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ADI · Analog Devices

31 filings

10-K

ADI 10-K Annual Reports

Analog Devices - 31 annual reports

Filing record · 2016–202610-K1010-Q338-K146

2025
Analog Devices Annual Report, Year Ended Nov 1, 2025
Analog Devices, Inc. (ADI) reported robust financial performance for the fiscal year ended November 1, 2025, with total revenue reaching $11.02 billion, a significant 17% increase year-over-year. This growth was driven by broad-based demand across its key end markets, particularly in Industrial, Automotive, and Communications. The company's strategic focus on innovation and customer-centricity, coupled with its strong position in high-performance analog, mixed-signal, and processing technologies, has enabled it to capitalize on secular trends like the Intelligent Edge, AI, and pervasive connectivity. Profitability saw a substantial improvement, with net income rising 39% to $2.27 billion, and diluted EPS increasing by the same percentage to $4.56. This enhanced profitability was supported by a significant 440 basis point expansion in gross margin to 61.5%, attributed to higher factory utilization and a decrease in amortization expense. ADI also demonstrated strong operational cash flow, generating $4.81 billion. The company continues to return value to shareholders through dividends and share repurchases, underscoring its financial strength and commitment to shareholder returns.
Nov 25, 2025
2024
Analog Devices Annual Report, Year Ended Nov 2, 2024
Analog Devices, Inc. (ADI) reported a decrease in revenue for fiscal year 2024, down 23% to $9.43 billion compared to $12.31 billion in fiscal year 2023. This decline was primarily attributed to weaker macroeconomic trends, impacting the Industrial and Communications segments significantly, with Automotive and Consumer segments also experiencing declines. The company's gross margin also saw a substantial decrease from 64.0% to 57.1%, driven by lower factory utilization and an unfavorable product mix. Despite the revenue and margin challenges, ADI continues to invest in research and development, which increased as a percentage of revenue to 16%. The company also maintained a strong liquidity position, ending the fiscal year with $2.4 billion in cash, cash equivalents, and short-term investments. ADI also continued to return capital to shareholders through dividends and share repurchases, demonstrating a commitment to shareholder value even amidst a challenging market environment.
Nov 26, 2024
2023
Analog Devices Annual Report, Year Ended Oct 28, 2023
Analog Devices, Inc. (ADI) reported solid financial results for fiscal year 2023, with revenue reaching $12.31 billion, a 2% increase year-over-year. This growth was primarily driven by strong demand in the Industrial and Automotive sectors, which together represented 77% of total revenue. The company demonstrated improved profitability, with Net Income increasing by 21% to $3.31 billion and Diluted EPS growing by 25% to $6.55. ADI's strategic focus on key growth markets like Industrial Automation and Automotive electrification is evident in its revenue mix. Despite some headwinds in the Consumer and Communications segments, the company maintained a healthy gross margin of 64.0%, an improvement from the previous year. Management also focused on operational efficiency, including a workforce reorganization which resulted in special charges but is aimed at aligning costs with market demand. The company continued to return capital to shareholders through dividends and share repurchases, underscoring its commitment to shareholder value.
Nov 21, 2023
2022
Analog Devices Annual Report, Year Ended Oct 29, 2022
Analog Devices, Inc. (ADI) reported strong financial performance for fiscal year 2022, marked by a significant 64% increase in revenue to $12.01 billion, largely driven by the acquisition of Maxim Integrated Products, Inc. and broad-based demand across its key end markets. Net income more than doubled to $2.75 billion, with diluted EPS rising to $5.25. The company demonstrated robust gross margins of 62.7%, an improvement from the prior year, reflecting favorable product mix, acquisition synergies, and higher factory utilization. ADI continues to invest in research and development (R&D) to maintain product leadership and innovate for future growth, though R&D as a percentage of revenue decreased slightly. The company also actively returned capital to shareholders through dividends and share repurchases, underscoring its commitment to shareholder value. The company's strategic priorities include efficient capital allocation, deepening customer-centricity, and capitalizing on secular trends like the Industrial Internet of Things (IIoT), automotive electrification and autonomy, and digital healthcare. ADI's diversified revenue streams across Industrial (51% of FY22 revenue), Automotive (21%), Communications (16%), and Consumer (13%) markets provide resilience. Despite global economic uncertainties and supply chain challenges prevalent in the semiconductor industry, ADI's diversified operations and strategic acquisitions position it well for continued growth and market leadership.
Nov 22, 2022
2021
Analog Devices Annual Report, Year Ended Oct 30, 2021
Analog Devices, Inc. (ADI) reported strong performance in fiscal year 2021, with a significant increase in revenue driven by broad-based demand across its key end markets: Industrial, Automotive, Communications, and Consumer. The company's acquisition of Maxim Integrated Products, Inc. in August 2021 for approximately $28 billion was a major event, contributing to the revenue growth and expanding ADI's product portfolio and market reach. Despite a slight decrease in gross margin percentage due to acquisition-related costs, ADI maintained healthy profitability. The company also continued its commitment to returning capital to shareholders through dividends and share repurchases, underscoring its robust financial position and confidence in future growth.
