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adi-20200218
0000006281false00000062812020-02-182020-02-18

_________________________________________________________________________

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________________________________________________________________________________

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): February 18, 2020
_____________________________________________________________________________________________________

Analog Devices, Inc.
(Exact name of Registrant as Specified in its Charter)
______________________________________________________________________________________________________
Massachusetts1-781904-2348234
(State or Other Jurisdiction
of Incorporation) 		(Commission
File Number)		(IRS Employer
Identification No.)

One Technology Way,Norwood,MA02062
(Address of Principal Executive Offices)(Zip Code)
Registrant's telephone number, including area code: (781) 329-4700  

Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
______________________________________________________________________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading
Symbol(s)		Name of each exchange
on which registered
Common Stock $0.16 2/3 par value per shareADINasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02.     Results of Operations and Financial Condition
On February 19, 2020, Analog Devices, Inc. (the “Registrant”) announced its financial results for its fiscal first quarter ended February 1, 2020. The full text of the press release issued by the Registrant concerning the foregoing results is furnished herewith as Exhibit 99.2.  
The information contained herein and in the accompanying exhibit shall not be incorporated by reference into any filing of the Registrant, whether made before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference to such filing. The information in this report, including the exhibit hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended.

Item 8.01. Other Events
On February 18, 2020, the Registrant announced that its Board of Directors declared a quarterly cash dividend of $0.62 per outstanding share of common stock, an increase from the previously paid dividend of $0.54 per outstanding share of common stock. The dividend will be paid on March 10, 2020 to all shareholders of record at the close of business on February 28, 2020. A copy of the Registrant's press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Item 9.01.     Financial Statements and Exhibits
(d)  Exhibits
Exhibit No.Description
 
99.1  
Press release dated February 18, 2020
99.2  
Press release dated February 19, 2020
101.INS    The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the inline XBRL document.**
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**    Submitted electronically herewith.



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:February 19, 2020ANALOG DEVICES, INC.
 		 
 By:  /s/ Prashanth Mahendra-Rajah 
  Prashanth Mahendra-Rajah 
  Senior Vice President, Finance and Chief Financial Officer 
Document
Exhibit 99.1
Analog Devices Raises Quarterly Dividend By 15%

NORWOOD, Mass.— February 18, 2020 —Analog Devices, Inc. (Nasdaq: ADI) today announced that its Board of Directors has voted to increase its quarterly dividend from $0.54 per outstanding share of common stock to $0.62, which is the equivalent of $2.48 annually. The new dividend represents an increase of 15% and marks the Company's 17th increase in the last 16 years. ADI has paid a dividend for 65 consecutive quarters, totaling $6.1 billion of cash returned to shareholders through dividends.

"Our robust cash flow generation places us in the top 10% of companies in the S&P 500 and we are committed to returning 100% of our free cash flow to shareholders after debt repayments,” said Vincent Roche, President and CEO. “I am confident that we are well positioned to drive sustained growth over the long-term due to our leading-edge technology and diverse business across customers, products and applications.”

The increase is effective with the dividend payable on March 10, 2020 to shareholders of record as of the close of business on February 28, 2020. The payment of any future quarterly dividends, or a future increase in the quarterly dividend amount, will be at the discretion of the Board and will be dependent upon ADI's financial position, results of operations, outlook, liquidity, and other factors deemed relevant by the Board.

About Analog Devices

Analog Devices (Nasdaq: ADI) is a leading global high-performance analog technology company dedicated to solving the toughest engineering challenges. We enable our customers to interpret the world around us by intelligently bridging the physical and digital with unmatched technologies that sense, measure, power, connect and interpret. Visit http://www.analog.com.

Editor’s Contact Information

Michael Lucarelli
781-461-3282
Sr. Director of Investor Relations
investor.relations@analog.com



(ADI-WEB)

Document

Exhibit 99.2

Analog Devices Reports First Quarter Fiscal 2020 Results

•Revenue of $1.3 billion, in-line with our expectations for the first quarter
•Operating cash flow of $2.2 billion and free cash flow of $2.0 billion on a trailing twelve months basis
•Returned over $300 million to shareholders in the first quarter through dividends and share repurchases
•Increased quarterly dividend by 15%, the high-end of target range of 7% to 15%

NORWOOD, Mass.--(BUSINESS WIRE)--February 19, 2020--Analog Devices, Inc. (Nasdaq: ADI), a leading global high-performance analog technology company, today announced financial results for its first quarter of fiscal 2020, which ended February 1, 2020.

