01—Abstract
Summary
Summary of the 10-K filed November 27, 2012. Cited figures are marked; the original filing is the authoritative source.
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%a 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.
02—Key points
Key Highlights
- Revenue decreased by 10% to $2.70 billion in fiscal year 2012 from $2.99 billion in fiscal year 2011, attributed to global economic weakness and cautious customer spending.
- Diluted EPS from continuing operations fell to $2.13 in fiscal year 2012 from $2.79 in fiscal year 2011.
- The Industrial segment, representing 46% of revenue, saw a 12% year-over-year decrease, while the Automotive segment increased by 11%.
- Converters (44% of revenue) and Amplifiers/Radio Frequency (26% of revenue) remained the largest product categories, both experiencing an 11% decline.
- Research and Development expenses increased slightly to $512 million (19.0% of revenue) in fiscal year 2012 from $506 million (16.9% of revenue) in fiscal year 2011.
- The company repurchased approximately 4.2 million shares for $160.5 million and paid $344.7 million in dividends to shareholders in fiscal year 2012.
- Cash flow from operations remained strong at $814.5 million, and the company ended the year with $3.9 billion in cash and short-term investments.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2012, Analog Devices kept $0.24.
- Revenue$2.70B100.0%
- Cost of revenue−$960.1M35.5%
- Gross profit$1.74B64.5%
- Operating costs−$917.0M33.9%
- Operating income$824.0M30.5%
- Interest, other & tax−$172.8M6.4%
- Net income$651.2M24.1%
Where FY2012 revenue went
$2.70B- Cost of revenue: $960.1M, 36% of revenue
- Net income: $651.2M, 24% of revenue
- R&D: $511.8M, 19% of revenue
- SG&A: $396.5M, 15% of revenue
- Interest, other & tax: $172.8M, 6.4% of revenue
Kept 24% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2012filed November 27, 2012Financial Statements
FY2012 against FY2011
| Line item | FY2012FY2011 | Change |
|---|---|---|
| Revenue | $2.70B$2.99B | −9.8% |
| Cost of Revenue | $960.14M$1.01B | −4.6% |
| Gross Profit | $1.74B$1.99B | −12.4% |
| R&D Expenses | $511.83M$505.57M | +1.2% |
| SG&A Expenses | $396.52M$406.71M | −2.5% |
| Operating Expenses | $916.95M$914.52M | +0.3% |
| Operating Income | $824.05M$1.07B | −23.1% |
| Interest Expense | $26.42M$19.15M | +38.0% |
| Net Income | $651.24M$867.39M | −24.9% |
| EPS (Basic) | $2.18$2.90 | −24.8% |
| EPS (Diluted) | $2.13$2.81 | −24.2% |
| Shares Outstanding (Basic) | 298.76M299.42M | −0.2% |
| Shares Outstanding (Diluted) | 306.19M308.24M | −0.7% |
05—Questions
Frequently Asked Questions
What was Analog Devices' primary business in fiscal year 2012?
Analog Devices designs, manufactures, and markets high-performance analog, mixed-signal, and digital signal processing integrated circuits (ICs) used in various electronic equipment across industrial, automotive, consumer, and communications markets.
How did Analog Devices' revenue and earnings perform in fiscal year 2012 compared to fiscal year 2011?
In fiscal year 2012, revenue decreased by 10% to $2.70 billion compared to $2.99 billion in fiscal year 2011. Diluted earnings per share from continuing operations also decreased to $2.13 from $2.79.
Which end markets were most significant for Analog Devices in fiscal year 2012, and how did they perform?
The Industrial market was the largest segment, accounting for 46% of revenue, but experienced a 12% decline. The Communications segment was 20% of revenue and also declined by 12%. The Automotive segment, representing 17% of revenue, grew by 11%, while the Consumer segment, also 17% of revenue, decreased by 16%.
What is Analog Devices' approach to returning capital to shareholders?
In fiscal year 2012, Analog Devices continued to return capital through dividend payments totaling $344.7 million and share repurchases amounting to $160.5 million, demonstrating a commitment to shareholder value.
06—Continue