Dec 3, 2021
2020
Analog Devices Annual Report, Year Ended Oct 31, 2020
Analog Devices, Inc. (ADI) reported fiscal year 2020 revenues of $5.6 billion, a 6% decrease from fiscal year 2019, primarily attributed to broader market weakness influenced by the COVID-19 pandemic. Despite the revenue decline, the company maintained a strong gross margin of 65.9% and a net income of $1.22 billion. The Industrial segment remained the largest revenue contributor at 53% of total revenue. ADI is in the process of acquiring Maxim Integrated Products, Inc. for an estimated $23 billion, a strategic move aimed at enhancing its position as a leading analog semiconductor provider. The company also highlighted its commitment to R&D and customer-centricity as key drivers for long-term success. The company navigated the challenges of fiscal 2020, including the impact of the COVID-19 pandemic, by adapting its operations and focusing on core strategic priorities. Management expressed confidence in the company's ability to fund its operations, capital expenditures, and strategic initiatives, including the proposed Maxim acquisition, through its existing liquidity and cash flow generation. ADI's financial health remains robust, supported by strong cash flow from operations and a solid balance sheet.
Nov 24, 2020
2019
Analog Devices Annual Report, Year Ended Nov 2, 2019
Analog Devices, Inc. (ADI) reported revenues of $5.99 billion for the fiscal year ended November 2, 2019, a decrease of 4% compared to the prior year. This revenue decline was primarily driven by weaker demand across most end markets, particularly consumer and automotive, and the impact of having one less operational week in fiscal 2019 compared to fiscal 2018. Net income also saw a decrease of 10% to $1.36 billion, resulting in diluted earnings per share of $3.65. Despite the revenue dip, ADI maintained a strong gross margin of 67.0%. The company continued to invest in research and development, with R&D expenses representing 18.9% of revenue, reflecting its commitment to innovation in high-performance analog and digital signal processing technologies. ADI's diversified end-market exposure, with Industrial accounting for 50% of revenue, continues to be a core strength, although all segments experienced some decline in fiscal 2019.
Nov 26, 2019
2018
Analog Devices Annual Report, Year Ended Nov 3, 2018
Analog Devices, Inc. (ADI) reported strong revenue growth of 21% in fiscal year 2018, reaching $6.2 billion, primarily driven by the acquisition of Linear Technology Corporation (Linear) in March 2017 and robust demand across its key end markets, particularly Industrial and Communications. The company's strategic focus on high-performance analog and mixed-signal integrated circuits positions it well for emerging technology trends like 5G, autonomous vehicles, and smart healthcare. Despite the significant debt incurred from the Linear acquisition, ADI demonstrated improved profitability, with net income more than doubling year-over-year to $1.5 billion and diluted EPS rising to $3.97. The company also reinstated its share repurchase program in August 2018, signaling confidence in its financial position and commitment to returning value to shareholders. ADI's diversified revenue streams by end market and geography, coupled with a strong gross margin of 68.3%, highlight its resilience and strategic execution.
Nov 27, 2018
2017
Analog Devices Annual Report, Year Ended Oct 28, 2017
Analog Devices, Inc. (ADI) reported strong revenue growth in Fiscal Year 2017, driven significantly by the transformative acquisition of Linear Technology Corporation (Linear) completed in March 2017. This strategic move expanded ADI's portfolio of high-performance analog, mixed-signal, and digital signal processing technologies, positioning the company for growth in key markets like industrial, automotive, consumer, and communications. The company experienced a substantial revenue increase of 49% year-over-year, largely attributed to the inclusion of Linear's financials. While gross margins saw a slight decrease due to acquisition accounting adjustments, ADI's operational performance remained robust. The company also continued its investment in research and development, highlighting a commitment to innovation and future product development. Investors should note the significant debt incurred to finance the Linear acquisition, which increased interest expenses. However, ADI's strong cash flow from operations and its established market position are expected to support debt servicing and future growth initiatives. The company also demonstrated a commitment to returning capital to shareholders through consistent dividend payments.
Nov 22, 2017
2016
Analog Devices Annual Report, Year Ended Oct 29, 2016
Analog Devices, Inc. (ADI) reported stable revenue of $3.42 billion for fiscal year 2016, a slight decrease of 0.4% from the previous year, but demonstrated significant profit growth with net income rising 24% to $861.7 million and diluted earnings per share increasing 25% to $2.76. This improved profitability was driven by a substantial decrease in "Other operating expense" due to a one-time Irish pension plan settlement charge in the prior year, alongside a slight improvement in gross margin percentage and controlled operating expenses. The most transformative event discussed is the definitive agreement to acquire Linear Technology Corporation for approximately $14.8 billion, announced in July 2016. This acquisition, expected to be funded by a mix of stock and debt, is poised to significantly expand ADI's portfolio and market reach. The company also reported ongoing investments in Research and Development, underscoring its commitment to innovation in key markets like Industrial, Automotive, Consumer, and Communications.
