Analog Devices(US:ADI)2024-08-21 11:04Financial Performance - Revenue for the three months ended August 3, 2024, was $2,312,209, a decrease of 25% compared to $3,076,495 for the same period in the prior year[61]. - Net income for the three months ended August 3, 2024, was $392,232, down 55% from $877,019 in the prior year[61]. - Diluted EPS for the three months ended August 3, 2024, was $0.79, a decrease of 55% from $1.74 in the same period last year[61]. - Revenue for the nine months ended August 3, 2024, was $6,983,952, a decrease of 27% compared to $9,589,055 for the same period in the prior year[62]. - Net income for the nine months ended August 3, 2024, was $1,157,201, down 59% from $2,816,149 in the prior year[62]. - Operating income decreased by $438.2 million (47%) in the three-month period and $1.7 billion (54%) in the nine-month period ended August 3, 2024, compared to the same periods in the prior fiscal year[79][80]. - Net income decreased by $484.8 million (55%) in the three-month period and $1.7 billion (59%) in the nine-month period ended August 3, 2024, compared to the same periods in the prior fiscal year[84][85]. Gross Margin and Expenses - Gross margin percentage decreased to 56.7% for the three months ended August 3, 2024, down from 63.8% in the prior year[73]. - Gross margin percentage for the nine months ended August 3, 2024, was 56.8%, down from 65.0% in the prior year[73]. - R&D expenses decreased by $61.1 million (14%) in the three-month period and $144.6 million (12%) in the nine-month period ended August 3, 2024, compared to the same periods in the prior fiscal year[74]. - SMG&A expenses decreased by $76.9 million (23%) in the three-month period and $193.2 million (20%) in the nine-month period ended August 3, 2024, compared to the same periods in the prior fiscal year[76]. - Amortization expenses decreased by $62.9 million (25%) in the three-month period and $189.9 million (25%) in the nine-month period ended August 3, 2024, compared to the same periods in the prior fiscal year[77]. - Nonoperating expenses increased by $13.7 million in the three-month period and $49.9 million in the nine-month period ended August 3, 2024, primarily due to higher foreign currency expenses[81]. - Special charges, net decreased by $11.3 million (48%) in the three-month period and $12.3 million (26%) in the nine-month period ended August 3, 2024, compared to the same periods in the prior fiscal year[78]. Liquidity and Capital Structure - The company reported total liquidity of $2.5 billion in cash, cash equivalents, and short-term investments as of August 3, 2024[86]. - Total debt outstanding as of August 3, 2024, was $8,164,520, with various notes maturing between 2024 and 2054[90]. - The company has $547.4 million of outstanding borrowings under its commercial paper program, with a maximum aggregate face amount of $2.5 billion[91]. - Capital expenditures for the first nine months of fiscal 2024 were $565.1 million, with expectations for total capital expenditures between $650 million and $750 million for the fiscal year[95]. - The company has authorized a stock repurchase program totaling $16.7 billion, with $1.7 billion remaining available for repurchase as of August 3, 2024[94]. Dividend and Shareholder Returns - A cash dividend of $0.92 per share was declared, totaling approximately $456.8 million, to be paid on September 17, 2024[95]. Accounts and Inventory - Accounts receivable decreased by $342,576, or 23%, to $1,127,158 as of August 3, 2024, compared to $1,469,734 at the end of fiscal 2023[89]. - Inventory decreased by $214,278, or 13%, to $1,427,936 as of August 3, 2024, from $1,642,214 previously[89]. Taxation - The effective income tax rate for the three-month period ended August 3, 2024, was 7.3%, and for the nine-month period, it was 8.2%, both below the U.S. statutory tax rate of 21%[82]. Demand and Revenue Sources - Revenue from the industrial segment for the three months ended August 3, 2024, was $1,058,704, a decline of 37% year-over-year[66]. - Revenue from distributors accounted for 58% of total revenue for the three months ended August 3, 2024, compared to 62% in the prior year[71]. - The company experienced a broad-based decline in demand for its products, contributing to the revenue decreases in both the three- and nine-month periods[68]. Cash Flow - Net cash provided by operating activities decreased to $2,801,712, representing 40% of revenue, down from $3,630,340 or 56% of revenue in the prior period[88]. Current Liabilities - Current liabilities increased to $3,226.6 million as of August 3, 2024, compared to $3,201.0 million at the end of fiscal 2023[88]. Debt Issuance - The company issued $550.0 million of senior unsecured notes due in 2034 and 2054, with fixed interest payments commencing in October 2024[96].