Analog Devices, Inc. (NASDAQ:ADI) 2023 UBS Global Technology Conference Call November 28, 2023 4:55 PM ET Company Participants Vincent Roche - Chairman and Chief Executive Officer Conference Call Participants Timothy Arcuri - UBS Timothy Arcuri Good afternoon. We are going to start our next session and we are pleased to have Analog Devices for our next session and we are pleased to have Vincent Roche, CEO and the Chairman of the Board of Directors. So thank you, Vincent. Vincent Roche Thank you, Tim, for ha ...

Acquisition and Financial Transactions - The company completed the acquisition of Maxim Integrated Products, Inc. for a total consideration of approximately $28.0 billion in stock[13] - The company's floating rate debt would result in an annual interest expense change of $20.5 million for each 100 basis point increase in interest rates as of October 28, 2023[216] - A hypothetical 100 basis point increase in interest rates would increase the swap payable by approximately $57.0 million, with a corresponding adjustment to the carrying value of the related debt[218] - The company had $6.5 billion in principal amount of senior unsecured notes outstanding as of October 28, 2023, with a fair value of $5.3 billion[219] - An immediate 10% unfavorable movement in foreign currency exchange rates would result in approximately $66.5 million of losses in changes in earnings or cash flows over the course of the year as of October 28, 2023[222] - The fair value of forward exchange contracts as of October 28, 2023 would change to $49,284 after a 10% unfavorable movement in foreign currency exchange rates[225] Market Revenue Trends - Industrial market accounted for 53% of fiscal 2023 revenue, up from 51% in fiscal 2022[31] - Automotive market revenue increased to 24% of total revenue in fiscal 2023, up from 20% in fiscal 2022[31] - Communications market revenue decreased to 13% of total revenue in fiscal 2023, down from 16% in fiscal 2022[31] - Consumer market revenue decreased to 10% of total revenue in fiscal 2023, down from 13% in fiscal 2022[31] Product Portfolio and Engineering - The company has over 13,000 engineers, focusing on deepening customer-centricity and leveraging analog domain expertise[9] - The company's product portfolio includes more than 75,000 SKUs, with analog and mixed-signal products being the largest and most diverse category[21] Strategic Growth and Manufacturing - The company's strategy includes capitalizing on secular growth trends in digitized factories, mobility, digital healthcare, and climate change[10] - The company maintains manufacturing facilities primarily in the United States, Ireland, and Southeast Asia[11] Sales and Distribution - The company's sales channel includes a direct sales force, third-party distributors, and independent sales representatives in over 50 countries[26] - Sales to distributors in 2023 were $7.5 billion net of expected price protection credits and rights of return[233] - The liability balance for price protection credits and rights of return as of October 28, 2023, was $525.4 million, with the majority related to price protection credits[233] - The calculation of price protection credits involves subjective management assumptions about estimates, including contractual terms, historical experience, and future economic conditions[234] - Changes in assumptions about price protection credits can have a material effect on the amount recognized[234] - The company's controls over the calculation of price protection credits were evaluated and tested for appropriateness, completeness, and accuracy[235] - Audit procedures included inspecting contractual terms, testing underlying data, and evaluating significant assumptions used in the estimation of price protection credits[236] - The company's methods and assumptions for estimating price protection credits were compared to historical trends[236] - Sensitivity analyses were performed to assess the impact of significant assumptions on price protection credits[236] - The company's retrospective review analysis of actual price protection credits claimed by distributors was inspected and tested[236] - The company considered new information that could significantly change the estimated future price protection credits[236] Industrial and Automotive Solutions - The