Exhibit 99.1
[ANALOG DEVICES LOGO]
FOR RELEASE: MAY 14, 2003
4:00 P.M. EST
ANALOG DEVICES REPORTS INCREASED REVENUE AND PROFITS FOR
SECOND QUARTER OF FISCAL YEAR 2003
Norwood, MA -- Analog Devices (NYSE: ADI), a global leader in high-performance
semiconductors for signal processing applications, today announced revenues of
$502 million and net income of $71.3 million for the second quarter of fiscal
2003, which ended May 3. Revenues increased 21% from the second quarter of
fiscal 2002. Revenues increased 7% and net income increased 19% from the first
quarter of fiscal 2003. Net income was $71.3 million for the second quarter of
fiscal 2003, an increase of 19% sequentially. The quarter's diluted earnings per
share (EPS) under generally accepted accounting principles (GAAP) increased to
$0.19, up from $0.04 in the same period a year ago and $0.16 in the first
quarter of fiscal 2003.
Operating income increased sequentially to 17.6% of sales in the second quarter
of fiscal 2003, up from 15.8% in the previous quarter. Gross margins increased
sequentially to 54.5% of sales, while inventories declined sequentially and days
cost in inventory declined to 117 days from 125 days last quarter. Accounts
receivable days sales outstanding declined to 44 days from 45 days last quarter.
In the second quarter of fiscal 2003, cash balances increased by $102 million
after spending $14 million on capital equipment. Cash and short-term investment
balances at the end of the second quarter of fiscal 2003 totaled $3.1 billion.
"Both revenue and earnings were above the high end of estimates we provided on
February 13, 2003, primarily as a result of stronger sales of analog products
and continued strength in sales of DSP products," said Jerald G. Fishman,
president and CEO. "Analog product revenues grew 7% sequentially and accounted
for approximately 78% of revenues, and DSP products grew 8% sequentially and
accounted for approximately 22% of revenues."
"Growth this quarter was broad based with sales increasing across virtually all
applications, across OEM and distributor channel customers and across all
geographic regions," continued Mr. Fishman.
"In the second quarter, orders for shipment in the next 13 weeks grew by
approximately 16% from first quarter fiscal 2003 levels. Orders from both OEM
customers and distributors grew sequentially and the book to bill ratio was well
above one for the second quarter. Orders end customers placed with our
distributors also grew sequentially and our distributors' book to bill ratio
was above one."
Regarding the near-term outlook, Mr. Fishman said, "We are planning for revenues
to grow 3-5% sequentially during the third quarter. In addition, we are planning
for gross margin to increase slightly. Operating expenses will increase slightly
due to salary increases for a portion of the employee population. As a result,
GAAP diluted EPS are estimated at $0.20 to $0.21 for the third quarter of fiscal
2003."
Mr. Fishman will discuss the second quarter's results and the near-term outlook
via webcast, accessible from www.analog.com, today beginning at 4:30pm EST.
Investors who prefer to join by telephone may call 706-634-7193 ten minutes
before the call begins and provide the password "ADI."
A replay will be available almost immediately after the call. The replay may be
accessed for up to one week by dialing 800-642-1687 (replay only) and providing
the conference ID: 8963774 or by visiting the Investor Relations page on ADI's
web site.
Analog Devices, Inc. is a leading manufacturer of precision high-performance
integrated circuits used in analog and digital signal processing applications.
ADI is headquartered in Norwood, Massachusetts, and employs approximately 8,600
people worldwide. It has manufacturing facilities in Massachusetts, California,
North Carolina, Ireland, the Philippines and the United Kingdom. Analog Devices'
common stock is listed on the New York Stock Exchange and ADI is included in the
S&P 500 Index.
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Safe harbor statement under the Private Securities Litigation Reform Act of
1995: This release contains forward-looking statements, including our statements
regarding planned revenues, earnings and 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 that are difficult to
predict. Therefore, actual outcomes and results may differ materially from what
is expressed in such forward-looking statements, and such statements should not
be relied upon as representing Analog Devices' expectations or beliefs as of any
date subsequent to the date of this press release. Important factors that 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 growth or contraction of the markets we serve, demand for
semiconductors generally and for our products in particular, the risk that our
backlog could decline significantly, the impact of severe acute respiratory
syndrome, or SARS, on our operations and markets, our ability to hire 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 our
products, 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 our Quarterly Report on Form 10-Q for the fiscal
quarter ended February 1, 2003, as filed with the Securities and Exchange
Commission.
