Analog Devices Reports Fourth Quarter and Fiscal Year 2016 Results
-
Record quarterly revenue of
$1 billion , up 3% year-over-year and up 15% sequentially - Record quarterly operating cash flow margin of 49%, record quarterly free cash flow margin of 44%
- Revenue and earnings per share exceed high end of guidance range
"ADI had another excellent quarter, with both revenue and earnings per
share exceeding the high end of our guidance range," said
"In addition, we are pleased with the progress we are making to close the acquisition of Linear Technology, a combination that, we believe, will create an analog industry powerhouse, capable of creating significant value for our customers, employees, and shareholders."
"Looking ahead, order rates are stable entering the seasonally slower first quarter. As a result, we are planning for revenue to decrease sequentially, but to increase 9% to 17% over the prior year, which would represent the third consecutive quarter of year-over-year revenue growth for ADI."
ADI also announced that the Board of Directors has declared a cash dividend of $0.42 per outstanding share of common stock. The dividend will be paid on December 13, 2016 to all shareholders of record at the close of business on December 2, 2016.
Results for the Fourth Quarter of Fiscal Year 2016
-
Revenue totaled
$1.0 billion , up 15% sequentially, and up 3% year-over-year -
Revenue in ADI's B2B markets of industrial, automotive, and
communications infrastructure totaled
$710 million , up 4% sequentially, and up 7% year-over-year - GAAP gross margin of 66.4% of revenue; Non-GAAP gross margin of 66.6% of revenue
- GAAP operating margin of 35.6% of revenue; Non-GAAP operating margin of 38.1% of revenue
-
GAAP diluted EPS of
$0.95 ; Non-GAAP diluted EPS of$1.05 -
Operating Cash Flow of
$487 million , or 48.5% of revenue; Free Cash Flow of$446 million , or 44.4% of revenue
Results for Fiscal Year 2016
-
Revenue totaled
$3.4 billion , stable year-over-year - GAAP gross margin of 65.1% of revenue; Non-GAAP gross margin of 65.3% of revenue
- GAAP operating margin of 30.0% of revenue; Non-GAAP operating margin of 33.1% of revenue
-
GAAP diluted EPS of
$2.76 per share; Non-GAAP diluted EPS of$3.07 per share -
Operating Cash Flow of
$1.3 billion , or 37.4% of revenue; Free Cash Flow of$1.2 billion , or 33.7% of revenue -
Share repurchases and dividend payments to shareholders totaled
$883 million
Please refer to the schedules provided for a summary of revenue and earnings, selected balance sheet information, and the cash flow statement for the fourth quarter and fiscal year 2016, 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 First 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
$840 million to$900 million - Non-GAAP gross margin expected to be between 65.5% and 66.0%
- Non-GAAP operating expenses expected to be slightly up sequentially
-
Non-GAAP interest and other expense expected to be between
$20 million and$25 million - Non-GAAP tax rate expected to be approximately 11%
-
Non-GAAP diluted EPS estimated to be
$0.68 to$0.78 per share
With respect to the forward-looking information presented on a non-GAAP basis, the Company is unable to provide a quantitative reconciliation to GAAP because the items that would be included or excluded, other than those described below, are difficult to predict and estimate and are primarily dependent on future events, including costs relating to the consummation and planned integration of the Company's pending acquisition of Linear Technology Corporation, which is expected to close by the end of the Company's second fiscal 2017 quarter. Known reconciling items are:
- Non-GAAP gross margin excludes $2.5 million of amortization of purchased intangible assets and depreciation of step up value on purchased fixed assets;
- Non-GAAP operating expenses exclude $17.5 million of amortization of purchased intangible assets and depreciation of step up value on purchased fixed assets;
-
Non-GAAP tax rate excludes
$1.0 million provision for income taxes which represents the tax effects of the reconciling items noted in the two bullets above; and -
Non-GAAP earnings per share excludes
$0.06 , which represents the estimated impact of the amortization of purchased intangible assets and depreciation of step up value on purchased fixed assets, net of tax, associated with the non-GAAP adjustments noted above on a per share basis.
