Revenue and non-GAAP EPS exceed high end of guidance range, ADI repurchases $112 million of its stock
NORWOOD, Mass. — (BUSINESS WIRE) — November 24, 2015 — Analog Devices, Inc. (NASDAQ: ADI), a global leader in high-performance semiconductors for signal processing applications, today announced financial results for its fourth quarter and fiscal year 2015, which ended October 31, 2015.
“We had another record quarter with revenue and earnings that exceeded the high end of our guidance range,” said Vincent Roche, President and CEO. “Our strategy to leverage technology platforms that sense, measure, and connect real-world phenomena across a diversity of applications once again produced excellent results, as we continue to deliver solid returns on our investments as evidenced in our growth in revenues, profits, and cash flows.”
“After a very strong fourth quarter, we are planning for revenue in the seasonally slower first quarter to be in the range of $805 million to $855 million, which would represent the 9th consecutive quarter of year-over-year revenue growth for ADI.”
ADI also announced that the Board of Directors has declared a cash dividend of $0.40 per outstanding share of common stock. The dividend will be paid on December 15, 2015 to all shareholders of record at the close of business on December 4, 2015.
For additional information please visit investor.analog.com.
Results for the Fourth Quarter of Fiscal Year 2015
- Revenue totaled $979 million, up 13% sequentially, and up 20% year-over-year
- GAAP gross margin of 65.6% of revenue; Non-GAAP gross margin of 65.7% of revenue
- GAAP operating margin of 11.1% of revenue; Non-GAAP operating margin of 35.9% of revenue
- GAAP diluted EPS of $0.30; Non-GAAP diluted EPS of $1.03
Results for Fiscal Year 2015
- Revenue totaled $3.4 billion, up 20% year-over-year
- GAAP gross margin of 65.8% of revenue; Non-GAAP gross margin of 66.0% of revenue
- GAAP operating margin of 24.2% of revenue; Non-GAAP operating margin of 33.9% of revenue
- GAAP diluted EPS of $2.20 per share; Non-GAAP diluted EPS of $3.17 per share
- Free Cash Flow of $754 million; or 22% of revenue
- Share repurchases and dividend payments to shareholders totaled $718 million
Please refer to the schedules provided for a summary of revenue and earnings, selected balance sheet information, and the cash flow statement for the fourth quarter and fiscal year 2015, as well as the immediately prior and year-ago quarters. Additional information on revenue by end market is provided on Schedule D. A more complete table covering prior periods is available at investor.analog.com.
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 our business outlook set forth in prior
ADI news releases, and ADI disclaims any obligation to update these
forward-looking statements.
| GAAP |
Non-GAAP
|
Non-GAAP | |||||||
| Revenue | $805 to $855 million | - | $805 to $855 million | ||||||
| Gross Margin | approx. 64.3% | $1.4 million (1) | approx. 64.5% | ||||||
| Operating Expenses | $292 million to $297 million | $17.5 million (1) | $274 million to $279 million | ||||||
| Interest & Other Expense | $5.0 million | - | $5.0 million | ||||||
| Tax Rate | approx. 15% | - | approx. 14% | ||||||
| Earnings per Share | $0.59 to $0.67 | $0.06 (2) | $0.65 to $0.73 |
1. Reflects estimated adjustments for amortization of purchased intangible assets and depreciation of step up value on purchased fixed assets.
2. Represents estimated impact of expenses associated with non-GAAP adjustments on a per share basis.
Conference Call Scheduled for Today, Tuesday, November 24, 2015 at
10:00 am ET
ADI will host a conference call to discuss the
fourth quarter and fiscal 2015 results and short-term outlook today,
beginning at 10:00 am 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: 51821768, 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 E of this press release provides the reconciliation of the Company’s historical non-GAAP revenue and earnings measures to its GAAP measures.
