Analog Devices Reports First Quarter Fiscal Year 2013 Results; Increases Dividend by $0.04 to $0.34 Per Share

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NORWOOD, Mass.--(Business Wire)--
Analog Devices, Inc. (NASDAQ: ADI), a global leader in high-performance
semiconductors for signal processing applications, today announced financial
results for its first quarter of fiscal year 2013, which ended February 2, 2013.

Results for the First Quarter of Fiscal 2013

* Revenue totaled $622.1 million
* Gross margin was 62.7% of revenue
* Operating margin was 26.9% of revenue, excluding special items, and was 24.7%
on a GAAP basis
* Diluted EPS was $0.44, excluding special items, and was $0.42 on a GAAP basis
* Cash flow from operations was $158 million, or 25.4% of revenue

"Results for the first quarter were within the range we communicated and
represented a generally weak macroeconomic environment exacerbated by year-end
inventory reductions at many customers. Nevertheless, our operating performance
remained strong, as we carefully managed our business to balance the long term
opportunities for ADI with the realities of current market conditions," said
Jerald G. Fishman, CEO. "In January, order rates began to improve across most
markets and geographies and have remained strong so far this quarter. As a
result, we are planning for solid revenue growth in our second quarter, in the
range of 4-8% sequentially with significant operating leverage."

ADI also announced that its Board of Directors has approved a 13 percent
increase in its regular quarterly dividend, from $0.30 to $0.34 per outstanding
share of common stock. The dividend will be paid on March 12, 2013 to all
shareholders of record at the close of business on March 1, 2013.

Please refer to the schedules provided for a summary of revenue and earnings,
selected balance sheet information, and the cash flow statement for the first
quarter of fiscal year 2013, as well as the immediately prior and year-ago
quarters. The first quarter of fiscal year 2012 was a 14-week period. Additional
information on revenue by end market and revenue by product type is provided on
Schedules D and E. A more complete table covering prior periods is available at
investor.analog.com.

Outlook for the Second Quarter of Fiscal 2013

The following statements are based on current expectations. 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 our business outlook set
forth in prior ADI news releases, and ADI disclaims any obligation to update
these forward-looking statements.

* Revenue estimated to increase in the range of 4% to 8% sequentially
* Gross margin estimated to be approximately 64%
* Operating expenses estimated to be approximately $224 million
* Tax rate estimated to be approximately 17%
* Diluted EPS estimated at $0.49 to $0.55

Conference Call Scheduled for 5:00 pm ET

ADI will host a conference call to discuss the first quarter results and
short-term outlook today, beginning at 5:00 pm ET. Investors may join via
webcast, accessible at investor.analog.com, or by telephone (call 706-634-7193
ten minutes before the call begins and provide the password "ADI.").

A replay will be available two hours after the completion of the call. The
replay may be accessed for up to two weeks by dialing 855-859-2056 (replay only)
and providing the conference ID: 92068413, or by visiting investor.analog.com.

Non-GAAP Financial Information

This release includes non-GAAP financial measures that are not in accordance
with, nor an alternative to, generally accepted accounting principles and may be
different from non-GAAP measures used by other companies. In addition, these
non-GAAP measures are not based on any comprehensive set of accounting rules or
principles.

Schedule F of this press release provides the reconciliation of the Company`s
non-GAAP measures to its GAAP measures.

Manner in Which Management Uses the Non-GAAP Financial Measures

Management uses non-GAAP operating expenses, non-GAAP operating income, non-GAAP
operating margins, and non-GAAP diluted earnings per share to evaluate the
Company`s operating performance from continuing operations against past periods
and to budget and allocate resources in future periods. These non-GAAP measures
also assist management in understanding and evaluating the Company`s operating
results and trends in the Company`s business.

Economic Substance Behind Management`s Decision to Use Non-GAAP Financial
Measures

The items excluded from the non-GAAP measures were excluded because they are of
a non-recurring or non-cash nature.

The following item is excluded from our non-GAAP operating expenses, non-GAAP
operating income, non-GAAP operating margin, and non-GAAP diluted earnings per
share:

Restructuring-Related Expenses. These expenses are incurred in connection with
facility closures, consolidation of manufacturing facilities, and other cost
reduction efforts. Apart from ongoing expense savings as a result of such items,
these expenses and the related tax effects have no direct correlation to the
operation of our business in the future.

The following item is excluded from our non-GAAP diluted earnings per share:

Tax-Related Item. In the first quarter of fiscal year 2013, the Company recorded
a $6.3 million tax benefit related to the reinstatement of the R&D tax credit in
January 2013, retroactive to January 1, 2012. We excluded this tax-related item
from our non-GAAP measures because it is not associated with the tax expense on
our current operating results.