Nov 22, 2016
2015
Analog Devices Annual Report, Year Ended Oct 31, 2015
Analog Devices, Inc. (ADI) reported a strong fiscal year 2015, with total revenue increasing by 20% to $3.435 billion, largely driven by the acquisition of Hittite Microwave Corporation. Net income also saw a healthy increase of 11% to $696.8 million, resulting in diluted earnings per share of $2.20. The company's core markets, particularly industrial and consumer, showed robust performance, with industrial representing 44% of revenue and consumer showing significant growth. ADI continues to invest heavily in research and development, spending $637 million in fiscal 2015 to maintain its technological leadership in analog, mixed-signal, and digital signal processing technologies. Financially, ADI ended the fiscal year with substantial liquidity, holding $3.0 billion in cash and cash equivalents and short-term investments. The company also demonstrated a commitment to returning value to shareholders through dividends and share repurchases. While the company faces competition and cyclicality inherent in the semiconductor industry, its diversified end markets and continued focus on innovation position it well for future growth.
Nov 24, 2015
2014
Analog Devices Annual Report, Year Ended Nov 1, 2014
Analog Devices Inc. (ADI) reported solid performance for the fiscal year ending November 1, 2014, with revenue increasing by 9% year-over-year to $2.86 billion. This growth was primarily driven by strong demand in the industrial, automotive, and communications markets, along with the significant acquisition of Hittite Microwave Corporation for approximately $2.4 billion in July 2014. The Hittite acquisition is expected to bolster ADI's portfolio in high-performance RF, microwave, and millimeterwave applications. While gross margins slightly decreased year-over-year due to acquisition-related inventory adjustments, overall profitability remained robust. The company continued to invest heavily in Research and Development (R&D) to maintain its technological leadership. ADI also demonstrated a commitment to returning capital to shareholders through consistent dividend payments and share repurchases. The company's strong balance sheet and cash flow generation provide a stable foundation for future growth and strategic investments.
Dec 10, 2014
2013
Analog Devices Annual Report, Year Ended Nov 2, 2013
Analog Devices Inc. (ADI) reported its 2013 fiscal year results, highlighting a slight year-over-year revenue decrease of 2% to $2.63 billion. Despite this, diluted earnings per share from continuing operations saw a modest increase to $2.14. The company's performance was impacted by a weaker global economic environment and one less operational week compared to the prior year. ADI's diversified revenue streams across industrial, automotive, consumer, and communications markets demonstrated mixed performance, with industrial and consumer sectors experiencing declines while automotive saw growth due to increasing electronic content in vehicles. The company's strategic focus remains on high-performance analog, mixed-signal, and digital signal processing ICs. ADI's commitment to research and development remained strong, with R&D expenses largely flat year-over-year at $513 million, underscoring its dedication to innovation and maintaining technological leadership. Financially, ADI maintained a strong liquidity position and continued its commitment to shareholder returns through dividends and stock repurchases. The company also divested its microphone product line during the year, signaling a strategic streamlining of its portfolio.
Nov 26, 2013
2012
Analog Devices Annual Report, Year Ended Nov 3, 2012
Analog Devices, Inc. (ADI) reported a decrease in revenue and profitability for fiscal year 2012 compared to fiscal year 2011, primarily attributed to a global economic slowdown impacting customer demand and inventory levels. Despite this revenue decline, the company maintained strong profitability, with net income from continuing operations representing 24.1% of revenue. ADI continued its focus on research and development, investing heavily to maintain technological leadership in analog, mixed-signal, and digital signal processing integrated circuits. The company also actively managed its capital structure, returning value to shareholders through dividends and stock repurchases, while maintaining a healthy liquidity position. Key markets for ADI include Industrial, Communications, Automotive, and Consumer. The Industrial segment, which is the largest contributor to revenue, experienced a decline, while the Automotive segment saw an increase due to growing electronic content in vehicles. The company's product portfolio is diverse, with Converters and Amplifiers/Radio Frequency being the largest revenue contributors. ADI's strategy centers on innovation and a broad technology portfolio to address complex engineering challenges across its target markets.
Nov 27, 2012
2011
Analog Devices Annual Report, Year Ended Oct 29, 2011
Analog Devices Inc. (ADI) reported solid performance in its fiscal year 2011, with a notable 8% increase in revenue to $2.99 billion, driven primarily by strong demand in the Industrial and Communications sectors. Net income from continuing operations grew by 21% to $861 million, reflecting improved global economic conditions for much of the year. The company also demonstrated operational efficiency, with a gross margin improving to 66.4% from 65.2% in the prior year, supported by cost-reduction initiatives and higher operating levels. Despite a slowdown in the latter half of the fiscal year attributed to customer inventory corrections and economic caution in Europe and the U.S., ADI maintained a healthy financial position. The company generated substantial operating cash flow and actively returned capital to shareholders through dividends and share repurchases. ADI's strategic focus on high-performance analog, mixed-signal, and digital signal processing integrated circuits for key markets like industrial, automotive, consumer, and communications positions it well for continued innovation and growth, although the cyclical nature of the semiconductor industry presents ongoing risks.