Conference Call Scheduled for Today,
ADI will host a conference call to discuss fourth quarter and fiscal
2016 results and short-term outlook today, beginning at
A replay will be available two hours after the completion of the call. The replay may be accessed for up to two weeks by dialing 855-859-2056 (replay only) and providing the conference ID: 69737833, or by visiting investor.analog.com.
Non-GAAP Financial Information
This
release includes non-GAAP financial measures that are not in accordance
with, nor an alternative to, generally accepted accounting principles
and may be different from non-GAAP measures used by other companies. In
addition, these non-GAAP measures are not based on any comprehensive set
of accounting rules or principles.
Schedules E and F of this press release provides the reconciliation of the Company's historical non-GAAP measures to their most comparable GAAP measures.
Management uses non-GAAP measures internally to evaluate the Company's operating performance from continuing operations against past periods and to budget and allocate resources in future periods. These non-GAAP measures also assist management in evaluating the Company's core business and trends across different reporting periods on a consistent basis. Management also uses these non-GAAP measures as the primary performance measurement when communicating with analysts and investors regarding the Company's earnings results and outlook and believes that the presentation of these non-GAAP measures is useful to investors because it provides investors with the operating results that management uses to manage the Company and enables investors and analysts to evaluate the Company's core business. Management also believes that the non-GAAP liquidity measure free cash flow is useful both internally and to investors because it provides information about the amount of cash generated after capital expenditures that is then available to repay debt obligations, make investments and fund acquisitions, and for certain other activities.
The following items are excluded from our non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, and non-GAAP diluted earnings per share:
Acquisition-Related Expenses: Expenses incurred as a result of prior period acquisitions primarily include expenses associated with the fair value adjustments to property, plant and equipment and amortization of acquisition related intangibles, which include acquired intangibles such as purchased technology and customer relationships. We excluded these costs from our non-GAAP measures because they relate to a specific transaction and are not reflective of our ongoing financial performance.
Stock-Based Compensation Expense: In fiscal 2015, the Company
recorded
The following items are excluded from our non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, and non-GAAP diluted earnings per share:
Other Operating Expense: Costs incurred in the fourth quarter of fiscal 2015 as a result of the conversion of the benefits provided to participants in the Company's Irish defined benefit pension plan to benefits provided under the Company's Irish defined contribution plan including settlement charges, legal, accounting and other professional fees. We excluded these costs from our non-GAAP measures because they relate to a specific transaction and are not reflective of our ongoing financial performance.
Acquisition-Related Transaction Costs: Costs incurred as a result of the Hittite acquisition and the proposed Linear Technology acquisition, including legal, accounting and other professional fees directly related to these acquisitions. We excluded these costs from our non-GAAP measures because they relate to specific transactions and are not reflective of our ongoing financial performance.
Restructuring-Related Expenses: These expenses are incurred in connection with facility closures, consolidation of manufacturing facilities, severance, and other cost reduction efforts. We excluded these expenses from our non-GAAP measures because apart from ongoing expense savings as a result of such items, these expenses and the related tax effects have no direct correlation to the operation of our business in the future.
The following items are excluded from our non-GAAP other expense and non-GAAP diluted earnings per share:
Loss on Extinguishment of Debt: In fiscal 2016, the Company
redeemed its outstanding 3.0% senior unsecured notes due
Amortization of Deferred Financing Costs: In the third quarter of
fiscal 2016, in connection with the proposed Linear Technology
acquisition, the Company obtained bridge financing commitments and
incurred financing fees which will be amortized into interest expense
over the term of the bridge financing commitments. In the fourth quarter
of fiscal 2016, the Company replaced a portion of the bridge financing
commitments with a 3-year and 5-year unsecured term loan facility. As a
result, the Company accelerated
The following items are excluded from our non-GAAP diluted earnings per share:
Tax-Related Items: Tax adjustments associated with the non-GAAP
items discussed above. In addition, in the fourth quarter of 2015, the
Company recorded a
The following items are excluded from our calculation of Non-GAAP free cash flow:
Pension Conversion Payments: In the fourth quarter of fiscal 2015, the Company made payments as a result of the conversion of the benefits provided to participants in the Company's Irish defined benefit pension plan to benefits provided under the Company's Irish defined contribution plan including settlement charges, legal, accounting and other professional fees. We excluded these payments from our non-GAAP free cash flow measure because they relate to a specific transaction and are not reflective of our ongoing financial performance.
