Analog Devices, Fourth Quarter, Fiscal 2015
Schedule A
Revenue and Earnings Summary (Unaudited)
(In thousands, except per-share amounts)
Three Months Ended
4Q 15
Revenue
Year-to-year change
Quarter-to-quarter change
Cost of sales (1)
Gross margin
Gross margin percentage
Year-to-year change (basis points)
Quarter-to-quarter change (basis points)
Operating expenses:
R&D (1)
Selling, marketing and G&A (1)
Amortization of intangibles
Special charges
Other operating expense
Total operating expenses
Total operating expenses percentage
Year-to-year change (basis points)
Quarter-to-quarter change (basis points)
Operating income
Operating income percentage
Year-to-year change (basis points)
Quarter-to-quarter change (basis points)
Other expense
$
Income before income tax
Provision for income taxes
Tax rate percentage
Net income
$
Shares used for EPS - basic
Shares used for EPS - diluted
3Q 15
Oct. 31,
2015
978,722 $
20%
13%
336,926
641,796
65.6%
590
-30
Aug. 1,
2015
863,365 $
19%
5%
294,328
569,037
65.9%
50
-50
170,736
121,400
17,358
223,672
533,166
54.5%
1320
1930
108,630
11.1%
-730
-1960
3,953
160,784
120,030
22,954
303,768
35.2%
-240
-80
265,269
30.7%
290
40
5,791
104,677
8,372
8.0%
259,478
43,000
16.6%
96,305
$
312,829
316,571
Twelve Months Ended
4Q 14
216,478
$
313,877
318,187
FY 15
Nov.1,
2014
814,247
20%
12%
328,210
486,037
59.7%
-590
-570
$
FY 14
Oct. 31,
2015
3,435,092 $
20%
Nov. 1,
2014
2,864,773
9%
1,175,830
2,259,262
65.8%
190
1,034,585
1,830,188
63.9%
-40
154,797
121,424
25,250
34,637
336,108
41.3%
520
370
149,929
18.4%
-1,110
-940
11,231
637,459
478,972
88,318
223,672
1,428,421
41.6%
400
559,686
454,676
26,020
37,322
1,077,704
37.6%
190
830,841
24.2%
-210
752,484
26.3%
-230
20,727
23,139
138,698
30,003
21.6%
810,114
113,236
14.0%
729,345
100,025
13.7%
108,695
$
312,815
316,868
696,878
$
312,660
316,872
629,320
313,195
318,027
Earnings per share - basic
Earnings per share - diluted
$
$
0.31
0.30
$
$
0.69
0.68
$
$
0.35
0.34
$
$
2.23
2.20
$
$
2.01
1.98
Dividends paid per share
$
0.40
$
0.40
$
0.37
$
1.57
$
1.45
(1) Includes stock-based compensation expense as follows:
Cost of sales
R&D
Selling, marketing and G&A
$
$
$
2,188
6,487
7,408
$
$
$
2,196
6,839
7,329
$
$
$
2,371
6,155
6,867
$
$
$
8,983
26,617
33,319
$
$
$
7,069
20,707
23,036
Analog Devices, Fourth Quarter, Fiscal 2015
Schedule B
Selected Balance Sheet Information (Unaudited)
(In thousands)
Cash & short-term investments
Accounts receivable, net
Inventories (1)
Other current assets
Total current assets
PP&E, net
Investments
Goodwill
Intangible assets, net
Other
Total assets
Deferred income on shipments to distributors, net
Other current liabilities
Debt, current
Long-term debt
Non-current liabilities
Shareholders' equity
Total liabilities & equity
4Q 15
Oct. 31,
2015
$ 3,028,928
466,527
412,314
171,779
4,079,548
644,110
41,235
1,636,526
583,517
77,242
$ 7,062,178
3Q 15
Aug. 1,
2015
$ 3,099,961
451,511
424,475
173,945
4,149,892
631,269
40,324
1,640,381
601,882
70,953
$ 7,134,701
4Q 14
Nov. 1,
2014
$ 2,866,468
396,605
367,927
180,886
3,811,886
622,422
34,507
1,642,438
671,402
77,035
$ 6,859,690
$
$
$
300,087
438,904
374,839
498,497
376,892
5,072,959
$ 7,062,178
307,265
375,753
374,752
498,448
513,322
5,065,161
$ 7,134,701
(1) Includes $2,923, $2,935, and $3,291 related to stock-based compensation in
4Q15, 3Q15, and 4Q14, respectively.
