- Revenue of $3.08 billion with continued year-over-year growth in Industrial & Automotive
- Operating cash flow of $4.8 billion and free cash flow of $3.7 billion on a trailing twelve-month basis
- Returned $1.1 billion to shareholders via $0.7 billion in share repurchases and $0.4 billion in dividends during the third quarter
WILMINGTON, Mass. — (BUSINESS WIRE) — August 23, 2023 — Analog Devices, Inc. (Nasdaq: ADI), a global semiconductor leader, today announced financial results for its third quarter fiscal year 2023, which ended July 29, 2023.
“In a challenging operating environment, ADI executed well, and delivered third quarter results within our expectations. However, the customer inventory adjustments we mentioned last quarter have accelerated as economic conditions deteriorate and our lead times continue to improve,” said Vincent Roche, CEO and Chair. “Despite the near-term turbulence, we have built a resilient business over many decades defined by our diversified customer and product portfolio and our flexible hybrid manufacturing model. This enables us to endure softer demand periods, while sustaining strategic investments to ensure we capitalize when the business inflects.”
Roche continued, “Our tremendous optimism in ADI’s long-term outlook is undiminished. In this rapidly digitalizing world, our portfolio is aligned to an unprecedented number of secular trends, including Industry 4.0, Electrification, Digital Healthcare, Immersive Consumer, and Advanced Connectivity. These trends, coupled with our cutting-edge solutions, will enable ADI to empower the next waves of innovation at the Intelligent Edge, and unlock value for all stakeholders.”
Performance for the Third Quarter of Fiscal 2023
Results Summary(1) |
|
|
|
|
|
|||||||
(in millions, except per-share amounts and percentages) |
|
|
|
|
|
|||||||
|
|
|
|
|
|
|||||||
|
Three Months Ended |
|||||||||||
|
Jul. 29, 2023 |
|
Jul. 30, 2022 |
|
Change |
|||||||
Revenue |
$ |
3,076 |
|
|
$ |
3,110 |
|
|
|
(1 |
)% |
|
Gross margin |
$ |
1,962 |
|
|
$ |
2,043 |
|
|
|
(4 |
)% |
|
Gross margin percentage |
|
63.8 |
% |
|
|
65.7 |
% |
|
(190 bps) |
|||
Operating income |
$ |
929 |
|
|
$ |
893 |
|
|
|
4 |
% |
|
| Operating margin |
|
30.2 |
% |
|
|
28.7 |
% |
|
150 bps |
|||
| Diluted earnings per share |
$ |
1.74 |
|
|
$ |
1.44 |
|
|
|
21 |
% |
|
|
|
|
|
|
|
|
|||||||
| Adjusted Results |
|
|
|
|
|
|||||||
| Adjusted gross margin |
$ |
2,222 |
|
|
$ |
2,304 |
|
|
|
(4 |
)% |
|
| Adjusted gross margin percentage |
|
72.2 |
% |
|
|
74.1 |
% |
|
(190 bps) |
|||
| Adjusted operating income |
$ |
1,470 |
|
|
$ |
1,557 |
|
|
|
(6 |
)% |
|
| Adjusted operating margin |
|
47.8 |
% |
|
|
50.1 |
% |
|
(230 bps) |
|||
| Adjusted diluted earnings per share |
$ |
2.49 |
|
|
$ |
2.52 |
|
|
|
(1 |
)% |
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
Three Months Ended |
|
Trailing Twelve Months |
|||||||
| Cash Generation |
|
|
Jul. 29, 2023 |
|
Jul. 29, 2023 |
|||||||
| Net cash provided by operating activities |
|
|
$ |
1,142 |
|
|
$ |
4,780 |
|
|||
| % of revenue |
|
|
|
37 |
% |
|
|
37 |
% |
|||
| Capital expenditures |
|
|
$ |
(325 |
) |
|
$ |
(1,090 |
) |
|||
| Free cash flow |
|
|
$ |
818 |
|
|
$ |
3,690 |
|
|||
| % of revenue |
|
|
|
27 |
% |
|
|
29 |
% |
|||
|
|
|
|
|
|
|
|||||||
|
|
|
|
Three Months Ended |
|
Trailing Twelve Months |
|||||||
| Cash Return |
|
|
Jul. 29, 2023 |
|
Jul. 29, 2023 |
|||||||
| Dividend paid |
|
|
$ |
(430 |
) |
|
$ |
(1,641 |
) |
|||
| Stock repurchases |
|
|
|
(687 |
) |
|
|
(3,312 |
) |
|||
| Total cash returned |
|
|
$ |
(1,117 |
) |
|
$ |
(4,954 |
) |
|||
|
|
|
|
|
|
|
|||||||
| (1) The sum and/or computation of the individual amounts may not equal the total due to rounding. |
||||||||||||
