Analog Devices Reports Record Revenue in Q4

Analog Devices, Inc. announced financial results for its fourth quarter and fiscal year 2016, which ended October 29, 2016. Results included record quarterly revenue of $1 billion, up 3% year-over-year and up 15% sequentially and record quarterly operating cash flow margin of 49%, record quarterly free cash flow margin of 44%.

“ADI had another excellent quarter, with both revenue and earnings per share exceeding the high end of our guidance range,” said Vincent Roche, President and CEO. “Revenue increased to a record $1 billion on broad strength across all of our markets, and our focus on sustainable and differentiated innovation, combined with strong operational execution, helped drive profitability and cash flow generation to record levels.”

“In addition, we are pleased with the progress we are making to close the acquisition of Linear Technology, a combination that, we believe, will create an analog industry powerhouse, capable of creating significant value for our customers, employees, and shareholders.”

“Looking ahead, order rates are stable entering the seasonally slower first quarter. As a result, we are planning for revenue to decrease sequentially, but to increase 9% to 17% over the prior year, which would represent the third consecutive quarter of year-over-year revenue growth for ADI.”

Results for the fourth quarter of fiscal year 2016 included: Revenue totaled $1.0 billion, up 15% sequentially, and up 3% year-over-year; Revenue in ADI’s B2B markets of industrial, automotive, and communications infrastructure totaled $710 million, up 4% sequentially, and up 7% year-over-year; GAAP gross margin of 66.4% of revenue; Non-GAAP gross margin of 66.6% of revenue; GAAP operating margin of 35.6% of revenue; Non-GAAP operating margin of 38.1% of revenue; GAAP diluted EPS of $0.95; Non-GAAP diluted EPS of $1.05; and Operating Cash Flow of $487 million, or 48.5% of revenue; Free Cash Flow of $446 million, or 44.4% of revenue.

Results for fiscal year 2016 included: Revenue totaled $3.4 billion, stable year-over-year; GAAP gross margin of 65.1% of revenue; Non-GAAP gross margin of 65.3% of revenue; GAAP operating margin of 30.0% of revenue; Non-GAAP operating margin of 33.1% of revenue; GAAP diluted EPS of $2.76 per share; Non-GAAP diluted EPS of $3.07 per share; Operating Cash Flow of $1.3 billion, or 37.4% of revenue; Free Cash Flow of $1.2 billion, or 33.7% of revenue; and share repurchases and dividend payments to shareholders totaled $883 million.