Analog Devices(ADI) - 2025 Q2 - Quarterly Report

Financial Performance - Revenue for the three months ended May 3, 2025, increased by 22% to $2,640,068, compared to$ 2,159,039 for the same period in the prior year[62] - Net income for the three months ended May 3, 2025, rose by 89% to $569,770, up from$ 302,242 in the same period last year[62] - Total revenue for the six months ended May 3, 2025, was $5,063,242, an 8% increase from$ 4,671,743 in the same period last year[62] - Net income increased by $267.5 million (89%) in the three months ended May 3, 2025, and by$ 196.1 million (26%) in the six months ended May 3, 2025, driven by increased operating income[80][81] Margins and Expenses - Gross margin percentage improved to 61.0% for the three months ended May 3, 2025, compared to 54.7% for the same period in the prior year[72] - Gross margin for the six months ended May 3, 2025, was 60.1%, up from 56.8% in the same period last year[72] - Research and Development (R&D) expenses increased by 25% to $441,837 for the three months ended May 3, 2025, compared to$ 354,862 in the same period last year[73] - Selling, Marketing, General and Administrative (SMG&A) expenses rose by 24% to $302,669 for the three months ended May 3, 2025, compared to$ 244,129 in the same period last year[74] - Amortization expenses decreased by $1.5 million (1%) in the three months ended May 3, 2025, compared to the same period in the prior year, and by$ 4.4 million (1%) in the six months ended May 3, 2025[75] - Special charges, net decreased by $4.2 million (71%) in the three months ended May 3, 2025, but increased by$ 43.5 million (197%) in the six months ended May 3, 2025, primarily due to Global Repositioning Actions[76] - Total nonoperating expense decreased by $9.5 million in the three months ended May 3, 2025, and by$ 26.3 million in the six months ended May 3, 2025, mainly due to higher interest income and lower interest expense[77] Cash and Debt - Cash and cash equivalents totaled $2.4 billion as of May 3, 2025, with approximately$ 1.1 billion held in the United States[82] - Net cash provided by operating activities was $1.9 billion for the six months ended May 3, 2025, representing 38% of revenue[84] - Total debt amounted to$ 7.3 billion as of May 3, 2025, with various notes maturing between 2026 and 2054[94] - The company has $11.4 billion remaining available for stock repurchases under its authorized program of$ 26.7 billion as of May 3, 2025[98] Assets and Liabilities - Accounts receivable increased by $46.0 million (3%) to$ 1.4 billion, and inventory increased by $77.2 million (5%) to$ 1.5 billion as of May 3, 2025[89][90] - Current liabilities decreased to $2.7 billion as of May 3, 2025, primarily due to the repayment of approximately$ 400.0 million of debt[91] Future Outlook and Management - The company expects to continue developing innovative technologies and processes for new products to maintain product leadership[73] - Capital expenditures for fiscal 2025 are expected to be between approximately 4% and 6% of fiscal 2025 revenue, with net additions to property, plant, and equipment at $239.2 million in the first six months[99] - A cash dividend of$ 0.99 per outstanding share was declared, totaling approximately $491.3 million, to be paid on June 18, 2025[100] - Management believes that the impact of recently issued accounting standards will not have a material impact on future financial condition and results of operations[101] - There were no material changes in market risks related to financial instruments during the six-month period ended May 3, 2025, compared to the previous annual report[103]