Analog Devices Reports Fourth Quarter and Fiscal Year 2017 Results
"The fourth quarter of 2017 drove a strong finish to the fiscal year,
with high-quality revenue growth and operational execution that expanded
gross and operating margins, and delivered stellar earnings per share
growth," said
"Looking ahead to the seasonally-slower first quarter of fiscal 2018, we
are planning for revenue to be in the range of
ADI also announced that the Board of Directors has declared a quarterly
cash dividend of $0.45 per outstanding share of common stock,
representing an annual dividend per share of
Supplemental schedules relating to our fourth quarter fiscal 2017 financial results are also available on our investor site at investor.analog.com.
Results for the Fourth Quarter of Fiscal Year 2017
-
Revenue totaled
$1.54 billion , up 8% sequentially and up 54% year-over-year on a GAAP basis and up 6% sequentially on a non-GAAP basis - GAAP gross margin of 65.3% of revenue; Non-GAAP gross margin of 70.9% of revenue
- GAAP operating margin of 29.1% of revenue; Non-GAAP operating margin of 42.6% of revenue
-
GAAP diluted EPS of
$0.93 ; Non-GAAP diluted EPS of$1.45
Results for the Fiscal Year 2017
-
GAAP Revenue totaled
$5.1 billion , up 49% year-over-year, and non-GAAP revenue totaled$5.2 billion , up 52% year-over-year - GAAP gross margin of 59.9% of revenue; Non-GAAP gross margin of 69.5% of revenue
- GAAP operating margin of 20.7% of revenue; Non-GAAP operating margin of 39.5% of revenue
-
GAAP diluted EPS of
$2.07 ; Non-GAAP diluted EPS of$4.72
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 full year of fiscal 2017, as well as the immediately prior and year-ago quarters and year. Additional information on revenue by end market is provided on Schedule D.
Outlook for the 14-week First Quarter of Fiscal
Year 2018
The following statements are based on
current expectations, and as indicated, are presented on a GAAP and
non-GAAP basis. 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.
GAAP |
Non-GAAP |
Non-GAAP | ||||||||||
Revenue |
|
- |
|
|||||||||
Gross Margin | 67.5% to 68% |
|
70.5% to 71.0% | |||||||||
Operating Expenses |
|
|
|
|||||||||
Operating Margin | Approx. 28% to 31% |
|
Approx. 40% to 42% | |||||||||
Interest & Other Expense |
Approx. |
- |
Approx. |
|||||||||
Tax Rate | Approx. 13% |
|
Approx. 12% | |||||||||
Earnings per Share* |
|
|
|
* The sum of the individual per share amounts may not equal the total due to rounding.
(1) Non-GAAP gross margin excludes $44 million of costs comprised of the following:
-
$35 million of recurring amortization of purchased intangible assets -
$8 million of recurring depreciation of step up value on purchased fixed assets -
$1 million of recurring fair value adjustment associated with the replacement of share-based awards in ADI's acquisition of Linear Technology
(2) Non-GAAP operating expenses exclude $125 million of costs comprised of the following:
-
$107 million of recurring amortization of purchased intangible assets -
$8 million of recurring fair value adjustment associated with the replacement of share-based awards in ADI's acquisition of Linear Technology -
$10 million of transaction and integration related costs associated with ADI's acquisition of Linear Technology
(3) Non-GAAP tax rate excludes the tax effects of the reconciling adjustments noted in the two footnotes above.
(4) Non-GAAP earnings per share includes
-
acquisition-related expenses including amortization of purchased
intangible assets, depreciation of step up value on purchased fixed
assets, and the fair value adjustment associated with the replacement
of share-based awards in ADI's acquisition of Linear Technology (
$0.43 ) -
acquisition-related transaction costs (
$0.03 ) -
the effect on income tax of the prior items (
-$0.05 )
Conference Call Scheduled for Today,
ADI will host a conference call to discuss fourth
quarter and fiscal 2017 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: 83006584, 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 included in our Non-GAAP revenue, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, and non-GAAP diluted earnings per share:
Acquisition-Related Deferred Revenue: Deferred revenue related to shipments of Linear Technology products by distributors to end customers that were received by the distributors prior to the Company's acquisition of Linear Technology. Business combination accounting principles require the write down of deferred revenue in conjunction with the acquisition. We included these revenues in our non-GAAP measures because they relate to a specific transaction and are reflective of our ongoing financial performance.
