- Revenue and earnings per share exceed high end of guidance
- Record first quarter revenue of $984 million drives strong year-on-year margin expansion and cash flow generation
- $1.4 billion in cash flow from operations and $1.2 billion in free cash flow on a trailing twelve month basis
NORWOOD, Mass. — (BUSINESS WIRE) — February 15, 2017 — Analog Devices, Inc. (NASDAQ: ADI), today announced financial results for its first quarter of fiscal year 2017, which ended January 28, 2017.
“We have started 2017 with strong and broad-based momentum in our business,” said Vincent Roche, President and CEO. “Our strategy to focus on sustainable and differentiated innovation helped drive 28% year-on-year revenue growth, and our laser focus on operational execution drove strong year-on-year margin expansion and cash generation in the first quarter.”
"In addition, we are pleased with the progress we are making to close the acquisition of Linear Technology, and expect the deal to close by the end of our second fiscal quarter. The combination with Linear Technology, we believe, will create an analog industry powerhouse, capable of creating tremendous value for our customers, employees, and shareholders.”
“Looking ahead to the April quarter, we are planning for revenue to be in the range of $870 million to $950 million, with sequential aggregate strength in our Business to Business (B2B) markets of industrial, automotive, and communications infrastructure being offset by seasonal patterns in the portable consumer market. At the mid-point of this range, we expect revenue to grow 17% over the prior year, which would represent the 4th consecutive quarter of year-over-year revenue growth for ADI.”
ADI also announced that its Board of Directors has approved a 7% increase in its quarterly cash dividend to $0.45 from $0.42 per outstanding share of common stock, representing an annual dividend per share of $1.80. The quarterly dividend that was declared by the Board of Directors will be paid on March 7, 2017 to all shareholders of record at the close of business on February 24, 2017.
Results for the First Quarter of Fiscal Year 2017
- Revenue totaled $984 million, down 2% sequentially, and up 28% year-over-year
- Revenue in ADI’s B2B markets of industrial, automotive, and communications infrastructure totaled $714 million, up 1% sequentially, and up 11% year-over-year
- GAAP gross margin of 65.9% of revenue; Non-GAAP gross margin of 66.1% of revenue
- GAAP operating margin of 27% of revenue; Non-GAAP operating margin of 35% of revenue
- GAAP diluted EPS of $0.69; Non-GAAP diluted EPS of $0.94
Please refer to the schedules provided for a summary of revenue and earnings, selected balance sheet information, and the cash flow statement for the first quarter of fiscal year 2017, as well as the immediately prior and year-ago quarters. Additional information on revenue by end market is provided on Schedule D.
Outlook for the Second Quarter of Fiscal Year
2017
The following statements are based on current
expectations, and as indicated, and further explained below, are
presented on a non-GAAP basis where the Company is unable without
unreasonable efforts to forecast items that will be included in reported
GAAP results. These statements are forward-looking and actual results
may differ materially, as a result of, among other things, the important
factors discussed at the end of this release. These statements supersede
all prior statements regarding our business outlook set forth in prior
ADI news releases, and ADI disclaims any obligation to update these
forward-looking statements.
- Revenue estimated to be in the range of $870 million to $950 million
- Non-GAAP gross margin expected to increase to between approximately 66.5% and approximately 67%
- Non-GAAP operating expenses expected to be down approximately 3% to up approximately 1% sequentially
- Non-GAAP interest and other expense expected to be approximately $30 million
- Non-GAAP tax rate expected to be approximately 8%
- Non-GAAP diluted EPS estimated to be $0.74 to $0.86 per share