Management uses non-GAAP measures 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 evaluating the Company’s core business and trends across different reporting periods on a consistent basis. Management also believes that the presentation of these non-GAAP items is useful to investors because it provides investors with the operating results that management uses to manage the Company and enables investors and analysts to evaluate the Company’s core business.
The following item is excluded from our non-GAAP revenue:
Hittite Operations: The results of operation 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 operation 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 in fiscal 2015 and fiscal 2014 as a result of the Hittite acquisition primarily include: severance payments, expense associated with the fair value adjustments to inventory and property, plant and equipment; and amortization of acquisition related intangibles, which include acquired intangibles such as purchased technology and customer relationships. 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.
Stock-Based Compensation Expense: In the first quarter of fiscal 2015, the Company recorded $3.0 million of stock-based compensation expense for one of its former executive officers due to the accelerated vesting of restricted stock units and a reduction in the requisite service period for stock options in accordance with the terms of the applicable agreements. In addition, in the first quarter of fiscal 2015, the Company recorded $1.3 million of stock-based compensation expense due to the accelerated vesting of restricted stock units and stock options in conjunction with the restructuring charge recorded in the fourth quarter of fiscal 2014. In the fourth quarter of 2014, the Company canceled certain stock awards in conjunction with the restructuring charge which resulted in the recognition of income from stock-based compensation expense recorded in prior periods for these awards. These stock-based compensation expenses and income and the related tax effect have no direct correlation to the operation of our business in the future.
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:
Other Operating Expense: Costs incurred as a result of the conversion of the benefits provided to participants in the Company’s Irish defined benefit pension plan to benefits provided under the Company’s Irish defined contribution plan including settlement charges, legal, accounting and other professional fees. 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.
Acquisition-Related Transaction Costs: Costs incurred as a result of the Hittite acquisition in fiscal 2015 and fiscal 2014 including 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.
Restructuring-Related Expenses: These expenses are incurred in connection with facility closures, consolidation of manufacturing facilities, severance, and other cost reduction efforts. Apart from ongoing expense savings as a result of such items, these expenses and the related tax effects have no direct correlation to the operation of our business in the future.
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 and fourth quarters 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.
The following item is excluded from our non-GAAP diluted earnings per share:
Tax-Related Items: Tax adjustments in fiscal 2015 and fiscal 2014 associated with the Hittite acquisition-related expenses and transaction costs. In addition, in the fourth quarter of 2015, the Company recorded a $13.0 million tax benefit as a result of the reversal of prior period tax liabilities. Also, in the first quarter of 2015, the Company recorded a $7.0 million tax benefit related to the reinstatement of the R&D tax credit in December 2014, retroactive to January 1, 2014. 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.
Schedule F of this press release provides the reconciliation of the Company’s historical adjusted cash flow measures to its cash flow measures.
Management uses adjusted free cash flow to measure the liquidity of its continuing operations and evaluate the Company’s operating cash performance against past periods. Free cash flow is defined as cash provided by (used in) operating activities less capital expenditures. Adjusted free cash flow is defined by the Company as free cash flow adjusted for payments (refunds) that are not reflective of our ongoing operating cash performance. Management believes that the presentation of this adjusted financial measure is useful to investors this quarter because it provides investors with the operating cash flow results that management uses to manage the Company and enables investors and analysts to evaluate the Company’s liquidity from continuing operations.
The following item is excluded from our fourth quarter and fiscal 2015 adjusted free cash flow and adjusted free cash flow margin:
Pension Conversion Payments: Costs incurred as a result of the conversion of the benefits provided to participants in the Company’s Irish defined benefit pension plan to benefits provided under the Company’s Irish defined contribution plan including settlement charges, legal, accounting, tax and other professional fees. We excluded these costs from our adjusted financial measures because they relate to a specific transaction and are not reflective of our ongoing financial performance.
