01—Abstract
Summary
Summary of the 10-K filed November 26, 2013. Cited figures are marked; the original filing is the authoritative source.
Analog Devices Inc. (ADI) reported its 2013 fiscal year results, highlighting a slight year-over-year revenue decrease of 2% to $2.63 billiona.
Despite this, diluted earnings per share from continuing operations saw a modest increase to $2.14b. 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 millionc, 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.
02—Key points
Key Highlights
- Revenue for fiscal year 2013 was $2.63 billion, a 2% decrease from fiscal year 2012, largely attributed to the weaker global economy and one less operational week.
- Diluted EPS from continuing operations increased slightly to $2.14 in fiscal 2013, up from $2.13 in fiscal 2012.
- The Industrial sector remained the largest contributor to revenue (46%), though it saw a 2% decline year-over-year. Automotive revenue grew by 4% to $482 million, driven by increased electronic content in vehicles.
- Analog products, primarily converters and amplifiers/RF, accounted for 91% of total revenue, with converters being the largest category.
- R&D expenses were $513 million, remaining stable year-over-year, reflecting ADI's continued investment in product innovation.
- The company generated $912 million in cash flow from operations, representing 34.6% of revenue, indicating strong operational cash generation.
- ADI completed the sale of its microphone product line for $100 million in cash, with potential for an additional $70 million based on revenue milestones.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2013, Analog Devices kept $0.26.
- Revenue$2.63B100.0%
- Cost of revenue−$941.3M35.7%
- Gross profit$1.69B64.3%
- Operating costs−$939.3M35.7%
- Operating income$753.1M28.6%
- Interest, other & tax−$79.6M3.0%
- Net income$673.5M25.6%
Where FY2013 revenue went
$2.63B- Cost of revenue: $941.3M, 36% of revenue
- Net income: $673.5M, 26% of revenue
- R&D: $513.0M, 19% of revenue
- SG&A: $396.2M, 15% of revenue
- Other operating costs: $30.1M, 1.1% of revenue
- Interest, other & tax: $79.6M, 3.0% of revenue
Kept 26% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2013filed November 26, 2013Financial Statements
FY2013 against FY2012
| Line item | FY2013FY2012 | Change |
|---|---|---|
| Revenue | $2.63B$2.70B | −2.5% |
| Cost of Revenue | $941.28M$960.14M | −2.0% |
| Gross Profit | $1.69B$1.74B | −2.8% |
| R&D Expenses | $513.03M$511.83M | +0.2% |
| SG&A Expenses | $396.23M$396.52M | −0.1% |
| Operating Expenses | $939.34M$916.95M | +2.4% |
| Operating Income | $753.08M$824.05M | −8.6% |
| Interest Expense | $27.10M$26.42M | +2.6% |
| Net Income | $673.49M$651.24M | +3.4% |
| EPS (Basic) | $2.19$2.18 | +0.5% |
| EPS (Diluted) | $2.14$2.13 | +0.5% |
| Shares Outstanding (Basic) | 307.76M298.76M | +3.0% |
| Shares Outstanding (Diluted) | 314.04M306.19M | +2.6% |
05—Questions
Frequently Asked Questions
How did Analog Devices' revenue perform in fiscal year 2013 compared to 2012?
Analog Devices' revenue in fiscal year 2013 was $2.63 billion, a decrease of 2% compared to $2.70 billion in fiscal year 2012. This decline was primarily attributed to a weaker global economic environment and the fact that fiscal year 2013 had one less operational week than fiscal year 2012.
What were the key drivers of Analog Devices' revenue in fiscal year 2013?
The Industrial sector was the largest contributor to revenue (46%), though it experienced a slight decline. The Automotive sector showed growth (4% increase) driven by rising electronic content in vehicles. Consumer sector revenue declined by 13%, while Communications revenue remained relatively flat. Converters were the largest product category, followed by Amplifiers/Radio Frequency.
What is Analog Devices' strategy regarding research and development (R&D)?
Analog Devices maintained a strong focus on R&D, with expenses remaining stable at approximately $513 million in fiscal year 2013. This investment reflects the company's commitment to technological leadership in its core areas of analog, mixed-signal, and digital signal processing ICs, which is considered critical for future growth and product innovation.
How is Analog Devices managing its financial position and shareholder returns?
The company maintained a strong liquidity position with $4.68 billion in cash and short-term investments as of November 2, 2013. ADI continued to return value to shareholders through quarterly cash dividends and a share repurchase program. During fiscal year 2013, they paid $406 million in dividends and repurchased $60.5 million worth of common stock.
06—Continue