company is a leader in industrial automation, offering solutions in condition-based monitoring, industrial robotics, and motion control, with a focus on improving worker safety and manufacturing flexibility[32] - The automotive market focuses on high-performance signal processing solutions for infotainment, electrification, and autonomous applications, with products used in car audio, battery monitoring, and video processing[34] Instrumentation and Measurement - The instrumentation and measurement market includes applications such as automated test equipment, automotive and energy test, and life sciences, with products designed for evolving communications standards and electric vehicle efficiency[32] Aerospace and Defense - The aerospace/defense market requires high-performance ICs that meet rigorous environmental and reliability specifications, with products used in navigation systems, radar systems, and satellite communications[33] Healthcare and Energy Management - The healthcare market is evolving with a focus on preventative care and chronic condition management, with products used in ultrasound systems, X-ray equipment, and remote patient monitoring[34] - The energy management market is driven by global electrification efforts, with products used in electric vehicle charging infrastructure, renewable energy, and power transmission systems[34] Communications and Consumer Markets - The communications market benefits from the development of broadband and wireless infrastructures, with products used in cellular base stations, satellite broadband, and data center networking[34] - The consumer market addresses demand for high-quality entertainment systems, with products used in portable devices and prosumer audio/video equipment[36] Intellectual Property and Innovation - The company holds approximately 4,842 U.S. patents and 416 pending U.S. patent applications as of October 28, 2023, with a focus on technological innovation and intellectual property protection[45] Sustainability and Environmental Goals - The company aims to achieve carbon neutrality by 2030 and net zero emissions by 2050, with a water recycling rate target of at least 50% in manufacturing facilities by 2025[46] Workforce and Employee Engagement - The company has approximately 26,000 employees as of October 28, 2023, with 13,000 in engineering roles. The workforce is 60% male and 40% female, while senior leadership is 73% male and 27% female. The voluntary employee turnover rate for fiscal 2023 was 7.6%[55] - The company's latest employee survey in fiscal 2022 had a participation rate of over 83%, indicating strong employee satisfaction in areas such as purpose, respectful treatment, and commitment to diversity/inclusion[57] - The company's compensation philosophy includes a combination of fixed and variable pay, including base salary, bonuses, performance awards, and equity compensation[56] - The company's ESG Report 2022 details sustainability efforts, operations efficiency, employee engagement, and governance, with initiatives to drive continuous improvements in diversity and inclusion[54] Cybersecurity and Risk Management - The company has not experienced a material security breach in the last three years and has not incurred any net expenses from such breaches[52]

Analog Devices, Inc. (NASDAQ:ADI) Q4 2023 Earnings Conference Call November 21, 2023 10:00 AM ET Company Participants Michael Lucarelli - Vice President, Investor Relations Vincent Roche - Chief Executive Officer and Chair Jim Mollica - Interim Chief Financial Officer Conference Call Participants Ambrish Srivastava - BMO Vivek Arya - Bank of America Securities Joseph Moore - Morgan Stanley Stacy Rasgon - Bernstein Research Chris Danely - Citi Tore Svanberg - Stifel Timothy Arcuri - UBS Operator Good morning ...

Analog Devices, Inc. (NASDAQ:ADI) J.P. Morgan 14th Annual U.S. All Stars Conference September 18, 2023 5:00 AM ET Company Participants Vincent Roche - Chairman and CEO Conference Call Participants Harlan Sur - J.P. Morgan Harlan Sur All right, good morning. And again, welcome to J.P. Morgan's 14th Annual U.S. All Stars Conference here in London. My name is Harlan Sur, I'm the semiconductor and semiconductor capital equipment analyst for the firm. Very pleased to have Vincent Roche, Chairman and Chief Execut ...

