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adi-20230823
0000006281false00000062812023-08-232023-08-23

_________________________________________________________________________

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): August 23, 2023
_____________________________________________________________________________________________________
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 Analog Way,Wilmington,MA01887
(Address of Principal Executive Offices)(Zip Code)
Registrant's telephone number, including area code: (781) 935-5565  

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 August 23, 2023, Analog Devices, Inc. (the “Registrant”) announced its financial results for its fiscal third quarter ended July 29, 2023. The full text of the press release issued by the Registrant concerning the foregoing results is furnished herewith as Exhibit 99.1.  
The information in this Item 2.02 and in the accompanying Exhibit 99.1 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 Item 2.02, including Exhibit 99.1, 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 9.01.     Financial Statements and Exhibits
(d)  Exhibits
Exhibit No.Description
 
99.1
Press release dated August 23, 2023.
104Cover Page Interactive Data File (formatted as inline XBRL).
**  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:August 23, 2023ANALOG DEVICES, INC.
 		 
 By:  /s/ Janene I. Asgeirsson 
  Janene I. Asgeirsson 
  Senior Vice President, Chief Legal Officer and Corporate Secretary 
Document

Exhibit 99.1

Analog Devices Reports Third Quarter Fiscal 2023 Financial Results
•Revenue of $3.08 billion with continued year-over-year growth in Industrial & Automotive
•Operating cash flow of $4.8 billion and free cash flow of $3.7 billion on a trailing twelve-month basis
•Returned $1.1 billion to shareholders via $0.7 billion in share repurchases and $0.4 billion in dividends during the third quarter
WILMINGTON, Mass.--(BUSINESS WIRE)--August 23, 2023--Analog Devices, Inc. (Nasdaq: ADI), a global semiconductor leader, today announced financial results for its third quarter fiscal year 2023, which ended July 29, 2023.
“In a challenging operating environment, ADI executed well, and delivered third quarter results within our expectations. However, the customer inventory adjustments we mentioned last quarter have accelerated as economic conditions deteriorate and our lead times continue to improve,” said Vincent Roche, CEO and Chair. “Despite the near-term turbulence, we have built a resilient business over many decades defined by our diversified customer and product portfolio and our flexible hybrid manufacturing model. This enables us to endure softer demand periods, while sustaining strategic investments to ensure we capitalize when the business inflects.”
Roche continued, “Our tremendous optimism in ADI’s long-term outlook is undiminished. In this rapidly digitalizing world, our portfolio is aligned to an unprecedented number of secular trends, including Industry 4.0, Electrification, Digital Healthcare, Immersive Consumer, and Advanced Connectivity. These trends, coupled with our cutting-edge solutions, will enable ADI to empower the next waves of innovation at the Intelligent Edge, and unlock value for all stakeholders.”


Performance for the Third Quarter of Fiscal 2023
Results Summary(1)
(in millions, except per-share amounts and percentages)
Three Months Ended
Jul. 29, 2023Jul. 30, 2022Change
Revenue$3,076 $3,110 (1)%
Gross margin$1,962 $2,043 (4)%
Gross margin percentage63.8 %65.7 %(190 bps)
Operating income$929 $893 4 %
Operating margin30.2 %28.7 %150 bps
Diluted earnings per share$1.74 $1.44 21 %
Adjusted Results
Adjusted gross margin$2,222 $2,304 (4)%
Adjusted gross margin percentage72.2 %74.1 %(190 bps)
Adjusted operating income$1,470 $1,557 (6)%
Adjusted operating margin47.8 %50.1 %(230 bps)
Adjusted diluted earnings per share$2.49 $2.52 (1)%
Three Months EndedTrailing Twelve Months
Cash GenerationJul. 29, 2023Jul. 29, 2023
Net cash provided by operating activities$1,142 $4,780 
% of revenue37 %37 %
Capital expenditures$(325)$(1,090)
Free cash flow$818 $3,690 
% of revenue 27 %29 %
Three Months EndedTrailing Twelve Months
Cash ReturnJul. 29, 2023Jul. 29, 2023
Dividend paid$(430)$(1,641)
Stock repurchases(687)(3,312)
Total cash returned$(1,117)$(4,954)
(1) The sum and/or computation of the individual amounts may not equal the total due to rounding.







