Analog Devices' Fourth-Quarter Revenues Increase 87% to $806 Million; Pro Forma EPS Rise 170% to $0.54
* Fourth-quarter revenues increased 87% year over year and 15% sequentially. * Fourth-quarter gross margin ratio improved 150 basis points sequentially to 58.6% of sales. * Fourth-quarter OPBT ratio rose 300 basis points sequentially to 34.3% of sales. * Fourth-quarter pro forma EPS were $0.54, over 2 1/2 times the year- ago EPS and up 26% sequentially. * Outlook is for 7-10% sequential revenue growth in first quarter and over 50% year-over-year revenue growth in fiscal 2001.
NORWOOD, Mass., Nov 14, 2000 /PRNewswire via COMTEX/ -- Analog Devices (NYSE: ADI chart, msgs) today announced revenues of $806 million for the fourth quarter of fiscal 2000, up 87% from the prior year's fourth quarter and 15% above the immediately prior quarter. Earnings per share were $0.54, over two-and-one-half times the $0.20 reported for the year-ago quarter and 26% above the third quarter's $0.43, excluding the realized gain on an investment sold during the third quarter. All financial information in the text of this release refers to pro forma results, which exclude investment gains and acquisition-related expenses.
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"Analog Devices experienced an exceptionally strong fourth quarter, well ahead of the expectations we communicated at the time of our third-quarter release," said Jerald G. Fishman, President and CEO. "Demand continued strong throughout the quarter, with our production levels rising in response to demand. As a result, revenues increased to $806 million, 87% above the prior year's fourth quarter and 15% greater than the immediately prior quarter.
"ADI's full-year revenues grew 78%. Analog products revenues increased 68%, while DSP products revenues rose 115%. Our revenue growth was well ahead of the market's growth, both for the year and our fourth quarter. Based on these results, we believe ADI has become the industry's fastest-growing analog and DSP IC supplier, as signal-processing technology plays an ever-more important role in communications, digital infotainment, computer and industrial applications."
Commenting on the fourth quarter's financial performance, Mr. Fishman said, "Gross margin increased to 58.6% of sales, up 640 basis points from the prior year's fourth quarter and up 150 basis points from the third quarter. Our improving gross margin ratio was once again the result of the value ADI technology brings to its customers, combined with record-high operating levels and the success of our cost reduction programs. Our higher gross margin, coupled with continued improvement in our operating expense ratios, resulted in our operating margin ratio increasing to 34.3% of sales, compared to 20.9% for last year's fourth quarter and 31.3% for the immediately prior quarter.
"Our balance sheet also continued to strengthen during the fourth quarter. Inventories and accounts receivable both declined in days and cash flow was strong.
"Fiscal 2000 was a great year for Analog Devices," Mr. Fishman noted. "It turned out far better than we had anticipated early in the year, not only in terms of revenue and profit growth, but equally important, in setting the stage for Analog Devices to achieve what we believe can be solid revenue growth over the next few years.
"Given our high backlog and strong new orders during the fourth quarter, we believe we can achieve 7 to 10% sequential revenue growth in the first quarter of fiscal 2001. Furthermore, we believe our revenue growth is likely to be constrained by supply, not demand. At this level of revenue, we believe the first quarter's EPS could be in the range of $0.58 to $0.60.
"Our first look for the entire year of fiscal 2001 is also very encouraging," Mr. Fishman concluded. "We currently believe that fiscal 2001's revenues could exceed fiscal 2000's by more than 50%, which would result in fiscal 2001 revenues of more than $3.8 billion."
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This release contains forward-looking statements, including our statements regarding increased revenues and improved 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 which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed in such forward-looking statements. Important factors which may affect future operating results include the effects of adverse changes in overall economic conditions, the timing and duration of market upturns and downturns, the continued growth of the markets Analog Devices serves, continuation of growth in the communications market, continued demand for semiconductors generally and for the Company's products in particular, the risk that our backlog could decline significantly, the ability of the Company to continue hiring engineers and other qualified employees needed to meet the expected demands of our largest customers, reversals or slowdowns in the markets or customers served by the Company's products and 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 the Company's most recent annual report on Form 10-K and Form S-3 filed with the Securities and Exchange Commission.
Analog Devices is a leading manufacturer of precision high-performance integrated circuits used in analog and digital signal processing applications. Headquartered in Norwood, Massachusetts, the company employs approximately 9,100 people worldwide and has manufacturing facilities in Massachusetts, California, North Carolina, Ireland, the Philippines and Taiwan. Analog Devices' stock is listed on the New York Stock Exchange and the company is included in the S&P 500 Index.