CONTACT: Maria Tagliaferro, Director of Corporate Communications at Analog
Devices, 781-461-3282, or investor.relations@analog.com
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ANALOG DEVICES SUPPLEMENTAL INFORMATION, SECOND QUARTER, FISCAL 2003
SALES/EARNINGS SUMMARY
(IN THOUSANDS OF DOLLARS, EXCEPT PER-SHARE AMOUNTS)
2Q 03 1Q 03 2Q 02
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Three Months Ended May 3, 2003 February 1, 2003 May 4, 2002
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Net Sales $ 501,883 $ 467,423 $ 413,368
Y/Y Growth 21% 19% -31%
Q/Q Growth 7% 3% 5%
Cost of Sales 228,423 214,286 192,537
Gross Margin 273,460 253,137 220,831
Percent of Sales 54.5% 54.2% 53.4%
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Operating Expenses:
R&D 110,827 107,112 99,763
Selling, Marketing and G&A 71,509 69,315 62,354
Acquisition-related expenses* 2,658 2,849 17,292
Restructuring Costs -- -- 25,450
Investment Impairment -- -- 1,800
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Operating Income 88,466 73,861 14,172
Other (Income) Expense (2,952) (3,052) (5,864)
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Income Before Tax 91,418 76,913 20,036
Provision for Taxes 20,112 16,921 5,610
Tax Rate 22% 22% 28%
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Net Income $ 71,306 $ 59,992 $ 14,426
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Shares used for EPS - Basic 364,267 363,138 364,545
Shares used for EPS - Diluted 379,163 378,197 383,455
Earnings per Share - Basic $ 0.20 $ 0.17 $ 0.04
Earnings per Share - Diluted $ 0.19 $ 0.16 $ 0.04
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Six Months Ended May 3, 2003 May 4, 2002
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Net Sales $ 969,306 $ 806,342
Y/Y Growth 20% -41%
Cost of Sales 442,709 381,714
Gross Margin 526,597 424,628
Percent of Sales 54.3% 52.7%
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Operating Expenses:
R&D 217,939 198,213
Selling, Marketing and G&A 140,824 120,712
Acquisition-related expenses* 5,507 37,656
Restructuring Costs -- 25,450
Investment Impairment -- 1,800
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Operating Income 162,327 40,797
Other (Income) Expense (6,004) (13,531)
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Income Before Tax 168,331 54,328
Provision for Taxes 37,033 15,212
Tax Rate 22% 28%
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Net Income $ 131,298 $ 39,116
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Shares used for EPS - Basic 363,703 363,846
Shares used for EPS - Diluted 378,680 383,463
Earnings per Share - Basic $ 0.36 $ 0.11
Earnings per Share - Diluted $ 0.35 $ 0.10
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* Acquisition-related goodwill is no longer amortized effective November 3,
2002, in accordance with FAS 142.
ANALOG DEVICES SUPPLEMENTAL INFORMATION, SECOND QUARTER, FISCAL 2003
SELECTED BALANCE SHEET INFORMATION
(IN THOUSANDS OF DOLLARS)
2Q 03 1Q 03 2Q 02
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May 3, 2003 February 1, 2003 May 4, 2002
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Cash & Short-term Investments $3,101,483 $2,999,732 $2,908,964
Accounts Receivable, Net 242,767 231,422 221,524
Inventories 293,487 294,478 253,151
Other Current Assets 194,150 185,433 182,596
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Total Current Assets 3,831,887 3,711,065 3,566,235
PP&E, Net 726,533 754,571 845,683
Investments 286,119 276,595 275,516
Intangible Assets 173,328 173,985 203,455
Other 117,446 116,086 61,877
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Total Assets $5,135,313 $5,032,302 $4,952,766
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Current Liabilities $ 367,492 $ 360,611 $ 418,046
Deferred income-shipments to distributors 108,980 106,686 105,614
Long-term Debt 1,279,027 1,275,269 1,191,199
Non-Current Lease Obligations 237 247 2,592
Non-Current Liabilities 323,692 316,424 326,367
Stockholders' Equity 3,055,885 2,973,065 2,908,948
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Total Liabilities & Equity $5,135,313 $5,032,302 $4,952,766
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CAPITAL EXPENDITURES, DEPRECIATION & AMORTIZATION
(IN THOUSANDS OF DOLLARS)
2Q 03 1Q 03 2Q 02
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THREE MONTHS ENDED May 3, 2003 February 1, 2003 May 4, 2002
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Capital Expenditures $ 14,348 $ 14,953 $ 15,679
Depreciation $ 42,503 $ 41,539 $ 44,718
Amortization of Goodwill & Intangibles* $ 656 $ 652 $ 14,234
SIX MONTHS ENDED May 3, 2003 May 4, 2002
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Capital Expenditures $ 29,301 $ 27,198
Depreciation $ 84,042 $ 87,215
Amortization of Goodwill & Intangibles* $ 1,308 $ 28,339
* Acquisition-related goodwill is no longer amortized effective November 3,
2002, in accordance with FAS 142.