Analog devices reports second quarter fiscal year 2015 results
Norwood, mass.--(business wire)--analog devices, inc. (nasdaq: adi), a global leader in high-performance semiconductors for signal processing applications, today announced financial results for its second quarter of fiscal year 2015, which ended may 2, 2015. “we had a very successful second quarter driven by the quality of our innovation, the diversity of our business, and our strong execution,” said vincent roche, president and ceo. “revenue increased to a record $821 million, and our operating model generated strong cash flows and diluted earnings per share growth that was well ahead of revenue growth.” “looking ahead, our book to bill ratio was positive in the second quarter and we are seeing stable order rates across all our end markets. as a result, we are planning for sequential growth in the third quarter and for revenue to be in the range of $825 million to $865 million.” adi also announced that the board of directors has declared a cash dividend of $0.40 per outstanding share of common stock. the dividend will be paid on june 9, 2015 to all shareholders of record at the close of business on may 29, 2015. for additional information please visit adi’s financial press release page. results for the second quarter of fiscal year 2015 revenue totaled $821 million, up 6% sequentially, and up 18% year-over-year gaap gross margin of 66.4% of revenue; non-gaap gross margin of 66.5% of revenue gaap operating margin of 30.3% of revenue; non-gaap operating margin of 33.7% of revenue gaap diluted eps of $0.65; non-gaap diluted eps of $0.73 please refer to the schedules provided for a summary of revenue and earnings, selected balance sheet information, and the cash flow statement for the second quarter of fiscal year 2015, as well as the immediately prior and year-ago quarters. additional information on revenue by end market is provided on schedule d. a more complete table covering prior periods is available at investor.analog.com. outlook for the third quarter of fiscal year 2015 the following statements are based on current expectations, and as indicated, are presented on a gaap and non-gaap basis. these statements are forward-looking and actual results may differ materially, as a result of, among other things, the important factors discussed at the end of this release. these statements supersede all prior statements regarding our business outlook set forth in prior adi news releases, and adi disclaims any obligation to update these forward-looking statements. non-gaapadjustments 1. reflects estimated adjustments for amortization of purchased intangible assets.2. represents impact of the amortization of purchased intangible assets on a per share basis. conference call scheduled for 5:00 pm et adi will host a conference call to discuss the second quarter results and short-term outlook today, beginning at 5:00 pm et. investors may join via webcast, accessible at investor.analog.com, or by telephone (call 706-634-7193 ten minutes before the call begins and provide the password "adi"). a replay will be available two hours after the completion of the call. the replay may be accessed for up to two weeks by dialing 855-859-2056 (replay only) and providing the conference id: 28570593, or by visiting investor.analog.com. non-gaap financial information this release includes non-gaap financial measures that are not in accordance with, nor an alternative to, generally accepted accounting principles and may be different from non-gaap measures used by other companies. in addition, these non-gaap measures are not based on any comprehensive set of accounting rules or principles. schedule e of this press release provides the reconciliation of the company’s historical non-gaap measures to its gaap measures. management uses non-gaap gross margin, non-gaap operating expenses, non-gaap operating income, non-gaap operating margins, and non-gaap diluted earnings per share to evaluate the company’s operating performance from continuing operations against past periods and to budget and allocate resources in future periods. these non-gaap measures also assist management in evaluating the company’s core business and trends across different reporting periods on a consistent basis. management also believes that the presentation of these non-gaap items is useful to investors because it provides investors with the operating results that management uses to manage the company and enables investors and analysts to evaluate the company’s core business. the following items are excluded from our non-gaap gross margin, non-gaap operating expenses, non-gaap operating income, non-gaap operating margin, and non-gaap diluted earnings per share: acquisition-related expenses: expenses incurred in the first and second quarters of fiscal 2015 as a result of the hittite acquisition primarily include: expense associated with the fair value adjustments to inventory and property, plant and equipment; and amortization of acquisition related intangibles, which include acquired intangibles such as purchased technology and customer relationships. we excluded these costs from our non-gaap measures because they relate to a specific transaction and are not reflective of our ongoing financial performance. stock-based compensation expense: in the first quarter of fiscal 2015, the company recorded $3.0 million of stock-based compensation expense for one of its former executive officers due to the accelerated vesting of restricted stock units and a reduction in the requisite service period for stock options in accordance with the terms of the applicable agreements. in addition, in the