“ADI’s first quarter results were in-line with our expectations. Encouragingly, demand across our end markets has stabilized and is beginning to show signs of improvement as we enter our fiscal second quarter,” said Vincent Roche, President and CEO. “We are building on this momentum by executing on our 2020 priorities – deepening our customer-centricity, deploying our capital efficiently, and capitalizing on secular trends to expand our addressable markets and drive diversified growth. Further, we raised our quarterly dividend by 15%, reflecting the stability of our cash flows and our optimism regarding ADI’s future.”

Roche continued, “I believe the demand for ADI’s solutions will be unprecedented as technological innovation underpinned by ubiquitous sensing, hyper-scale and edge computing, and pervasive connectivity continues to grow at an exponential pace. Our diversified business model combined with our leading technology portfolio position ADI to deliver sustainable long-term growth and strong shareholder returns in the years ahead.”


Performance for the First Quarter of Fiscal 2020

Results Summary(1)
(in millions, except per-share amounts and percentages)
Three Months Ended
Feb. 1, 2020Feb. 2, 2019
Change
Revenue$1,304  $1,541  (15)%
Gross margin$848  $1,040  (18)%
Gross margin percentage65.1 %67.5 %(240 bps)
Operating income$273  $456  (40)%
Operating margin21.0 %29.6 %(860 bps)
Diluted earnings per share$0.55  $0.95  (42)%
Adjusted Results
Adjusted gross margin$893  $1,083  (18)%
Adjusted gross margin percentage68.5 %70.3 %(180 bps)
Adjusted operating income$481  $635  (24)%
Adjusted operating margin36.9 %41.2 %(430 bps)
Adjusted diluted earnings per share$1.03  $1.33  (23)%
Three Months EndedTrailing Twelve Months
Cash GenerationFeb. 1, 2020Feb. 1, 2020
Net cash provided by operating activities$350  $2,231  
% of revenue27 %39 %
Capital expenditures$(55) $(239) 
Free cash flow$295  $1,992  
% of revenue 23 %35 %
Three Months EndedTrailing Twelve Months
Cash ReturnFeb. 1, 2020Feb. 1, 2020
Dividend paid$(199) $(799) 
Stock repurchases(106) (492) 
Total cash returned$(305) $(1,291) 
(1) The sum and/or computation of the individual amounts may not equal the total due to rounding.







Outlook for the Second Quarter of Fiscal Year 2020

For the second quarter of fiscal 2020, we are forecasting revenue of $1.35 billion, +/- $50 million. While the effects of the coronavirus are difficult to estimate and the situation remains dynamic, we have reduced our revenue guidance by $70 million to account for its potential impact. At the midpoint of this revenue outlook, we expect reported operating margins of approximately 26.0%, +/-150 bps, and adjusted operating margins of approximately 37.5%, +/-100 bps. We are planning for reported EPS to be $0.73, +/-$0.08, and adjusted EPS to be $1.10, +/-$0.08.

Our second quarter fiscal 2020 outlook is based on current expectations 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.

The adjusted results and adjusted anticipated results above are financial measures presented on a non-GAAP basis. Reconciliations of these 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 “Non-GAAP Financial Information” section for additional information.

Dividend Payment

The ADI Board of Directors has declared a quarterly cash dividend of $0.62 per outstanding share of common stock. The dividend will be paid on March 10, 2020 to all shareholders of record at the close of business on February 28, 2020.

Conference Call Scheduled for Today, Wednesday, February 19, 2020 at 10:00 am ET

ADI will host a conference call to discuss our first quarter fiscal 2020 results and short-term outlook today, beginning at 10:00 am ET. Investors may join via webcast, accessible at investor.analog.com, or by telephone (call 800-859-9560, or 706-634-7193 for international calls, ten minutes before the call begins and provide the password "ADI").

