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Analog Devices Reports 2017 Revenue of $5.1 Billion Up 49%

Analog Devices, Inc. today announced financial results for its fourth quarter and fiscal year 2017, which ended October 28, 2017 including fourth-quarter revenue of $1.54 billion, up 8% sequentially and up 54% year-over-year on a GAAP basis.

“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 Vincent Roche, President and CEO.

“Looking ahead to the seasonally-slower first quarter of fiscal 2018, we are planning for revenue to be in the range of $1.44 billion to $1.54 billion, which includes the benefit of a 14th week in the quarter.

“At the mid-point of this guidance range, we expect revenue to increase year-over-year, led by the highly diverse industrial market,” Roche concluded.

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 $1.80.

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

Outlook for the 14-week First Quarter of Fiscal Year 2018 is:

(click on table to enlarge)

Notes (including costs related to the acquisition of Linear Technology):

(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 $0.41, which represents the net impact of the non-GAAP adjustments noted above on a per share basis consisting of:

  • 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)
Analog Devices Inc.
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