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 current and prior period acquisitions and primarily include expenses associated with the fair value adjustments to inventory, property, plant and equipment and amortization of acquisition related intangibles, which include acquired intangibles such as purchased technology and customer relationships. Expenses also include severance payments, equity award accelerations and the fair value adjustment associated with the replacement of share-based awards related to the Linear Technology acquisition. We excluded these costs from our non-GAAP measures because they relate to specific transactions and are not reflective of our ongoing financial performance.
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:
Acquisition-Related Transaction Costs: Costs directly related to the Linear Technology acquisition, including legal, accounting and other professional fees, as well as integration-related costs. 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.
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 the first quarter of 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 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 first quarter of fiscal 2017, the
Company replaced a portion of the bridge financing commitments with
proceeds from the issuance of
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 the fourth quarter of 2017, the Company
recorded a
The following items are excluded from our calculation of non-GAAP free cash flow:
Federal Income Tax Payments: In the third quarter of fiscal 2017,
the Company paid
These non-GAAP measures have material limitations in that they do not reflect all of the amounts associated with the Company's results of operations as determined in accordance with GAAP and should not be considered in isolation from, or as a substitute for, the Company's financial results presented in accordance with GAAP. In addition, the Company's non-GAAP measures may not be comparable to the non-GAAP measures reported by other companies. The Company's use of non-GAAP measures, and the underlying methodology when including or excluding certain items, is not necessarily an indication of the results of operations that may be expected in the future, or that the Company will not, in fact, record such items in future periods.
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 and
expected benefits and synergies of the acquisition of
(ADI-WEB)
Schedule A Revenue and Earnings Summary (Unaudited) (In thousands, except per-share amounts) |
||||||||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||
4Q 17 | 3Q 17 | 4Q 16 | FY 17 | FY 16 | ||||||||||||||||||||||||||
2017 |
2017 |
2016 |
2017 |
2016 |
||||||||||||||||||||||||||
Revenue | $ | 1,541,170 | $ | 1,433,902 | $ | 1,003,623 | $ | 5,107,503 | $ | 3,421,409 | ||||||||||||||||||||
Year-to-year change | 53.6 | % | 64.9 | % | 3.0 | % | 49.3 | % | — | % | ||||||||||||||||||||
Quarter-to-quarter change | 7.5 | % | 24.9 | % | 15.0 | % | ||||||||||||||||||||||||
Cost of sales (1) | 535,145 | 667,278 | 336,926 | 2,045,907 | 1,194,236 | |||||||||||||||||||||||||
Gross margin | 1,006,025 | 766,624 | 666,687 | 3,061,596 | 2,227,173 | |||||||||||||||||||||||||
Gross margin percentage | 65.3 | % | 53.5 | % | 66.4 | % | 59.9 | % | 65.1 | % | ||||||||||||||||||||
