Analog Devices, Inc. (ADI) has reported a 31.99 percent jump in profit for the quarter ended Jan. 28, 2017. The company has earned $217.13 million, or $0.69 a share in the quarter, compared with $164.50 million, or $0.52 a share for the same period last year. On an adjusted basis, earnings per share were at $0.94 for the quarter compared with $0.56 in the same period last year.
Revenue during the quarter grew 27.95 percent to $984.45 million from $769.43 million in the previous year period. Gross margin for the quarter expanded 384 basis points over the previous year period to 65.87 percent. Total expenses were 72.95 percent of quarterly revenues, down from 74.65 percent for the same period last year. This has led to an improvement of 170 basis points in operating margin to 27.05 percent.
Operating income for the quarter was $266.27 million, compared with $195.04 million in the previous year period.
However, the adjusted operating income for the quarter stood at $344.15 million compared to $213.95 million in the prior year period. At the same time, adjusted operating margin improved 715 basis points in the quarter to 34.96 percent from 27.81 percent in the last year period.
"We have started 2017 with strong and broad-based momentum in our business," said Vincent Roche, president and chief executive officer. "Our strategy to focus on sustainable and differentiated innovation helped drive 28% year-on-year revenue growth, and our laser focus on operational execution drove strong year-on-year margin expansion and cash generation in the first quarter."
For the second-quarter 2017, Analog Devices forecasts revenue to be in the range of $870 million to $950 million. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.74 to $0.86.
Operating cash flow improves significantly
Analog Devices has generated cash of $314.49 million from operating activities during the quarter, up 43.14 percent or $94.79 million, when compared with the last year period.
Cash flow from investing activities was $1,769.75 million for the quarter as against cash outgo of $204.36 million in the last year period.
Cash flow from financing activities was $1,982.55 million for the quarter, up 246.73 percent or $1,410.77 million, when compared with the last year period.
Cash and cash equivalents stood at $4,987.26 million as on Jan. 28, 2017, up 239.17 percent or $3,516.82 million from $1,470.44 million on Jan. 30, 2016.
Debt increases substantially
Analog Devices has witnessed an increase in total debt over the last one year. It stood at $3,805.40 million as on Jan. 28, 2017, up 119.84 percent or $2,074.45 million from $1,730.95 million on Jan. 30, 2016. Analog Devices has witnessed an increase in long-term debt over the last one year. It stood at $3,805.40 million as on Jan. 28, 2017, up 119.84 percent or $2,074.45 million from $1,730.95 million on Jan. 30, 2016.
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