Outlook for the Fourth Quarter of Fiscal Year 2023

For the fourth quarter of fiscal 2023, we are forecasting revenue of $2.70 billion, +/- $100 million. At the midpoint of this revenue outlook, we expect reported operating margin of approximately 26.8%, +/-130 bps, and adjusted operating margin of approximately 44.0%, +/-70 bps. We are planning for reported EPS to be $1.19, +/-$0.10, and adjusted EPS to be $2.00, +/-$0.10.

Our fourth quarter fiscal 2023 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 $0.86 per outstanding share of common stock. The dividend will be paid on September 14, 2023 to all shareholders of record at the close of business on September 5, 2023.

Conference Call Scheduled for Today, Wednesday, August 23, 2023 at 10:00 am ET

ADI will host a conference call to discuss our third quarter fiscal 2023 results and short-term outlook today, beginning at 10:00 am ET. Investors may join via webcast, accessible at 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 nonoperating expense (income), 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 revenue 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, acquisition related transaction costs2, and special charges, net3, 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, acquisition related transaction costs2, and special charges, net3, which are described further below. Adjusted operating margin represents adjusted operating income divided by revenue.
Adjusted nonoperating expense (income) is defined as nonoperating expense (income), determined in accordance with GAAP, excluding: certain acquisition related expenses1, which is described further below.
Adjusted income before income taxes is defined as income before income taxes, determined in accordance with GAAP, excluding: acquisition related expenses1, acquisition related transaction costs2, and special charges, net3, which are described further below.
Adjusted provision for income taxes is defined as (benefit from) 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, acquisition related transaction costs2, special charges, net3, 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 revenue 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 debt, 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 fair value adjustments associated with the replacement of share-based awards related to the Maxim Integrated Products, Inc. (Maxim) 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.


2Acquisition Related Transaction Costs: Costs directly related to the Maxim Integrated Products, Inc. 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.
3Special Charges, net: Expenses, net, incurred as part of the integration of Maxim, in connection with facility closures, consolidation of manufacturing facilities, severance, other accelerated stock-based compensation expense and other cost reduction efforts or reorganizational initiatives. 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.
4Tax Related Items: Income tax effect of the non-GAAP items discussed above, an income tax benefit from a discrete item related to a federal corporate income tax relief claim, certain other income tax benefits associated with prior periods and an income tax benefit from a discrete tax item related to the consolidation of certain subsidiaries. We excluded the income tax effect of 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, Inc. (NASDAQ: ADI) is a global semiconductor leader that bridges the physical and digital worlds to enable breakthroughs at the Intelligent Edge. ADI combines analog, digital, and software technologies into solutions that help drive advancements in digitized factories, mobility, and digital healthcare, combat climate change, and reliably connect humans and the world. With revenue of more than $12 billion in FY22 and approximately 25,000 people globally working alongside 125,000 global customers, ADI ensures today’s innovators stay Ahead of What’s Possible. Learn more at www.analog.com and on LinkedIn and Twitter.

Forward Looking Statements
This press release contains forward-looking statements, which address a variety of subjects including, for example, our statements regarding financial performance; economic uncertainty, business cycles, and demand and supply chains; capital expenditures; expected revenue, operating margin, tax rate, earnings per share, and other financial results; expected market trends and acceleration of those trends, market share gains, and growth opportunities; expected product solutions, offerings, capabilities, and applications and the importance of our product offerings and technologies to our customers; market position; and other future events. 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 or cancellations of orders for our products; unavailability of raw materials, services, supplies or manufacturing capacity; disruptions to our manufacturing operations or our ability to execute our business strategy; 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 rates based on current tax law; adverse results in litigation matters, including the potential for litigation related to the Maxim acquisition; the risk that we will be unable to retain and hire key personnel including as a result of labor shortages; changes in demand for semiconductors; attempted or