278,435
430,621
872,789
519,948
4,757,897
$ 6,859,690
Analog Devices, Fourth Quarter, Fiscal 2015
Schedule C
Cash Flow Statement (Unaudited)
(In thousands)
4Q 15
Oct. 31,
2015
Cash flows from operating activities:
Net Income
Adjustments to reconcile net income
to net cash provided by operations:
Depreciation
Amortization of intangibles
Stock-based compensation expense
Other non-cash activity
Excess tax benefit - stock options
Deferred income taxes
Changes in operating assets and liabilities
Total adjustments
Net cash provided by operating activities
Percent of revenue
$
Cash flows from investing activities:
Purchases of short-term available-for-sale investments
Maturities of short-term available-for-sale investments
Sales of short-term available-for-sale investments
Additions to property, plant and equipment
Payments for acquisitions, net of cash acquired
Change in other assets
Net cash provided by (used for) investing activities
Cash flows from financing activities:
Proceeds from debt
Term loan repayments
Dividend payments to shareholders
Repurchase of common stock
Proceeds from employee stock plans
Excess tax benefit - stock options
Contingent consideration payment
Change in other financing activities
Net cash used for financing activities
Effect of exchange rate changes on cash
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
$
Three Months Ended
3Q 15
4Q 14
Aug. 1,
Nov. 1,
2015
2014
96,305
$
216,478
$
108,695
Twelve Months Ended
FY 15
FY 14
Oct. 31,
Nov. 1,
2015
2014
$
696,878
$ 629,320
32,688
18,302
16,083
(2,428)
(2,895)
(25,650)
65,570
101,670
197,975
20.2%
33,650
23,898
16,364
3,827
(6,373)
(17,168)
(73,537)
(19,339)
197,139
22.8%
30,917
26,186
15,393
600
(882)
(69,406)
150,760
153,568
262,263
32.2%
130,147
92,093
68,919
6,974
(25,045)
(52,214)
(9,954)
210,920
907,798
26.4%
114,064
27,906
50,812
4,423
(22,231)
(77,711)
145,019
242,282
871,602
30.4%
(1,808,202)
2,045,945
159,546
(45,807)
1,102
352,584
(1,403,600)
1,083,474
215,998
(35,164)
(6,947)
(1,180)
(147,419)
(1,946,144)
1,507,940
487,259
(43,417)
(2,183)
(2,633)
822
(6,083,999)
4,984,980
1,251,194
(153,960)
(7,065)
(8,275)
(17,125)
(7,485,162)
7,318,877
2,187,389
(177,913)
(1,945,887)
(12,055)
(114,751)
(125,582)
(111,702)
7,760
2,895
3,724
(222,905)
(798)
(125,511)
(31,340)
19,988
6,373
(1,767)
4,327
(127,930)
(509)
(1,995,398)
(116,308)
(187,375)
21,533
882
(1,178)
(2,277,844)
(1,449)
(491,059)
(226,953)
122,631
25,045
(1,767)
500
(571,603)
(3,950)
1,995,398
(1,995,398)
(454,225)
(356,346)
200,114
22,231
(3,576)
15,192
(576,610)
(3,097)
326,856
557,497
884,353
$
(78,719)
(2,016,208)
636,216
2,585,441
557,497 $
569,233
$
315,120
569,233
884,353
177,144
392,089
$ 569,233
Analog Devices, Fourth Quarter, Fiscal 2015
Schedule D
Revenue Trends by End Market (Unaudited)
(In thousands)
The categorization of revenue by end market is determined using a variety of data points including the technical
characteristics of the product, the “sold to” customer information, the "ship to" customer information and the end customer
product or application into which our product will be incorporated. As data systems for capturing and tracking this data
evolve and improve, the categorization of products by end market can vary over time. When this occurs we reclassify
revenue by end market for prior periods. Such reclassifications typically do not materially change the sizing of, or the
underlying trends of results within, each end market. The results below are inclusive of the Hittite acquisition from the
acquisition date, July 22, 2014.
