10-QPeriod: Q2 FY2013

ANALOG DEVICES INC Quarterly Report for Q2 Ended May 4, 2013

Filed May 21, 2013For Securities:ADI

Summary

Analog Devices, Inc. (ADI) reported its financial results for the period ending May 4, 2013. For the three months ended May 4, 2013, the company generated revenue of $659.3 million, a slight decrease of 2% compared to the same period last year. Net income for the quarter was $164.5 million, representing a 1% increase year-over-year, with diluted earnings per share (EPS) at $0.52, down from $0.53 in the prior year's quarter. For the six months ended May 4, 2013, revenue declined by 3% to $1,281.4 million, and net income decreased by 2% to $295.7 million. Diluted EPS for the six-month period was $0.95, down from $0.99 in the prior year. The company cited a less favorable macroeconomic environment and one less operating week in fiscal year 2013 compared to fiscal year 2012 as primary reasons for the revenue decline. Despite the revenue pressures, ADI demonstrated effective cost management, as evidenced by the slight increase in net income for the quarter and a relatively stable gross margin.

Financial Highlights

55 data points
Beta

Revenue

$659.25M

64.0% Gross Margin

Net Income

$164.47M

24.9% Net Margin

EPS (Diluted)

$0.52

Total Assets

$5.84B

Cash & Equivalents

$595.63M

Free Cash Flow

$226.01M

Financial Statements
Beta
Revenue$659.25M
Cost of Revenue$237.06M
Gross Profit$422.19M
R&D Expenses$128.06M
SG&A Expenses$102.70M
Operating Expenses$230.81M
Operating Income$191.38M
Interest Expense$6.36M
Net Income$164.47M
EPS (Basic)$0.53
EPS (Diluted)$0.52
Shares Outstanding (Basic)307.44M
Shares Outstanding (Diluted)313.37M

Key Highlights

  • 1Revenue for the three months ended May 4, 2013, was $659.3 million, a 2% decrease from $675.1 million in the prior year's comparable quarter.
  • 2Net income for the quarter was $164.5 million, a 1% increase from $162.9 million in the prior year's quarter.
  • 3Diluted EPS for the quarter was $0.52, down from $0.53 in the prior year's quarter.
  • 4For the six months ended May 4, 2013, revenue was $1,281.4 million, a 3% decrease from $1,323.2 million in the prior year.
  • 5Net income for the six months decreased by 2% to $295.7 million from $302.3 million.
  • 6Diluted EPS for the six-month period was $0.95, down from $0.99 in the prior year.
  • 7The company declared a cash dividend of $0.34 per share, payable on June 11, 2013.
  • 8Cash and cash equivalents and short-term investments totaled $4,172.1 million, with $1,180.6 million held in the United States.

Frequently Asked Questions

The company attributed the year-over-year revenue decline primarily to a weaker demand environment resulting from ongoing economic uncertainty. Additionally, the fiscal year 2013 had one less operating week compared to fiscal year 2012, which impacted the first six months' results.

Analog Devices demonstrated effective cost management. Despite the revenue pressures, the company was able to maintain a relatively stable gross margin percentage and achieve a slight increase in net income for the three-month period by controlling operating expenses and optimizing production and inventory levels.

The company maintains a strong liquidity position, with $4,172.1 million in cash and cash equivalents and short-term investments as of May 4, 2013. However, only $1,180.6 million was held in the United States, as the company intends to reinvest its foreign earnings indefinitely.

For the third quarter of fiscal 2013, Analog Devices projected revenue to be in the range of $655 million to $685 million, with gross margin around 64.5% and diluted EPS projected between $0.51 and $0.56.