Nov 22, 2011
2010
Analog Devices Annual Report, Year Ended Oct 30, 2010
Analog Devices, Inc. (ADI) reported strong financial performance in fiscal year 2010, marking a significant recovery from the prior year's economic downturn. Revenue increased by 37% year-over-year, driven by a resurgence in demand across key end markets including industrial, automotive, consumer, and communications. The company's gross margin also saw a substantial improvement, rising from 55.5% in FY2009 to 65.2% in FY2010, reflecting increased sales volume, improved operating leverage, and cost-reduction initiatives. Net income from continuing operations more than doubled, reaching $711.2 million, with diluted EPS from continuing operations growing to $2.33. ADI's robust cash flow from operations ($991.2 million) provided ample liquidity, supporting capital expenditures, dividend payments, and share repurchases. The company continued to invest heavily in R&D ($492.3 million) to maintain its technological leadership in analog, mixed-signal, and digital signal processing ICs. The company's diversified end-market exposure proved beneficial, with industrial applications representing the largest segment at 46% of revenue, followed by communications (22%) and consumer (19%). The company's strategic focus on high-performance products and markets that value innovation appears to be paying off, positioning it well for continued growth.
Nov 22, 2010
2009
Analog Devices Annual Report, Year Ended Oct 31, 2009
Analog Devices Inc. (ADI) reported for the fiscal year ending October 30, 2009, a period significantly impacted by the global economic downturn. Revenue declined by 22% year-over-year to $2.01 billion, reflecting cautious customer spending across key markets like Industrial, Communications, and Consumer. Despite the revenue drop and a 52% decrease in diluted EPS from continuing operations to $0.85, the company maintained a solid gross margin of 55.5% and generated $432.1 million in cash flow from operations. ADI ended the fiscal year with a robust cash position of $1.816 billion, demonstrating resilience amidst challenging economic conditions. The company also continued its strategic focus on innovation, investing substantially in R&D, and initiated cost-reduction measures including facility consolidation.
Nov 24, 2009
2008
Analog Devices Annual Report, Year Ended Nov 1, 2008
Analog Devices (ADI) closed fiscal 2008 (ended November 1, 2008) with total revenue of $2.58 billion, up 5% from $2.46 billion in fiscal 2007, and diluted EPS from continuing operations of $1.77, up 17%. Reported diluted EPS was $2.65, boosted by $261 million of income from discontinued operations, mainly the $248 million after-tax gain on the sale of the Baseband Chipset Business to MediaTek and the CPU voltage regulation business to ON Semiconductor. Gross margin held roughly flat at 61.1%, operating margin from continuing operations improved to 24.2%, and the company ended the year with $1.31 billion in cash and short-term investments and no debt. Operating cash flow was $669 million, or 26% of revenue, though it was reduced by $110 million of taxes on the divestiture gains. The outlook is sharply weaker. Management said order rates slowed in late September 2008 and backlog fell significantly, so it plans for first-quarter fiscal 2009 revenue to decline about 20% from the fourth quarter. It also expects gross margin of roughly 57% to 58% as it cuts manufacturing output to avoid inventory buildup, and it plans operating expense reductions of about 10%, or $25 million. Management guided first-quarter fiscal 2009 diluted EPS from continuing operations to $0.22 to $0.23 before restructuring charges. Shareholder returns were significant: $570 million of buybacks and $223 million of dividends in fiscal 2008, with $95 million left on the $4 billion repurchase authorization. The company also resolved the SEC stock option investigation with a $3 million penalty and no restatement. Key risks for investors are demand volatility in a cyclical semiconductor market, the global credit crisis, reliance on TSMC for about 44% of revenue from third-party wafer fabs, and the fact that most of the cash is held outside the United States. Only about $89 million of the cash balance is held in the U.S., which limits domestic uses such as dividends and buybacks absent repatriation or borrowing under the $165 million revolving facility.
Nov 25, 2008
2007
Analog Devices Annual Report, Year Ended Nov 3, 2007
Analog Devices (ADI) closed fiscal 2007 (53 weeks ended November 3, 2007) with continuing-operations revenue of $2.546 billion, up about 8.7% from $2.343 billion in fiscal 2006, and gross margin of 59.7%, roughly flat with 59.9% a year earlier. Operating income from continuing operations rose 8% to $566 million, but net income from continuing operations fell about 3% to $500.7 million, mainly because interest income dropped with lower invested cash and the effective tax rate rose to 24.0% from 18.5%. Diluted EPS from continuing operations was $1.51, versus $1.39 in fiscal 2006. Reported diluted EPS including discontinued operations was $1.50. The filing shows a company that returned heavy capital to shareholders and reshaped its portfolio. ADI repurchased about 45.9 million shares for $1.647 billion and paid $228 million in dividends, which cut cash and short-term investments to $1.081 billion from $2.13 billion a year earlier and reduced total assets to $2.97 billion from $3.99 billion. Growth came from consumer (up 23%, driven by video games and digital TV) and automotive-related industrial products, while computer products fell 17% as management deliberately de-emphasized desktop and laptop power management. Management also announced two divestitures expected to close in the first quarter of fiscal 2008: the Baseband Chipset Business, sold to MediaTek for roughly $350 million and expected to yield an after-tax gain of $150-160 million, and the CPU voltage regulation and PC thermal monitoring business, sold to ON Semiconductor for about $185 million with an expected after-tax gain of $52-60 million. Together these are expected to generate $250-270 million of cash. Risks flagged in the filing include semiconductor cyclicality, heavy dependence on TSMC for wafer supply, and about 74% of product revenue from international customers. Legal matters include a tentative SEC settlement over historical stock option grant practices (a $3 million civil penalty for the company), a U.S. Attorney subpoena on the same subject, a pending Investment Partnership Plan ERISA class action, and a patent suit against Linear Technology with trial set for October 2008. Management said it does not expect these matters to have a material adverse effect on financial position. Guidance for Q1 fiscal 2008 is product sales of $610-635 million and diluted EPS of $0.38-0.42 from continuing operations.