Investors should consider our non-GAAP financial measures in conjunction with the corresponding GAAP measures.
About
Forward Looking Statements
This press release contains
forward-looking statements, which address a variety of subjects
including, for example, our statements regarding expected revenue,
earnings per share, gross margin, operating expenses, interest and other
expense, tax rate, and other financial results, expected operating
leverage, production and inventory levels, expected market
trends, and expected customer demand and order rates for our products,
the proposed acquisition of Linear Technology Corporation ("Linear
Technology"), the expected timing to close the transaction, expected
benefits and synergies of the transaction, expected growth rates of the
combined companies, Analog Devices' expected product offerings, product
development, marketing position and technical advances resulting from
the transaction. Statements that are not historical facts, including
statements about our beliefs, plans and expectations, are
forward-looking statements. Such statements are based on our current
expectations and are subject to a number of factors and uncertainties,
which could cause actual results to differ materially from those
described in the forward-looking statements. The following important
factors and uncertainties, among others, could cause actual results to
differ materially from those described in these forward-looking
statements: any faltering in global economic conditions or the stability
of credit and financial markets, erosion of consumer confidence and
declines in customer spending, unavailability of raw materials,
services, supplies or manufacturing capacity, changes in geographic,
product or customer mix, the ability to satisfy the conditions to
closing of the proposed transaction with Linear Technology, on the
expected timing or at all; the ability to obtain required
regulatory approvals for the proposed transaction, on the expected
timing or at all, including the potential for regulatory authorities to
require divestitures in connection with the proposed transaction; the
occurrence of any event that could give rise to the termination of the
merger agreement with Linear Technology; the risk of stockholder
litigation relating to the proposed transaction, including resulting
expense or delay; higher than expected or unexpected costs associated
with or relating to the transaction; the risk that expected benefits,
synergies and growth prospects of the transaction may not be achieved in
a timely manner, or at all; the risk that Linear Technology's business
may not be successfully integrated with Analog Devices' following the
closing; the risk that
Important Additional Information Will Be Filed With The
In
connection with the proposed transaction,
Non-Solicitation
This communication shall not constitute an
offer to sell or the solicitation of an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be any
sale of securities in any jurisdiction in which such offer, solicitation
or sale would be unlawful prior to registration or qualification under
the securities laws of any such jurisdiction. No offer of securities
shall be made except by means of a prospectus meeting the requirements
of Section 10 of the Securities Act of 1933, as amended.
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Schedule A |
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Revenue and Earnings Summary (Unaudited) |
|||||||||||||||||||||||||
|
(In thousands, except per-share amounts) |
