Important Additional Information Will Be Filed With The SEC
In
connection with the proposed transaction, Analog Devices and Linear
Technology have filed and will file relevant information with the SEC,
including a registration statement of Analog Devices on Form S-4 (the
“registration statement”) that includes a prospectus of Analog Devices
and a proxy statement of Linear Technology (the “proxy
statement/prospectus”). INVESTORS AND SECURITY HOLDERS OF LINEAR
TECHNOLOGY ARE URGED TO CAREFULLY READ THE ENTIRE REGISTRATION STATEMENT
AND PROXY STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS FILED WITH
THE SEC, BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT ANALOG
DEVICES, LINEAR TECHNOLOGY AND THE PROPOSED TRANSACTION. A definitive
proxy statement/prospectus has been sent to Linear Technology’s
shareholders. The registration statement, proxy statement/prospectus and
other documents filed by Analog Devices with the SEC may be obtained
free of charge at Analog Devices’ website at
www.analog.com
or at the SEC’s website at
www.sec.gov.
These documents may also be obtained free of charge from Analog Devices
by requesting them by mail at Analog Devices, Inc., One Technology Way,
P.O. Box 9106, Norwood, MA 02062-9106, Attention: Investor Relations, or
by telephone at (781) 461-3282. The documents filed by Linear Technology
with the SEC may be obtained free of charge at Linear Technology’s
website at
www.linear.com
or at the SEC’s website at
www.sec.gov.
These documents may also be obtained free of charge from Linear
Technology by requesting them by mail at Linear Technology Corporation,
1630 McCarthy Blvd., Milpitas, CA, 95035-7417, Attention: Investor
Relations, or by telephone at (408) 432-2407.
Non-Solicitation
This communication shall not constitute an
offer to sell or the solicitation of an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be any
sale of securities in any jurisdiction in which such offer, solicitation
or sale would be unlawful prior to registration or qualification under
the securities laws of any such jurisdiction. No offer of securities
shall be made except by means of a prospectus meeting the requirements
of Section 10 of the Securities Act of 1933, as amended.
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.
Analog Devices, Fourth Quarter, Fiscal 2016 |
|||||||||||||||||||||||||
Schedule A |
|||||||||||||||||||||||||
Revenue and Earnings Summary (Unaudited) |
|||||||||||||||||||||||||
(In thousands, except per-share amounts) |
|||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||
4Q 16 | 3Q 16 | 4Q 15 | FY 16 | FY 15 | |||||||||||||||||||||
Oct. 29,
2016 |
July 30,
2016 |
Oct. 31,
2015 |
Oct. 29,
2016 |
Oct. 31,
2015 |
|||||||||||||||||||||
Revenue | $ | 1,003,623 | $ | 869,591 | $ | 978,722 | $ | 3,421,409 | $ | 3,435,092 | |||||||||||||||
Year-to-year change | 3 | % | 1 | % | 20 | % | — | % | 20 | % | |||||||||||||||
Quarter-to-quarter change | 15 | % | 12 | % | 13 | % | |||||||||||||||||||
Cost of sales (1) | 336,936 | 297,301 | 336,926 | 1,194,236 | 1,175,830 | ||||||||||||||||||||
Gross margin | 666,687 | 572,290 | 641,796 | 2,227,173 | 2,259,262 | ||||||||||||||||||||
Gross margin percentage | 66.4 | % | 65.8 | % | 65.6 | % | 65.1 | % | 65.8 | % | |||||||||||||||
Year-to-year change (basis points) | 80 | (10 | ) | 590 | (70 | ) | 190 | ||||||||||||||||||
Quarter-to-quarter change (basis points) | 60 | 20 | (30 | ) | |||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||
R&D (1) | 172,926 | 163,227 | 170,736 | 653,816 | 637,459 | ||||||||||||||||||||
Selling, marketing and G&A (1) | 118,881 | 122,909 | 121,400 | 461,438 | 478,972 | ||||||||||||||||||||
Amortization of intangibles | 17,899 | 17,447 | 17,358 | 70,123 | 88,318 | ||||||||||||||||||||
Special charges | — | — | — | 13,684 | — | ||||||||||||||||||||
Other operating expense | — | — | 223,672 | — | 223,672 | ||||||||||||||||||||
Total operating expenses | 309,706 | 303,583 | 533,166 | 1,199,061 | 1,428,421 | ||||||||||||||||||||
Total operating expenses percentage | 30.9 | % | 34.9 | % | 54.5 | % | 35.0 | % | 41.6 | % | |||||||||||||||
Year-to-year change (basis points) | (2,360 | ) | (30 | ) | 1,320 | (660 | ) | 400 | |||||||||||||||||
Quarter-to-quarter change (basis points) | (400 | ) | (410 | ) | 1,930 | ||||||||||||||||||||
Operating income | 356,981 | 268,707 | 108,630 | 1,028,112 | 830,841 | ||||||||||||||||||||
Operating income percentage | 35.6 | % | 30.9 | % | 11.1 | % | 30.0 | % | 24.2 | % | |||||||||||||||
Year-to-year change (basis points) | 2,450 | 20 | (730 | ) | 580 | (210 | ) | ||||||||||||||||||
Quarter-to-quarter change (basis points) | 470 | 430 | (1,960 | ) | |||||||||||||||||||||
Other expense | 33,547 | 12,307 | 3,953 | 71,191 | 20,727 | ||||||||||||||||||||
Income before income tax | 323,434 | 256,400 | 104,677 | 956,921 | 810,114 | ||||||||||||||||||||
Provision for income taxes | 27,277 | 25,970 | 8,372 | 95,257 | 113,236 | ||||||||||||||||||||
Tax rate percentage | 8.4 | % | 10.1 | % | 8.0 | % | 10.0 | % | 14.0 | % | |||||||||||||||
Net income | $ | 296,157 | $ | 230,430 | $ | 96,305 | $ | 861,664 | $ | 696,878 | |||||||||||||||
Shares used for EPS - basic | 307,854 | 307,135 | 312,829 | 308,736 | 312,660 | ||||||||||||||||||||
Shares used for EPS - diluted | 311,633 | 310,558 | 316,571 | 312,308 | 316,872 | ||||||||||||||||||||
Earnings per share - basic | $ | 0.96 | $ | 0.75 | $ | 0.31 | $ | 2.79 | $ | 2.23 | |||||||||||||||
Earnings per share - diluted | $ | 0.95 | $ | 0.74 | $ | 0.30 | $ | 2.76 | $ | 2.20 | |||||||||||||||
Dividends paid per share | $ | 0.42 | $ | 0.42 | $ | 0.40 | $ | 1.66 | $ | 1.57 | |||||||||||||||
(1) Includes stock-based compensation expense as follows: | |||||||||||||||||||||||||
Cost of sales | $ | 1,886 | $ | 1,844 | $ | 2,188 | $ | 7,808 | $ | 8,983 | |||||||||||||||
R&D | $ | 7,007 | $ | 6,682 | $ | 6,487 | $ | 27,039 | $ | 26,617 | |||||||||||||||
Selling, marketing and G&A | $ | 6,341 | $ | 8,093 | $ | 7,408 | $ | 28,574 | $ | 33,319 | |||||||||||||||