10-KPeriod: FY2007

ANALOG DEVICES INC Annual Report, Year Ended Nov 3, 2007

Filed November 30, 2007For Securities:ADI

Summary

Analog Devices, Inc. (ADI) reported solid financial performance for the fiscal year ending November 3, 2007, with total revenue reaching $2.55 billion, a 7% increase from the previous year. This growth was primarily driven by strong performance in the industrial and communications sectors, which together accounted for approximately 69% of total product revenue. The company demonstrated robust profitability, with net income of $496.9 million, translating to diluted earnings per share of $1.50. Financially, ADI maintained a strong balance sheet with total assets of $2.97 billion and shareholders' equity of $2.34 billion. The company continued its commitment to returning capital to shareholders through dividends and significant share repurchases. ADI also actively managed its market risks, particularly foreign currency exposure, through hedging strategies, indicating a proactive approach to financial stability.

Financial Highlights

34 data points
Beta

Revenue

$2.43B

62.1% Gross Margin

Net Income

$496.91M

20.5% Net Margin

EPS (Diluted)

$1.50

Cash & Equivalents

$424.97M

Free Cash Flow

$678.55M

Financial Statements
Beta
Revenue$2.43B
Cost of Revenue$956.45M
Gross Profit$1.51B
R&D Expenses$509.55M
SG&A Expenses$389.50M
Operating Expenses$939.55M
Operating Income$568.72M
Interest Expense$0
Net Income$496.91M
EPS (Basic)$1.54
EPS (Diluted)$1.50
Shares Outstanding (Basic)323.25M
Shares Outstanding (Diluted)332.30M

Key Highlights

  • 1Total Revenue grew by 7% year-over-year to $2.55 billion in fiscal year 2007.
  • 2Net income for fiscal year 2007 was $496.9 million, with diluted EPS of $1.50.
  • 3The Industrial and Communications end markets remain the largest revenue contributors, showing continued growth.
  • 4The company repurchased approximately $1.65 billion of its common stock in fiscal year 2007.
  • 5ADI has actively hedged foreign currency exposures to mitigate potential losses.
  • 6Goodwill increased by $23.3 million in fiscal year 2007 due to acquisitions.
  • 7The company is in the process of divesting its Baseband Chipset Business.

Frequently Asked Questions

Analog Devices, Inc. (ADI) is a world leader in designing, manufacturing, and marketing high-performance analog, mixed-signal, and digital signal processing integrated circuits. Total revenue grew by 7% to $2.55 billion in fiscal year 2007, driven primarily by its Industrial and Communications segments. Other key segments like Consumer also showed strong growth.

ADI actively hedges its non-U.S. dollar-based exposures using forward exchange contracts, generally with maturities of one to twelve months. The company states that a 10% unfavorable movement in foreign currency exchange rates would not expose it to significant losses in earnings or cash flows because it hedges substantially all of its year-end exposures.

ADI actively returned capital to shareholders through dividends and share repurchases. In fiscal year 2007, the company paid dividends totaling $228.3 million and repurchased $1.65 billion of its common stock. The company has a significant ongoing stock repurchase program.

Yes, Analog Devices entered into an agreement to sell its Baseband Chipset Business to MediaTek Inc. for approximately $350 million, expected to close in the first quarter of fiscal 2008. This business has been classified as discontinued operations for financial reporting purposes.