Three Months Ended
Industrial
Automotive
Consumer
Communications
Total Revenue
Revenue
$ 369,387
132,188
317,376
159,771
$ 978,722
Oct. 31,
2015
%*
38%
14%
32%
16%
100%
Q/Q %
-4%
1%
53%
12%
13%
Y/Y %
-2%
-2%
234%
-23%
20%
Aug. 1,
2015
Revenue
$ 383,946
130,258
206,818
142,343
$ 863,365
Nov. 1,
2014
Revenue
$ 375,704
134,947
94,904
208,692
$ 814,247
Twelve Months Ended
Industrial
Automotive
Consumer
Communications
Total Revenue
Revenue
$ 1,496,198
526,124
729,965
682,805
$ 3,435,092
Oct. 31,
2015
%
44%
15%
21%
20%
100%
Y/Y %
11%
0%
123%
2%
20%
Nov. 1,
2014
Revenue
$ 1,343,255
525,712
327,223
668,583
$ 2,864,773
Analog Devices, Fourth Quarter, Fiscal 2015
Schedule E
Reconciliation from GAAP to Non-GAAP Revenue and Earnings Measures (In thousands, except per-share amounts) (Unaudited)
See "Non-GAAP Financial Information" in this press release for a description of the items excluded from our non-GAAP measures.
GAAP Revenue
4Q 15
Three Months Ended
3Q 15
4Q 14
Oct. 31,
2015
Aug. 1,
2015
Nov. 1,
2014
Oct. 31,
2015
$863,365
$814,247
$3,435,092
$2,864,773
20%
9%
$978,722
Twelve Months Ended
FY 15
FY 14
Y/Y Revenue growth %
Q/Q Revenue growth %
Hittite Operations
Non-GAAP Revenue
13%
5%
-
12%
-
$ 978,722
-
$ 863,365
$ 814,247
$ 3,435,092
GAAP Gross Margin
Gross Margin Percentage
Hittite Operations
Acquisition-Related Expenses
9%
$486,037
$2,259,262
$1,830,188
59.7%
65.8%
13%
5%
13%
$641,796
$569,037
65.6%
65.9%
-
-
-
1,307
54,388
1,399
Stock-Based Compensation Expense
Non-GAAP Gross Margin
-
-
(5,392)
$ 2,859,381
20%
Y/Y Revenue growth %
Q/Q Revenue growth %
Nov. 1,
2014
63.9%
(3,015)
7,199
(113)
61,225
113
(113)
$ 643,195
$ 570,344
$ 540,312
$ 2,266,574
$ 1,888,285
Gross Margin Percentage
65.7%
66.1%
66.4%
66.0%
66.0%
GAAP Operating Expenses
$ 533,166
$ 303,768
$ 336,108
$ 1,428,421
$ 1,077,704
54.5%
35.2%
41.3%
41.6%
37.6%
-
-
-
-
-
-
(2,033)
Percent of Revenue
Other Operating Expense
(223,672)
Hittite Operations
Acquisition-Related Expenses
(223,672)
-
(17,682)
(23,490)
(27,166)
(89,738)
(32,450)
Acquisition-Related Transaction Costs
-
(5,139)
(5,987)
(10,016)
(27,110)
Restructuring-Related Expense
-
-
(34,637)
-
(37,322)
Stock-Based Compensation Expense
-
-
1,302
(4,164)
Non-GAAP Operating Expenses
$ 291,812
$ 275,139
$ 269,620
$ 1,100,831
29.8%
31.9%
33.1%
32.0%
$ 108,630
$ 265,269
$ 149,929
11.1%
30.7%
18.4%
-
-
-
-
-
-
Percent of Revenue