Year-to-year change (basis points) | (110 | ) | (1,230 | ) | 80 | (520 | ) | (70 | ) | |||||||||||||||||||||
Quarter-to-quarter change (basis points) | 1,180 | (230 | ) | 60 | ||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||
R&D (1) | 273,746 | 275,670 | 172,926 | 968,602 | 653,816 | |||||||||||||||||||||||||
Selling, marketing and G&A (1) | 185,721 | 183,980 | 118,881 | 691,046 | 461,438 | |||||||||||||||||||||||||
Amortization of intangibles | 98,348 | 112,153 | 17,899 | 297,351 | 70,123 | |||||||||||||||||||||||||
Special charges | — | — | — | 49,463 | 13,684 | |||||||||||||||||||||||||
Total operating expenses | 557,815 | 571,803 | 309,706 | 2,006,462 | 1,199,061 | |||||||||||||||||||||||||
Total operating expenses percentage | 36.2 | % | 39.9 | % | 30.9 | % | 39.3 | % | 35.0 | % | ||||||||||||||||||||
Year-to-year change (basis points) | 530 | 500 | (2,360 | ) | 430 | (660 | ) | |||||||||||||||||||||||
Quarter-to-quarter change (basis points) | (370 | ) | (320 | ) | (400 | ) | ||||||||||||||||||||||||
Operating income | 448,210 | 194,821 | 356,981 | 1,055,134 | 1,028,112 | |||||||||||||||||||||||||
Operating income percentage | 29.1 | % | 13.6 | % | 35.6 | % | 20.7 | % | 30.0 | % | ||||||||||||||||||||
Year-to-year change (basis points) | (650 | ) | (1,730 | ) | 2,450 | (930 | ) | 580 | ||||||||||||||||||||||
Quarter-to-quarter change (basis points) | 1,550 | 90 | 470 | |||||||||||||||||||||||||||
Other expense | 66,546 | 68,023 | 33,547 | 226,649 | 71,191 | |||||||||||||||||||||||||
Income before income tax | 381,664 | 126,798 | 323,434 | 828,485 | 956,921 | |||||||||||||||||||||||||
Provision for income taxes | 34,014 | 57,882 | 27,277 | 101,226 | 95,257 | |||||||||||||||||||||||||
Tax rate percentage | 8.9 | % | 45.6 | % | 8.4 | % | 12.2 | % | 10.0 | % | ||||||||||||||||||||
Net income (2) | $ | 347,650 | $ | 68,916 | $ | 296,157 | $ | 727,259 | $ | 861,664 | ||||||||||||||||||||
Shares used for EPS - basic | 368,043 | 367,315 | 307,854 | 346,371 | 308,736 | |||||||||||||||||||||||||
Shares used for EPS - diluted | 372,053 | 371,159 | 311,633 | 350,484 | 312,308 | |||||||||||||||||||||||||
Earnings per common share - basic | $ | 0.94 | $ | 0.18 | $ | 0.96 | $ | 2.09 | $ | 2.79 | ||||||||||||||||||||
Earnings per common share - diluted | $ | 0.93 | $ | 0.18 | $ | 0.95 | $ | 2.07 | $ | 2.76 | ||||||||||||||||||||
Dividends paid per share | $ | 0.45 | $ | 0.45 | $ | 0.42 | $ | 1.77 | $ | 1.66 | ||||||||||||||||||||
(1) Includes stock-based compensation expense as follows: | ||||||||||||||||||||||||||||||
Cost of sales | $ | 3,684 | $ | 4,375 | $ | 1,886 | $ | 12,569 | $ | 7,808 | ||||||||||||||||||||
R&D | $ | 16,546 | $ | 15,781 | $ | 7,007 | $ | 51,258 | $ | 27,039 | ||||||||||||||||||||
Selling, marketing and G&A | $ | 12,119 | $ | 12,668 | $ | 6,341 | $ | 40,361 | $ | 28,574 |
(2) Under the two-class method, earnings per share is calculated using
net earnings allocable to common shares, which is derived by reducing
net income by the income allocable to participating securities. Net
income allocable to common shares used in the basic and diluted earnings
per share calculation was
Schedule B Selected Balance Sheet Information (Unaudited) (In thousands) |
|||||||||||||||||
4Q 17 | 3Q 17 | 4Q 16 | |||||||||||||||
2017 |
2017 |
2016 |
|||||||||||||||
Cash & short-term investments | $ | 1,047,838 | $ | 908,569 | $ | 4,055,793 | |||||||||||