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: 7263078, 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 (GAAP) and may be different from non-GAAP measures presented by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. 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. 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. You are cautioned not to place undue reliance on these non-GAAP measures. Reconciliations of these non-GAAP measures to the most directly


comparable financial measures calculated and presented in accordance with GAAP are provided in the financial tables included in this release.
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 non-GAAP financial measures referenced by ADI in this release include: adjusted gross margin, adjusted gross margin percentage, adjusted operating expenses, adjusted operating expenses percentage, adjusted operating income, adjusted operating margin, adjusted income before income taxes, adjusted provision for income taxes, adjusted tax rate, adjusted diluted earnings per share (EPS), free cash flow, and free cash flow margin percentage.
Adjusted gross margin is defined as gross margin, determined in accordance with GAAP, excluding certain acquisition-related expenses1 which are described further below. Adjusted gross margin percentage represents adjusted gross margin divided by revenue.
Adjusted operating expenses is defined as operating expenses, determined in accordance with GAAP, excluding: certain acquisition-related expenses1; restructuring related expense2; and charitable foundation contribution3 which are described further below. Adjusted operating expenses percentage represents adjusted operating expenses divided by revenue.
Adjusted operating income is defined as operating income, determined in accordance with GAAP, excluding: acquisition-related expenses1; restructuring related expense2; and charitable foundation contribution3 which are described further below. Adjusted operating margin represents adjusted operating income divided by revenue.
Adjusted income before income taxes is defined as income before income taxes, determined in accordance with GAAP, excluding: acquisition-related expenses1; restructuring related expense2; and charitable foundation contribution3 which are described further below.
Adjusted provision for income taxes is defined as provision for income taxes, determined in accordance with GAAP, excluding tax related items4 which are described further below. Adjusted tax rate represents adjusted provision for income taxes divided by adjusted income before income taxes.
Adjusted diluted EPS is defined as diluted EPS, determined in accordance with GAAP, excluding: acquisition-related expenses1; restructuring related expense2; charitable foundation contribution3; and tax related items4 which are described further below.
Free cash flow is defined as net cash provided by operating activities, determined in accordance with GAAP, less additions to property, plant and equipment, net. Free cash flow margin percentage represents free cash flow divided by revenue.
1Acquisition-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.
2Restructuring-Related Expense: Expenses incurred in connection with facility closures, consolidation of manufacturing facilities, severance, other accelerated stock-based compensation expense 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 have no direct correlation to the operation of our business in the future.
3Charitable Foundation Contribution: Expenses incurred in connection with a one time contribution of registered shares of common stock to the Analog Devices Foundation. We excluded this expense from our non-GAAP measures because this expense has no direct correlation to the operation of our business in the future.
4Tax-Related Items: Income tax effect of the non-GAAP items discussed above and income tax from certain discrete tax items related to the impact of the Tax Cuts and Jobs Act of 2017. We excluded these tax-related items from our non-GAAP measures because they are not associated with the tax expense on our current operating results.

About Analog Devices

Analog Devices (Nasdaq: ADI) is a leading global high-performance analog technology company dedicated to solving the toughest engineering challenges. We enable our customers to interpret the world around us by intelligently bridging the physical and digital with unmatched technologies that sense, measure, power, connect and interpret. Visit http://www.analog.com.

Forward Looking Statements

This press release contains forward-looking statements, which address a variety of subjects including, for example, our statements regarding expected revenue, operating margin, tax rate, earnings per share, and other financial results, expected market trends, market share gains, operating leverage, production and inventory levels, and expected customer demand and order rates for our products, expected product offerings, product development and marketing position. 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: political and economic uncertainty, including 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; changes in export classifications, import and export regulations or duties and tariffs; changes in our estimates of our expected tax rate based on current tax law; our ability to successfully integrate acquired businesses and technologies; the risk that expected benefits, synergies and growth prospects of acquisitions may not be fully achieved in a timely manner, or at all; adverse results in litigation matters; and the risk that we will be unable to retain and hire key personnel. For additional information about factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to our filings with the Securities and Exchange Commission (“SEC”), including the risk factors contained in


our most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K. Forward-looking statements represent management’s current expectations and are inherently uncertain. Except as required by law, we do not undertake any obligation to update forward-looking statements made by us to reflect subsequent events or circumstances.

Analog Devices and the Analog Devices logo are registered trademarks or trademarks of Analog Devices, Inc. All other trademarks mentioned in this document are the property of their respective owners.

