On February 16, ADI announced results for the first quarter ended January 29, 2022.
According to the announcement, in the first quarter of 2022, ADI's operating income was US$2.684 billion, a year-on-year increase of 72%; net profit was US$280 million, a year-on-year decrease of 28%; gross profit margin was 52.2%, and net profit margin was 10.4%.
"ADI delivered record revenue for the fourth consecutive quarter, with strong performance across all end markets and regions," said Vincent Roche, ADI President and CEO. "The growing demand for our solutions and our commitment to operational excellence The commitments have resulted in new highs in adjusted gross margin, operating margin and EPS. With higher bookings and backlogs and additional capacity investments, I believe we will maintain this level of performance in 2022.”
Roche continued: "Our high-performance analog, mixed-signal and power technologies are increasingly critical to our customers' digital journeys. Through years of strategic investment, both organic and inorganic, we have built an unmatched portfolio of performance-leading products capable of Capitalize on growing demand around long-term megatrends such as automation, electrification and advanced connectivity. Our strong commitment to innovation will play a key role in accelerating these trends, ultimately creating value for our customers and shareholders."
In terms of other financial indicators, research and development expenses were US$427 million, accounting for 16% of operating income, an increase of 48% year-on-year; selling expenses and administrative expenses totaled US$297 million, accounting for 11% of operating income, an increase of 60% year-on-year.
Regarding the year-on-year changes in key financial data during the reporting period, ADI stated that the successful acquisition of Maxim had a greater impact on financial indicators, with operating income increasing by 72%, of which the acquired company-related business contributed about 70% of the increase; the percentage of gross profit margin decreased by 1,490% Basis point, mainly due to the increase in the cost of goods sold related to the acquisition; research and development expenses increased, mainly due to the acquisition and changes in compensation; sales, management and other expenses increased, mainly due to acquisitions and compensation changes.
In addition, the various parts of the terminal market accounted for the proportion of revenue: industrial accounted for 50%, automotive accounted for 21%, communications accounted for 15%, and consumer electronics accounted for 14%.
For the outlook for the second quarter of 2022, ADI expects second-quarter operating income to be around $2.8 billion, an operating margin of approximately 26.5%, and earnings per share of approximately $1.14.