actual security breaches and other cybersecurity incidents that disrupt our operations; unanticipated difficulties or expenditures relating to integrating Maxim; uncertainty as to the long-term value of our common stock; the discretion of our Board of Directors to declare dividends and our ability to pay dividends in the future; factors impacting our ability to repurchase shares; the diversion of management time on integrating Maxim's business and operations; our ability to successfully integrate acquired businesses and technologies, including Maxim; and the risk that expected benefits, synergies and growth prospects of acquisitions, including our acquisition of Maxim, may not be fully achieved in a timely manner, or at all. 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 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.








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

Three Months EndedNine Months Ended
Jul. 29, 2023Jul. 30, 2022Jul. 29, 2023Jul. 30, 2022
Revenue$3,076,495 $3,109,880 $9,589,055 $8,766,237 
Cost of sales1,114,880 1,066,738 3,358,553 3,376,578 
Gross margin1,961,615 2,043,142 6,230,502 5,389,659 
Operating expenses:
   Research and development423,751 431,829 1,253,600 1,279,510 
   Selling, marketing, general and administrative334,113 326,942 984,648 929,615 
   Amortization of intangibles250,719 252,864 756,882 759,707 
   Special charges, net23,539 138,201 46,675 244,603 
Total operating expenses1,032,122 1,149,836 3,041,805 3,213,435 
Operating income929,493 893,306 3,188,697 2,176,224 
Nonoperating expense (income):
   Interest expense69,346 51,189 193,051 $152,701 
   Interest income(8,794)(1,797)(32,198)$(2,578)
   Other, net(5,880)(4,023)(8,373)$(24,636)
Total nonoperating expense (income)54,672 45,369 152,480 125,487 
Income before income taxes874,821 847,937 3,036,217 2,050,737 
(Benefit from) provision for income taxes(2,198)98,952 220,068 238,402 
Net income$877,019 $748,985 $2,816,149 $1,812,335 
Shares used to compute earnings per common share - basic500,018 517,011 503,951 521,557 
Shares used to compute earnings per common share - diluted503,503 520,550 507,804 525,652 
Basic earnings per common share$1.75 $1.45 $5.59 $3.47 
Diluted earnings per common share$1.74 $1.44 $5.55 $3.45 



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

Jul. 29, 2023Oct. 29, 2022
Cash & cash equivalents$1,149,246 $1,470,572 
Accounts receivable1,616,243 1,800,462 
Inventories1,709,313 1,399,914 
Other current assets360,383 267,044 
  Total current assets4,835,185 4,937,992 
Net property, plant and equipment2,922,781 2,401,304 
Goodwill26,913,134 26,913,134 
Intangible assets, net11,762,655 13,265,406 
Deferred tax assets2,224,880 2,264,888 
Other assets688,104 519,626 
Total assets$49,346,739 $50,302,350 
Current liabilities$2,831,018 $2,442,655 
Long-term debt6,437,650 6,548,625 
Deferred income taxes3,150,748 3,622,538 
Other non-current liabilities1,023,577 1,223,209 
Shareholders' equity35,903,746 36,465,323 
Total liabilities & shareholders' equity$49,346,739 $50,302,350 






