Forward Looking Statements
This press release contains forward-looking statements, which address a variety of subjects including, for example, our statements regarding financial performance; customer inventory rationalization; economic uncertainty, demand, business cycles, and supply chains; capital expenditures; expected revenue, operating margin, nonoperating expenses, tax rate, earnings per share, and other financial results; investments; expected market and technology trends and acceleration of those trends; market size, market share gains, market position, and growth opportunities; expected product solutions, offerings, technologies, capabilities, and applications; the value and importance of, and other benefits related to, our product solutions, offerings, and technologies to our customers; our manufacturing resilience plan and related benefits; future dividends and share repurchases; and other future events. 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: economic, political, legal and regulatory uncertainty or conflicts; changes in demand for semiconductor products; manufacturing delays, product and raw materials availability and supply chain disruptions; products that may be diverted from our authorized distribution channels; changes in export classifications, import and export regulations or duties and tariffs; our development of technologies and research and development investments; our future liquidity, capital needs and capital expenditures; our ability to compete successfully in the markets in which we operate; our ability to recruit and retain key personnel; risks related to acquisitions or other strategic transactions; security breaches or other cyber incidents; adverse results in litigation matters; reputational damage; changes in our estimates of our expected tax rates based on current tax law; risks related to our indebtedness; unanticipated difficulties or expenditures related to integrating Maxim Integrated Products, Inc.; the discretion of our Board of Directors to declare dividends and our ability to pay dividends in the future; factors impacting our ability to repurchase shares; and uncertainty as to the long-term value of our common stock. For additional information about factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to our filings with the Securities and Exchange Commission, including the risk factors contained in our most recent 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.
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, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands, except per share amounts) |
|||||||
|
Three Months Ended |
||||||
|
Feb. 3, 2024 |
|
Jan. 28, 2023 |
||||
Revenue |
$ |
2,512,704 |
|
|
$ |
3,249,630 |
|
Cost of sales |
|
1,038,763 |
|
|
|
1,125,289 |
|
Gross margin |
|
1,473,941 |
|
|
|
2,124,341 |
|
Operating expenses: |
|
|
|
||||
Research and development |
|
391,427 |
|
|
|
414,095 |
|
Selling, marketing, general and administrative |
|
290,078 |
|
|
|
326,284 |
|
Amortization of intangibles |
|
190,332 |
|
|
|
253,142 |
|
| Special charges, net |
|
16,140 |
|
|
|
— |
|
| Total operating expenses |
|
887,977 |
|
|
|
993,521 |
|
| Operating income |
|
585,964 |
|
|
|
1,130,820 |
|
| Nonoperating expense (income): |
|
|
|
||||
| Interest expense |
|
77,141 |
|
|
|
60,453 |
|
| Interest income |
|
(9,169 |
) |
|
|
(10,829 |
) |
| Other, net |
|
4,574 |
|
|
|
7,723 |
|
| Total nonoperating expense (income) |
|
72,546 |
|
|
|
57,347 |
|
| Income before income taxes |
|
513,418 |