Financial Data and Key Metrics - Revenue for Q3 2023 was nearly $3.1 billion, driven by growth in Industrial and Automotive markets [6] - Gross margin remained strong at 72.2%, while operating margin was 47.8% [6][18] - EPS for the quarter was $2.49, within the guidance range [18] - Cash position at the end of the quarter was over $1.1 billion, with a net leverage ratio of 0.8 [19] - Free cash flow over the trailing 12 months was $3.7 billion, representing 29% of revenue [19] Business Line Performance - Industrial segment represented 53% of revenue, down 7% sequentially but up 4% year-over-year, led by sustainable energy and aerospace & defense [16] - Automotive segment represented 24% of revenue, down modestly sequentially but up 15% year-over-year, driven by battery management and in-cabin connectivity solutions [16][17] - Communications segment, representing 12% of revenue, decreased double digits both sequentially and year-over-year due to inventory correction [17] - Consumer segment, representing 10% of revenue, was up 15% sequentially but down 21% year-over-year [18] Market Performance - Industrial market saw double-digit growth in sustainable energy and aerospace & defense [16] - Automotive market continued to show strong growth, particularly in battery management systems and in-cabin connectivity solutions [16][17] - Communications market faced challenges due to inventory adjustments, particularly in wireless and wireline segments [17][38] - Consumer market performed better than expected sequentially but remains under pressure year-over-year [18] Company Strategy and Industry Competition - The company is focused on long-term growth driven by secular trends such as electrification, sustainable energy, and digital healthcare [7][8][41] - ADI is leveraging its leadership in battery management systems (BMS) and expanding into power conversion solutions for electric vehicles [13][14] - The company is investing in grid modernization and energy storage systems, with technologies used in 60% of energy storage systems globally [11][12] - ADI is also developing silicon carbide-based smart switches for bidirectional onboard charging, which could double content opportunity per EV powertrain [14] Management Commentary on Operating Environment and Future Outlook - Management expects the current inventory correction to last two to three quarters, with a return to growth thereafter [26][27] - The company is strategically undershipping to help normalize customer inventory levels, particularly in Asia and China [19][60] - Gross margins are expected to remain above 70% on a trailing 12-month basis, supported by the hybrid manufacturing model and swing capacity [22][33] - Q4 2023 revenue guidance is $2.7 billion, plus or minus $100 million, with all markets expected to be down sequentially [20] Other Important Information - The company is reducing utilization and external wafer purchases to manage inventory levels [21] - ADI has returned nearly $5 billion to shareholders over the trailing 12 months through buybacks and dividends [19][23] - The company expects CapEx to decline in 2024 after reaching a high watermark in 2023 [19] Q&A Session Summary Question: Inventory Correction and Recovery Timeline [25] - Management believes the inventory correction will last two to three quarters, with recovery expected in the next few quarters [26][27] Question: Q1 Seasonality and Gross Margins [30] - Q1 is expected to be down mid-single digits seasonally, with gross margins likely to remain above 70% [32][33] Question: Communications Market Outlook [37] - The wireline segment is expected to recover in early 2024, while wireless faces headwinds due to slower 5G deployments [38][39] Question: Auto Market and Potential UAW Strike Impact [55] - The automotive market is expected to perform relatively better than industrial, with no significant impact anticipated from potential UAW strikes [56][57] Question: Inventory Management and Lead Times [59] - The company is strategically undershipping to reduce channel inventory, with 85% of products now available within 13 weeks [60][63] Question: Pricing and Inventory Days [65] - Pricing is expected to remain stable, with no significant cost reductions expected from foundries [67] - Inventory days are expected to decrease, but not return to pre-pandemic levels of 120 days [68] Question: Undershipment Quantification [70] - The company is undershipping both through the channel and direct customers to help normalize inventory levels [71][72]