|||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||
| 4Q 16 | 3Q 16 | 4Q 15 | FY 16 | FY 15 | |||||||||||||||||||||
|
2016 |
2016 |
2015 |
2016 |
2015 |
|||||||||||||||||||||
| Revenue | $ | 1,003,623 | $ | 869,591 | $ | 978,722 | $ | 3,421,409 | $ | 3,435,092 | |||||||||||||||
| Year-to-year change | 3 | % | 1 | % | 20 | % | — | % | 20 | % | |||||||||||||||
| Quarter-to-quarter change | 15 | % | 12 | % | 13 | % | |||||||||||||||||||
| Cost of sales (1) | 336,936 | 297,301 | 336,926 | 1,194,236 | 1,175,830 | ||||||||||||||||||||
| Gross margin | 666,687 | 572,290 | 641,796 | 2,227,173 | 2,259,262 | ||||||||||||||||||||
| Gross margin percentage | 66.4 | % | 65.8 | % | 65.6 | % | 65.1 | % | 65.8 | % | |||||||||||||||
| Year-to-year change (basis points) | 80 | (10 | ) | 590 | (70 | ) | 190 | ||||||||||||||||||
| Quarter-to-quarter change (basis points) | 60 | 20 | (30 | ) | |||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||
| R&D (1) | 172,926 | 163,227 | 170,736 | 653,816 | 637,459 | ||||||||||||||||||||
| Selling, marketing and G&A (1) | 118,881 | 122,909 | 121,400 | 461,438 | 478,972 | ||||||||||||||||||||
| Amortization of intangibles | 17,899 | 17,447 | 17,358 | 70,123 | 88,318 | ||||||||||||||||||||
| Special charges | — | — | — | 13,684 | — | ||||||||||||||||||||
| Other operating expense | — | — | 223,672 | — | 223,672 | ||||||||||||||||||||
| Total operating expenses | 309,706 | 303,583 | 533,166 | 1,199,061 | 1,428,421 | ||||||||||||||||||||
| Total operating expenses percentage | 30.9 | % | 34.9 | % | 54.5 | % | 35.0 | % | 41.6 | % | |||||||||||||||
| Year-to-year change (basis points) | (2,360 | ) | (30 | ) | 1,320 | (660 | ) | 400 | |||||||||||||||||
| Quarter-to-quarter change (basis points) | (400 | ) | (410 | ) | 1,930 | ||||||||||||||||||||
| Operating income | 356,981 | 268,707 | 108,630 | 1,028,112 | 830,841 | ||||||||||||||||||||
| Operating income percentage | 35.6 | % | 30.9 | % | 11.1 | % | 30.0 | % | 24.2 | % | |||||||||||||||
| Year-to-year change (basis points) | 2,450 | 20 | (730 | ) | 580 | (210 | ) | ||||||||||||||||||
| Quarter-to-quarter change (basis points) | 470 | 430 | (1,960 | ) | |||||||||||||||||||||
| Other expense | 33,547 | 12,307 | 3,953 | 71,191 | 20,727 | ||||||||||||||||||||
| Income before income tax | 323,434 | 256,400 | 104,677 | 956,921 | 810,114 | ||||||||||||||||||||
| Provision for income taxes | 27,277 | 25,970 | 8,372 | 95,257 | 113,236 | ||||||||||||||||||||
| Tax rate percentage | 8.4 | % | 10.1 | % | 8.0 | % | 10.0 | % | 14.0 | % | |||||||||||||||
| Net income | $ | 296,157 | $ | 230,430 | $ | 96,305 | $ | 861,664 | $ | 696,878 | |||||||||||||||
| Shares used for EPS - basic | 307,854 | 307,135 | 312,829 | 308,736 | 312,660 | ||||||||||||||||||||
| Shares used for EPS - diluted | 311,633 | 310,558 | 316,571 | 312,308 | 316,872 | ||||||||||||||||||||
| Earnings per share - basic | $ | 0.96 | $ | 0.75 | $ | 0.31 | $ | 2.79 | $ | 2.23 | |||||||||||||||
| Earnings per share - diluted | $ | 0.95 | $ | 0.74 | $ | 0.30 | $ | 2.76 | $ | 2.20 | |||||||||||||||
| Dividends paid per share | $ | 0.42 | $ | 0.42 | $ | 0.40 | $ | 1.66 | $ | 1.57 | |||||||||||||||
| (1) Includes stock-based compensation expense as follows: | |||||||||||||||||||||||||
| Cost of sales | $ | 1,886 | $ | 1,844 | $ | 2,188 | $ | 7,808 | $ | 8,983 | |||||||||||||||
| R&D | $ | 7,007 | $ | 6,682 | $ | 6,487 | $ | 27,039 | $ | 26,617 | |||||||||||||||
| Selling, marketing and G&A | $ | 6,341 | $ | 8,093 | $ | 7,408 | $ | 28,574 | $ | 33,319 | |||||||||||||||
