Analog Devices' First-Quarter Revenue Increases 30% Year-Over-Year, 9% Sequentially.Business Editors/High-Tech Writers NORWOOD, Mass.--(BUSINESS WIRE)--Feb. 12, 2004 Analog Devices Analog Devices (NYSE: ADI) is an American multinational producer of semiconductor devices. Analog specializes in ADC, DAC, MEMS, and DSP chips for consumer and industrial goods. Analog is presently designing circuits in the 65 nanometer to 3 µm process feature sizes range. , Inc. (NYSE NYSE See: New York Stock Exchange : ADI), a global leader in high-performance semiconductors for signal processing See DSP. applications, today reported that revenue rose 30% year-over-year and 9% sequentially to $605.4 million for the first quarter of fiscal 2004, which ended on January 31, 2004. Net income for the quarter was $116.8 million. The first quarter's diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of (EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ) under generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) was $0.30, up from $0.16 for the same period one year ago and up from $0.23 for the immediately prior quarter. ADI also announced that the company's Board of Directors declared a cash dividend of $0.04 per outstanding share of common stock, payable on March 17, 2004 to all stockholders of record at the close of business on February 27, 2004. "As a result of customer demand that continued to strengthen throughout the first quarter, we achieved financial performance well ahead of our previous expectations and fiscal year 2004 is clearly off to a great start," said Mr. Jerald G. Fishman Jerald G. Fishman has served as Chief Executive Officer and President of Analog Devices since November 1996. He is a 35 year veteran of Analog Devices and also serves on the Board of Directors of Cognex Corporation and Xilinx Inc. , president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "We experienced solid sequential and year-over-year revenue growth across the breadth of our high-performance analog and DSP (1) (Digital Signal Processor) A special-purpose CPU used for digital signal processing applications (see definition #2 below). It provides ultra-fast instruction sequences, such as shift and add, and multiply and add, which are commonly used in math-intensive product portfolio. "Shipments increased in all regions and end markets, particularly among the wide range of customers who design industrial and instrumentation systems, medical electronics, and automatic test equipment. Shipments to the consumer, communications, and computer end markets also grew during the quarter. "Gross margins for the first quarter of fiscal 2004 increased to 57.1% of sales, up from 55.8% of sales in the prior quarter. Increasing gross margin coupled with tight expense control resulted in operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: rising to 24.1% of sales." Turning to the balance sheet Mr. Fishman said, "Our balance sheet continues to strengthen. Our cash and short-term investment balance grew by $190 million to $2.3 billion after $27 million of capital expenditures and a $15 million dividend payment. Days cost of sales in inventory declined to 103 days in the first quarter compared to 106 days in the previous quarter, while days sales in accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying remained flat at 48 days." Regarding the near-term outlook, Mr. Fishman said, "Customer order patterns are providing us with the best visibility we have had in many quarters. As a result, our backlog of products requested to ship within the next 13 weeks has increased sequentially by 23% to $475 million. During the second quarter of fiscal 2004, we are planning for revenues to grow sequentially by approximately 7% to 10%, which is approximately $650 to $665 million, and for EPS to be in the range of $0.34 to $0.35." Taking a long-term view Mr. Fishman concluded, "We believe high-performance analog and DSP will continue to be among the fastest-growing product categories within the semiconductor industry and that ADI can continue to gain market share in these areas. The pervasiveness of signal processing throughout virtually all types of electronic equipment provides ADI with the opportunity for significant revenue growth over the next few years." Mr. Fishman will discuss the first quarter's results and the near-term outlook via webcast, accessible from www.analog.com, today beginning at 4:30 pm EST EST electroshock therapy. EST abbr. electroshock therapy . Investors who prefer to join by telephone may call 706-634-7193 ten minutes before the call begins and provide the password "ADI." A replay will be available almost immediately after the call. The replay may be accessed for up to one week by dialing 706-645-9291 (replay only) and providing the conference ID: 5207685 or by visiting the Investor Relations Investor relations The process by which the corporation communicates with its investors. page on ADI's web site. Analog Devices, Inc. is a leading manufacturer of precision high-performance integrated