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

Three Months EndedNine Months Ended
Jul. 29, 2023Jul. 30, 2022Jul. 29, 2023Jul. 30, 2022
Cash flows from operating activities:
  Net income$877,019 $748,985 $2,816,149 $1,812,335 
  Adjustments to reconcile net income to net cash provided by operations:
       Depreciation86,204 75,619 251,785 212,635 
       Amortization of intangibles501,488 503,350 1,505,201 1,512,250 
       Stock-based compensation expense82,970 84,874 227,113 242,809 
Gain on sale of property, plant, and equipment— (4,352)— (4,352)
       Non-cash impairment charge— 91,953 — 91,953 
       Cost of goods sold for inventory acquired— — — 271,396 
       Deferred income taxes(151,283)(82,136)(431,393)(205,128)
       Operating lease assets and liabilities11,847 9,739 4,945 (17,958)
       Other4,515 3,164 14,185 (7,061)
       Changes in operating assets and liabilities(270,306)(183,350)(757,645)(582,813)
   Total adjustments265,435 498,861 814,191 1,513,731 
Net cash provided by operating activities1,142,454 1,247,846 3,630,340 3,326,066 
Cash flows from investing activities:
  Additions to property, plant and equipment(324,574)(164,884)(785,070)(394,796)
  Other(2,173)30,751 (2,254)43,761 
Net cash used for investing activities(326,747)(134,133)(787,324)(351,035)
Cash flows from financing activities:
  Proceeds from revolver— 400,000 — 400,000 
  Payments on revolver— (400,000)— (400,000)
  Early termination of debt— — (65,688)(519,116)
  Proceeds from commercial paper notes2,392,874 — 2,646,509 — 
  Payments of commercial paper notes(2,101,799)— (2,101,799)— 
  Repurchase of common stock(686,510)(905,973)(2,494,018)(1,758,832)
  Dividend payments to shareholders(430,467)(394,018)(1,251,121)(1,154,207)
  Proceeds from employee stock plans45,990 9,960 113,002 30,013 
  Other(64,158)(28,376)(11,227)(1,718)
Net cash used for financing activities(844,070)(1,318,407)(3,164,342)(3,403,860)
Effect of exchange rate changes on cash— (8,080)— (24,175)
Net decrease in cash and cash equivalents(28,363)(212,774)(321,326)(453,004)
Cash and cash equivalents at beginning of period1,177,609 1,737,734 1,470,572 1,977,964 
Cash and cash equivalents at end of period$1,149,246 $1,524,960 $1,149,246 $1,524,960 





