adi-20240504

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Form 10-Q

(Mark One)


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended May 4, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File No. 1-7819

Analog Devices, Inc.

(Exact name of registrant as specified in its charter)

Massachusetts

04-2348234

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

One Analog Way,

Wilmington,

01887

(Address of principal executive offices)

(Zip Code)

(781) 935-5565

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock $0.16 2/3 par value per share	ADI	Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

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. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

As of May 4, 2024 there were 496,216,857 shares of common stock of the registrant, $0.16 2/3 par value per share, outstanding.

PART I — FINANCIAL INFORMATION


ITEM 1.			Financial Statements

ANALOG DEVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(in thousands, except per share amounts)


	Three Months Ended				Six Months Ended
	May 4, 2024		April 29, 2023		May 4, 2024		April 29, 2023
Revenue	$	2,159,039	$	3,262,930	$	4,671,743	$	6,512,560
Cost of sales	979,004		1,118,384		2,017,767		2,243,673
Gross margin	1,180,035		2,144,546		2,653,976		4,268,887
Operating expenses:
Research and development	354,862		415,754		746,289		829,849
Selling, marketing, general and administrative	244,129		324,251		534,207		650,535
Amortization of intangibles	188,944		253,021		379,276		506,163
Special charges, net	5,977		23,136		22,117		23,136
Total operating expenses	793,912		1,016,162		1,681,889		2,009,683
Operating income:	386,123		1,128,384		972,087		2,259,204
Nonoperating expense (income):
Interest expense	77,103		63,252		154,244		123,705
Interest income	(15,269)		(12,575)		(24,438)		(23,404)
Other, net	(314)		(10,216)		4,260		(2,493)
Total nonoperating expense (income)	61,520		40,461		134,066		97,808
Income before income taxes	324,603		1,087,923		838,021		2,161,396
Provision for income taxes	22,361		110,267		73,052		222,266
Net income	$	302,242	$	977,656	$	764,969	$	1,939,130

Shares used to compute earnings per common share – basic	496,130		504,715		495,947		505,918
Shares used to compute earnings per common share – diluted	498,533		508,725		498,637		509,955

Basic earnings per common share	$	0.61	$	1.94	$	1.54	$	3.83
Diluted earnings per common share	$	0.61	$	1.92	$	1.53	$	3.80

See accompanying notes.

ANALOG DEVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(in thousands)


	Three Months Ended				Six Months Ended
	May 4, 2024		April 29, 2023		May 4, 2024		April 29, 2023
Net income	$	302,242	$	977,656	$	764,969	$	1,939,130
Foreign currency translation adjustments	264		(864)		649		1,635

Change in fair value of derivative instruments designated as cash flow hedges, net	1,306		(2,109)		9,326		23,358
Changes in pension plans, net	2,514		344		1,126		796
Other comprehensive income (loss)	4,084		(2,629)		11,101		25,789
Comprehensive income	$	306,326	$	975,027	$	776,070	$	1,964,919

See accompanying notes.

ANALOG DEVICES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in thousands, except share and per share amounts)


	May 4, 2024		October 28, 2023
ASSETS
Current Assets
Cash and cash equivalents	$	1,939,695	$	958,061
Short-term investments	424,117		—
Accounts receivable	1,004,628		1,469,734
Inventories	1,479,081		1,642,214



Prepaid expenses and other current assets	346,100		314,013
Total current assets	5,193,621		4,384,022
Non-current Assets

Net property, plant and equipment	3,415,220		3,219,157
Goodwill	26,909,775		26,913,134
Intangible assets, net	10,434,776		11,311,957
Deferred tax assets	2,146,321		2,223,272

Other assets	762,153		742,936
Total non-current assets	43,668,245		44,410,456
TOTAL ASSETS	$	48,861,866	$	48,794,478
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	422,683	$	493,041


Income taxes payable	360,951		309,046
Debt, current	898,776		499,052
Commercial paper notes	548,235		547,224

Accrued liabilities	1,066,677		1,352,608
Total current liabilities	3,297,322		3,200,971
Non-current Liabilities
Long-term debt	6,611,681		5,902,457
Deferred income taxes	2,887,952		3,127,852

Income taxes payable	266,625		417,076

Other non-current liabilities	549,497		581,000
Total non-current liabilities	10,315,755		10,028,385

Shareholders’ Equity
Preferred stock, $1.00 par value, 471,934 shares authorized, none outstanding	—		—
Common stock, $0.16 2/3 par value, 1,200,000,000 shares authorized, 496,216,857 shares outstanding (496,261,678 on October 28, 2023)	82,704		82,712
Capital in excess of par value	25,103,737		25,313,914
Retained earnings	10,239,549		10,356,798
Accumulated other comprehensive loss	(177,201)		(188,302)
Total shareholders’ equity	35,248,789		35,565,122
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	48,861,866	$	48,794,478

See accompanying notes.

ANALOG DEVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(Unaudited)

(in thousands)


	Three Months Ended May 4, 2024
				Capital in				Accumulated Other
	Common Stock			Excess of		Retained		Comprehensive
	Shares	Amount		Par Value		Earnings		Loss








BALANCE, FEBRUARY 3, 2024	495,908	$	82,653	$	25,253,256	$	10,393,449	$	(181,285)

Net income						302,242
Dividends declared and paid - $0.92 per share						(456,142)

Issuance of stock under stock plans and other	1,487	247		14,270
Stock-based compensation expense				58,396
Other comprehensive income								4,084
Common stock repurchased	(1,178)	(196)		(222,185)
BALANCE, MAY 4, 2024	496,217	$	82,704	$	25,103,737	$	10,239,549	$	(177,201)

	Six Months Ended May 4, 2024
				Capital in				Accumulated Other
	Common Stock			Excess of		Retained		Comprehensive
	Shares	Amount		Par Value		Earnings		Loss
BALANCE, OCTOBER 28, 2023	496,262	$	82,712	$	25,313,914	$	10,356,798	$	(188,302)
Net income						764,969
Dividends declared and paid - $1.78 per share						(882,218)
Issuance of stock under stock plans and other	2,163	360		63,976
Stock-based compensation expense				128,211
Other comprehensive income								11,101
Common stock repurchased	(2,208)	(368)		(402,364)
BALANCE, MAY 4, 2024	496,217	$	82,704	$	25,103,737	$	10,239,549	$	(177,201)

See accompanying notes.

ANALOG DEVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(Unaudited)

(in thousands)

SEC Form 10-Q filed by Analog Devices Inc.