Early Access

10-QPeriod: Q1 FY2022

ANALOG DEVICES INC Quarterly Report for Q1 Ended Jan 29, 2022

Filed February 16, 2022For Securities:ADI

Summary

Analog Devices Inc. (ADI) reported its financial results for the quarter ended January 28, 2022. The company experienced a significant 72% increase in revenue year-over-year, reaching $2.68 billion, primarily driven by the acquisition of Maxim Integrated Products, Inc. (Maxim), which contributed approximately 70% of this growth. Despite the revenue surge, net income saw a decline of 28% to $280.1 million, with diluted Earnings Per Share (EPS) falling to $0.53 from $1.04 in the prior year period. The decrease in net income and EPS is largely attributable to the impact of the Maxim acquisition, which resulted in increased cost of goods sold due to a non-recurring fair value adjustment to inventory and higher amortization of acquired intangible assets. These factors, coupled with increased R&D, SMG&A, and special charges related to integration, led to a 21% decrease in operating income. Investors should note the substantial integration costs and ongoing efforts to realize synergies from the Maxim acquisition.

Financial Highlights

54 data points
Beta

Revenue

$2.68B

0.5% Gross Margin

Net Income

$280.08M

0.1% Net Margin

EPS (Diluted)

$0.53

Total Assets

$51.22B

Cash & Equivalents

$1.79B

Free Cash Flow

$745.28M

Financial Statements
Beta
Revenue$2.68B
Cost of Revenue$1.28B
Gross Profit$1.40B
R&D Expenses$426.78M
SG&A Expenses$297.37M
Operating Expenses$1.04B
Operating Income$364.76M
Interest Expense$51.96M
Net Income$280.08M
EPS (Basic)$0.53
EPS (Diluted)$0.53
Shares Outstanding (Basic)525.29M
Shares Outstanding (Diluted)530.14M

Key Highlights

  • 1Revenue surged by 72% to $2.68 billion, heavily influenced by the acquisition of Maxim Integrated Products, Inc.
  • 2Net income decreased by 28% to $280.1 million, impacted by acquisition-related costs and increased operating expenses.
  • 3Diluted EPS fell to $0.53 from $1.04 in the prior year quarter.
  • 4Gross margin percentage decreased significantly from 67.1% to 52.2% due to acquisition-related fair value adjustments to inventory and amortization of intangible assets.
  • 5R&D, SMG&A, and amortization expenses all increased substantially, largely due to the Maxim acquisition and integration efforts.
  • 6Operating income decreased by 21% to $364.8 million.
  • 7The company has $7.3 billion remaining available for share repurchases under its authorized program.

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