Why Management Believes the Non-GAAP Financial Measures Provide Useful
Information to Investors

Management believes that the presentation of non-GAAP operating expenses,
non-GAAP operating income, non-GAAP operating margins, and non-GAAP diluted EPS
is useful to investors because it provides investors with the operating results
that management uses to manage the Company.

Material Limitations Associated with Use of the Non-GAAP Financial Measures

Analog Devices believes that non-GAAP operating expenses, non-GAAP operating
income, non-GAAP operating margins, and non-GAAP diluted EPS have material
limitations in that they do not reflect all of the amounts associated with our
results of operations as determined in accordance with GAAP and that these
measures should only be used to evaluate our results of operations in
conjunction with the corresponding GAAP measures. In addition, our non-GAAP
measures may not be comparable to the non-GAAP measures reported by other
companies. The Company`s use of non-GAAP measures, and the underlying
methodology when excluding certain items, is not necessarily an indication of
the results of operations that may be expected in the future, or that the
Company will not, in fact, record such items in future periods.

Management`s Compensation for Limitations of Non-GAAP Financial Measures

Management compensates for these material limitations in non-GAAP operating
expenses, non-GAAP operating income, non-GAAP operating margins, and non-GAAP
diluted EPS by also evaluating our GAAP results and the reconciliations of our
non-GAAP measures to the most directly comparable GAAP measures. Investors
should consider our non-GAAP financial measures in conjunction with the
corresponding GAAP measures.

About Analog Devices

Innovation, performance, and excellence are the cultural pillars on which Analog
Devices has built one of the longest standing, highest growth companies within
the technology sector. Acknowledged industry-wide as the world leader in data
conversion and signal conditioning technology, Analog Devices serves over 60,000
customers, representing virtually all types of electronic equipment. Analog
Devices is headquartered in Norwood, Massachusetts, with design and
manufacturing facilities throughout the world. Analog Devices' common stock is
included in the S&P 500 Index.

This release may be deemed to contain forward-looking statements intended to
qualify for the safe harbor from liability established by the Private Securities
Litigation Reform Act of 1995. These forward-looking statements include, among
other things, our statements regarding expected revenue,earnings per share,
operating expenses, gross margin, tax rate, and other financial results,
expected production and inventory levels, expected market trends, and expected
customer demand and order rates for our products,that are based on our current
expectations, beliefs, assumptions, estimates, forecasts, and projections about
our business and the industry and markets in which Analog Devices operates. The
statements contained in this release are not guarantees of future performance,
are inherently uncertain, involve certain risks, uncertainties, and assumptions
that are difficult to predict, and do not give effect to the potential impact of
any mergers, acquisitions, divestitures, or business combinations that may be
announced or closed after the date hereof. Therefore, actual outcomes and
results may differ materially from what is expressed in such forward-looking
statements, and such statements should not be relied upon as representing Analog
Devices` expectations or beliefs as of any date subsequent to the date of this
press release. We do not undertake any obligation to update forward-looking
statements made by us. Important factors that may affect future operating
results include: sovereign debt issues globally, 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, adverse results in litigation matters, and other risk
factors described in our most recent filings with the Securities and Exchange
Commission.Our results of operations for the periods presented in this release
are not necessarily indicative of our operating results for any future periods.
Any projections in this release are based on limited information currently
available to Analog Devices, which is subject to change. Although any such
projections and the factors influencing them will likely change, we will not
necessarily update the information, as we will only provide guidance at certain
points during the year. Such information speaks only as of the original issuance
date of this release.

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, First Quarter, Fiscal 2013

Schedule A
Revenue and Earnings Summary (GAAP)
(In thousands, except per-share amounts)

Three Months Ended
1Q 13 4Q 12 1Q 12
Feb. 2, 2013 Nov. 3, 2012 Feb. 4, 2012
Revenue $ 622,134 $ 694,964 $ 648,058
Year-to-year change -4 % -3 % -11 %
Quarter-to-quarter change -10 % 2 % -10 %
Cost of sales (1) 231,850 251,682 238,668
Gross margin 390,284 443,282 409,390
Gross margin percentage 62.7 % 63.8 % 63.2 %
Year-to-year change (basis points) -50 -50 -300
Quarter-to-quarter change(basis points) -110 -180 -110
Operating expenses:
R&D (1) 125,164 130,394 124,378
Selling, marketing and G&A (1) 97,560 97,609 99,045
Special charges 14,071 - 2,595
Total operating expenses 236,795 228,003 226,018
Total operating expenses percentage 38.1 % 32.8 % 34.9 %
Year-to-year change (basis points) 320 140 430
Quarter-to-quarter change (basis points) 530 -170 350
Operating income 153,489 215,279 183,372
Operating income percentage 24.7 % 31.0 % 28.3 %
Year-to-year change (basis points) -360 -190 -730
Quarter-to-quarter change (basis points) -630 -10 -460
Other expense 3,380 2,755 3,286
Income before income tax 150,109 212,524 180,086
Provision for income taxes 18,887 33,337 40,704
Tax rate percentage 12.6 % 15.7 % 22.6 %
Net income $ 131,222 $ 179,187 $ 139,382

