- Revenue of $1.46 billion increased 11% sequentially, led by growth in the communications and industrial markets
- Operating cash flow of $2.0 billion and free cash flow of $1.8 billion on a trailing twelve months basis
- Announced agreement to acquire Maxim Integrated Products Inc. in the quarter, further strengthening ADI’s analog semiconductor leadership position
NORWOOD, Mass. — (BUSINESS WIRE) — August 19, 2020 — Analog Devices, Inc. (Nasdaq: ADI), a leading global high-performance analog technology company, today announced financial results for its third quarter of fiscal 2020, which ended August 1, 2020.
“We executed exceptionally well in this uncertain environment. Our quarterly results came in above the midpoint of our revised outlook, which is a testament to the dedication of our talented global team and the resilience of our diversified business. Revenue growth was led by strength across our industrial and communications markets, and both gross and operating margins returned within the range of our financial model,” said Vincent Roche, President and CEO of Analog Devices.
Roche continued, “Our recently announced acquisition of Maxim will further expand our technology capabilities, grow our cadre of talented engineers, and deliver significant benefits for our stakeholders. Together, we will continue to push the limits of innovation and create more complete solutions for our customers, staying ahead of what’s possible for decades to come.”
Performance for the Third Quarter of Fiscal 2020
Results Summary(1) |
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(in millions, except per-share amounts and percentages) |
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|
|
|
|
|
|
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|
Three Months Ended |
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|
Aug. 1, 2020 |
|
Aug. 3, 2019 |
|
Change |
|||||||
Revenue |
$ |
1,456 |
|
|
$ |
1,480 |
|
|
(2 |
)% |
||
Gross margin |
$ |
973 |
|
|
$ |
998 |
|
|
(3 |
)% |
||
Gross margin percentage |
66.8 |
% |
|
67.4 |
% |
|
(60 bps) |
|||||
Operating income |
$ |
419 |
|
|
$ |
447 |
|
|
(6 |
)% |
||
Operating margin |
28.8 |
% |
|
30.2 |
% |
|
(140 bps) |
|||||
Diluted earnings per share |
$ |
0.97 |
|
|
$ |
0.97 |
|
|
— |
% |
||
|
|
|
|
|
|
|
|||||||
| Adjusted Results |
|
|
|
|
|
|||||||
| Adjusted gross margin |
$ |
1,018 |
|
|
$ |
1,042 |
|
|
(2 |
)% |
||
| Adjusted gross margin percentage |
69.9 |
% |
|
70.4 |
% |
|
(50 bps) |
|||||
| Adjusted operating income |
$ |
616 |
|
|
$ |
604 |
|
|
2 |
% |
||
| Adjusted operating margin |
42.3 |
% |
|
40.8 |
% |
|
150 bps |
|||||
| Adjusted diluted earnings per share |
$ |
1.36 |
|
|
$ |
1.26 |
|
|
8 |
% |
||
|
|
|
|
|
|
|
|||||||
|
|
|
|
Three Months
|
|
Trailing Twelve
|
|||||||
| Cash Generation |
|
|
Aug. 1, 2020 |
|
Aug. 1, 2020 |
|||||||
| Net cash provided by operating activities |
|
|
$ |
557 |
|
|
$ |
1,994 |
|
|||
| % of revenue |
|
|
38 |
% |
|
36 |
% |
|||||
| Capital expenditures |
|
|
$ |
(21 |
) |
|
$ |
(187 |
) |
|||
| Free cash flow |
|
|
$ |
536 |
|
|
$ |
1,807 |
|
|||
| % of revenue |
|
|
37 |
% |
|
33 |
% |
|||||
|
|
|
|
|
|
|
|||||||
|
|
|
|
Three Months
|
|
Trailing Twelve
|
|||||||
| Cash Return |
|
|
Aug. 1, 2020 |
|
Aug. 1, 2020 |
|||||||
| Dividend paid |
|
|
$ |
(229 |
) |
|
$ |
(857 |
) |
|||
| Stock repurchases |
|
|
(18 |
) |
|
(410 |
) |
|||||
| Total cash returned |
|
|
$ |
(247 |
) |
|
$ |
(1,266 |
) |
|||
|
|
|
|
|
|
|
|||||||
| (1) The sum and/or computation of the individual amounts may not equal the total due to rounding. |
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