Analog Devices Announces Financial Results For Fourth Quarter & Fiscal Year 2009
Analog Devices, Inc. announced financial results for its fiscal fourth quarter and fiscal year ended October 31, 2009.
"The fourth quarter was strong across all dimensions for ADI with revenue growing 16% sequentially, driven by continued momentum in automotive and consumer sales as well as a solid increase in revenue from our broad base of industrial customers," said Jerald G. Fishman, President and CEO. "Strong sequential sales gains, higher gross margins, and continued expense management resulted in a 650-basis point operating margin increase and a 64% EPS increase, demonstrating the significant leverage we built into our model this past year. We remain focused on increasing operating leverage, while continuing to drive revenue by aligning our investments with sustainable, high growth opportunities where ADI’s innovative technology makes a fundamental difference to our customers’ competitiveness."
Fourth Quarter revenue was $572 million, an increase of 16% from the immediately prior quarter and a decrease of 13% from the same period one year ago. Gross margin was 56.3% of revenue, compared to 54.1% of revenue in the immediately prior quarter, and 61.1% of revenue in the year-ago period. Operating expenses were $193 million, an increase of $6 million from the immediately prior quarter, and a decrease of $49 million from the same period one year ago which included a $3 million restructuring charge. The sequential increase in operating expenses was primarily due to a higher variable compensation expense resulting from the 650-basis point sequential improvement in operating margin.
Operating income from continuing operations was $128 million, or 22.5% of revenue, compared to $79 million, or 16.0% of revenue, in the immediately prior quarter, and $161 million, or 24.3% of revenue, from the same period one year ago. In the same period one year ago, there was a one-time restructuring item that resulted in non-GAAP operating income of $164 million, or 24.8% of revenue. There were no one-time items in the current and immediately prior quarters.
Diluted earnings per share (EPS) from continuing operations was $0.36, compared to $0.22 in the immediately prior quarter, and $0.49 in the same period a year ago. The Board of Directors declared a cash dividend of $0.20 per outstanding share of common stock, which will be paid on December 23, 2009 to all shareholders of record at the close of business on December 4, 2009.
Net cash provided by operating activities was $163 million, or 29% of revenue. Capital expenditures were $16 million, and cash dividends of $58 million were paid during the fourth quarter of fiscal 2009. Cash and short-term investments at the end of the fourth quarter of fiscal 2009 totaled approximately $1.8 billion.
Accounts receivable in the fourth quarter of fiscal 2009, as measured by days sales outstanding, was 48 days, compared to 45 days at the end of the immediately prior quarter. Inventory at the end of the fourth quarter of fiscal 2009 decreased by approximately $23 million, or 8%, compared to the immediately prior quarter. Days in inventory decreased to 92 days at the end of the fourth quarter of fiscal 2009 from 112 days at the end of the immediately prior quarter.
Fiscal Year revenue was $2 billion, a decrease of 22% from $2.6 billion recorded in fiscal year 2008. Gross margin was 55.5% of revenue, compared to 61.1% of revenue in fiscal 2008. The year-over-year decrease in gross margin was primarily attributable to lower factory utilization. Operating expenses totaled $834 million, compared to $952 million in fiscal 2008. Excluding one-time items, non-GAAP operating expenses totaled $780 million, compared to $949 million in fiscal 2008. The year-over-year decrease in operating expenses resulted from significant infrastructure cost reductions worldwide, tight control of discretionary expenses, and lower variable compensation expenses for the year.
Operating income from continuing operations was $285 million, or 14.1% of revenue, compared to $625 million, or 24.2% of revenue, in fiscal 2008. Excluding one-time items, non-GAAP operating income from continuing operations was $338 million, or 16.8% of revenue, in fiscal 2009, compared to $628 million, or 24.3% of revenue, in fiscal 2008. Diluted EPS from continuing operations was $0.85, compared to $1.77 in fiscal 2008. Non-GAAP diluted EPS from continuing operations in fiscal 2009 was $0.97, compared to $1.77 in fiscal 2008.
Net cash provided by operating activities was $432 million, compared to $669 million in fiscal 2008. Capital expenditures were $56 million, compared to $157 million in fiscal 2008. Cash and short-term investments at the end of fiscal 2009 totaled approximately $1.8 billion, a year-to-year increase of $506 million, which includes $370 million of net proceeds from an offering of 5.00% five-year notes completed in the third quarter of fiscal 2009.
