10-QPeriod: Q3 FY2013

ANALOG DEVICES INC Quarterly Report for Q3 Ended Aug 3, 2013

Filed August 20, 2013For Securities:ADI

Summary

Analog Devices, Inc. (ADI) reported its financial results for the third quarter and the first nine months of fiscal year 2013, ending August 3, 2013. For the quarter, revenue was $674.2 million, a slight decrease of 1% year-over-year, while net income increased by 4% to $176.2 million, resulting in diluted EPS of $0.56. For the nine-month period, revenue decreased by 3% to $1.96 billion, with net income remaining flat at $471.9 million and diluted EPS at $1.51. The company's liquidity remains strong, with $4.45 billion in cash, cash equivalents, and short-term investments. A significant portion of this cash is held overseas and is intended for indefinite reinvestment. ADI's balance sheet reflects prudent management, with a decrease in inventories and a manageable increase in accounts receivable. The company also continues its capital allocation strategy, maintaining its quarterly dividend and having $561 million available for future stock repurchases.

Financial Highlights

57 data points
Beta

Revenue

$674.17M

64.5% Gross Margin

Net Income

$176.24M

26.1% Net Margin

EPS (Diluted)

$0.56

Total Assets

$6.14B

Cash & Equivalents

$460.07M

Free Cash Flow

$189.96M

Financial Statements
Beta
Revenue$674.17M
Cost of Revenue$239.11M
Gross Profit$435.06M
R&D Expenses$128.89M
SG&A Expenses$97.77M
Operating Expenses$226.72M
Operating Income$208.34M
Interest Expense$7.67M
Net Income$176.24M
EPS (Basic)$0.57
EPS (Diluted)$0.56
Shares Outstanding (Basic)309.12M
Shares Outstanding (Diluted)315.31M

Key Highlights

  • 1Revenue for the third quarter of fiscal 2013 was $674.2 million, a 1% decrease compared to the prior year's quarter.
  • 2Net income for the quarter increased by 4% to $176.2 million, or $0.56 per diluted share.
  • 3For the nine months ended August 3, 2013, revenue decreased by 3% to $1.96 billion, while net income remained relatively flat at $471.9 million, with diluted EPS of $1.51.
  • 4The company maintained a strong liquidity position with $4.45 billion in cash, cash equivalents, and short-term investments.
  • 5Inventories decreased by 9% to $284.3 million, indicating effective inventory management.
  • 6ADI redeemed its 5.0% senior unsecured notes and issued new 2.875% senior unsecured notes in the third quarter, managing its debt profile.
  • 7The company expects fourth-quarter fiscal 2013 revenue to be in the range of $675 million to $700 million, with diluted EPS projected between $0.55 and $0.61.

Frequently Asked Questions

In the third quarter of fiscal 2013, Analog Devices reported revenue of $674.2 million, a slight decrease of 1% compared to the same quarter last year. However, net income saw a 4% increase to $176.2 million, resulting in diluted earnings per share of $0.56, which was flat year-over-year.

Analog Devices maintains a strong financial position, with $4.45 billion in cash, cash equivalents, and short-term investments as of August 3, 2013. While a significant portion of this cash is held internationally and intended for reinvestment, the company has sufficient liquidity to fund operations, capital expenditures, and shareholder returns.

The company has demonstrated effective inventory management, with inventories decreasing by 9% to $284.3 million. In terms of debt, Analog Devices redeemed its 5.0% senior unsecured notes during the quarter and issued new 2.875% senior unsecured notes due in 2023, indicating proactive management of its capital structure.

Analog Devices projects revenue for the fourth quarter of fiscal 2013 to be between $675 million and $700 million. The company anticipates a gross margin of approximately 65% and estimates diluted earnings per share to be in the range of $0.55 to $0.61.