Accounts receivable, net | 688,953 | 692,552 | 477,609 | ||||||||||||||
Inventories (1) | 550,816 | 519,695 | 376,555 | ||||||||||||||
Other current assets | 63,731 | 67,827 | 64,906 | ||||||||||||||
Total current assets | 2,351,338 | 2,188,643 | 4,974,863 | ||||||||||||||
PP&E, net | 1,107,304 | 1,098,848 | 636,116 | ||||||||||||||
Investments | 57,410 | 60,464 | 48,089 | ||||||||||||||
|
12,217,455 | 12,241,815 | 1,679,116 | ||||||||||||||
Intangible assets, net | 5,319,425 | 5,440,692 | 549,368 | ||||||||||||||
Other | 88,362 | 84,533 | 82,726 | ||||||||||||||
Total assets | $ | 21,141,294 | $ | 21,114,995 | $ | 7,970,278 | |||||||||||
Deferred income on shipments to distributors, net | $ | 473,972 | $ | 449,663 | $ | 351,538 | |||||||||||
Other current liabilities | 822,360 | 651,414 | 431,396 | ||||||||||||||
Debt, current | 300,000 | — | — | ||||||||||||||
Long-term debt | 7,551,084 | 8,199,230 | 1,732,177 | ||||||||||||||
Deferred income taxes | 1,674,683 | 1,730,253 | 109,931 | ||||||||||||||
Non-current liabilities | 157,655 | 161,535 | 179,618 | ||||||||||||||
Shareholders' equity | 10,161,540 | 9,922,900 | 5,165,618 | ||||||||||||||
Total liabilities & equity | $ | 21,141,294 | $ | 21,114,995 | $ | 7,970,278 |
(1) Includes
Schedule C Cash Flow Statement (Unaudited) (In thousands) |
||||||||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||
4Q 17 | 3Q 17 | 4Q 16 | FY 17 | FY 16 | ||||||||||||||||||||||||||
2017 |
2017 |
2016 |
2017 |
2016 |
||||||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||||||||
Net Income | $ | 347,650 | $ | 68,916 | $ | 296,157 | $ | 727,259 | $ | 861,664 | ||||||||||||||||||||
Adjustments to reconcile net income | ||||||||||||||||||||||||||||||
to net cash provided by operations: | ||||||||||||||||||||||||||||||
Depreciation | 56,298 | 55,217 | 34,116 | 194,666 | 134,540 | |||||||||||||||||||||||||
Amortization of intangibles | 133,438 | 147,238 | 19,547 | 389,393 | 75,250 | |||||||||||||||||||||||||
Stock-based compensation expense | 32,349 | 32,824 | 15,234 | 104,188 | 63,421 | |||||||||||||||||||||||||
Loss on extinguishment of debt | — | — | — | — | 3,290 | |||||||||||||||||||||||||
Cost of goods sold for inventory acquired | 42,040 | 195,565 | — | 358,718 | — | |||||||||||||||||||||||||
Other non-cash activity | 7,748 | (42,762 | ) | 22,199 | (10,865 | ) | 24,570 | |||||||||||||||||||||||
Excess tax benefit - equity based awards | (11,538 | ) | (4,282 | ) | (3,273 | ) | (41,773 | ) | (10,453 | ) | ||||||||||||||||||||
Deferred income taxes | (62,344 | ) |
(676,490 |
) |
(12,941 | ) |
(825,869 |
) | 8,124 | |||||||||||||||||||||
Changes in operating assets and liabilities | 150,173 |
(140,509 |
) | 115,945 |
216,875 |
|
120,489 | |||||||||||||||||||||||
Total adjustments | 348,164 | (433,199 | ) | 190,827 | 385,333 | 419,231 | ||||||||||||||||||||||||
Net cash provided by operating activities | 695,814 | (364,283 | ) | 486,984 | 1,112,592 | 1,280,895 | ||||||||||||||||||||||||
Percent of revenue | 45.1 | % | (25.4 | )% | 48.5 | % | 21.8 | % | 37.4 | % | ||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||
Purchases of short-term available-for-sale investments | — | (37 | ) | (1,841,330 | ) | (705,485 | ) | (7,697,260 | ) | |||||||||||||||||||||
Maturities of short-term available-for-sale investments | 1 | 270,918 | 1,364,419 | 3,362,792 | 6,375,361 | |||||||||||||||||||||||||