Revenue Performance - Revenue for the three months ended July 29, 2023, was $3,076,495, a decrease of 1% compared to $3,109,880 for the same period in 2022[58]. - Revenue for the nine months ended July 29, 2023, was $9,589,055, an increase of 9% compared to $8,766,237 for the same period in 2022[59]. - The Industrial end market contributed $1,629,201 in revenue for the three months ended July 29, 2023, a 4% increase year-over-year[61]. - The Automotive end market saw a revenue increase of 15%, reaching $747,554 for the three months ended July 29, 2023[61]. - Revenue from the Consumer end market decreased by 21% to $319,236 for the three months ended July 29, 2023[61]. - Total revenue from distributors for the three months ended July 29, 2023, was $1,904,496, accounting for 62% of total revenue[63]. Profitability Metrics - Gross margin percentage for the three months ended July 29, 2023, was 63.8%, down from 65.7% in the same period of the prior year[65]. - Gross margin percentage for the nine months ended July 29, 2023, increased to 65.0% from 61.5% in the same period of the prior year[65]. - Net income for the three months ended July 29, 2023, was $877,019, representing a 17% increase from $748,985 in the same period of 2022[58]. - Operating income increased by $36.2 million (4%) in the three-month period and $1,012.5 million (47%) in the nine-month period ended July 29, 2023, compared to the prior fiscal year[71][72]. - Net income increased by $128.0 million (17%) in the three-month period and $1,003.8 million (55%) in the nine-month period ended July 29, 2023, compared to the prior fiscal year[77][78]. - The company reported a diluted EPS of $1.74 for the three months ended July 29, 2023, a 21% increase from $1.44 in the same period of 2022[58]. Expenses Overview - R&D expenses decreased by $8.1 million (2%) in the three-month period and $25.9 million (2%) in the nine-month period ended July 29, 2023, compared to the prior fiscal year[66]. - SMG&A expenses increased by $7.2 million (2%) in the three-month period and $55.0 million (6%) in the nine-month period ended July 29, 2023, compared to the prior fiscal year[68]. - Nonoperating expenses increased by $9.3 million in the three-month period and $26.9 million in the nine-month period ended July 29, 2023, primarily due to higher interest expenses[72][73]. - Special charges, net decreased by $114.7 million (83%) in the three-month period and $197.9 million (81%) in the nine-month period ended July 29, 2023, compared to the prior fiscal year[70]. - Amortization expenses remained relatively flat at $250.7 million in the three-month period and $756.9 million in the nine-month period ended July 29, 2023[69]. Cash Flow and Financial Position - Cash and cash equivalents totaled $1,149.2 million as of July 29, 2023, with approximately $253.9 million held in the United States[79]. - Net cash provided by operating activities for the nine months ended July 29, 2023, was $3,630,340, compared to $3,326,066 for the same period in 2022, maintaining a consistent 38% of revenue[80]. - Cash used for investing activities increased to $(787,324) in the nine months ended July 29, 2023, from $(351,035) in the prior year, primarily due to higher capital expenditures[82]. - Cash used for financing activities decreased to $(3,164,342) from $(3,403,860) year-over-year, attributed to higher net proceeds from commercial paper issuance and lower debt repayments[83]. - Accounts receivable decreased by $184,219 (10%) to $1,616,243 as of July 29, 2023, while inventory increased by $309,399 (22%) to $1,709,313[84]. - Total debt obligations as of July 29, 2023, amounted to $6,517,077, with various notes maturing from 2024 to 2051[85]. Future Outlook and Strategic Initiatives - The company expects to continue developing innovative technologies and processes for new products, viewing R&D as critical for future growth[67]. - Capital expenditures for fiscal 2023 are expected to be between 7% to 9% of revenue, reflecting plans to expand internal manufacturing capacity[89]. - A cash dividend of $0.86 per share was declared on August 22, 2023, expected to total approximately $428.6 million, with future dividends dependent on financial conditions[90]. - The company has authorized a stock repurchase program totaling $16.7 billion, with $2.6 billion remaining available for repurchase as of July 29, 2023[88]. - Current liabilities increased to $2,831.0 million as of July 29, 2023, compared to $2,442.7 million at the end of fiscal 2022, due to higher commercial paper notes and income taxes payable[84].

Analog Devices, Inc. (NASDAQ:ADI) Q2 2023 Earnings Conference Call May 24, 2023 10:00 AM ET Company Participants Michael Lucarelli - VP, IR & FP&A Vincent Roche - CEO & Chair Prashanth Mahendra-Rajah - CFO Conference Call Participants Vivek Arya - Bank of America Securities Tore Svanberg - Stifel Ambrish Srivastava - BMO Capital Markets Joseph Moore - Morgan Stanley Chris Danely - Citi Ross Seymore - Deutsche Bank William Stein - Truist Securities Operator Good morning, and welcome to the Analog Devices Sec ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 29, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 1-7819 Analog Devices, Inc. (Exact name of registrant as specified in its charter) Massachusetts 04-2348234 (State or other jurisdictio ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended January 28, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 1-7819 Analog Devices, Inc. (Exact name of registrant as specified in its charter) Massachusetts 04-2348234 (State or other jurisdict ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended October 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 1-7819 Analog Devices, Inc. (Exact name of registrant as specified in its charter) Massachusetts 04-2348234 (State or other jurisdiction of i ...