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Schedule B |
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Selected Balance Sheet Information (Unaudited) |
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(In thousands) |
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| 4Q 16 | 3Q 16 | 4Q 15 | ||||||||||||
|
2016 |
2016 |
2015 |
||||||||||||
| Cash & short-term investments | $ | 4,055,793 | $ | 3,803,434 | $ | 3,028,928 | ||||||||
| Accounts receivable, net | 477,609 | 452,944 | 466,527 | |||||||||||
| Inventories (1) | 376,555 | 392,303 | 412,314 | |||||||||||
| Other current assets | 64,906 | 79,207 | 171,779 | |||||||||||
| Total current assets | 4,974,863 | 4,727,888 | 4,079,548 | |||||||||||
| PP&E, net | 636,116 | 629,094 | 644,110 | |||||||||||
| Investments | 48,089 | 54,077 | 41,235 | |||||||||||
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1,679,116 | 1,639,033 | 1,636,526 | |||||||||||
| Intangible assets, net | 549,368 | 529,035 | 583,517 | |||||||||||
| Other | 82,726 | 105,926 | 73,841 | |||||||||||
| Total assets | $ | 7,970,278 | $ | 7,685,053 | $ | 7,058,777 | ||||||||
| Deferred income on shipments to distributors, net | $ | 351,538 | $ | 327,444 | $ | 300,087 | ||||||||
| Other current liabilities | 431,396 | 351,249 | 438,904 | |||||||||||
| Debt, current | — | — | 374,594 | |||||||||||
| Long-term debt | 1,732,177 | 1,731,758 | 495,341 | |||||||||||
| Non-current liabilities | 289,549 | 291,269 | 376,892 | |||||||||||
| Shareholders' equity | 5,165,618 | 4,983,333 | 5,072,959 | |||||||||||
| Total liabilities & equity | $ | 7,970,278 | $ | 7,685,053 | $ | 7,058,777 | ||||||||
(1) Includes
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Schedule C |
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Cash Flow Statement (Unaudited) |
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(In thousands) |
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| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||
| 4Q 16 | 3Q 16 | 4Q 15 | FY 16 | FY 15 | |||||||||||||||||||||
|
2016 |
2016 |
2015 |
2016 |
2015 |
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| Cash flows from operating activities: | |||||||||||||||||||||||||
| Net Income | $ | 296,157 | $ | 230,430 | $ | 96,305 | $ | 861,664 | $ | 696,878 | |||||||||||||||
| Adjustments to reconcile net income | |||||||||||||||||||||||||
| to net cash provided by operations: | |||||||||||||||||||||||||
| Depreciation | 34,116 | 33,732 | 32,688 | 134,540 | 130,147 | ||||||||||||||||||||
| Amortization of intangibles | 19,547 | 18,916 | 18,302 | 75,250 | 92,093 | ||||||||||||||||||||
| Stock-based compensation expense | 15,234 | 16,619 | 16,083 | 63,421 | 68,919 | ||||||||||||||||||||
| Loss on extinguishment of debt | — | — | — | 3,290 | — | ||||||||||||||||||||
| Other non-cash activity | 22,199 | 1,127 | (2,428 | ) | 24,570 | 6,974 | |||||||||||||||||||
| Excess tax benefit - equity based awards | (3,273 | ) | (2,982 | ) | (2,895 | ) | (10,453 | ) | (25,045 | ) | |||||||||||||||
| Deferred income taxes | (12,941 | ) | 12,250 | (25,650 | ) | 8,124 | (52,214 | ) | |||||||||||||||||
| Changes in operating assets and liabilities | 115,945 | (56,089 | ) | 65,570 | 120,489 | (9,954 | ) | ||||||||||||||||||
| Total adjustments | 190,827 | 23,573 | 101,670 | 419,231 | 210,920 | ||||||||||||||||||||
| Net cash provided by operating activities | 486,984 | 254,003 | 197,975 | 1,280,895 | 907,798 | ||||||||||||||||||||