Nov 30, 2007
2006
Analog Devices Annual Report, Year Ended Oct 28, 2006
Analog Devices (ADI) closed fiscal 2006 (ended October 28, 2006) with net sales of $2,573.2 million, up 8% from $2,388.8 million in fiscal 2005, and diluted EPS of $1.48, up from $1.08. Gross margin improved to 58.5% from 57.9%, and net income rose to $549.5 million from $414.8 million. Growth was led by the industrial end market (up 15% to 42% of revenue) and consumer (up 16%), while computer (down 10%) and wireless chipset sales (down 10%) weakened. Results were helped by a $35.2 million IRS-examination tax benefit and a lower effective tax rate of 17.2%, and were partly offset by $73.9 million of stock-based compensation expense from the adoption of SFAS 123R and $21.7 million of purchased in-process R&D from three acquisitions. Balance sheet and cash flow remain strong. ADI ended the year with $2,128 million in cash, cash equivalents and short-term investments and no debt. Operating cash flow was $621.1 million, and the company returned substantial capital: it repurchased about 30.7 million shares for roughly $1,025 million and paid $201.5 million in dividends. Management guided first-quarter fiscal 2007 total revenue to $670–$705 million, including a one-time $35 million intellectual property license payment, with diluted EPS of $0.36–$0.42. Investors should also note the ongoing option-granting investigations. ADI agreed to a tentative SEC settlement with a $3 million civil penalty from the company and a $1 million penalty from CEO Jerald Fishman, with some repricing of options. The company says no restatement is needed, estimating a cumulative net income impact of $21.8 million over fiscal 1998–2005. Several related shareholder and class action suits are pending, though one derivative suit was dismissed. Management considers none of the matters likely to have a material adverse effect on financial position. The company also closed its Sunnyvale wafer fab in November 2006, with about $50 million in expected annual savings beginning in fiscal 2007.
Nov 20, 2006
2005
Analog Devices Annual Report, Year Ended Oct 29, 2005
Analog Devices Inc. (ADI) reported its 2005 fiscal year results, highlighting a revenue decline of 9% compared to fiscal year 2004, largely attributed to an inventory correction in the automatic test equipment (ATE) and wireless handset markets. Despite the revenue dip, the company maintained a strong gross margin of 57.9% and demonstrated robust operational cash flow of $673 million. Financially, ADI held $2.7 billion in cash, cash equivalents, and short-term investments, indicating a solid liquidity position. The company actively returned capital to shareholders through $525 million in share repurchases and $119 million in cash dividends during fiscal 2005. A notable event was the tentative settlement of the SEC's stock option investigation, which involved a $3 million civil penalty for the company and a $1 million penalty for the CEO, with no restatement of historical financial results required. The company continues to invest significantly in research and development, spending $497 million in fiscal 2005, underscoring its commitment to innovation in high-performance analog, mixed-signal, and digital signal processing integrated circuits. ADI's strategic focus remains on its core analog and DSP product lines, serving diverse markets including industrial, communications, computer, and consumer electronics.
Nov 21, 2005
2004
Analog Devices Annual Report, Year Ended Oct 30, 2004
Analog Devices (ADI) closed fiscal 2004 (year ended October 30, 2004) with a very strong year on the top and bottom line. Net sales rose 29% to $2,633.8 million from $2,047.3 million, driven by a broad-based upturn in demand across every end market, with industrial and communications accounting for roughly 77% of the increase. Gross margin expanded 410 basis points to 59%, operating expenses grew only 14%, and operating income reached $699 million (26.6% of sales) versus $374 million a year earlier. Net income more than doubled to $570.7 million, and diluted EPS rose 86% to $1.45. Operating cash flow was $778 million, or 29.5% of sales. The balance sheet is conservative. ADI ended the year with $2,685 million in cash, cash equivalents and short-term investments and no debt outstanding, following the 2003 redemption of its $1.2 billion convertible notes. Management also initiated its first cash dividend program ($0.20 per share paid during fiscal 2004, with a $0.06 quarterly dividend declared in November 2004) and authorized a $500 million share repurchase program, of which about $137 million was used in fiscal 2004. The outlook is notably cautious. Fourth-quarter sales fell 12% sequentially as customers worked down inventory, order cancellations increased, and backlog dropped to $329 million from $387 million. Management guided first-quarter fiscal 2005 revenue to $575–600 million and diluted EPS to $0.28–0.31, and expects a recovery in the second quarter onward. Key risks disclosed include semiconductor cyclicality, reliance on sole-source foundries (notably TSMC, a related party), roughly 75% international revenue exposure, an SEC inquiry into historical stock option grants, a pending Enron preference claim (about $20 million), and an ongoing IRS audit.