Analog Devices believes that these non-GAAP measures 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
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 expected revenue, earnings per share, gross margin, operating expenses, interest and other expense, tax rate, and other financial results, 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. 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, Fourth Quarter, Fiscal 2015 | |||||||||||||||||||||||
|
Schedule A |
|||||||||||||||||||||||
| Revenue and Earnings Summary (Unaudited) | |||||||||||||||||||||||
| (In thousands, except per-share amounts) | |||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
| 4Q 15 | 3Q 15 | 4Q 14 | FY 15 | FY 14 | |||||||||||||||||||
|
Oct. 31,
2015 |
Aug. 1,
2015 |
Nov.1,
|
Oct. 31,
2015 |
Nov. 1,
2014 |
|||||||||||||||||||
| Revenue | $ | 978,722 | $ | 863,365 | $ | 814,247 | $ | 3,435,092 | $ | 2,864,773 | |||||||||||||
| Year-to-year change | 20 | % | 19 | % | 20 | % | 20 | % | 9 | % | |||||||||||||
| Quarter-to-quarter change | 13 | % | 5 | % | 12 | % | |||||||||||||||||
| Cost of sales (1) | 336,926 | 294,328 | 328,210 | 1,175,830 | 1,034,585 | ||||||||||||||||||
| Gross margin | 641,796 | 569,037 | 486,037 | 2,259,262 | 1,830,188 | ||||||||||||||||||
| Gross margin percentage | 65.6 | % | 65.9 | % | 59.7 | % | 65.8 | % | 63.9 | % | |||||||||||||
| Year-to-year change (basis points) | 590 | 50 | -590 | 190 | -40 | ||||||||||||||||||
| Quarter-to-quarter change (basis points) | -30 | -50 | -570 | ||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| R&D (1) | 170,736 | 160,784 | 154,797 | 637,459 | 559,686 | ||||||||||||||||||
| Selling, marketing and G&A (1) | 121,400 | 120,030 | 121,424 | 478,972 | 454,676 | ||||||||||||||||||
| Amortization of intangibles | 17,358 | 22,954 | 25,250 | 88,318 | 26,020 | ||||||||||||||||||
| Special charges | - | - | 34,637 | - | 37,322 | ||||||||||||||||||
| Other operating expense | 223,672 | - | - | 223,672 | - | ||||||||||||||||||
| Total operating expenses | 533,166 | 303,768 | 336,108 | 1,428,421 | 1,077,704 | ||||||||||||||||||
| Total operating expenses percentage | 54.5 | % | 35.2 | % | 41.3 | % | 41.6 | % | 37.6 | % | |||||||||||||
| Year-to-year change (basis points) | 1320 | -240 | 520 | 400 | 190 | ||||||||||||||||||
| Quarter-to-quarter change (basis points) | 1930 | -80 | 370 | ||||||||||||||||||||
| Operating income | 108,630 | 265,269 | 149,929 | 830,841 | 752,484 | ||||||||||||||||||
| Operating income percentage | 11.1 | % | 30.7 | % | 18.4 | % | 24.2 | % | 26.3 | % | |||||||||||||
| Year-to-year change (basis points) | -730 | 290 | -1,110 | -210 | -230 | ||||||||||||||||||
| Quarter-to-quarter change (basis points) | -1960 | 40 | -940 | ||||||||||||||||||||
| Other expense | 3,953 | 5,791 | 11,231 | 20,727 | 23,139 | ||||||||||||||||||