circuits Integrated circuits Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1. used in analog and digital signal processing See DSP. Digital Signal Processing - (DSP) Computer manipulation of analog signals (commonly sound or image) which have been converted to digital form (sampled). applications. ADI is headquartered in Norwood, Massachusetts Norwood is a town and census-designated place in Norfolk County, Massachusetts, USA. As of the 2000 census, the population was 28,587. The community was named after Norwood, England. , and employs approximately 8,600 people worldwide. It has manufacturing facilities in Massachusetts, California, North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. , Ireland, the Philippines, and the United Kingdom. Analog Devices' common stock is listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. and ADI is included in the S&P 500 Index. Safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , including our statements regarding planned revenues, earnings, and operating margins, that are based on our current expectations, beliefs, assumptions, estimates, forecasts, and projections about the industry and markets in which Analog Devices operates. The statements contained in this release are not guarantees of future performance and involve certain risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed in such forward-looking statements, and such statements should not be relied upon as representing Analog Devices' expectations or beliefs as of any date subsequent to the date of this press release. Important factors that may affect future operating results include the effects of adverse changes in overall economic conditions, currency exchange rate fluctuations, the timing and duration of market upturns and downturns, the growth or contraction of the markets we serve, demand for semiconductors generally and for our products in particular, the risk that our backlog could decline significantly, our ability to hire engineers and other qualified employees needed to meet the expected demands of our customers, reversals or slowdowns in the markets or customers served by our products, the adverse effects of building inventories to meet planned growth that fails to materialize, the occurrence and frequency of inventory and lead-time reduction cycles, raw material availability, availability of both internal and external manufacturing capacity, technological and product development risks, competitors' actions and technological innovations, and other risk factors described in our Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended November 1, 2003, as filed with the Securities and Exchange Commission.
Analog Devices Supplemental Information, First Quarter, Fiscal 2004
Sales/Earnings Summary
(In thousands of dollars, except per-share amounts)
1Q 04 4Q 03 1Q 03
Three Months Ended Jan 31, 2004 Nov 1, 2003 Feb 1, 2003
Net Sales $605,353 $557,517 $467,423
Y/Y Growth 30% 22% 19%
Q/Q Growth 9% 7% 3%
Cost of Sales 259,888 246,605 214,286
Gross Margin 345,465 310,912 253,137
Percent of Sales 57.1% 55.8% 54.2%
Operating Expenses:
R&D 118,237 112,418 107,112
Selling, Marketing and G&A 79,238 75,007 69,315
Acquisition-related expenses 2,393 2,664 2,849
Restructuring Costs - 9,193 -
Operating Income 145,597 111,630 73,861
Percent of Sales 24.1% 20.0% 15.8%
Other (Income) Expense (4,197) (649) (3,052)
Income Before Tax 149,794 112,279 76,913
Provision for Taxes 32,955 24,252 16,921
Tax Rate 22% 22% 22%
Net Income $116,839 $88,027 $59,992
Percent of Sales 19% 16% 13%
Shares used for EPS - Basic 372,052 368,511 363,138
Shares used for EPS - Diluted 392,904 387,381 378,197
Earnings per Share - Basic $0.31 $0.24 $0.17
Earnings per Share - Diluted $0.30 $0.23 $0.16
Dividends declared per share $0.04 $- $-
Analog Devices Supplemental Information, First Quarter, Fiscal 2004
Selected Balance Sheet Information
(In thousands of dollars)
1Q 04 4Q 03 1Q 03
Jan 31, 2004 Nov 1, 2003 Feb 1, 2003
Cash & Short-term Investments $2,306,525 $2,116,743 $2,999,732
Accounts Receivable, Net 315,900 294,781 231,422
Inventories 292,626 287,502 294,478
Other Current Assets 175,131 186,690 185,433
Total Current Assets 3,090,182 2,885,716 3,711,065
PP&E, Net 660,891 671,140 754,571
Investments 356,535 341,573 276,595
Intangible Assets 171,360 172,019 173,985
Other 23,269 22,429 116,086
Total Assets $4,302,237 $4,092,877 $5,032,302
Current Liabilities $372,220 $342,132 $360,611
Deferred income-shipments to
distributors 138,266 121,345 106,686
Long-term Debt - - 1,275,269
Non-Current Lease Obligations - - 247
Non-Current Liabilities 353,760 341,326 316,424
Stockholders' Equity 3,437,991 3,288,074 2,973,065
Total Liabilities & Equity $4,302,237 $4,092,877 $5,032,302
Capital Expenditures, Depreciation & Amortization
(In thousands of dollars)
1Q 04 4Q 03 1Q 03
Three Months Ended Jan 31, 2004 Nov 1, 2003 Feb 1, 2003
Capital Expenditures $27,073 $18,358 $14,953
Depreciation $37,565 $39,320 $41,539
Amortization of Intangibles $677 $660 $652
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