Nov 30, 2004
2003
Analog Devices Annual Report, Year Ended Nov 1, 2003
Analog Devices' fiscal 2003 (year ended November 1, 2003) was a strong recovery year. Net sales rose 20% to $2,047 million from $1,708 million, gross margin expanded 190 basis points to 54.9%, and diluted EPS rose to $0.78 from $0.28. Net income reached $298 million, up from $105 million. Growth was led by demand for analog and DSP products used in wireless handsets, PCs, and consumer applications, while broadband infrastructure sales declined. Operating income nearly tripled to $374 million (18.3% of sales), helped by the cessation of goodwill amortization under FAS 142 and lower special charges. Operating cash flow was $433 million. The balance sheet was significantly de-levered. ADI redeemed all $1.2 billion of its 4.75% convertible subordinated notes on October 1, 2003, at a cost of about $1,223 million, leaving the company with no funded debt other than operating leases. Cash, cash equivalents and short-term investments fell to $2,117 million from $2,898 million, and stockholders' equity rose to $3,288 million. The company also initiated a $0.04 per share quarterly dividend, its first cash dividend in the periods presented. Management guided for approximately 25% revenue growth in fiscal 2004, continued gross margin improvement, capital expenditures of roughly $130 million (about 5% of sales), and an effective tax rate near 22%. Near-term guidance called for revenue to rise about 5% sequentially in Q1 fiscal 2004 and diluted EPS of $0.27 to $0.28. Investors should note the ongoing litigation exposure (Motorola patent suit, Plasma Physics, and the Enron preference claim), the IRS audit of fiscal 2001 and 2002, and the cyclical nature of the semiconductor industry, along with the company's reliance on Asian foundries such as TSMC.
Dec 23, 2003
2002
Analog Devices Annual Report, Year Ended Nov 2, 2002
Analog Devices' fiscal 2002 (year ended November 2, 2002) was a sharp downturn year. Net sales fell 25% to $1.708 billion from $2.277 billion, and net income dropped 70% to $105 million, or $0.28 diluted EPS, from $356 million and $0.93 a year earlier. The decline followed the industry-wide collapse in demand that began in fiscal 2001, with the communications market hit hardest. Gross margin held up relatively well at 53%, though it fell 270 basis points, and the company reported operating income of $118 million, or 6.9% of sales, versus $408 million in fiscal 2001. Management responded with four-inch fab consolidation, special charges of $48.5 million, and tighter discretionary spending, while R&D was maintained at $424 million (24.8% of sales) to protect long-term product leadership. Balance sheet and cash flow strength is the central investor takeaway. Cash, cash equivalents and short-term investments totaled $2.9 billion against $1.27 billion of 4.75% convertible subordinated notes due 2005, which were swapped to a floating LIBOR rate. Operating cash flow was still positive at $226 million, capital spending was cut to $57 million from $297 million, and the company repurchased $98 million of stock. Management expects the restructuring to yield roughly $60 million in annual savings once complete, and guided fiscal 2003 capex to about $80 million with an effective tax rate near 22% after goodwill amortization ends. Key risks include continued cyclicality and overcapacity in the semiconductor market, a pending patent suit from Townshend Intellectual Property, a new suit from Plasma Physics Corporation, the transition of production from four-inch fabs to six- and eight-inch fabs, and roughly 70% of revenue coming from international customers. Backlog rose modestly to $262 million from $210 million, though management cautioned that backlog is not a reliable predictor of future revenue.
Jan 29, 2003
2001
Analog Devices Annual Report, Year Ended Nov 3, 2001
Analog Devices, Inc. (ADI) filed its 10-K for the fiscal year ended November 3, 2001, reporting a challenging year marked by a significant decline in net sales due to a general economic downturn and a sharp downturn in the semiconductor industry, particularly impacting the communications market. Despite these headwinds, the company maintained substantial investments in research and development to foster innovation and product leadership. The company's financial performance saw a decrease in net sales by 12% compared to the previous year, with gross margins slightly contracting. While analog IC product sales showed resilience in the first half of the year, DSP IC product sales experienced a significant drop due to order cancellations. ADI also completed several strategic acquisitions during the year to enhance its product portfolio and technological capabilities, though these contributed to increased amortization of intangibles. The company ended the fiscal year with a strong liquidity position, demonstrating prudent cash management.