| Income before income tax | 104,677 | 259,478 | 138,698 | 810,114 | 729,345 | ||||||||||||||||||
| Provision for income taxes | 8,372 | 43,000 | 30,003 | 113,236 | 100,025 | ||||||||||||||||||
| Tax rate percentage | 8.0 | % | 16.6 | % | 21.6 | % | 14.0 | % | 13.7 | % | |||||||||||||
| Net income | $ | 96,305 | $ | 216,478 | $ | 108,695 | $ | 696,878 | $ | 629,320 | |||||||||||||
| Shares used for EPS - basic | 312,829 | 313,877 | 312,815 | 312,660 | 313,195 | ||||||||||||||||||
| Shares used for EPS - diluted | 316,571 | 318,187 | 316,868 | 316,872 | 318,027 | ||||||||||||||||||
| Earnings per share - basic | $ | 0.31 | $ | 0.69 | $ | 0.35 | $ | 2.23 | $ | 2.01 | |||||||||||||
| Earnings per share - diluted | $ | 0.30 | $ | 0.68 | $ | 0.34 | $ | 2.20 | $ | 1.98 | |||||||||||||
| Dividends paid per share | $ | 0.40 | $ | 0.40 | $ | 0.37 | $ | 1.57 | $ | 1.45 | |||||||||||||
| (1) Includes stock-based compensation expense as follows: | |||||||||||||||||||||||
| Cost of sales | $ | 2,188 | $ | 2,196 | $ | 2,371 | $ | 8,983 | $ | 7,069 | |||||||||||||
| R&D | $ | 6,487 | $ | 6,839 | $ | 6,155 | $ | 26,617 | $ | 20,707 | |||||||||||||
| Selling, marketing and G&A | $ | 7,408 | $ | 7,329 | $ | 6,867 | $ | 33,319 | $ | 23,036 | |||||||||||||
| Analog Devices, Fourth Quarter, Fiscal 2015 | ||||||||||||
|
Schedule B |
||||||||||||
| Selected Balance Sheet Information (Unaudited) | ||||||||||||
| (In thousands) | ||||||||||||
| 4Q 15 | 3Q 15 | 4Q 14 | ||||||||||
|
Oct. 31,
2015 |
Aug. 1,
2015 |
Nov. 1,
2014 |
||||||||||
| Cash & short-term investments | $ | 3,028,928 | $ | 3,099,961 | $ | 2,866,468 | ||||||
| Accounts receivable, net | 466,527 | 451,511 | 396,605 | |||||||||
| Inventories (1) | 412,314 | 424,475 | 367,927 | |||||||||
| Other current assets | 171,779 | 173,945 | 180,886 | |||||||||
| Total current assets | 4,079,548 | 4,149,892 | 3,811,886 | |||||||||
| PP&E, net | 644,110 | 631,269 | 622,422 | |||||||||
| Investments | 41,235 | 40,324 | 34,507 | |||||||||
| Goodwill | 1,636,526 | 1,640,381 | 1,642,438 | |||||||||
| Intangible assets, net | 583,517 | 601,882 | 671,402 | |||||||||
| Other | 77,242 | 70,953 | 77,035 | |||||||||
| Total assets | $ | 7,062,178 | $ | 7,134,701 | $ | 6,859,690 | ||||||
| Deferred income on shipments to distributors, net | $ | 300,087 | $ | 307,265 | $ | 278,435 | ||||||
| Other current liabilities | 438,904 | 375,753 | 430,621 | |||||||||
| Debt, current | 374,839 | 374,752 | - | |||||||||
| Long-term debt | 498,497 | 498,448 | 872,789 | |||||||||
| Non-current liabilities | 376,892 | 513,322 | 519,948 | |||||||||
| Shareholders' equity | 5,072,959 | 5,065,161 | 4,757,897 | |||||||||
| Total liabilities & equity | $ | 7,062,178 | $ | 7,134,701 | $ | 6,859,690 | ||||||
(1) Includes $2,923, $2,935, and $3,291 related to stock-based compensation in 4Q15, 3Q15, and 4Q14, respectively.