Analog Devices Supplemental Information
Fourth Quarter, Fiscal 2000
Pro Forma* Financial Information
4Q00 4Q99 3Q00
Three Months Ended Oct 28, 2000 Oct 30, 1999 Jul 29, 2000
Net Sales $805,617 $431,036 $700,658
Y/Y Growth 87% 45% 85%
Q/Q Growth 15% 14% 21%
Cost of Sales 333,730 205,922 300,519
Gross Margin 471,887 225,114 400,139
Percent of Sales 58.6% 52.2% 57.1%
Operating Expenses
R&D 114,625 75,414 103,429
Selling, Marketing and G&A 80,569 59,702 77,198
Operating Income 276,693 89,998 219,512
Percent of Sales 34.3% 20.9% 31.3%
Other (Income) Expense (18,155) (7,633) (15,572)
Provision for Taxes 88,324 24,413 70,579
Tax Rate 30% 25% 30%
Net Income $206,524 $ 73,218 $164,505
Percent of Sales 26% 17% 23%
Earnings per Share - Diluted $0.54 $0.20 $0.43
Twelve Months Ended Oct 28, 2000 Oct 30, 1999
Net Sales $2,577,547 $1,450,379
Y/Y Growth 78% 18%
Cost of Sales 1,116,520 735,643
Gross Margin 1,461,027 714,736
Percent of Sales 56.7% 49.3%
Operating Expenses
R&D 389,998 255,790
Selling, Marketing and G&A 293,364 209,639
Operating Income 777,665 249,307
Percent of Sales 30.2% 17.2%
Equity in Loss of WaferTech - 1,149
Other (Income) Expense (57,579) (18,595)
Provision for Taxes 246,435 61,943
Tax Rate 30% 23%
Net Income $588,809 $204,810
Percent of Sales 23% 14%
Earnings per Share - Diluted $1.54 $0.57
*Note: The above pro forma financial information, which was not prepared in accordance with generally accepted accounting principles, excludes mortization of goodwill and other acquisition-related expenses. Also excluded is a third-quarter fiscal 2000 gain realized on the sale of an investment. The effect of these amounts is partially offset, as appropriate, by income tax effects.
Sales/Earnings Summary
4Q00 4Q99 3Q00
Three Months Ended Oct 28, 2000 Oct 30, 1999 Jul 29, 2000
Net Sales $805,617 $431,036 $700,658
Cost of Sales 333,730 205,922 300,519
Gross Margin 471,887 225,114 400,139
Percent of Sales 58.6% 52.2% 57.1%
Operating Expenses
R&D 123,423 75,414 103,429
Selling, Marketing and G&A 80,569 59,702 77,198
Operating Income 267,895 89,998 219,512
Other (Income) Expense (17,450) (7,633) (59,429)
Income Before Tax 285,345 97,631 278,941
Provision for Taxes 85,473 24,413 86,740
Net Income $199,872 $ 73,218 $192,201
Shares for EPS - Basic 356,376 347,340 355,018
Shares for EPS - Diluted 384,307 369,548 383,544
Earnings per Share - Basic $0.56 $0.21 $0.54
Earnings per Share - Diluted $0.52 $0.20 $0.50
Twelve Months Ended Oct 28, 2000 Oct 30, 1999
Net Sales $2,577,547 $1,450,379
Cost of Sales 1,116,520 735,643
Gross Margin 1,461,027 714,736
Percent of Sales 56.7% 49.3%
Operating Expenses
R&D 400,566 257,039
In-Process R&D Write-off - 5,140
Selling, Marketing and G&A 293,364 209,639
Operating Income 767,097 242,918
Equity in Loss of WaferTech - 1,149
Other (Income) Expense (98,614) (15,771)
Income Before Tax 865,711 257,540
Provision for Taxes 258,579 60,721
Net Income 607,132 196,819
Profit for EPS - Diluted $607,132 $198,725
Shares for EPS - Basic 353,363 336,482
Shares for EPS - Diluted 381,157 362,904
Earnings per Share - Basic $1.71 $0.58
Earnings per Share - Diluted $1.59 $0.55
Selected Balance Sheet Information
Oct 28, 2000 Oct 30, 1999 Jul 29, 2000
Cash & Short-term
Investments $2,235,265 $762,444 $1,058,407
Accts Receivable, Net 463,912 260,871 420,440
Inventories 332,094 248,936 313,901
Other Current Assets 136,743 106,859 140,629
Total Current Assets 3,168,014 1,379,110 1,933,377
PP&E, Net 779,226 642,806 703,882
Investments 217,755 119,301 249,566
Intangible Assets 192,698 30,563 36,652
Other 53,644 46,574 27,822
Total Assets $4,411,337 $2,218,354 $2,951,299
Total Current Liabil. $649,897 $479,263 $617,647
Long-term Debt 1,200,261 - -
Non-Curr. Lease Oblig. 12,699 16,214 11,168
Other Non-Curr. Liab. 244,830 106,846 263,730
Stockholders' Equity 2,303,650 1,616,031 2,058,754
Total Liab. & Equity $4,411,337 $2,218,354 $2,951,299
Depreciation and Capital Expenditures
4Q00 4Q99 3Q00
Three Months Ended Oct 28, 2000 Oct 30, 1999 Jul 29, 2000
Depreciation $36,755 $34,632 $35,848
Capital Expenditures $112,323 $31,049 $75,049
Year Ended
Twelve Months Ended Oct 28, 2000 Oct 30, 1999
Depreciation $143,357 $138,530
Capital Expenditures $280,218 $77,500
NOTE: All amounts in thousands except percents and earnings per share. Shares used for earnings per share calculations reflect a 2-for-1 stock split effected March 15, 2000.
CONTACT: James O. Fishbeck, Director of Corporate Communications at Analog Devices, 781-461-3282, or james.fishbeck@analog.com
Source: Analog Devices
Contact:
James O. Fishbeck, Director of Corporate Communications of
Analog Devices, 781-461-3282, james.fishbeck@analog.com
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