(ADI-WEB)

For more information, please contact:

Investor Contact:
Analog Devices, Inc.
Mr. Michael Lucarelli
Sr. Director of Investor Relations
781-461-3282
investor.relations@analog.com

Media Contacts:
Teneo
Ms. Andrea Calise
917-826-3804
andrea.calise@teneo.com

Teneo
Ms. Megan Fenton
917-860-0356
megan.fenton@teneo.com



ANALOG DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)

Three Months Ended
Feb. 1, 2020Feb. 2, 2019
Revenue$1,303,565  $1,541,101  
Cost of sales455,423  501,445  
Gross margin848,142  1,039,656  
Operating expenses:
   Research & development257,073  287,382  
   Selling, marketing, general and administrative199,280  167,342  
   Amortization of intangibles107,225  107,324  
   Special charges11,136  21,782  
Total operating expenses574,714  583,830  
Operating income273,428  455,826  
Nonoperating expense (income):
   Interest expense48,813  58,728  
   Interest income(1,940) (2,688) 
   Other, net338  (160) 
47,211  55,880  
Income before income tax226,217  399,946  
Provision for income taxes22,343  44,940  
Net income$203,874  $355,006  
Shares used to compute earnings per common share - basic368,241  368,703  
Shares used to compute earnings per common share - diluted372,264  372,506  
Basic earnings per common share$0.55  $0.96  
Diluted earnings per common share$0.55  $0.95  



ANALOG DEVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)


Feb. 1, 2020Nov. 2, 2019
Cash & cash equivalents$654,408  $648,322  
Accounts receivable584,366  635,136  
Inventories588,503  609,886  
Other current assets83,902  91,782  
  Total current assets1,911,179  1,985,126  
Net property, plant and equipment1,206,769  1,219,989  
Investments78,228  77,324  
Goodwill12,257,064  12,256,880  
Intangible assets, net4,073,078  4,217,224  
Deferred tax assets1,567,521  1,582,382  
Other282,988  53,716  
Total assets$21,376,827  $21,392,641  
Other current liabilities$1,022,082  $1,208,965  
Debt, current748,460  299,667  
Long-term debt4,745,302  5,192,252  
Deferred income taxes2,055,100  2,088,212  
Other non-current liabilities1,116,366  894,357  
Shareholders' equity11,689,517  11,709,188  
Total liabilities & equity$21,376,827  $21,392,641  






ANALOG DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)

Three Months Ended
Feb. 1, 2020Feb. 2, 2019
Cash flows from operating activities:
  Net income$203,874  $355,006  
  Adjustments to reconcile net income to net cash provided by operations:
       Depreciation59,863  58,293  
       Amortization of intangibles144,069  142,292  
       Stock-based compensation expense37,501  36,393  
       Non-cash portion of special charge—  4,367  
       Deferred income taxes(13,982) 15,652  
       Non-cash contribution to charitable foundation40,000  —  
       Other non-cash activity2,332  6,693  
       Changes in operating assets and liabilities(124,009) (246,929) 
   Total adjustments145,774  16,761  
Net cash provided by operating activities349,648  371,767  
   Percent of revenue26.8 %24.1 %
Cash flows from investing activities:
  Additions to property, plant and equipment(54,839) (90,993) 
  Changes in other assets107  (5,222) 
Net cash used for investing activities(54,732) (96,215) 
Cash flows from financing activities:
  Proceeds from revolver—  75,000  
  Payments on revolver—  (75,000) 
  Debt repayments—  (100,000) 
  Dividend payments to shareholders(199,160) (177,716) 
  Repurchase of common stock(106,030) (227,093) 
  Proceeds from employee stock plans16,113  19,229  
  Changes in other financing activities(495) (569) 
Net cash used for financing activities(289,572) (486,149) 
Effect of exchange rate changes on cash742  (130) 
Net increase (decrease) in cash and cash equivalents6,086  (210,727) 
Cash and cash equivalents at beginning of period648,322  816,591  
Cash and cash equivalents at end of period$654,408  $605,864  





ANALOG DEVICES, INC.
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 and our methodology 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
Feb. 1, 2020Feb. 2, 2019
Revenue% of revenue*Y/Y %Revenue% of revenue*
Industrial$684,862  53%  (7)% $733,432  48%  
Communications239,928  18%  (31)% 347,016  23%  
Automotive205,330  16%  (16)% 244,062  16%  
Consumer173,445  13%  (20)% 216,591  14%  
Total revenue$1,303,565  100%  (15)% $1,541,101  100%  
*The sum of the individual percentages may not equal the total due to rounding.