|
|
|
1,073,473 |
|
| Provision for income taxes |
|
50,691 |
|
|
|
111,999 |
|
| Net income |
$ |
462,727 |
|
|
$ |
961,474 |
|
|
|
|
|
|
||||
| Shares used to compute earnings per common share - basic |
|
495,765 |
|
|
|
507,121 |
|
| Shares used to compute earnings per common share - diluted |
|
498,741 |
|
|
|
511,184 |
|
|
|
|
|
|
||||
| Basic earnings per common share |
$ |
0.93 |
|
|
$ |
1.90 |
|
| Diluted earnings per common share |
$ |
0.93 |
|
|
$ |
1.88 |
|
| ANALOG DEVICES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) |
|||||
|
|
Feb. 3, 2024 |
|
Oct. 28, 2023 |
||
| Cash & cash equivalents |
$ |
1,303,560 |
|
$ |
958,061 |
| Accounts receivable |
|
1,196,721 |
|
|
1,469,734 |
| Inventories |
|
1,553,221 |
|
|
1,642,214 |
| Other current assets |
|
362,375 |
|
|
314,013 |
| Total current assets |
|
4,415,877 |
|
|
4,384,022 |
| Net property, plant and equipment |
|
3,281,937 |
|
|
3,219,157 |
| Goodwill |
|
26,913,134 |
|
|
26,913,134 |
| Intangible assets, net |
|
10,871,054 |
|
|
11,311,957 |
| Deferred tax assets |
|
2,172,174 |
|
|
2,223,272 |
| Other assets |
|
734,288 |
|
|
742,936 |
| Total assets |
$ |
48,388,464 |
|
$ |
48,794,478 |
|
|
|
|
|
||
| Other current liabilities |
$ |
1,879,600 |
|
$ |
2,154,695 |
| Debt, current |
|
499,322 |
|
|
499,052 |
| Commercial paper notes |
|
544,444 |
|
|
547,224 |
| Long-term debt |
|
5,946,673 |
|
|
5,902,457 |
| Deferred income taxes |
|
2,975,815 |
|
|
3,127,852 |
| Other non-current liabilities |
|
994,537 |
|
|
998,076 |
| Shareholders' equity |
|
35,548,073 |
|
|
35,565,122 |
| Total liabilities & shareholders' equity |
$ |
48,388,464 |
|
$ |
48,794,478 |
| ANALOG DEVICES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) |
|||||||
|
|
Three Months Ended |
||||||
|
|
Feb. 3, 2024 |
|
Jan. 28, 2023 |
||||
| Cash flows from operating activities: |
|
|
|
||||
| Net income |
$ |
462,727 |
|
|
$ |
961,474 |
|
| Adjustments to reconcile net income to net cash provided by operations: |
|
|
|
||||
| Depreciation |
|
84,348 |
|
|
|
85,321 |
|
| Amortization of intangibles |
|
440,903 |
|
|
|
502,177 |
|
| Stock-based compensation expense |
|
69,815 |
|
|
|
75,041 |
|
| Deferred income taxes |
|
(102,149 |
) |
|
|
(146,354 |
) |
| Other |
|
4,684 |
|
|
|
9,732 |
|
| Changes in operating assets and liabilities |
|
178,504 |
|
|
|
(81,086 |
) |
| Total adjustments |
|
676,105 |
|
|
|
444,831 |
|
| Net cash provided by operating activities |
|
1,138,832 |
|
|
|
1,406,305 |
|
| Cash flows from investing activities: |
|
|
|
||||
| Additions to property, plant and equipment, net |
|
(222,978 |
) |
|
|
(176,158 |
) |
| Other |
|
3,877 |
|
|
|
102 |
|
| Net cash used for investing activities |
|
(219,101 |
) |
|
|
(176,056 |
) |
| Cash flows from financing activities: |
|
|
|
||||
| Proceeds from commercial paper notes |
|
2,779,494 |
|
|
|
— |
|
| Payments of commercial paper notes |
|
(2,782,274 |
) |
|
|
— |
|
| Repurchase of common stock |
|
(180,351 |
) |
|
|
(654,557 |
) |
| Dividend payments to shareholders |
|
(426,076 |
) |
|
|
(385,452 |
) |
| Proceeds from employee stock plans |
|
49,819 |
|
|
|
41,238 |
|
| Other |
|
(14,844 |
) |
|
|
(31,588 |
) |
| Net cash used for financing activities |
|
(574,232 |
) |
|
|
(1,030,359 |
) |
| Net increase in cash and cash equivalents |
|
345,499 |
|
|
|
199,890 |
|
| Cash and cash equivalents at beginning of period |
|
958,061 |
|
|
|
1,470,572 |
|
| Cash and cash equivalents at end of period |
$ |
1,303,560 |
|
|
$ |
1,670,462 |
|
ANALOG DEVICES, INC.
