Company Website:
http://www.analog.com
NORWOOD, Mass. -- (Business Wire)
Analog
Devices, Inc. (NASDAQ: ADI),
today announced it expects revenue in the first quarter of fiscal 2016
to be in the range of $745 million to $765 million compared to the
company’s previous forecast of $805 million to $855 million. The lowered
revenue outlook is the result of weaker than forecasted customer demand
in the company’s portable consumer business unit, which began in
December, and is expected to continue into the second fiscal quarter.
Demand trends across ADI’s core markets of industrial, automotive, and
communication infrastructure are tracking within the range of prior
expectations.
ADI is forecasting non-GAAP gross margin of approximately 62% in the
first quarter compared to its original forecast due to an inventory
reserve associated with the updated revenue outlook. The company expects
its non-GAAP gross margin to return to its model range in the second
fiscal quarter of 2016.
Non-GAAP operating expenses in the first quarter are expected to decline
significantly to $264 million from the prior quarter’s $292 million.
Non-GAAP net interest expense in the first quarter is expected to be
approximately $10 million, and $15 million per quarter thereafter, as a
result of the company’s recent $1.25 billion debt offering.
Management will discuss the company’s first quarter 2016 financial
results on its call with investors scheduled for February 17, 2016.
Revised Outlook for the First Quarter of Fiscal
Year 2016
The following statements are based on
current expectations, and as indicated, are presented on a GAAP and
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 the company’s business outlook set forth
in prior ADI news releases, and ADI disclaims any obligation to update
these forward-looking statements.
|
|
|
|
| GAAP | Non-GAAP Adjustments | Non-GAAP |
Revenue | $745 to $765 million |
-
| $745 to $765 million |
Gross Margin |
approx. 62%
|
$1.4 million (1)
|
approx. 62%
|
Operating Expenses |
approx. $282 million
|
$17.5 million (1)
|
approx. $264 million
|
Interest & Other Expense |
approx. $13 million
|
3.0 million(2)
|
approx. $10 million
|
Tax Rate |
approx. 10%
|
$8.0 million (3)
|
approx. 13%
|
Earnings per Share | $0.47 to $0.51 |
$0.04 (4)
| $0.51 to $0.55 |
| | |
|
1. Reflects estimated adjustments for amortization of purchased
intangible assets and depreciation of step up value on purchased fixed
assets.
2. Debt extinguishment related costs.
3. Represents estimated impact due to reinstatement of R&D tax credit.
4. Represents estimated impact of expenses associated with non-GAAP
adjustments on a per share basis.
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
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 our expected revenue, earnings per share, gross margin,
operating expenses, interest and other expense, tax rate, and other
financial results for the first quarter of fiscal 2016, expected
operating leverage, production and inventory levels, 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.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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160114006354/en/
Contacts:
Analog Devices, Inc.
Mr. Ali Husain, 781-461-3282 (phone)
781-461-3491
(fax)
Treasurer and Director of Investor Relations
investor.relations@analog.com
Source: Analog Devices, Inc.
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