Analog Devices Reports Fiscal Fourth Quarter and Record Fiscal 2023 Financial Results

  • Fourth quarter revenue of $2.7 billion with continued double-digit year-over-year growth in Automotive
  • Fiscal 2023 revenue of $12.3 billion driven by new records in Industrial & Automotive
  • Fiscal 2023 operating cash flow of $4.8 billion and free cash flow of $3.6 billion
  • Returned more than $4.6 billion to shareholders in fiscal 2023, including $3.0 billion of share repurchases and $1.7 billion of dividends

WILMINGTON, Mass. — (BUSINESS WIRE) — November 21, 2023 — Analog Devices, Inc. (Nasdaq: ADI), a global semiconductor leader, today announced financial results for its fourth quarter and fiscal year 2023, which ended October 28, 2023.

“For the fourth quarter, ADI delivered revenue and profitability above the midpoint of our outlook, despite the difficult macroeconomic environment. For the year, 2023 was our third consecutive year of record revenue, led by the strength of our Industrial and Automotive businesses,” said Vincent Roche, CEO and Chair. “As outlined last quarter, we expect customer inventory digestion to persist into the first half of the year, a reflection of our return to normal lead times and the challenging macro landscape. Despite that backdrop, the robustness of our business model and our continued focus on execution excellence will buttress our operating margins and free cash flow through the cycle.”

Roche continued, “Long-term, the opportunities ahead for ADI remain strongly positive. Our product portfolio is designed to take advantage of numerous secular trends, our opportunity pipeline is robust and expanding, and our commitment to strategic investment in innovation, customer engagement, and supply resiliency remains undeterred. Altogether, I am extremely confident in our ability to leverage these strengths to drive shareholder value for years to come.”

Performance for the Fourth Quarter and Fiscal 2023

 

Results Summary(1)

 

 

 

 

 

 

 

 

 

 

 

(in millions, except per-share amounts and percentages)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Twelve Months Ended

 

Oct. 28, 2023

 

Oct. 29, 2022

 

Change

 

Oct. 28, 2023

 

Oct. 29, 2022

 

Change

Revenue

$

2,716

 

$

3,248

 

(16) %

 

$

12,306

 

$

12,014

 

 

2 %

Gross margin

$

1,647

 

$

2,143

 

(23) %

 

$

7,877

 

$

7,532

 

 

5 %

Gross margin percentage

 

60.6 %

 

 

66.0 %

 

(540 bps)

 

 

64.0 %

 

 

62.7 %

 

130 bps

Operating income

$

634

 

$

1,102

 

(42) %

 

$

3,823

 

$

3,279

 

 

17 %

Operating margin

 

23.4 %

 

 

33.9 %

 

(1,050 bps)

 

 

31.1 %

 

 

27.3 %

 

380 bps

Diluted earnings per share

$

1.00

 

$

1.82

 

(45) %

 

$

6.55

 

$

5.25

 

 

25 %

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Results (2)

 

 

 

 

 

 

 

 

 

 

 

Adjusted gross margin

$

1,907

 

$

2,403

 

(21) %

 

$

8,925

 

$

8,842

 

 

1 %

Adjusted gross margin percentage

 

70.2 %

 

 

74.0 %

 

(380 bps)

 

 

72.5 %

 

 

73.6 %

 

(110 bps)

Adjusted operating income

$

1,215

 

$

1,659

 

(27) %

 

$

6,014

 

$

5,939

 

 

1 %

Adjusted operating margin

 

44.7 %

 

 

51.1 %

 

(640 bps)

 

 

48.9 %

 

 

49.4 %

 

(50 bps)

Adjusted diluted earnings per share

$

2.01

 

$

2.73

 

(26) %

 

$

10.09

 

$

9.57

 

 

5 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Trailing Twelve Months

Cash Generation

 

 

 

 

Oct. 28, 2023

 

Oct. 28, 2023

Net cash provided by operating activities

 

 

 

 

$

1,187

 

$

4,818

% of revenue

 

 

 

 

 

44 %

 

 

39 %

Capital expenditures

 

 

 

 

$

(476)

 

$

(1,261)

Free cash flow (2)

 

 

 

 

$

711

 

$

3,556

% of revenue

 

 

 

 

 

26 %

 

 

29 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Trailing Twelve Months

Cash Return

 

 

 

 

Oct. 28, 2023

 

Oct. 28, 2023

Dividend paid

 

 

 

 

$

(428)

 

$

(1,679)

Stock repurchases

 

 

 

 

 

(470)

 

 

(2,964)

Total cash returned

 

 

 

 

$

(898)

 

$

(4,643)

 

 

 

 

 

 

 

 

 

 

 

 

(1) The sum and/or computation of the individual amounts may not equal the total due to rounding.

(2) Reconciliations of non-GAAP financial measures to their most directly comparable GAAP financial measures are provided in the financial tables included in this press release. See also the "Non-GAAP Financial Information" section for additional information.


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