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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 13, 2004
Analog Devices, Inc.
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(Exact name of registrant as specified in charter)
Massachusetts 1-7819 04-2348234
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(State or other juris- (Commission (IRS Employer
diction of incorporation File Number) Identification No.)
One Technology Way, Norwood, MA 02062
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (781) 329-4700
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(Former name or former address, if changed since last report)
Item 12. Results of Operations and Financial Condition
On May 13, 2004, Analog Devices, Inc. announced its financial results
for the quarter ended May 1, 2004. The full text of the press release issued in
connection with the announcement is attached as Exhibit 99.1 to this Current
Report on Form 8-K.
The information in this Form 8-K and the exhibit attached hereto shall
not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act
of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that
section, nor shall it be deemed incorporated by reference in any filing under
the Securities Act of 1933 or the Exchange Act, except as expressly set forth by
specific reference in such a filing.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: May 13, 2004 ANALOG DEVICES, INC.
By: /s/ Joseph E. McDonough
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Joseph E. McDonough
Vice President-Finance and Chief Financial Officer
(Principal Financial and Accounting Officer)
EXHIBIT INDEX
Exhibit No. Description
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99.1 Press release dated May 13, 2004
Exhibit 99.1
Analog Devices' Second-Quarter Revenue Increases 35% Year-over-Year
and Earnings Per Share More Than Double
NORWOOD, Mass.--(BUSINESS WIRE)--May 13, 2004--Analog Devices,
Inc. (NYSE: ADI), a global leader in high-performance semiconductors
for signal processing applications, today reported revenue of $678.5
million for the second quarter of fiscal 2004, which ended on May 1.
Revenue increased 35% compared to the same period one year ago and 12%
compared to the previous quarter. Net income for the second quarter
was $152.6 million, more than double the $71.3 million for the same
period in the prior year and 31% above the $116.8 million in the
immediately prior quarter. The second quarter's diluted earnings per
share (EPS) under generally accepted accounting principles (GAAP) was
$0.39, up from $0.19 for the same period one year ago and up from
$0.30 for the immediately prior quarter.
ADI also announced that the company's Board of Directors declared
a cash dividend of $0.06 per outstanding share of common stock,
payable on June 16, 2004 to all stockholders of record at the close of
business on May 28, 2004.
"We had an excellent quarter with revenue, margins, and EPS all
well above our expectations when the quarter began," said Mr. Jerald
G. Fishman, president and CEO. "Demand continued to accelerate during
the second quarter, driven by the widespread adoption of our
high-performance analog and DSP core technology."
"In the second quarter, we saw growth across each of the major end
markets we serve. The highest growth came from consumer electronics
and from the industrial market which represents a wide range of
customers designing factory automation systems, test equipment,
medical electronics, and scientific instrumentation. We also saw good
revenue growth from the communications and computer markets.
"On a geographic basis, the strongest revenue growth was from
North America. Europe, Japan, and the rest of Asia also had good
growth within the quarter.
"Gross margins rose to 59.2% of sales, a new peak for ADI and a
210 basis point improvement over the 57.1% we achieved in the
immediately prior quarter. In addition, operating expenses as a
percent of sales decreased to 31.5%, a sequential improvement of 150
basis points. As a result, operating margins rose sequentially by 360
basis points to 27.7% of sales.
"Our balance sheet also continued to strengthen in the second
quarter. Cash and short-term investments grew by $235 million to $2.5
billion. Days cost of sales in inventory declined to 102 days in the
second quarter compared to 103 days in the previous quarter, while
days sales in accounts receivable declined to 44 days compared to 48
days in the previous quarter."
Regarding the near-term outlook, Mr. Fishman said, "The 13-week
backlog continues to grow, reaching $571 million at the close of the
second quarter, a 20% sequential increase. We are planning for revenue
to grow sequentially by approximately 7% to 10% during the third
quarter of fiscal 2004 to approximately $725 to $745 million, with
continuing strong operating leverage. As a result, we estimate EPS to
be in the range of $0.43 to $0.45."
Mr. Fishman will discuss the second quarter's results and the
near-term outlook via webcast, accessible from www.analog.com, today
beginning at 4:30 pm EST. 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: 7264235 or by visiting
the Investor Relations page on ADI's web site.
Analog Devices, Inc. is a leading manufacturer of precision
high-performance integrated circuits used in analog and digital signal
processing applications. ADI is headquartered in Norwood,
Massachusetts, and employs approximately 8,700 people worldwide. It
has manufacturing facilities in Massachusetts, California, North
Carolina, Ireland, and the Philippines. Analog Devices' common stock
is listed on the New York Stock Exchange and ADI is included in the
S&P 500 Index.