Jan 28, 2002
2000
Analog Devices Annual Report, Year Ended Oct 28, 2000
Analog Devices (ADI) closed fiscal 2000 (year ended October 28, 2000) with a banner year. Net sales rose 78% to $2.58 billion from $1.45 billion, driven by broad-based demand across all end markets, with communications the largest growth area. Gross margin expanded sharply to 56.7% from 49.3%, as fixed costs were spread over a much higher sales base and manufacturing efficiencies improved. Operating income reached $767 million (29.8% of sales) versus $243 million in fiscal 1999, and net income rose to $607 million, or $1.59 per diluted share, from $197 million and $0.55 a year earlier. The filing also reflects the 2-for-1 stock split effected March 15, 2000. The balance sheet was transformed by a $1.2 billion issuance of 4.75% Convertible Subordinated Notes due 2005 (conversion price $129.78). Cash, cash equivalents and short-term investments rose to $2.24 billion, while debt-to-equity increased to roughly 53%. Management is spending heavily on capacity: capital expenditures were $275 million in fiscal 2000 and are planned at about $450 million for fiscal 2001. R&D rose to $401 million (15.5% of sales), and the company acquired BCO Technologies for about $163 million, with further acquisitions such as ChipLogic (about $86 million) completed after year-end. Investors should weigh the strong growth and margins against several risks flagged in the filing: cyclicality of the semiconductor industry, potential overcapacity from rapid expansion, dependence on third-party foundries and subcontractors, geographic concentration of manufacturing in earthquake-prone regions, and pending patent litigation (including suits by U.S. Philips and Linear Technology). The company also states it has never paid cash dividends and does not intend to do so. Backlog nearly doubled to about $1.06 billion, though management cautions that backlog is not a reliable indicator of future revenue.
Jan 26, 2001
1999
Analog Devices Annual Report, Year Ended Oct 30, 1999
Analog Devices' fiscal 1999 (year ended October 30, 1999) was a strong rebound year. Net sales rose 18% to $1.45 billion from $1.23 billion, driven mainly by broadband and wireless communications (about 40% of revenue, the largest and fastest-growing served market), along with computer and consumer demand. Gross margin improved to 49.3% from 47.8%, and operating income reached $243 million, or about 16.7% of sales, even after a $5.1 million in-process R&D write-off. Net income more than doubled to $197 million, and diluted EPS rose to $1.10 from $0.50 (or $0.71 before the prior-year accounting change). The results reflect both an industry upturn and tight cost control, with SMG&A falling to 14.5% of sales. The balance sheet strengthened considerably. Cash, equivalents and short-term investments reached $762 million, up from $305 million, supported by $427 million of operating cash flow and the $105 million WaferTech stake sale. Long-term debt was largely eliminated: the 3.5% convertible notes were converted into about 11 million shares, and only $80 million of 6 5/8% notes remain, due March 2000. Debt-to-equity fell to roughly 7% from 31%. Backlog nearly tripled to $446 million, which management cautions should not be read as a reliable indicator of future revenue. Key risks include the semiconductor industry's cyclicality, overcapacity risk from expanded fabs, reliance on third-party foundries and subcontractors (including earthquake exposure in Taiwan), 54% of revenue from international markets, and ongoing patent litigation, including the Linear Technology suit and a French court ruling against the company's accelerometer, plus a newly disclosed Silicon Labs lawsuit. Capital spending is planned to rise to $200-250 million in fiscal 2000, which will increase depreciation toward $150 million.
Jan 28, 2000
1998
Analog Devices Annual Report, Year Ended Oct 31, 1998
Analog Devices' fiscal 1998 (year ended October 31, 1998) was a year of cyclical pressure layered on top of several accounting and one-time items. Net sales were $1,230.6 million, down 1% from $1,243.5 million in fiscal 1997, though management notes sales grew about 3% excluding the disk drive IC business sold to Adaptec in early 1998. Demand was strong early in the year and weakened in the second half amid a semiconductor downturn and Southeast Asian economic weakness, and gross margin fell to 47.8% from 49.9%. Operating income fell to 12.8% of sales from 18.8%, reflecting a $17 million restructuring charge, a $9.8 million loss from the WaferTech joint venture, and higher SMG&A, partly offset by a $13.1 million gain on the disk drive sale. Reported net income was $82.4 million, or $0.50 diluted EPS, down 54% from $178.2 million ($1.04) in fiscal 1997. That figure includes a $37.1 million non-cash cumulative effect charge from changing revenue recognition on distributor shipments, which now defers revenue until distributors resell to end users. Excluding the charge, net income before the accounting change was $119.5 million, or $0.71 diluted EPS, a 33% decline. Management and investors should note that the accounting change makes year-over-year comparisons less clean, and the company provides pro forma figures to address this. Balance sheet and cash flow remain solid. Cash, cash equivalents and short-term investments totaled $305 million, operating cash flow was $225 million, and capital expenditures were $167 million. The company repurchased 4.4 million shares for $84 million and has authorized up to 12 million additional repurchases. Long-term debt was roughly $310 million, mostly convertible notes, against stockholders' equity of $1.13 billion, and the $60 million credit facility was unused. Key risks disclosed include ongoing patent litigation (Lemelson, Linear Technology, Sextant, Maxim), exposure to Asian suppliers and WaferTech, and a cautious outlook on gross margins until production rates recover.