| Percent of revenue | 48.5 | % | 29.2 | % | 20.2 | % | 37.4 | % | 26.4 | % | |||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||||||||||
| Purchases of short-term available-for-sale investments | (1,841,330 | ) | (2,284,166 | ) | (1,808,202 | ) | (7,697,260 | ) | (6,083,999 | ) | |||||||||||||||
| Maturities of short-term available-for-sale investments | 1,364,419 | 2,078,716 | 2,045,945 | 6,375,361 | 4,984,980 | ||||||||||||||||||||
| Sales of short-term available-for-sale investments | 42,645 | 139,805 | 159,546 | 332,716 | 1,251,194 | ||||||||||||||||||||
| Additions to property, plant and equipment | (41,224 | ) | (37,528 | ) | (45,807 | ) | (127,397 | ) | (153,960 | ) | |||||||||||||||
| Payments for acquisitions, net of cash acquired | (80,967 | ) | — | — | (83,170 | ) | (7,065 | ) | |||||||||||||||||
| Change in other assets | (472 | ) | (8,591 | ) | 1,102 | (18,520 | ) | (8,275 | ) | ||||||||||||||||
| Net cash (used for) provided by investing activities | (556,929 | ) | (111,764 | ) | 352,584 | (1,218,270 | ) | (17,125 | ) | ||||||||||||||||
| Cash flows from financing activities: | |||||||||||||||||||||||||
| Early Termination of debt | — | — | — | (378,156 | ) | — | |||||||||||||||||||
| Payments of derivative instruments | — | — | — | (33,430 | ) | — | |||||||||||||||||||
| Proceeds from debt | — | — | — | 1,235,331 | — | ||||||||||||||||||||
| Payments of deferred financing fees | (4,375 | ) | (22,208 | ) | — | (26,583 | ) | — | |||||||||||||||||
| Dividend payments to shareholders | (129,643 | ) | (128,954 | ) | (125,582 | ) | (513,180 | ) | (491,059 | ) | |||||||||||||||
| Repurchase of common stock | (1,412 | ) | (23,022 | ) | (111,702 | ) | (370,061 | ) | (226,953 | ) | |||||||||||||||
| Proceeds from employee stock plans | 22,154 | 16,633 | 7,760 | 61,496 | 122,631 | ||||||||||||||||||||
| Excess tax benefit - equity based awards | 3,273 | 2,982 | 2,895 | 10,453 | 25,045 | ||||||||||||||||||||
| Contingent consideration payment | (1,409 | ) | — | — | (1,409 | ) | (1,767 | ) | |||||||||||||||||
| Change in other financing activities | 45 | (2,093 | ) | 3,724 | (7,378 | ) | 500 | ||||||||||||||||||
| Net cash used for financing activities | (111,367 | ) | (156,662 | ) | (222,905 | ) | (22,917 | ) | (571,603 | ) | |||||||||||||||
| Effect of exchange rate changes on cash | (1,226 | ) | (1,569 | ) | (798 | ) | (2,929 | ) | (3,950 | ) | |||||||||||||||
| Net (decrease) increase in cash and cash equivalents | (182,538 | ) | (15,992 | ) | 326,856 | 36,779 | 315,120 | ||||||||||||||||||
| Cash and cash equivalents at beginning of period | 1,103,670 | 1,119,662 | 557,497 | 884,353 | 569,233 | ||||||||||||||||||||
| Cash and cash equivalents at end of period | $ | 921,132 | $ | 1,103,670 | $ | 884,353 | $ | 921,132 | $ | 884,353 | |||||||||||||||
Schedule D
Revenue Trends by
End Market (Unaudited)
(In thousands)
The categorization of revenue by end market is determined using a variety of data points including the technical characteristics of the product, the "sold to" customer information, the "ship to" customer information and the end customer product or application into which our product will be incorporated. As data systems for capturing and tracking this data evolve and improve, the categorization of products by end market can vary over time. When this occurs we reclassify revenue by end market for prior periods. Such reclassifications typically do not materially change the sizing of, or the underlying trends of results within, each end market.
