Analog Devices (ADI) Warns on Q1 Results
Get Alerts ADI Hot Sheet
Revenue Growth %: -35.3%
Financial Fact:
Selling, marketing, general and administrative: 118.88M
Today's EPS Names:
CP, RUSHA, SEIC, More
Join SI Premium – FREE
Analog Devices, Inc. (NASDAQ: ADI), today announced it expects revenue in the first quarter of fiscal 2016 to be in the range of $745 million to $765 million compared to the company’s previous forecast of $805 million to $855 million. The lowered revenue outlook is the result of weaker than forecasted customer demand in the company’s portable consumer business unit, which began in December, and is expected to continue into the second fiscal quarter. Demand trends across ADI’s core markets of industrial, automotive, and communication infrastructure are tracking within the range of prior expectations.
ADI is forecasting non-GAAP gross margin of approximately 62% in the first quarter compared to its original forecast due to an inventory reserve associated with the updated revenue outlook. The company expects its non-GAAP gross margin to return to its model range in the second fiscal quarter of 2016.
Non-GAAP operating expenses in the first quarter are expected to decline significantly to $264 million from the prior quarter’s $292 million.
Non-GAAP net interest expense in the first quarter is expected to be approximately $10 million, and $15 million per quarter thereafter, as a result of the company’s recent $1.25 billion debt offering.
(Street sees Q1 EPS of $0.69 on revenue of $829.57 million.)
Management will discuss the company’s first quarter 2016 financial results on its call with investors scheduled for February 17, 2016.
Revised Outlook for the First Quarter of Fiscal Year 2016The 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 the company’s business outlook set forth in prior ADI news releases, and ADI disclaims any obligation to update these forward-looking statements.
GAAP | Non-GAAP Adjustments | Non-GAAP | |
Revenue | $745 to $765 million | - | $745 to $765 million |
Gross Margin | approx. 62% | $1.4 million (1) | approx. 62% |
Operating Expenses | approx. $282 million | $17.5 million (1) | approx. $264 million |
Interest & Other Expense | approx. $13 million | 3.0 million(2) | approx. $10 million |
Tax Rate | approx. 10% | $8.0 million (3) | approx. 13% |
Earnings per Share | $0.47 to $0.51 | $0.04 (4) | $0.51 to $0.55 |
1. Reflects estimated adjustments for amortization of purchased intangible assets and depreciation of step up value on purchased fixed assets.
2. Debt extinguishment related costs.
3. Represents estimated impact due to reinstatement of R&D tax credit.
4. Represents estimated impact of expenses associated with non-GAAP adjustments on a per share basis.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Amphenol (APH) Tops Q1 EPS by 7c, offers guidance
- Canadian Pacific Kansas City (CP) Tops Q1 EPS by 93c
- Capitol Federal Financial (CFFN) Misses Q2 EPS by 1c
Create E-mail Alert Related Categories
Corporate News, Guidance, Hot Corp. News, Hot GuidanceRelated Entities
EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!