ANALOG DEVICES, INC.
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(Unaudited)
(In thousands, except per share amounts)

Three Months Ended
Feb. 1, 2020Feb. 2, 2019
Gross margin$848,142  $1,039,656  
  Gross margin percentage65.1 %67.5 %
      Acquisition related expenses45,016  43,495  
Adjusted gross margin$893,158  $1,083,151  
  Adjusted gross margin percentage68.5 %70.3 %
Operating expenses$574,714  $583,830  
  Percent of revenue44.1 %37.9 %
      Acquisition related expenses(111,782) (113,832) 
      Charitable foundation contribution(40,000) —  
      Restructuring related expense(11,136) (21,782) 
Adjusted operating expenses$411,796  $448,216  
  Adjusted operating expenses percentage31.6 %29.1 %
Operating income$273,428  $455,826  
  Operating margin21.0 %29.6 %
      Acquisition related expenses156,798  157,327  
      Charitable foundation contribution40,000  —  
      Restructuring related expense11,136  21,782  
Adjusted operating income$481,362  $634,935  
  Adjusted operating margin36.9 %41.2 %
Provision for income taxes$22,343  $44,940  
      Income tax effect of adjustments above28,280  24,900  
      Income tax from certain discrete tax items—  12,560  
Adjusted provision for income taxes$50,623  $82,400  
Income before income taxes226,217  399,946  
  Effective tax rate9.9 %11.2 %
      Acquisition related expenses156,798  157,327  
      Charitable foundation contribution40,000  —  
      Restructuring related expense11,136  21,782  
Adjusted income before income taxes$434,151  $579,055  
  Adjusted tax rate11.7 %14.2 %
Diluted EPS$0.55  $0.95  
      Acquisition related expenses0.42  0.42  
      Charitable foundation contribution0.11  —  
      Restructuring related expense0.03  0.06  
      Income tax effect of adjustments above(0.08) (0.07) 
      Income tax from certain discrete tax items—  (0.03) 
Adjusted diluted EPS (1)$1.03  $1.33  
(1) The sum of the individual per share amounts may not equal the total due to rounding.


ANALOG DEVICES, INC.
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
(Unaudited)
(In thousands)

Trailing Twelve MonthsThree Months Ended
Feb. 1, 2020Feb. 1, 2020Nov. 2, 2019Aug. 3, 2019May 4, 2019
Revenue$5,753,529  $1,303,565  $1,443,219  $1,480,143  $1,526,602  
Net cash provided by operating activities$2,230,981  $349,648  $657,905  $552,546  $670,882  
% of Revenue39 %27 %46 %37 %44 %
Capital expenditures$(239,218) $(54,839) $(51,076) $(58,094) $(75,209) 
Free cash flow$1,991,763  $294,809  $606,829  $494,452  $595,673  
% of Revenue35 %23 %42 %33 %39 %




ANALOG DEVICES, INC.
RECONCILIATION OF PROJECTED GAAP TO NON-GAAP RESULTS
(Unaudited)

Three Months Ending May 2, 2020
Reported
Adjusted
Revenue$1.35 Billion $1.35 Billion
(+/- $50 Million)(+/- $50 Million)
Operating margin26.0% 37.5% (1)
(+/-150 bps)(+/-100 bps)
Nonoperating expense~ $48 Million~ $48 Million  
Tax rate9% to 11%10% to 12% (2)
Earnings per share$0.73 $1.10 (3)
(+/- $0.08)(+/- $0.08)

(1) Includes $157 million of adjustments related to acquisition related expenses as previously defined in the Non-GAAP Financial Information section of this press release.
(2) Includes $21 million of tax effects associated with the adjustment for acquisition related expenses above.
(3) Includes $0.36 of adjustments related to the net impact of $0.42 of acquisition related expenses and $0.06 of tax effects on those acquisition related expenses.


Investor Contact:
Analog Devices, Inc.
Mr. Michael Lucarelli, 781-461-3282
Sr. Director of Investor Relations
investor.relations@analog.com

Media Contacts:
Teneo
Ms. Andrea Calise, 917-826-3804
andrea.calise@teneo.com

Teneo
Ms. Megan Fenton, 917-860-0356
megan.fenton@teneo.com