Analog Devices Outlines Strong Strategic Vision and New Financial Model at 2022 Investor Day
05 Abril 2022 - 5:15PM
Business Wire
- Actions Underway Include Driving Growth Through Customer
Success and Moving Up the Technology Stack to Build and Empower the
Intelligent Edge
- Reinforces High-Performance Broad Portfolio; Diverse
Customers, Applications, and Markets; Customer-Centric Culture; and
Resilient Hybrid Manufacturing Model
- Announces New Financial Model that Increases Revenue Growth
Target to 7-10% CAGR and Adjusted Operating Margin Target to
42-50%
Analog Devices, Inc. (Nasdaq: ADI), a leading global
high-performance analog technology company, today hosted its 2022
Investor Day at its new LEED-certified Wilmington, MA headquarters.
Members of the leadership team shared how the Company is leveraging
its high-performance analog portfolio to capitalize on key secular
growth trends aligned with electrification, digitization,
automation, and connectivity.
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the full release here:
https://www.businesswire.com/news/home/20220405006014/en/
“For more than half a century, we have stayed true to our ethos
of solving our customers’ critical and complex problems, while
building the most durable and premier analog, mixed signal, and
power franchise. We have a tremendous opportunity ahead of us as we
execute our long-term vision to build and empower the intelligent
edge by bringing digital technologies and software closer to the
edge, making it more intelligent and prescient,” said Vincent
Roche, Chief Executive Officer and Chair of ADI. “As we move up the
technology stack, capture opportunity presented by key secular
trends and deepen customer relationships through innovation, we
have great confidence we will achieve our increased annual revenue
growth target of 7% to 10%. While we deliver sustainable growth, we
see a path to $15 of adjusted earnings per share and 40% free cash
flow margin, enabling us to create significant value for
shareholders for years to come.”
In conjunction with today’s event, ADI announced its new
long-term financial model, highlighting the following
expectations:
Metric
New Model1
Revenue growth
7-10% CAGR
Adjusted Gross margin
Floor of 70%
Adjusted Operating margin
42-50%
Free cash flow margin2
34-40%
Free cash flow return
100%
Capital expenditures as a percent
of revenue
4-6%
1 A reconciliation of the non-GAAP
financial measures included in this chart to the corresponding GAAP
measures is not available without unreasonable effort. Refer to the
Company’s 1Q22 press release available at investor.analog.com for
historical adjustments from GAAP to Non-GAAP measures, which have
been significant in prior periods.
2 Free cash flow (FCF) is equal to
operating cash flow, less capital expenditures. FCF margin is FCF
divided by revenue.
In addition, ADI also updated its synergy targets related to the
acquisition of Maxim Integrated. The Company now expects to capture
cost synergies of $400 million by fiscal 2023 and revenue synergies
of more than $1 billion in the next five years.
The presentation materials and a replay of the event will be
available at investor.analog.com.
About Analog Devices
Analog Devices, Inc. (Nasdaq: ADI) operates at the center of the
modern digital economy, converting real-world phenomena into
actionable insight with its comprehensive suite of analog and mixed
signal, power management, radio frequency (RF), and digital and
sensor technologies. ADI serves 125,000 customers worldwide with
more than 75,000 products in the industrial, communications,
automotive, and consumer markets. ADI is headquartered in
Wilmington, MA. Visit http://www.analog.com.
Forward Looking Statements
This press release contains forward-looking statements, which
address a variety of subjects including, for example, statements
regarding expected financial goals and results, expected product
development, product offerings and technical advances, growth
opportunities and anticipated growth, market trends and
opportunities, expected customer demand, targeted free cash flow
returns and capital allocation strategy, and expected benefits and
synergies of the acquisition of Maxim Integrated Products, Inc.
(Maxim). Statements that are not historical facts, including
statements about our beliefs, plans and expectations, are
forward-looking statements. Such statements are based on our
current expectations and are subject to a number of factors and
uncertainties, which could cause actual results to differ
materially from those described in the forward-looking statements.
The following important factors and uncertainties, among others,
could cause actual results to differ materially from those
described in these forward-looking statements: the uncertainty as
to the extent of the duration, scope and impacts of the COVID-19
pandemic; political and economic uncertainty, including 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; changes in export classifications, import and
export regulations or duties and tariffs; changes in our estimates
of our expected tax rates based on current tax law; adverse results
in litigation matters, including the potential for litigation
related to the acquisition of Maxim; the risk that we will be
unable to retain and hire key personnel; unanticipated difficulties
or expenditures relating to integrating Maxim; uncertainty as to
the long-term value of our common stock; the diversion of
management time on integrating Maxim's business and operations; our
ability to successfully integrate acquired businesses and
technologies, including Maxim; and the risk that expected benefits,
synergies and growth prospects of acquisitions, including our
acquisition of Maxim, may not be fully achieved in a timely manner,
or at all. For additional information about factors that could
cause actual results to differ materially from those described in
the forward-looking statements, please refer to our filings with
the Securities and Exchange Commission, including the risk factors
contained in our most recent Quarterly Report on Form 10-Q and
Annual Report on Form 10-K. Forward-looking statements represent
management’s current expectations and are inherently uncertain.
Except as required by law, we do not undertake any obligation to
update forward-looking statements made by us to reflect subsequent
events or circumstances.
###
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Investor Contact:
Analog Devices, Inc. Mr. Michael Lucarelli Vice President of
Investor Relations and FP&A 781-461-3282
investor.relations@analog.com
Media Contact:
Analog Devices, Inc. Mr. Michael Schneider Chief Communications
Officer 973-868-1000 corpcomm@analog.com
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