first quarter of fiscal 2015, the company recorded $1.3 million of stock-based compensation expense due to the accelerated vesting of restricted stock units and stock options in conjunction with the restructuring charge recorded in the fourth quarter of fiscal 2014. these stock-based compensation expenses and income and the related tax effect have no direct correlation to the operation of our business in the future. the following items are excluded from our non-gaap operating expenses, non-gaap operating income, non-gaap operating margin, and non-gaap diluted earnings per share: acquisition-related transaction costs: costs incurred as a result of the hittite acquisition in the first and second quarters of fiscal 2015 include legal, accounting and other professional fees directly related to the hittite acquisition. we excluded these costs from our non-gaap measures because they relate to a specific transaction and are not reflective of our ongoing financial performance. the following item is excluded from our non-gaap diluted earnings per share: tax-related items: in the second quarter of fiscal 2015, the company recorded $1.5 million of tax adjustments related to the hittite acquisition. in the first quarter of fiscal 2015, the company recorded $3.8 million of tax adjustments related to the hittite acquisition. in addition, the company recorded a $7.0 million tax benefit related to the reinstatement of the r&d tax credit in december 2014, retroactive to january 1, 2014. we excluded these tax-related items from our non-gaap measures because they are not associated with the tax expense on our current operating results. analog devices believes that non-gaap gross margin, non-gaap operating expenses, non-gaap operating income, non-gaap operating margins, and non-gaap diluted eps have material limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with gaap and that these measures should only be used to evaluate our results of operations in conjunction with the corresponding gaap measures. in addition, our non-gaap measures may not be comparable to the non-gaap measures reported by other companies. the company’s use of non-gaap measures, and the underlying methodology when excluding certain items, is not necessarily an indication of the results of operations that may be expected in the future, or that the company will not, in fact, record such items in future periods. investors should consider our non-gaap financial measures in conjunction with the corresponding gaap measures. about analog devices analog devices designs and manufactures semiconductor products and solutions. we enable our customers to interpret the world around us by intelligently bridging the physical and digital with unmatched technologies that sense, measure and connect. visit http://www.analog.com this release may be deemed to contain forward-looking statements intended to qualify for the safe harbor from liability established by the private securities litigation reform act of 1995. these forward-looking statements include, among other things, our statements regarding expected revenue, earnings per share, gross margin, operating expenses, interest and other expense, tax rate, and other financial results, expected operating leverage, production and inventory levels, expected market trends, and expected customer demand and order rates for our products, that are based on our current expectations, beliefs, assumptions, estimates, forecasts, and projections about our business and the industry and markets in which analog devices operates. the statements contained in this release are not guarantees of future performance, are inherently uncertain, involve certain risks, uncertainties, and assumptions that are difficult to predict, and do not give effect to the potential impact of any mergers, acquisitions, divestitures, or business combinations that may be announced or closed after the date hereof. 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. we do not undertake any obligation to update forward-looking statements made by us. important factors that may affect future operating results include: any faltering in global economic conditions or the stability of credit and financial markets, erosion of consumer confidence and declines in customer spending, unavailability of raw materials, services, supplies or manufacturing capacity, changes in geographic, product or customer mix, our ability to successfully integrate acquired businesses and technologies, adverse results in litigation matters, and other risk factors described in our most recent filings with the securities and exchange commission. our results of operations for the periods presented in this release are not necessarily indicative of our operating results for any future periods. any projections in this release are based on limited information currently available to analog devices, which is subject to change. although any such projections and the factors influencing them will likely change, we will not necessarily update the information, as we will only provide guidance at certain points during the year. such information speaks only as of the original issuance date of this release. analog devices and the analog devices logo are registered trademarks or trademarks of analog devices, inc. all other trademarks mentioned in this document are the property of their respective owners. schedule a 2015 2015 2014 schedule b may 2,2015 jan. 31,2015 2014 (1) includes $3,066, $3,176, and $1,982 related to stock-based compensation in 2q15, 1q15, and 2q14, respectively. schedule c 2015 2015 2014 schedule d revenue trends by end market (unaudited) 2015 2015 2014 2015 2015 2014
