Analog Devices, Inc. is one of the world leaders in the design, manufacture and marketing of high-performance analog, mixed-signal and digital signal processing integrated circuits used in signal processing applications. Applications for its products include communications, cellular telephones, computers and computer peripherals, consumer electronics, automotive electronics, factory automation, process control and military and space systems.
Industry:SEMI-ANALOG & MIXED Sector: Computer and Technology Fiscal Year End:October Last Reported Quarter:04/30/12 Next EPS Date:05/22/12
Capital Structure Solvency and Cash Flow
Balance Sheet
Exciting 2Q11, cash and short-term investments totaled approximately $3.4 billion versus $3.0 million in 1Q11. The cash balance for 2Q11 includes the proceeds from the $375 million, 3% coupon senior unsecured notes issued on April 4, 2011. Accounts receivable were $414.6 million versus $384.3 million in 1Q11. DSOs were 48 days, consistent with 1Q11. Inventory was $293.8 million versus $283.0 million in 1Q11. Days inventory outstanding (DIO) were 104 days versus 105 days in 1Q11. Inventory turns were flat at 3.5x.
Long-term debt was $892.4 million versus $892.4 million in 1Q11.
Cash Flow
Net cash provided by operating activities was $197.0 million in 2Q11 versus $216.8 million in 1Q11 and $278.3 million in 2Q10. Capital expenditure totaled $34.0 million in 2Q11 versus $25.5 million in 1Q11 and $17.5 million in 2Q10.
For FY11, Analog Devices expects capital expenditure to be $135 million, which is at the high end of the previously guided range ($115–$135 million).
Share Repurchase & Dividend
During the quarter, the company repurchased 1.7 million shares for a total of $68 million and paid a total cash dividend of $66.0 million
On May 17, 2011, the Board of Directors increased the quarterly dividend by 14% to $0.25 per outstanding share of common stock, which will be paid on June 15, 2011 to all shareholders of record at the close of business on May 27, 2011.
Last edited Wed Jun 01, 2011 09:17 AM by SudiptaMukherjee (Zacks Investment Research)
Governance Social Responsibility and Employee Relations
• Sustainability of Growth: The stock is valued at a meaningful premium versus other stocks. Hence, the analysts believe any significant operational misstep or broad equity market declines could cause a significant decline in the stock’s valuation.
• Pricing Pressures: The company’s margins are often affected by shifts in product mix, and thus, significant internal mix changes or the external pricing environment could negatively affect sales and margins.
• General Risks: As a global semiconductor supplier, Analog Devices relies on sales in many regions, exposing itself to economic, political, and other risks inherent in those areas.
• Uncertainty in Orders: Customer order behavior including excessive double ordering, inventory, stockpiling or excessive cancellations could lead to actual sales differing from projections, and also place pressure on pricing and margins.
Last edited Wed Jun 01, 2011 09:17 AM by SudiptaMukherjee (Zacks Investment Research)
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Last Modification: Thursday 03 of June, 2010 05:39:35 CDT by WikiMigrationBot.