| Analog Devices, Fourth Quarter, Fiscal 2015 | ||||||||||||||||||
|
Schedule C |
||||||||||||||||||
| Cash Flow Statement (Unaudited) | ||||||||||||||||||
| (In thousands) | ||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||
| 4Q 15 | 3Q 15 | 4Q 14 | FY 15 | FY 14 | ||||||||||||||
|
Oct. 31,
2015 |
Aug. 1,
2015 |
Nov. 1,
2014 |
Oct. 31, 2015 |
Nov. 1,
2014 |
||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||
| Net Income | $ | 96,305 | $ | 216,478 | $ | 108,695 | $ | 696,878 | $ | 629,320 | ||||||||
| Adjustments to reconcile net income | ||||||||||||||||||
| to net cash provided by operations: | ||||||||||||||||||
| Depreciation | 32,688 | 33,650 | 30,917 | 130,147 | 114,064 | |||||||||||||
| Amortization of intangibles | 18,302 | 23,898 | 26,186 | 92,093 | 27,906 | |||||||||||||
| Stock-based compensation expense | 16,083 | 16,364 | 15,393 | 68,919 | 50,812 | |||||||||||||
| Other non-cash activity | (2,428 | ) | 3,827 | 600 | 6,974 | 4,423 | ||||||||||||
| Excess tax benefit - stock options | (2,895 | ) | (6,373 | ) | (882 | ) | (25,045 | ) | (22,231 | ) | ||||||||
| Deferred income taxes | (25,650 | ) | (17,168 | ) | (69,406 | ) | (52,214 | ) | (77,711 | ) | ||||||||
| Changes in operating assets and liabilities | 65,570 | (73,537 | ) | 150,760 | (9,954 | ) | 145,019 | |||||||||||
| Total adjustments | 101,670 | (19,339 | ) | 153,568 | 210,920 | 242,282 | ||||||||||||
| Net cash provided by operating activities | 197,975 | 197,139 | 262,263 | 907,798 | 871,602 | |||||||||||||
| Percent of revenue | 20.2 | % | 22.8 | % | 32.2 | % | 26.4 | % | 30.4 | % | ||||||||
| Cash flows from investing activities: | ||||||||||||||||||
| Purchases of short-term available-for-sale investments | (1,808,202 | ) | (1,403,600 | ) | (1,946,144 | ) | (6,083,999 | ) | (7,485,162 | ) | ||||||||
| Maturities of short-term available-for-sale investments | 2,045,945 | 1,083,474 | 1,507,940 | 4,984,980 | 7,318,877 | |||||||||||||
| Sales of short-term available-for-sale investments | 159,546 | 215,998 | 487,259 | 1,251,194 | 2,187,389 | |||||||||||||
| Additions to property, plant and equipment | (45,807 | ) | (35,164 | ) | (43,417 | ) | (153,960 | ) | (177,913 | ) | ||||||||
| Payments for acquisitions, net of cash acquired | - | (6,947 | ) | (2,183 | ) | (7,065 | ) | (1,945,887 | ) | |||||||||
| Change in other assets | 1,102 | (1,180 | ) | (2,633 | ) | (8,275 | ) | (12,055 | ) | |||||||||
| Net cash provided by (used for) investing activities | 352,584 | (147,419 | ) | 822 | (17,125 | ) | (114,751 | ) | ||||||||||
| Cash flows from financing activities: | ||||||||||||||||||
| Proceeds from debt | - | - | - | - | 1,995,398 | |||||||||||||
| Term loan repayments | - | - | (1,995,398 | ) | - | (1,995,398 | ) | |||||||||||
| Dividend payments to shareholders | (125,582 | ) | (125,511 | ) | (116,308 | ) | (491,059 | ) | (454,225 | ) | ||||||||