| Three Months Ended | |||||||||||||||||||||||
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2016 |
2016 |
2015 |
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| Revenue | % * | Q/Q % | Y/Y % | Revenue | Revenue | ||||||||||||||||||
| Industrial | $ | 396,351 | 39 | % | 6 | % | 8 | % | $ | 373,717 | $ | 367,412 | |||||||||||
| Automotive | 141,535 | 14 | % | 5 | % | 7 | % | 134,605 | 132,250 | ||||||||||||||
| Consumer | 294,040 | 29 | % | 58 | % | (7 | )% | 186,575 | 317,690 | ||||||||||||||
| Communications | 171,697 | 17 | % | (2 | )% | 6 | % | 174,694 | 161,370 | ||||||||||||||
| Total Revenue | $ | 1,003,623 | 100 | % | 15 | % | 3 | % | $ | 869,591 | $ | 978,722 | |||||||||||
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* The sum of the individual percentages does not equal the total due to rounding. |
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Twelve Months Ended |
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2016 |
2015 |
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| Revenue | % | Y/Y % | Revenue | ||||||||||||||||||||
| Industrial | $ | 1,502,019 | 44 | % | — | % | $ | 1,494,898 | |||||||||||||||
| Automotive | 540,940 | 16 | % | 3 | % | 525,893 | |||||||||||||||||
| Consumer | 688,289 | 20 | % | (6 | )% | 729,860 | |||||||||||||||||
| Communications | 690,161 | 20 | % | 1 | % | 684,441 | |||||||||||||||||
| Total Revenue | $ | 3,421,409 | 100 | % | — | % | $ | 3,435,092 | |||||||||||||||
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Schedule E |
||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| 4Q 16 | 3Q 16 | 4Q 15 | FY 16 | FY 15 | ||||||||||||||||
|
2016 |
2016 |
2015 |
2016 |
2015 |
||||||||||||||||
| GAAP Gross Margin | $ | 666,687 | $ | 572,290 | $ | 641,796 | $ | 2,227,173 | $ | 2,259,262 | ||||||||||
| Gross Margin Percentage | 66.4 | % | 65.8 | % | 65.6 | % | 65.1 | % | 65.8 | % | ||||||||||
| Acquisition-Related Expenses | 2,040 | 1,888 | 1,399 | 6,849 | 7,199 | |||||||||||||||
| Stock-Based Compensation Expense | — | — | — | — | 113 | |||||||||||||||
| Non-GAAP Gross Margin | $ | 668,727 | $ | 574,178 | $ | 643,195 | $ | 2,234,022 | $ | 2,266,574 | ||||||||||
| Gross Margin Percentage | 66.6 | % | 66.0 | % | 65.7 | % | 65.3 | % | 66.0 | % | ||||||||||
| GAAP Operating Expenses | $ | 309,706 | $ | 303,583 | $ | 533,166 | $ | 1,199,061 | $ | 1,428,421 | ||||||||||
| Percent of Revenue | 30.9 | % | 34.9 | % | 54.5 | % | 35.0 | % | 41.6 | % | ||||||||||
| Other Operating Expense | — | — | (223,672 | ) | — | (223,672 | ) | |||||||||||||
| Acquisition-Related Expenses | (17,999 | ) | (17,582 | ) | (17,682 | ) | (70,555 | ) | (89,738 | ) | ||||||||||
| Acquisition-Related Transaction Costs | (5,210 | ) | (8,310 | ) | — | (13,519 | ) | (10,016 | ) | |||||||||||
| Restructuring-Related Expense | — | — | — | (13,684 | ) | — | ||||||||||||||
| Stock-Based Compensation Expense | — | — | — | — | (4,164 | ) | ||||||||||||||
| Non-GAAP Operating Expenses | $ | 286,497 | $ | 277,691 | $ | 291,812 | $ | 1,101,303 | $ | 1,100,831 | ||||||||||
| Percent of Revenue | 28.5 | % | 31.9 | % | 29.8 | % | 32.2 | % | 32.0 | % | ||||||||||
| GAAP Operating Income/Margin | $ | 356,981 | $ | 268,707 | $ | 108,630 | $ | 1,028,112 | $ | 830,841 | ||||||||||
| Percent of Revenue | 35.6 | % | 30.9 | % | 11.1 | % | 30.0 | % | 24.2 | % | ||||||||||
| Other Operating Expense |
— |
— | 223,672 |
— |
223,672 | |||||||||||||||
| Acquisition-Related Expenses | 20,039 | 19,470 | 19,081 | 77,404 | 96,937 | |||||||||||||||
| Acquisition-Related Transaction Costs | 5,210 | 8,310 | — | 13,519 | 10,016 | |||||||||||||||