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 evolves and improves, 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 revenue within, each end market.
Three Months Ended
July 29, 2023July 30, 2022
Revenue
% of Revenue1
Y/Y%Revenue
% of Revenue1
Industrial$1,629,201 53%4%$1,566,885 50%
Automotive
747,554 24%15%648,153 21%
Communications380,504 12%(23)%491,515 16%
Consumer319,236 10%(21)%403,327 13%
Total revenue$3,076,495 100%(1)%$3,109,880 100%
Nine Months Ended
July 29, 2023July 30, 2022
Revenue
% of Revenue1
Y/Y %Revenue
% of Revenue1
Industrial$5,092,879 53%15%$4,439,232 51%
Automotive
2,226,277 23%23%1,810,803 21%
Communications1,319,931 14%(4)%1,378,352 16%
Consumer949,968 10%(17)%1,137,850 13%
Total revenue$9,589,055 100%9%$8,766,237 100%
1) 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 EndedNine Months Ended
Jul. 29, 2023Jul. 30, 2022Jul. 29, 2023Jul. 30, 2022
Gross margin$1,961,615 $2,043,142 $6,230,502 $5,389,659 
  Gross margin percentage63.8 %65.7 %65.0 %61.5 %
      Acquisition related expenses260,557 260,628 787,383 1,049,991 
Adjusted gross margin$2,222,172 $2,303,770 $7,017,885 $6,439,650 
  Adjusted gross margin percentage72.2 %74.1 %73.2 %73.5 %
Operating expenses$1,032,122 $1,149,836 $3,041,805 $3,213,435 
  Percent of revenue33.5 %37.0 %31.7 %36.7 %
      Acquisition related expenses(254,719)(259,648)(770,071)(782,752)
      Acquisition related transaction costs(1,837)(5,417)(7,069)(26,846)
      Special charges, net(23,539)(138,201)(46,675)(244,603)
Adjusted operating expenses$752,027 $746,570 $2,217,990 $2,159,234 
  Adjusted operating expenses percentage24.4 %24.0 %23.1 %24.6 %
Operating income$929,493 $893,306 $3,188,697 $2,176,224 
  Operating margin30.2 %28.7 %33.3 %24.8 %
      Acquisition related expenses515,276 520,276 1,557,454 1,832,743 
      Acquisition related transaction costs1,837 5,417 7,069 26,846 
      Special charges, net23,539 138,201 46,675 244,603 
Adjusted operating income$1,470,145 $1,557,200 $4,799,895 $4,280,416 
  Adjusted operating margin47.8 %50.1 %50.1 %48.8 %
Nonoperating expense (income)$54,672 $45,369 152,480 125,487 
      Acquisition related expenses 2,150 2,288 11,593 6,875 
Adjusted nonoperating expense (income)$56,822 $47,657 $164,073 $132,362 
Income before income taxes$874,821 $847,937 $3,036,217 $2,050,737 
     Acquisition related expenses513,126 517,988 1,545,861 1,825,868 
     Acquisition related transaction costs 1,837 5,417 7,069 26,846 
     Special charges, net23,539 138,201 46,675 244,603 
Adjusted income before income taxes$1,413,323 $1,509,543 $4,635,822 $4,148,054 
(Benefit from) provision for income taxes$(2,198)$98,952 $220,068 $238,402 
Effective tax rate(0.3)%11.7 %7.2 %11.6 %
     Tax related items160,500 100,685 317,591 310,902 
Adjusted provision for income taxes$158,302 $199,637 $537,659 $549,304 
Adjusted tax rate11.2 %13.2 %11.6 %13.2 %
Diluted EPS$1.74 $1.44 $5.55 $3.45 
      Acquisition related expenses1.02 1.00 3.04 3.49 
      Acquisition related transaction costs—0.01 0.01 0.05 
      Special charges, net0.05 0.26 0.09 0.46 
      Tax related items(0.32)(0.19)(0.63)(0.59)
Adjusted diluted EPS*$2.49 $2.52 $8.07 $6.85 
* 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
Jul. 29, 2023Jul. 29, 2023Apr. 29, 2023Jan. 28, 2023Oct. 29, 2022
Revenue$12,836,771 $3,076,495 $3,262,930 $3,249,630 $3,247,716 
Net cash provided by operating activities$4,779,676 $1,142,454 $1,081,581 $1,406,305 $1,149,336 
% of Revenue37 %37 %33 %43 %35 %
Capital expenditures$(1,089,582)$(324,574)$(284,338)$(176,158)$(304,512)
Free cash flow$3,690,094 $817,880 $797,243 $1,230,147 $844,824 
% of Revenue29 %27 %24 %38 %26 %




ANALOG DEVICES, INC.
RECONCILIATION OF PROJECTED GAAP TO NON-GAAP RESULTS
(Unaudited)
Three Months Ending October 28, 2023
ReportedAdjusted
Revenue$2.7 Billion $2.7 Billion
(+/- $100 Million)(+/- $100 Million)
Operating margin26.8% 44.0% (1)
(+/-130 bps)(+/-70 bps)
Nonoperating expense~ $55 Million~ $55 Million
Tax rate11% - 13%11% - 13% (2)
Earnings per share$1.19 $2.00 (3)
(+/- $0.10)(+/- $0.10)

(1) Includes $464 million of adjustments related to acquisition related expenses as previously defined in the Non-GAAP Financial Information section of this press release.
(2) Includes $80 million of tax effects associated with the adjustments for acquisition related expenses noted above.
(3) Includes $0.81 of adjustments related to the net impact of acquisition related expenses and the tax effects on those expenses.

For more information, please contact:

Investor Contact:
Analog Devices, Inc.
Mr. Michael Lucarelli
Vice President, Investor Relations and FP&A
781-461-3282
investor.relations@analog.com

Media Contact:
Analog Devices, Inc.
Ms. Ferda Millan
Global PR & External Communications
Ferda.Millan@analog.com


(ADI-WEB)