Shares used for EPS - basic 303,484 300,679 297,788
Shares used for EPS - diluted 310,275 307,954 305,531

Earnings per share - basic $ 0.43 $ 0.60 $ 0.47
Earnings per share - diluted $ 0.42 $ 0.58 $ 0.46

Dividends paid per share $ 0.30 $ 0.30 $ 0.25

(1) Includes stock-based compensation expense as follows:
Cost of sales $ 1,667 $ 1,905 $ 1,807
R&D $ 5,600 $ 6,124 $ 5,885
Selling, marketing and G&A $ 5,794 $ 6,248 $ 5,640

Analog Devices, First Quarter, Fiscal 2013

Schedule B
Selected Balance Sheet Information (GAAP)
(In thousands)

1Q 13 4Q 12 1Q 12
Feb. 2, 2013 Nov. 3, 2012 Feb. 4, 2012
Cash & short-term investments $ 3,986,979 $ 3,900,378 $ 3,667,398
Accounts receivable, net 329,578 339,881 301,999
Inventories (1) 307,263 313,723 297,160
Other current assets 190,115 142,203 128,611
Total current assets 4,813,935 4,696,185 4,395,168
PP&E, net 491,431 500,867 475,689
Investments 32,720 30,242 30,954
Goodwill and intangible assets 313,084 312,605 286,339
Other 65,638 80,448 89,684
Total assets $ 5,716,808 $ 5,620,347 $ 5,277,834

Deferred income on shipments to distributors, net $ 243,396 $ 238,541 $ 227,261
Other current liabilities 265,139 286,538 270,794
Long-term debt, non-current 759,672 807,098 855,662
Non-current liabilities 124,804 122,811 81,682
Shareholders' equity 4,323,797 4,165,359 3,842,435
Total liabilities & equity $ 5,716,808 $ 5,620,347 $ 5,277,834

(1) Includes $2,381, $2,517, and $2,428 related to stock-based compensation in 1Q13, 4Q12, and 1Q12, respectively.

Analog Devices, First Quarter, Fiscal 2013

Schedule C
Cash Flow Statement (GAAP)
(In thousands)

Three Months Ended
1Q 13 4Q 12 1Q 12
Feb. 2, 2013 Nov. 3, 2012 Feb. 4, 2012
Cash flows from operating activities:
Net Income $ 131,222 $ 179,187 $ 139,382
Adjustments to reconcile net income
to net cash provided by operations:
Depreciation 27,755 27,484 28,243
Amortization of intangibles 55 54 -
Stock-based compensation expense 13,061 14,277 13,332
Excess tax benefit - stock options (5,975 ) (2,678 ) (1,896 )
Other non-cash activity (1,362 ) (1,417 ) 591
Deferred income taxes (9,635 ) (5,696 ) 3,623
Changes in operating assets and liabilities 2,848 24,836 31,545
Total adjustments 26,747 56,860 75,438
Net cash provided by operating activities 157,969 236,047 214,820
Percent of total revenue 25.4 % 34.0 % 33.1 %

Cash flows from investing activities:
Additions to property, plant and equipment (18,269 ) (37,511 ) (25,289 )
Purchases of short-term available-for-sale investments (1,653,593 ) (1,882,319 ) (2,192,874 )
Maturities of short-term available-for-sale investments 1,551,147 1,713,973 1,659,792
Sales of short-term available-for-sale investments 283,164 99,843 151,841
(Increase) decrease in other assets (2,048 ) (447 ) 327
Net cash provided by (used for) investing activities 160,401 (106,461 ) (406,203 )

Cash flows from financing activities:
Term loan repayments (60,108 ) (33,625 ) (15,625 )
Dividend payments to shareholders (90,679 ) (91,372 ) (74,416 )
Repurchase of common stock (17,001 ) (20,830 ) (78,591 )
Proceeds from employee stock plans 113,770 80,527 48,858
Contingent consideration payment (3,752 ) - (1,991 )
(Decrease) increase in other financing activities (1,027 ) (1,125 ) 5,166
Excess tax benefit - stock options 5,975 2,678 1,896
Net cash used for financing activities (52,822 ) (63,747 ) (114,703 )
Effect of exchange rate changes on cash 1,416 845 (1,572 )