| Restructuring-Related Expense | — | — | — | 13,684 | — | |||||||||||||||
| Stock-Based Compensation Expense | — | — | — | — | 4,277 | |||||||||||||||
| Non-GAAP Operating Income/Margin | $ | 382,230 | $ | 296,487 | $ | 351,383 | $ | 1,132,719 | $ | 1,165,743 | ||||||||||
| Percent of Revenue | 38.1 | % | 34.1 | % | 35.9 | % | 33.1 | % | 33.9 | % | ||||||||||
| GAAP Other Expense | $ | 33,547 | $ | 12,307 | $ | 3,953 | $ | 71,191 | $ | 20,727 | ||||||||||
| Percent of Revenue | 3.3 | % | 1.4 | % | 0.4 | % | 2.1 | % | 0.6 | % | ||||||||||
| Loss on Extinguishment of Debt | — | — | — | (3,290 | ) | — | ||||||||||||||
| Amortization of Deferred Financing Costs | (13,665 | ) | — | — | (13,665 | ) | — | |||||||||||||
| Non-GAAP Other Expense | $ | 19,882 | $ | 12,307 | $ | 3,953 | $ | 54,236 | $ | 20,727 | ||||||||||
|
Percent of Revenue |
2.0 |
% |
1.4 |
% |
0.4 |
% |
1.6 |
% |
0.6 |
% |
||||||||||
|
GAAP Diluted EPS |
$ |
0.95 |
$ |
0.74 |
$ |
0.30 |
$ |
2.76 |
$ |
2.20 |
||||||||||
| Impact of Loss on Extinguishment of Debt | — | — | — | 0.01 | — | |||||||||||||||
| Other Operating Expense | — | — | 0.71 | — | 0.71 | |||||||||||||||
| Acquisition-Related Expenses | 0.06 | 0.06 | 0.06 | 0.25 | 0.31 | |||||||||||||||
| Acquisition-Related Transaction Costs | 0.02 | 0.03 | — | 0.04 | 0.03 | |||||||||||||||
| Amortization of Deferred Financing Costs | 0.04 | — | — | 0.04 | — | |||||||||||||||
| Restructuring-Related Expense | — | — | — | 0.04 | — | |||||||||||||||
| Stock-Based Compensation Expense | — | — | — | — | 0.01 | |||||||||||||||
| Income Tax Effect of Above Items | (0.02 |
) |
|
(0.01 |
) |
— | (0.06 | ) | (0.02 | ) | ||||||||||
| Acquisition-Related Tax Impact | — | — | — | — | (0.01 | ) | ||||||||||||||
| Impact of Reversal of Prior Period Tax Liabilities | — | — |
(0.04 |
) |
— | (0.04 | ) | |||||||||||||
| Impact of the Reinstatement of the R&D Tax Credit | — | — | — | (0.02 | ) | (0.02 | ) | |||||||||||||
| Non-GAAP Diluted EPS (1) | $ | 1.05 | $ | 0.82 | $ | 1.03 | $ | 3.07 | $ | 3.17 | ||||||||||
(1) The sum of the individual per share amounts may not equal the total due to rounding.
|
|
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|
|
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|
Schedule F |
|||||||||||||||||||||||||
|
Reconciliation of Net Cash Flows Provided by Operating Activities to Free Cash Flows (In thousands) |
|||||||||||||||||||||||||
|
(Unaudited) |
|||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||
| 4Q 16 | 3Q 16 | 4Q 15 | FY 16 | FY 15 | |||||||||||||||||||||
|
2016 |
2016 |
2015 |
2016 |
2015 |
|||||||||||||||||||||
| Net cash provided by operating activities | $ | 486,984 | $ | 254,003 | $ | 197,975 | $ | 1,280,895 | $ | 907,798 | |||||||||||||||
| % of revenue | 48.5 | % | 29.2 | % | 20.2 | % | 37.4 | % | 26.4 | % | |||||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||||
| Pension conversion payments | — | — | 223,672 | — | 223,672 | ||||||||||||||||||||
| Adjusted cash flows from operations | $ | 486,984 | $ | 254,003 | $ | 421,647 | $ | 1,280,895 | $ | 1,131,470 | |||||||||||||||
| Capital expenditures | (41,224 | ) | (37,528 | ) | (45,807 | ) | (127,397 | ) | (153,960 | ) | |||||||||||||||
| Adjusted free cash flow | $ | 445,760 | $ | 216,475 | $ | 375,840 | $ | 1,153,498 | $ | 977,510 | |||||||||||||||
| % of revenue | 44.4 | % | 24.9 | % | 38.4 | % | 33.7 | % | 28.5 | % | |||||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20161122005324/en/
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(fax)
Treasurer and Director of Investor Relations
investor.relations@analog.com
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