Safe harbor statement under the Private Securities Litigation
Reform Act of 1995: This press release contains forward-looking
statements, including our statements regarding planned revenue,
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 most recent Form 10-Q for the first fiscal
quarter ended January 31, 2004, as filed with the Securities and
Exchange Commission.
Analog Devices Supplemental Information, Second Quarter,
Fiscal 2004
Sales/Earnings Summary
(In thousands of dollars, except per-share amounts)
2Q 04 1Q 04 2Q 03
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Three Months Ended May 1, 2004 Jan 31, 2004 May 3, 2003
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Net Sales $678,530 $605,353 $501,883
Y/Y Growth 35% 30% 21%
Q/Q Growth 12% 9% 7%
Cost of Sales 277,008 259,888 228,423
Gross Margin 401,522 345,465 273,460
Percent of Sales 59.2% 57.1% 54.5%
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Operating Expenses:
R&D 126,274 118,237 110,827
Selling, Marketing and G&A 85,282 79,238 71,509
Acquisition-related
expenses 2,204 2,393 2,658
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Operating Income 187,762 145,597 88,466
Percent of Sales 27.7% 24.1% 17.6%
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Other (Income) Expense (7,232) (4,197) (2,952)
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Income Before Tax 194,994 149,794 91,418
Provision for Taxes 42,411 32,955 20,112
Tax Rate 22% 22% 22%
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Net Income $152,583 $116,839 $71,306
Percent of Sales 22% 19% 14%
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Shares used for EPS - Basic 374,864 372,052 364,267
Shares used for EPS - Diluted 395,052 392,904 379,163
Earnings per Share - Basic $0.41 $0.31 $0.20
Earnings per Share - Diluted $0.39 $0.30 $0.19
Dividends declared per share $0.06 $0.04 $-
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2Q 04 2Q 03
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Six Months Ended May 1, 2004 May 3, 2003
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Net Sales $1,283,883 $969,306
Y/Y Growth 32% 20%
Cost of Sales 536,896 442,709
Gross Margin 746,987 526,597
Percent of Sales 58.2% 54.3%
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Operating Expenses:
R&D 244,511 217,939
Selling, Marketing and G&A 164,520 140,824
Acquisition-related
expenses 4,597 5,507
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Operating Income 333,359 162,327
Percent of Sales 26.0% 16.7%
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Other (Income) Expense (11,429) (6,004)
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Income Before Tax 344,788 168,331
Provision for Taxes 75,366 37,033
Tax Rate 22% 22%
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Net Income $269,422 $131,298
Percent of Sales 21% 14%
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Shares used for EPS - Basic 373,458 363,703
Shares used for EPS - Diluted 393,978 378,680
Earnings per Share - Basic $0.72 $0.36
Earnings per Share - Diluted $0.68 $0.35
Dividends declared per share $0.10 $-
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Analog Devices Supplemental Information, Second Quarter,
Fiscal 2004
Selected Balance Sheet Information
(In thousands of dollars)
2Q 04 1Q 04 2Q 03
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May 1, 2004 Jan 31, 2004 May 3, 2003
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Cash & Short-term Investments $2,541,582 $2,306,525 $3,101,483
Accounts Receivable, Net 328,318 315,900 242,767
Inventories 308,539 292,626 293,487
Other Current Assets 171,815 175,131 194,150
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Total Current Assets 3,350,254 3,090,182 3,831,887
PP&E, Net 666,826 660,891 726,533
Investments 307,638 356,535 286,119
Intangible Assets 170,700 171,360 173,328
Other 22,902 23,269 117,446
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Total Assets $4,518,320 $4,302,237 $5,135,313
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Deferred income-shipments to
distributors $150,429 $138,266 $108,980
Other Current Liabilities 429,437 372,220 367,492
Long-term Debt - - 1,279,027
Non-Current Lease Obligations - - 237
Non-Current Liabilities 339,559 353,760 323,692
Stockholders' Equity 3,598,895 3,437,991 3,055,885
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Total Liabilities & Equity $4,518,320 $4,302,237 $5,135,313
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Capital Expenditures, Depreciation & Amortization
(In thousands of dollars)
2Q 04 1Q 04 2Q 03
Three Months Ended May 1, 2004 Jan 31, 2004 May 3, 2003
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Capital Expenditures $43,353 $27,073 $14,348
Depreciation $37,272 $37,565 $42,503
Amortization of Intangibles $676 $677 $656
Six Months Ended May 1, 2004 May 2, 1999
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Capital Expenditures $70,426 $29,301
Depreciation $74,837 $84,042
Amortization of Intangibles $1,353 $1,308
CONTACT: Analog Devices
Maria Tagliaferro, 781-461-3282
investor.relations@analog.com