Performance | ADI's second quarter sales revenue and revenue set a record

Wilmington, Ma, May 19, 2021 - global leading semiconductor company analog devices, Inc. (NASDAQ: ADI) (hereinafter referred to as "ADI" or "company") today announced its financial performance for the second quarter of fy2021 as of May 1, 2021.

——Main points of ADI's second quarter financial report

-Sales revenue was $1.66 billion, up 26 percent year on year, creating record sales revenue in the industrial and automotive markets.

-Gross profit margin was 68.4%, up 4.1 percentage points year on year; The non GAAP gross margin was 70.9%, up 3.2 percentage points year on year.

-The diluted profit per share was $1.14, an increase of 58% year on year; Non GAAP diluted earnings per share were $1.54, up 43 per cent year on year.

-In the past 12 months, operating cash flow was $2.4 billion and free cash flow was $2.2 billion

-More than $440million was returned to shareholders through dividends and share buybacks in the quarter.

-The acquisition of Maxim integrated was approved by the European Union, South Korea, Taiwan, Japan and Singapore, and is expected to be completed this summer.

——Management comments

"ADI's quarterly performance has reached a record high, exceeding our expectations, reflecting the strong demand for our products and the strict operation of the company," said Vincent Roche, President and CEO of ADI. Sales revenue increased 26 percent, gross margin and operating profit margin continued to grow, driving earnings up 43 percent. The recovery is faster and stronger than originally expected, which has exacerbated the pressure on the global supply chain. We have made strategic investments to increase capacity before this demand change, which enables us to respond quickly and flexibly to better serve our customers. These investments, coupled with the continued growth in orders, give us confidence that the second half will be stronger than the first half. "

"Semiconductors are the cornerstone of the modern digital economy, and their importance to speed up digitization in all industries has never been so obvious," Roche added. Our talent team will continue to work hard and provide the greatest customer impact. When we create long-term value for all stakeholders, ADI will be more optimistic in this reordered world than ever before. "

——Outlook for the third quarter of fy2021

For the third quarter of fy2021, ADI expects sales revenue of about $1.7 billion and up and down $70million. Based on the median value of the sales revenue, ADI expects the operating profit margin to be about 32.9%, up and down floating by 1.4%, the adjusted operating profit margin is about 42.5%, and the upper and lower operating profit margin is 1 percentage point. It is estimated that the earnings per share is $1.23, up and down is $0.11, the adjusted earnings per share is about $1.61 and the upper and lower earnings are about $0.11.

ADI said the company's outlook for the third quarter of fy2021 was based on current expectations and that there could be significant differences in actual results.