Summary
Analog Devices Inc. (ADI) reported its financial results for the quarter ended February 2, 2013, showing a slight decrease in revenue compared to the same period last year. Revenue for the quarter was $622.1 million, down 4% from $648.1 million in the prior year's quarter. This decline was attributed to a macroeconomic environment characterized by weak demand and the fact that the prior year's quarter included an extra week of operations. Net income also saw a decrease, falling to $131.2 million from $139.4 million in the prior year, resulting in diluted earnings per share (EPS) of $0.42, down from $0.46. Despite the revenue and net income dip, the company demonstrated a strong cash flow from operations of $158.0 million. ADI also strengthened its balance sheet with a significant increase in cash and cash equivalents, reaching $795.8 million. The company also highlighted its ongoing commitment to returning capital to shareholders through dividends, with a declared dividend of $0.34 per share, and continued strategic investments in research and development, though at a slightly increased percentage of revenue. Management provided an outlook for the next quarter expecting revenue to increase sequentially and a stable gross margin.
Financial Highlights
54 data points| Revenue | $622.13M |
| Cost of Revenue | $231.85M |
| Gross Profit | $390.28M |
| R&D Expenses | $125.11M |
| SG&A Expenses | $97.56M |
| Operating Expenses | $236.79M |
| Operating Income | $153.49M |
| Interest Expense | $6.41M |
| Net Income | $131.22M |
| EPS (Basic) | $0.43 |
| EPS (Diluted) | $0.42 |
| Shares Outstanding (Basic) | 303.48M |
| Shares Outstanding (Diluted) | 310.27M |
Key Highlights
- 1Revenue decreased by 4% to $622.1 million for the three months ended February 2, 2013, compared to $648.1 million for the same period in the prior year.
- 2Net income decreased by 6% to $131.2 million, resulting in diluted EPS of $0.42, down from $0.46 in the prior year.
- 3Cash flow from operating activities was robust at $158.0 million.
- 4The company ended the quarter with a strong cash position of $795.8 million, an increase from $528.8 million at the end of the prior fiscal year.
- 5A special charge of $14.1 million was recorded in the current quarter related to workforce reductions.
- 6The effective income tax rate decreased significantly to 12.6% from 22.6% in the prior year, benefiting from an international tax restructuring and the reinstatement of the R&D tax credit.
- 7The company declared a cash dividend of $0.34 per share, an increase from the $0.30 per share paid in the prior year's quarter.