Net increase (decrease) in cash and cash equivalents 266,964 66,684 (307,658 )
Cash and cash equivalents at beginning of period 528,833 462,149 1,405,100
Cash and cash equivalents at end of period $ 795,797 $ 528,833 $ 1,097,442

Analog Devices, First Quarter, Fiscal 2013

Schedule D
Revenue Trends by End Market
The categorization of revenue by end market is determined using a variety of data points including the technical characteristics of the product, the "sold to" customer information, the "ship to" customer information and the end customer product or application into which our product will be incorporated. As data systems for capturing and tracking this data evolve and improve, the categorization of products by end market can vary over time. When this occurs we reclassify revenue by end market for prior
periods. Such reclassifications typically do not materially change the sizing of, or the underlying trends of results within, each end market.

Three Months Ended
Feb. 2, 2013 Nov. 3, 2012 Feb. 4, 2012
Revenue %* Q/Q % Y/Y % Revenue Revenue
Industrial $ 282,654 45 % -8 % -3 % $ 306,042 $ 290,660
Automotive 107,581 17 % -3 % -11 % 110,401 120,588
Consumer 106,929 17 % -22 % -6 % 136,379 114,261
Communications 124,970 20 % -12 % 2 % 142,142 122,549
Total Revenue $ 622,134 100 % -10 % -4 % $ 694,964 $ 648,058

* The sum of the individual percentages does not equal the total due to rounding

Analog Devices, First Quarter, Fiscal 2013

Schedule E
Revenue Trends by Product Type
The categorization of our products into broad categories is based on the characteristics of the individual products, the specification of the products and in some cases the specific uses that certain products have within applications. The categorization of products into categories is therefore subject to judgment in some cases and can vary over time. In instances where products move between product categories we reclassify the amounts in the product categories for all prior periods. Such reclassifications
typically do not materially change the sizing of, or the underlying trends of results within, each product category.

Three Months Ended
Feb. 2, 2013 Nov. 3, 2012 Feb. 4, 2012
Revenue %* Q/Q % Y/Y % Revenue Revenue
Converters $ 277,637 45 % -10 % -3 % $ 307,252 $ 285,135
Amplifiers / Radio Frequency 157,853 25 % -10 % -4 % 174,521 164,454
Other analog 95,693 15 % -15 % -1 % 112,083 96,238
Subtotal Analog Signal Processing 531,183 85 % -11 % -3 % 593,856 545,827
Power management & reference 39,460 6 % -14 % -12 % 45,808 44,865
Total Analog Products $ 570,643 92 % -11 % -3 % $ 639,664 $ 590,692
Digital Signal Processing 51,491 8 % -7 % -10 % 55,300 57,366
Total Revenue $ 622,134 100 % -10 % -4 % $ 694,964 $ 648,058

* The sum of the individual percentages does not equal the total due to rounding

Analog Devices, First Quarter, Fiscal 2013

Schedule F
Reconciliation from Non-GAAP to GAAP Data (In thousands, except per-share amounts)

See "Non-GAAP Financial Information" in this press release for a description of the items excluded from our non-GAAP measures.

Three Months Ended
1Q 13 4Q 12 1Q 12
Feb. 2, 2013 Nov. 3, 2012 Feb. 4, 2012

GAAP Operating Expenses $ 236,795 $ 228,003 $ 226,018
Percent of Revenue 38.1 % 32.8 % 34.9 %
Restructuring-Related Expense (14,071 ) - -
Non-GAAP Operating Expenses $ 222,724 $ 228,003 $ 226,018
Percent of Revenue 35.8 % 32.8 % 34.9 %

GAAP Operating Income/Margin $ 153,489 $ 215,279 $ 183,372
Percent of Revenue 24.7 % 31.0 % 28.3 %
Restructuring-Related Expense 14,071 - -
Non-GAAP Operating Income/Margin $ 167,560 $ 215,279 $ 183,372
Percent of Revenue 26.9 % 31.0 % 28.3 %

GAAP Diluted EPS $ 0.42 $ 0.58 $ 0.46
Impact of the Reinstatement of the R&D Tax Credit (0.02 ) - -
Restructuring-Related Expense 0.04 - -
Non-GAAP Diluted EPS $ 0.44 $ 0.58 $ 0.46

Analog Devices, Inc.
Mr. Ali Husain, 781-461-3282
Director of Investor Relations
Fax: 781-461-3491
investor.relations@analog.com

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