| Repurchase of common stock | (111,702 | ) | (31,340 | ) | (187,375 | ) | (226,953 | ) | (356,346 | ) | ||||||||
| Proceeds from employee stock plans | 7,760 | 19,988 | 21,533 | 122,631 | 200,114 | |||||||||||||
| Excess tax benefit - stock options | 2,895 | 6,373 | 882 | 25,045 | 22,231 | |||||||||||||
| Contingent consideration payment | - | (1,767 | ) | - | (1,767 | ) | (3,576 | ) | ||||||||||
| Change in other financing activities | 3,724 | 4,327 | (1,178 | ) | 500 | 15,192 | ||||||||||||
| Net cash used for financing activities | (222,905 | ) | (127,930 | ) | (2,277,844 | ) | (571,603 | ) | (576,610 | ) | ||||||||
| Effect of exchange rate changes on cash | (798 | ) | (509 | ) | (1,449 | ) | (3,950 | ) | (3,097 | ) | ||||||||
| Net increase (decrease) in cash and cash equivalents | 326,856 | (78,719 | ) | (2,016,208 | ) | 315,120 | 177,144 | |||||||||||
| Cash and cash equivalents at beginning of period | 557,497 | 636,216 | 2,585,441 | 569,233 | 392,089 | |||||||||||||
| Cash and cash equivalents at end of period | $ | 884,353 | $ | 557,497 | $ | 569,233 | $ | 884,353 | $ | 569,233 | ||||||||
|
Analog Devices, Fourth Quarter, Fiscal 2015 |
|||||||||||||
|
Schedule D |
|||||||||||||
|
Revenue Trends by End Market (Unaudited) |
|||||||||||||
|
(In thousands) |
|||||||||||||
|
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. |
|||||||||||||
| Three Months Ended | |||||||||||||
|
Oct. 31,
2015 |
Aug. 1,
2015 |
Nov. 1,
2014 |
|||||||||||
| Revenue | % * | Q/Q % | Y/Y % | Revenue | Revenue | ||||||||
| Industrial | $ | 369,387 | 38% | -4% | -2% | $ | 383,946 | $ | 375,704 | ||||
| Automotive | 132,188 | 14% | 1% | -2% | 130,258 | 134,947 | |||||||
| Consumer | 317,376 | 32% | 53% | 234% | 206,818 | 94,904 | |||||||
| Communications | 159,771 | 16% | 12% | -23% | 142,343 | 208,692 | |||||||
| Total Revenue | $ | 978,722 | 100% | 13% | 20% | $ | 863,365 | $ | 814,247 | ||||
| Twelve Months Ended | |||||||||||||
|
Oct. 31,
2015 |
Nov. 1,
2014 |
||||||||||||
| Revenue | % | Y/Y % | Revenue | ||||||||||
| Industrial | $ | 1,496,198 | 44% | 11% | $ | 1,343,255 | |||||||
| Automotive | 526,124 | 15% | 0% | 525,712 | |||||||||
| Consumer | 729,965 | 21% | 123% | 327,223 | |||||||||
| Communications | 682,805 | 20% | 2% | 668,583 | |||||||||
| Total Revenue | $ | 3,435,092 | 100% | 20% | $ | 2,864,773 | |||||||
| Analog Devices, Fourth Quarter, Fiscal 2015 | |||||||||||||||||
|
Schedule E |
|||||||||||||||||
| Reconciliation from GAAP to Non-GAAP Revenue and Earnings Measures (In thousands, except per-share amounts) (Unaudited) | |||||||||||||||||
| See "Non-GAAP Financial Information" in this press release for a description of the items excluded from our non-GAAP measures. | |||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||
| 4Q 15 | 3Q 15 | 4Q 14 | FY 15 | FY 14 | |||||||||||||
|
Oct. 31,
2015 |
Aug. 1,
2015 |
Nov. 1,
2014 |
Oct. 31,
2015 |
Nov. 1,
2014 |