Sales of short-term available-for-sale investments | — | 219,799 | 42,645 | 577,187 | 332,716 | |||||||||||||||||||||||||
Additions to property, plant and equipment | (65,215 | ) | (63,617 | ) | (41,224 | ) | (204,098 | ) | (127,397 | ) | ||||||||||||||||||||
Payments for acquisitions, net of cash acquired | — | 70 | (80,967 | ) | (9,632,568 | ) | (83,170 | ) | ||||||||||||||||||||||
Change in other assets | (2,717 | ) | (1,062 | ) | (472 | ) | (15,842 | ) | (18,520 | ) | ||||||||||||||||||||
Net cash (used for) provided by investing activities | (67,931 | ) | 426,071 | (556,929 | ) | (6,618,014 | ) | (1,218,270 | ) | |||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||
Early Termination of debt | — | — | — | — | (378,156 | ) | ||||||||||||||||||||||||
Debt repayment | (350,000 | ) | (4,700,000 | ) | — | (5,050,000 | ) | — | ||||||||||||||||||||||
Proceeds from (payments of) derivative instruments | — | — | — | 3,904 | (33,430 | ) | ||||||||||||||||||||||||
Proceeds from debt | — | — | — | 11,156,164 | 1,235,331 | |||||||||||||||||||||||||
Payments of deferred financing fees | — | — | (4,375 | ) | (5,625 | ) | (26,583 | ) | ||||||||||||||||||||||
Dividend payments to shareholders | (166,857 | ) | (166,265 | ) | (129,643 | ) | (602,119 | ) | (513,180 | ) | ||||||||||||||||||||
Repurchase of common stock | (10,598 | ) | (8,955 | ) | (1,412 | ) | (46,533 | ) | (370,061 | ) | ||||||||||||||||||||
Proceeds from employee stock plans | 28,058 | 17,971 | 22,154 | 133,302 | 61,496 | |||||||||||||||||||||||||
Excess tax benefit - equity based awards | 11,538 | 4,282 | 3,273 | 41,773 | 10,453 | |||||||||||||||||||||||||
Contingent consideration payment | (1,764 | ) | — | (1,409 | ) | (1,764 | ) | (1,409 | ) | |||||||||||||||||||||
Change in other financing activities | (517 | ) | 9 | 45 | (524 | ) | (7,378 | ) | ||||||||||||||||||||||
Net cash (used for) provided by financing activities | (490,140 | ) | (4,852,958 | ) | (111,367 | ) | 5,628,578 | (22,917 | ) | |||||||||||||||||||||
Effect of exchange rate changes on cash | 1,526 | 1,996 | (1,226 | ) | 3,550 | (2,929 | ) | |||||||||||||||||||||||
Net (decrease) increase in cash and cash equivalents | 139,269 | (4,789,174 | ) | (182,538 | ) | 126,706 | 36,779 | |||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 908,569 | 5,697,743 | 1,103,670 | 921,132 | 884,353 | |||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 1,047,838 | $ | 908,569 | $ | 921,132 | $ | 1,047,838 | $ | 921,132 | ||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
2017 |
2017 |
2016 |
||||||||||||||||||||||||||||||
Revenue | % | Q/Q % | Y/Y % | Revenue | Revenue | |||||||||||||||||||||||||||
Industrial | $ | 720,258 | 47 | % | 3 | % | 82 | % | $ | 698,442 | $ | 395,433 | ||||||||||||||||||||
Automotive | 235,190 | 15 | % | 3 | % | 66 | % | 227,526 | 141,756 | |||||||||||||||||||||||
Consumer | 313,374 | 20 | % | 24 | % | 6 | % | 252,646 | 294,373 | |||||||||||||||||||||||
Communications | 272,348 | 18 | % | 7 | % | 58 | % | 255,288 | 172,061 | |||||||||||||||||||||||
Total Revenue | $ | 1,541,170 | 100 | % | 7 | % | 54 | % | $ | 1,433,902 | $ | 1,003,623 |
Twelve Months Ended | |||||||||||||||||||||
2017 |
2016 |
||||||||||||||||||||
Revenue | % | Y/Y % | Revenue | ||||||||||||||||||
Industrial | $ | 2,361,549 | 46% | 58% | $ | 1,497,070 | |||||||||||||||
Automotive | 782,961 | 15% | 45% | 541,774 | |||||||||||||||||
