%
| | |
9
|
%
| | |
$
|
317,915
| | |
$
|
300,484
|
Amplifiers / Radio Frequency
| | | | | | |
194,017
| | |
27
|
%
| | |
4
|
%
| | |
9
|
%
| | | |
186,287
| | | |
177,451
|
Other analog
| | | | | |
|
95,964
|
|
|
13
|
%
| | |
9
|
%
| | |
4
|
%
| | |
|
88,103
| | |
|
92,278
|
Subtotal Analog Signal Processing
| | | | | |
|
617,519
|
|
|
85
|
%
| | |
4
|
%
| | |
8
|
%
| | |
|
592,305
| | |
|
570,213
|
Power management & reference
| | | | | |
|
45,913
|
|
|
6
|
%
| | |
6
|
%
| | |
1
|
%
| | |
|
43,138
| | |
|
45,611
|
Total Analog Products | | | | | | $ | 663,432 |
|
| 91 | % | | | 4 | % | | | 8 | % | | | $ | 635,443 | | | $ | 615,824 |
Digital Signal Processing
| | | | | |
|
64,320
|
|
|
9
|
%
| | |
9
|
%
| | |
10
|
%
| | |
|
59,093
| | |
|
58,348
|
Total Revenue | | | | | | $ | 727,752 |
|
| 100 | % | | | 5 | % | | | 8 | % | | | $ | 694,536 | | | $ | 674,172 |
| | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | |
|
|
|
Analog Devices, Third Quarter, Fiscal 2014 |
|
Schedule F |
Reconciliation from Non-GAAP to GAAP Data (In thousands, except
per-share amounts) |
|
See "Non-GAAP Financial Information" in this press release for a
description of the items excluded from our non-GAAP measures. |
|
|
|
|
|
|
|
|
| | | | | | Three Months Ended |
| | | | | | 3Q 14 |
|
| 2Q 14 |
|
| 3Q 13 |
| | | | | | Aug. 2, 2014 | | | May 3, 2014 | | | Aug. 3, 2013 |
| | | | | | | | | | | | | |
|
GAAP Revenue | | | | | | $727,752 | | | | $694,536 | | | | $674,172 |
Q/Q Revenue growth % | | | | | | 5% | | | | 11% | | | | 2% |
Hittite Operations
| | | | | |
(5,392)
| | | |
-
| | | |
-
|
Non-GAAP Revenue | | | | | | $ 722,360 | | | | $ 694,536 | | | | $ 674,172 |
Q/Q Revenue growth % | | | | | | 4% | | | | 11% | | | | 2% |
| | | | | | | | | | | | | |
|
GAAP Gross Margin | | | | | | $476,290 | | | | $458,743 | | | | $435,062 |
Gross Margin Pergentage | | | | | | 65.4% | | | | 66.1% | | | | 64.5% |
Hittite Operations
| | | | | |
(3,015)
| | | |
-
| | | |
-
|
Acquistion-Related Expenses
| | | | | |
6,837
|
| | |
-
|
| | |
-
|
Non-GAAP Gross Margin | | | | | | $ 480,112 |
| | | $ 458,743 |
| | | $ 435,062 |
Gross Margin Percentage | | | | | | 66.5% | | | | 66.1% | | | | 64.5% |
| | | | | | | | | | | | | |
|
GAAP Operating Expenses | | | | | | $ 273,744 | | | | $ 238,343 | | | | $ 226,720 |
Percent of Revenue | | | | | | 37.6% | | | | 34.3% | | | | 33.6% |
Hittite Operations
| | | | | |
(2,033)
| | | |
-
| | | |
-
|
Acquistion-Related Expenses
| | | | | |
(5,284)
| | | |
-
| | | |
-
|
Acquistion-Related Transaction Costs
| | | | | |
(21,123)
|
| | |
-
|
| | |
-
|
Non-GAAP Operating Expenses | | | | | | $ 245,304 |
| | | $ 238,343 |
| | | $ 226,720 |
Percent of Revenue | | | | | | 34.0% | | | | 34.3% | | | | 33.6% |
| | | | | | | | | | | | | |
|
GAAP Operating Income/Margin | | | | | | $ 202,546 | | | | $ 220,400 | | | | $ 208,342 |
Percent of Revenue | | | | | | 27.8% | | | | 31.7% | | | | 30.9% |
Hittite Operations
| | | | | |
(982)
| | | |
-
| | | |
-
|
Acquistion-Related Expenses
| | | | | |
12,121
| | | |
-
| | | |
-
|
Acquistion-Related Transaction Costs
| | | | | |
21,123
|
| | |
-
|
| | |
-
|
Non-GAAP Operating Income/Margin | | | | | | $ 234,808 |
| | | $ 220,400 |
| | | $ 208,342 |
Percent of Revenue | | | | | | 32.5% | | | | 31.7% | | | | 30.9% |
| | | | | | | | | | | | | |
|
GAAP Other Expense | | | | | | $ 5,158 | | | | $ 3,032 | | | | $ 13,301 |
Percent of Revenue | | | | | | 0.7% | | | | 0.4% | | | | 2.0% |
Acquistion-Related Debt Costs
| | | | | |
(1,513)
| | | |
-
| | | |
-
|
Loss on Extinguishment of Debt
| | | | | |
-
|
| | |
-
|
| | |
(10,205)
|
Non-GAAP Other Expense | | | | | | $ 3,645 |
| | | $ 3,032 |
| | | $ 3,096 |
Percent of Revenue | | | | | | 0.5% | | | | 0.4% | | | | 0.5% |
| | | | | | | | | | | | | |
|
GAAP Diluted EPS | | | | | | $ 0.57 | | | | $ 0.59 | | | | $ 0.56 |
Impact of Loss on Extinguishment of Debt
| | | | | |
-
| | | |
-
| | | |
0.02
|
Hittite Operations
| | | | | |
-
| | | |
-
| | | |
-
|
Acquistion-Related Expenses
| | | | | |
0.02
| | | |
-
| | | |
-
|
Acquistion-Related Transaction Costs
| | | | | |
0.04
| | | |
-
| | | |
-
|
Acquistion-Related Debt Costs
| | | | | |
-
| | | |
-
| | | |
-
|
Impact of Expired Tax Statute
| | | | | |
-
|
| | |
-
|
| | |
(0.01)
|
Non-GAAP Diluted EPS (1) | | | | | | $ 0.63 |
| | | $ 0.59 |
| | | $ 0.57 |
| | | | | | | | | | | | | |
|
| | | | | | | | | | | | | |
|
(1) The sum of the individual per share amounts may not equal the total
due to rounding.
Contacts:
Analog Devices, Inc.
Mr. Ali Husain, 781-461-3282 (phone)
781-461-3491
(fax)
investor.relations@analog.com
Source: Analog Devices
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