|||||||||||||
| GAAP Revenue | $ | 978,722 | $ | 863,365 | $ | 814,247 | $ | 3,435,092 | $ | 2,864,773 | |||||||
| Y/Y Revenue growth % | 20% | 9% | |||||||||||||||
| Q/Q Revenue growth % | 13% | 5% | 12% | ||||||||||||||
| Hittite Operations | - | - | - | - | (5,392) | ||||||||||||
| Non-GAAP Revenue | $ | 978,722 | $ | 863,365 | $ | 814,247 | $ | 3,435,092 | $ | 2,859,381 | |||||||
| Y/Y Revenue growth % | 20% | 9% | |||||||||||||||
| Q/Q Revenue growth % | 13% | 5% | 13% | ||||||||||||||
| GAAP Gross Margin | $ | 641,796 | $ | 569,037 | $ | 486,037 | $ | 2,259,262 | $ | 1,830,188 | |||||||
| Gross Margin Percentage | 65.6% | 65.9% | 59.7% | 65.8% | 63.9% | ||||||||||||
| Hittite Operations | - | - | - | (3,015) | |||||||||||||
| Acquisition-Related Expenses | 1,399 | 1,307 | 54,388 | 7,199 | 61,225 | ||||||||||||
| Stock-Based Compensation Expense | - | - | (113) | 113 | (113) | ||||||||||||
| Non-GAAP Gross Margin | $ | 643,195 | $ | 570,344 | $ | 540,312 | $ | 2,266,574 | $ | 1,888,285 | |||||||
| Gross Margin Percentage | 65.7% | 66.1% | 66.4% | 66.0% | 66.0% | ||||||||||||
| GAAP Operating Expenses | $ | 533,166 | $ | 303,768 | $ | 336,108 | $ | 1,428,421 | $ | 1,077,704 | |||||||
| Percent of Revenue | 54.5% | 35.2% | 41.3% | 41.6% | 37.6% | ||||||||||||
| Other Operating Expense | (223,672) | - | - | (223,672) | - | ||||||||||||
| Hittite Operations | - | - | - | - | (2,033) | ||||||||||||
| Acquisition-Related Expenses | (17,682) | (23,490) | (27,166) | (89,738) | (32,450) | ||||||||||||
| Acquisition-Related Transaction Costs | - | (5,139) | (5,987) | (10,016) | (27,110) | ||||||||||||
| Restructuring-Related Expense | - | - | (34,637) | - | (37,322) | ||||||||||||
| Stock-Based Compensation Expense | - | - | 1,302 |
|
(4,164) | 1,302 | |||||||||||
| Non-GAAP Operating Expenses | $ | 291,812 | $ | 275,139 | $ | 269,620 | $ | 1,100,831 | $ | 980,091 | |||||||
| Percent of Revenue | 29.8% | 31.9% | 33.1% | 32.0% | 34.3% | ||||||||||||
| GAAP Operating Income/Margin | $ | 108,630 | $ | 265,269 | $ | 149,929 | $ | 830,841 | $ | 752,484 | |||||||
| Percent of Revenue | 11.1% | 30.7% | 18.4% | 24.2% | 26.3% | ||||||||||||
| Other Operating Expense | 223,672 | - | - | 223,672 | - | ||||||||||||
| Hittite Operations | - | - | - | - | (982) | ||||||||||||
| Acquisition-Related Expenses | 19,081 | 24,797 | 81,554 | 96,937 | 93,675 | ||||||||||||
| Acquisition-Related Transaction Costs | - | 5,139 | 5,987 | 10,016 | 27,110 | ||||||||||||
| Restructuring-Related Expense | - | - | 34,637 | - | 37,322 | ||||||||||||
| Stock-Based Compensation Expense | - | - | (1,415) | 4,277 | (1,415) | ||||||||||||
| Non-GAAP Operating Income/Margin | $ | 351,383 | $ | 295,205 | $ | 270,692 | $ | 1,165,743 | $ | 908,194 | |||||||
| Percent of Revenue | 35.9% | 34.2% | 33.2% | 33.9% | 31.8% | ||||||||||||
| GAAP Other Expense (Income) | $ | 3,953 | $ | 5,791 | $ | 11,231 | $ | 20,727 | $ | 23,139 | |||||||