Consumer | 1,047,606 | 21% | 52% | 687,697 | |||||||||||||||||
Communications | 915,387 | 18% | 32% | 694,868 | |||||||||||||||||
Total Revenue | $ | 5,107,503 | 100% | 49% | $ | 3,421,409 | |||||||||||||||
Schedule E
Reconciliation from GAAP to Non-GAAP Revenue and Earnings
Measures (In thousands, except per-share amounts)
See "Non-GAAP Financial Information" in this press release for
a description of the items excluded from our non-GAAP
|
||||||||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||
4Q 17 | 3Q 17 | 4Q 16 | FY 17 | FY 16 | ||||||||||||||||||||||||||
2017 |
2017 |
2016 |
2017 |
2016 |
||||||||||||||||||||||||||
GAAP Revenue | $ | 1,541,170 | $ | 1,433,902 | $ | 1,003,623 | $ | 5,107,503 | $ | 3,421,409 | ||||||||||||||||||||
Y/Y Revenue growth % | 53.6 | % | 64.9 | % |
3.0 |
% | 49.3 | % | — | % | ||||||||||||||||||||
Q/Q Revenue growth % | 7.5 | % | 24.9 | % | 15.0 | % | ||||||||||||||||||||||||
Acquisition-Related Deferred Revenues | — | 24,576 | — | 85,334 | — | |||||||||||||||||||||||||
Non-GAAP Revenue | $ | 1,541,170 | $ | 1,458,478 | $ | 1,003,623 | $ | 5,192,837 | $ | 3,421,409 | ||||||||||||||||||||
Y/Y Revenue growth % | 53.6 | % | 67.7 | % | 3.0 | % | 51.8 | % | — | % | ||||||||||||||||||||
Q/Q Revenue growth % | 5.7 | % | 20.7 | % | 15.0 | % | ||||||||||||||||||||||||
GAAP Gross Margin | $ | 1,006,025 | $ | 766,624 | $ | 666,687 | $ | 3,061,596 | $ | 2,227,173 | ||||||||||||||||||||
Gross Margin Percentage | 65.3 | % | 53.5 | % | 66.4 | % | 59.9 | % | 65.1 | % | ||||||||||||||||||||
Acquisition-Related Deferred Revenues | — | 19,782 | — | 66,261 | — | |||||||||||||||||||||||||
Acquisition-Related Expenses | 85,974 | 241,554 | 2,040 | 480,438 | 6,849 | |||||||||||||||||||||||||
Non-GAAP Gross Margin | $ | 1,091,999 | $ | 1,027,960 | $ | 668,727 | $ | 3,608,295 | $ | 2,234,022 | ||||||||||||||||||||
Gross Margin Percentage | 70.9 | % | 70.5 | % | 66.6 | % | 69.5 | % | 65.3 | % | ||||||||||||||||||||
GAAP Operating Expenses | $ | 557,815 | $ | 571,803 | $ | 309,706 | $ | 2,006,462 | $ | 1,199,061 | ||||||||||||||||||||
Percent of Revenue | 36.2 | % | 39.9 | % | 30.9 | % | 39.3 | % | 35.0 | % | ||||||||||||||||||||
Acquisition-Related Expenses | (107,736 | ) | (126,732 | ) | (17,999 | ) | (328,059 | ) | (70,555 | ) | ||||||||||||||||||||
Acquisition-Related Transaction Costs | (15,108 | ) | (8,017 | ) | (5,210 | ) | (70,401 | ) | (13,519 | ) | ||||||||||||||||||||
Restructuring-Related Expense | — | — | — | (49,463 | ) | (13,684 | ) | |||||||||||||||||||||||
Non-GAAP Operating Expenses | $ | 434,971 | $ | 437,054 | $ | 286,497 | $ | 1,558,539 | $ | 1,101,303 | ||||||||||||||||||||
Percent of Revenue | 28.2 | % | 30.0 | % | 28.5 | % | 30.0 | % | 32.2 | % | ||||||||||||||||||||
GAAP Operating Income/Margin | $ | 448,210 | $ | 194,821 | $ | 356,981 | $ | 1,055,134 | $ | 1,028,112 | ||||||||||||||||||||
Percent of Revenue | 29.1 | % | 13.6 | % | 35.6 | % | 20.7 | % | 30.0 | % | ||||||||||||||||||||
Acquisition-Related Deferred Revenues | — | 19,782 | — | 66,261 | — | |||||||||||||||||||||||||
Acquisition-Related Expenses | 193,710 | 368,286 | 20,039 | 808,497 | 77,404 | |||||||||||||||||||||||||
Acquisition-Related Transaction Costs | 15,108 | 8,017 | 5,210 | 70,401 | 13,519 | |||||||||||||||||||||||||
Restructuring-Related Expense | — | — | — | 49,463 | 13,684 | |||||||||||||||||||||||||