Jan 28, 1999
1997
Analog Devices Annual Report, Year Ended Nov 1, 1997
Analog Devices (NYSE: ADI) closed fiscal 1997 (ended November 1, 1997) with net sales of $1,243.5 million, up 4% from $1,193.8 million, after a sluggish first half caused by end-customer inventory excess built up during the prior year's capacity-constrained lead times. Demand recovered in the second half, and quarterly sales rose from $292 million in Q1 to $332 million in Q4. Net income rose 4% to $178.2 million, and diluted EPS was $1.04 versus $1.03 in fiscal 1996. Gross margin slipped slightly to 50.0% from 50.3%, while operating margin edged down to 18.8% from 19.0%, as R&D spending climbed about 10% to $196 million (15.8% of sales) and SMG&A fell to $192 million. Growth was driven by standard linear ICs (SLICs), which rose to 61% of sales, while system-level ICs declined to 35% and assembled products shrank to 4%. The balance sheet strengthened over the year. Cash and short-term investments reached $341 million, operating cash flow was $297 million (24% of sales), and stockholders' equity grew to $1.09 billion. Total debt remained at $310 million in convertible and fixed-rate notes, with a debt-to-equity ratio of 33%. Capital spending was $179 million, down from the prior year's peak, but management plans roughly $300 million in fiscal 1998, with depreciation expected to rise to about $144 million. The company is also building capacity through an 18% stake in the WaferTech foundry joint venture in Camas, Washington, which is expected to become operational in late 1998. Key risks include the cyclical nature of the semiconductor industry, dependence on third-party foundries and Southeast Asian suppliers (with take-or-pay obligations), intensifying competition, a 54% share of revenue from international markets, and patent litigation, including an adverse French ruling involving Sextant Avionique over the accelerometer product line. The company has never paid a cash dividend, and its credit agreement limits dividend payments to a defined amount.
Jan 28, 1998
1996
Analog Devices Annual Report, Year Ended Nov 2, 1996
Analog Devices (NYSE: ADI) closed fiscal 1996 (53 weeks ended November 2, 1996) with record results: net sales rose 27% to $1,193.8 million from $941.5 million, and net income grew 44% to $171.9 million, or $1.03 per share (restated for the four-for-three split paid January 6, 1997). Operating margin expanded to roughly 19% of sales, driven by volume growth and SMG&A (selling, marketing, general and administrative) expenses that grew only 5.9% against 27% sales growth. Gross margin was slightly lower at 50.3%, reflecting a mix shift toward lower-margin system-level ICs and higher capacity costs. Growth was led by system-level ICs (up to $453 million, 38% of sales from 28%), while standard linear ICs, the historical core, rose 12% to $678 million but fell to 57% of sales. Demand leveled off in the second half of fiscal 1996 amid an inventory correction by customers and distributors. The balance sheet and cash flow picture shows a company investing heavily to expand capacity. Capital expenditures were $234 million, and long-term debt rose to $310 million after the issuance of $230 million of 3.5% convertible subordinated notes due 2000. Operating cash flow fell to $144 million from $210 million, as receivables and inventories built up. Inventories rose 52% to $219 million, and the company carries commitments that include an $140.4 million investment in the WaferTech joint venture (18% equity stake) and a guarantee of up to $45 million of its debt. Management stated that existing liquidity and future cash generation are sufficient for the foreseeable future. Cash and short-term investments stood at $300 million, and the debt-to-equity ratio was 42%. Key risks include semiconductor cyclicality, possible overcapacity as competitors expand, inventory obsolescence from the elevated stock, take-or-pay supply obligations, international exposure (58% of sales), and patent litigation. The most notable legal matter is a referral by the U.S. International Trade Commission to the Department of Justice concerning alleged false representations in prior filings, and the outcome cannot be determined. Investors should note that the company has never paid cash dividends and that the 53-week fiscal year slightly flatters year-over-year comparisons.
Jan 29, 1997
1994
Analog Devices Annual Report, Year Ended Oct 29, 1994
Analog Devices' fiscal 1994 10-K (year ended October 29, 1994) shows a company in strong operational recovery. Net sales rose 16% to $773.5 million, and net income climbed 68% to $74.5 million, or $0.96 per share (restated for the three-for-two stock split paid January 4, 1995). Operating margin expanded to 13.2% from 9.4%, driven by a gross margin improvement to 49.0% and operating expenses falling to 35.8% of sales. Growth was led by system-level ICs (SPLICs and DSP ICs), which rose 34% to $234.6 million, while standard linear SLICs grew 14% to $455.3 million. Operating cash flow more than doubled to $183.3 million, and cash plus short-term investments reached $181.8 million against $100 million of long-term debt, leaving the balance sheet conservatively positioned. The main investor concerns are litigation and capital intensity. The company faces a Texas Instruments patent suit and an ITC enforcement proceeding that could bring substantial penalties, plus a Maxim antitrust suit on appeal; management says it cannot estimate liability and that an adverse outcome could be material. Fiscal 1995 capital spending is guided to roughly $150 million, including about $65 million for a 6-inch wafer fab expansion in Limerick, Ireland, and management expects gross margin improvement to slow and interest income to decline. The company has never paid cash dividends.
Jan 24, 1995