| Percent of Revenue | 0.4% | 0.7% | 1.4% | 0.6% | 0.8% | ||||||||||||
| Acquisition-Related Debt Costs | - | - | (4,823) | - | (6,336) | ||||||||||||
| Non-GAAP Other Expense | $ | 3,953 | $ | 5,791 | $ | 6,408 | $ | 20,727 | $ | 16,803 | |||||||
| Percent of Revenue | 0.4% | 0.7% | 0.8% | 0.6% | 0.6% | ||||||||||||
| GAAP Diluted EPS | $ | 0.30 | $ | 0.68 | $ | 0.34 | $ | 2.20 | $ | 1.98 | |||||||
| Impact of Loss on Extinguishment of Debt | - | - | - | - | |||||||||||||
| Other Operating Expense | 0.71 | - | - | 0.71 | - | ||||||||||||
| Hittite Operations | - | - | - | - | - | ||||||||||||
| Acquisition-Related Expenses | 0.06 | 0.08 | 0.25 | 0.30 | 0.27 | ||||||||||||
| Acquisition-Related Transaction Costs | - | 0.02 | 0.01 | 0.03 | 0.05 | ||||||||||||
| Acquisition-Related Debt Costs | - | - | 0.01 | - | 0.01 | ||||||||||||
| Acquisition-Related Tax Impact | - | (0.00) | (0.02) | (0.01) | (0.02) | ||||||||||||
| Restructuring-Related Expense | - | - | 0.09 | - | 0.10 | ||||||||||||
| Stock-Based Compensation Expense | - | - | - | 0.01 | - | ||||||||||||
| Impact of Reversal of Prior Period Tax Liabilities | (0.04) | - | - | (0.04) | - | ||||||||||||
| Impact of the Reinstatement of the R&D Tax Credit | - | - | - | (0.02) | - | ||||||||||||
| Non-GAAP Diluted EPS (1) | $ | 1.03 | $ | 0.77 | $ | 0.69 | $ | 3.17 | $ | 2.39 | |||||||
(1) The sum of the individual per share amounts may not equal the total due to rounding
| Analog Devices, Fourth Quarter, Fiscal 2015 | |||||||||||||||||
|
Schedule F |
|||||||||||||||||
| SUPPLEMENTAL CASH FLOW MEASURES (Unaudited) | |||||||||||||||||
| See "Non-GAAP Financial Information" in this press release for a description of the items excluded from our supplemental cash flow measures. | |||||||||||||||||
| (In thousands) | |||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||
| 4Q 15 | 3Q 15 | 4Q 14 | FY 15 | FY 14 | |||||||||||||
|
Oct. 31,
2015 |
Aug. 1,
2015 |
Nov. 1,
2014 |
Oct. 31, 2015 |
Nov. 1,
2014 |
|||||||||||||
| Net cash provided by operating activities | $ | 197,975 | $ | 197,139 | $ | 262,263 | $ | 907,798 | $ | 871,602 | |||||||
| Non-GAAP adjustments: | |||||||||||||||||
| Pension conversion payments | 223,672 | - | - | 223,672 | - | ||||||||||||
| Adjusted cash flows from operations | $ | 421,647 | $ | 197,139 | $ | 262,263 | $ | 1,131,470 | $ | 871,602 | |||||||
| Capital expenditures | (45,807 | ) | (35,164 | ) | (43,417 | ) | (153,960 | ) | (177,913 | ) | |||||||
| Adjusted free cash flow | $ | 375,840 | $ | 161,975 | $ | 218,846 | $ | 977,510 | $ | 693,689 | |||||||
| % of revenue | 38.4 | % | 18.8 | % | 26.9 | % | 28.5 | % | 24.2 | % | |||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20151124005188/en/
Contact:
Analog Devices, Inc.
Mr. Ali Husain, 781-461-3282 (phone)
781-461-3491
(fax)
Treasurer and Director of Investor Relations
Email Contact