Non-GAAP Operating Income/Margin | $ | 657,028 | $ | 590,906 | $ | 382,230 | $ | 2,049,756 | $ | 1,132,719 | ||||||||||||||||||||
Percent of Revenue | 42.6 | % | 40.5 | % | 38.1 | % | 39.5 | % | 33.1 | % | ||||||||||||||||||||
GAAP Other Expense | $ | 66,546 | $ | 68,023 | $ | 33,547 | $ | 226,649 | $ | 71,191 | ||||||||||||||||||||
Percent of Revenue | 4.3 | % | 4.7 | % | 3.3 | % | 4.4 | % | 2.1 | % | ||||||||||||||||||||
Loss on Extinguishment of Debt | — | — | — | — | (3,290 | ) | ||||||||||||||||||||||||
Amortization of Deferred Financing Costs | — | — | (13,655 | ) | (7,214 | ) | (13,665 | ) | ||||||||||||||||||||||
Non-GAAP Other Expense | $ | 66,546 | $ | 68,023 | $ | 19,982 | $ | 219,435 | $ | 54,236 | ||||||||||||||||||||
Percent of Revenue | 4.3 | % | 4.7 | % | 2.0 | % | 4.2 | % | 1.6 | % |
GAAP Diluted EPS | $ | 0.93 | $ | 0.18 | $ | 0.95 | $ | 2.07 | $ | 2.76 | ||||||||||||||||||||
Impact of Loss on Extinguishment of Debt | — | — | — | — | 0.01 | |||||||||||||||||||||||||
Acquisition-Related Deferred Revenue | — | 0.05 | — | 0.19 | — | |||||||||||||||||||||||||
Acquisition-Related Expenses | 0.52 | 0.99 | 0.06 | 2.31 | 0.25 | |||||||||||||||||||||||||
Acquisition-Related Transaction Costs | 0.04 | 0.02 | 0.02 | 0.20 | 0.04 | |||||||||||||||||||||||||
Amortization of Deferred Financing Costs | — | — | 0.04 | 0.02 | 0.04 | |||||||||||||||||||||||||
Restructuring-Related Expense | — | — | — | 0.14 | 0.04 | |||||||||||||||||||||||||
Income Tax Effect of Above Items | (0.08 | ) | (0.10 | ) | (0.02 | ) | (0.33 | ) | (0.06 | ) | ||||||||||||||||||||
Impact of State Tax Valuation Release | — | — | — | (0.04 | ) | — | ||||||||||||||||||||||||
Impact of Adjustments to Prior Period Tax Liabilities | 0.03 | (0.14 | ) | — | (0.11 | ) | — | |||||||||||||||||||||||
Impact of the Reinstatement of the R&D Tax Credit | — | — | — | — | (0.02 | ) | ||||||||||||||||||||||||
Impact of Tax Remittance for Linear Integration | — | 0.26 | — | 0.28 | — | |||||||||||||||||||||||||
Non-GAAP Diluted EPS (1) | $ | 1.45 | $ | 1.26 | $ | 1.05 | $ | 4.72 | $ | 3.07 |
(1) The sum of the individual per share amounts may not equal the total due to rounding.
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 17 | 3Q 17 | 4Q 16 | FY 17 | FY 16 | ||||||||||||||||||||||||||
2017 |
2017 |
2016 |
2017 |
2016 |
||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 695,814 | $ | (364,283 | ) | $ | 486,984 | $ | 1,112,592 | $ | 1,280,895 | |||||||||||||||||||
% of revenue | 45.1 | % | (25.4 | )% | 48.5 | % | 21.8 | % | 37.4 | % | ||||||||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||||
Federal income tax payments | — | 750,000 | — | 750,000 | — | |||||||||||||||||||||||||
Adjusted cash flows from operations | $ | 695,814 | $ | 385,717 | $ | 486,984 | $ | 1,862,592 | $ | 1,280,895 | ||||||||||||||||||||
Capital expenditures | (65,215 | ) | (63,617 | ) | (41,224 | ) | (204,098 | ) | (127,397 | ) | ||||||||||||||||||||
Adjusted free cash flow | $ | 630,599 | $ | 322,100 | $ | 445,760 | $ | 1,658,494 | $ | 1,153,498 | ||||||||||||||||||||
% of non-GAAP revenue | 40.9 | % | 22.1 | % | 44.4 | % | 31.9 | % | 33.7 | % | ||||||||||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20171121005467/en/
Mr.
781-461-3491
(fax)
Treasurer and Head of Investor Relations
investor.relations@analog.com
Source:
News Provided by Acquire Media