GAAP Operating Income/Margin
Percent of Revenue
Other Operating Expense
223,672
Hittite Operations
Acquisition-Related Expenses
$
830,841
1,302
$
980,091
34.3%
$
24.2%
752,484
26.3%
223,672
(982)
19,081
24,797
81,554
96,937
93,675
Acquisition-Related Transaction Costs
-
5,139
5,987
10,016
27,110
Restructuring-Related Expense
-
-
34,637
-
37,322
Stock-Based Compensation Expense
-
-
(1,415)
4,277
Non-GAAP Operating Income/Margin
$ 351,383
$ 295,205
$ 270,692
$ 1,165,743
35.9%
34.2%
33.2%
33.9%
Percent of Revenue
GAAP Other Expense (Income)
$
Percent of Revenue
Acquisition-Related Debt Costs
Non-GAAP Other Expense
$
0.4%
$
3,953
$
0.30
$
$
0.71
Hittite Operations
-
Acquisition-Related Expenses
5,791
0.06
0.68
11,231
$
1.4%
$
6,408
$
0.34
-
-
-
-
-
$
$
20,727
(6,336)
$
0.6%
$
2.20
23,139
0.8%
-
0.8%
-
20,727
908,194
31.8%
0.6%
(4,823)
0.7%
-
Other Operating Expense
$
-
0.4%
Impact of Loss on Extinguishment of Debt
5,791
0.7%
-
Percent of Revenue
GAAP Diluted EPS
3,953
(1,415)
$
16,803
0.6%
$
1.98
-
0.71
-
-
-
0.08
0.25
0.30
0.27
0.02
0.01
0.03
0.05
Acquisition-Related Transaction Costs
Acquisition-Related Debt Costs
-
Acquisition-Related Tax Impact
-
Restructuring-Related Expense
-
-
Stock-Based Compensation Expense
-
-
-
0.01
-
-
-
(0.04)
-
-
-
(0.02)
-
Impact of Reversal of Prior Period Tax Liabilities
Impact of the Reinstatement of the R&D Tax Credit
Non-GAAP Diluted EPS (1)
(0.00)
(0.04)
$
1.03
(1) The sum of the individual per share amounts may not equal the total due to rounding
0.01
$
0.77
-
(0.02)
0.09
$
0.69
0.01
(0.01)
(0.02)
-
$
3.17
0.10
$
2.39
Analog Devices, Fourth Quarter, Fiscal 2015
Schedule F
SUPPLEMENTAL CASH FLOW MEASURES (Unaudited)
See "Non-GAAP Financial Information" in this press release for a description of the items excluded from our supplemental cash
flow measures.
(In thousands)
Net cash provided by operating activities
Non-GAAP adjustments:
Pension conversion payments
Adjusted cash flows from operations
Capital expenditures
Adjusted free cash flow
% of revenue
Three Months Ended
4Q 15
3Q 15
4Q 14
Oct. 31,
Aug. 1,
Nov. 1,
2015
2015
2014
$ 197,975 $
197,139 $
262,263
$
$
223,672
421,647 $
(45,807)
375,840 $
197,139 $
(35,164)
161,975 $
38.4%
18.8%
262,263
(43,417)
218,846
26.9%
Twelve Months Ended
FY 15
FY 14
Oct. 31,
Nov. 1,
2015
2014
$ 907,798 $
871,602
223,672
$ 1,131,470 $
(153,960)
$ 977,510 $
28.5%
871,602
(177,913)
693,689
24.2%