31 unchanged sentences
Performance summary
−Removed: Our second quarter revenue was $4.53 billion, net income was $1.72 billion and earnings per share (EPS) were $1.87.
−Removed: Revenue increased 3% sequentially and decreased 13% from the same quarter a year ago.
−Removed: Similar to last quarter, we experienced weakness across our end markets with the exception of automotive.
+Added: Our third quarter revenue was $4.53 billion, net income was $1.71 billion and earnings per share (EPS) were $1.85.
+Added: Revenue was flat sequentially and decreased 14% from the same quarter a year ago.
+Added: During the quarter, automotive growth continued and industrial weakness broadened.
Our cash flow from operations of $6.5 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300-mm production.
1 unchanged sentence
Over the past 12 months we invested $3.7 billion in R&D and SG&A, invested $4.9 billion in capital expenditures and returned $5.6 billion to shareholders.
−Removed: Results of operations – second quarter 2023 compared with second quarter 2022
−Removed: Revenue of $4.53 billion decreased $681 million, or 13%, due to lower revenue from Analog, partially offset by higher revenue from Embedded Processing.
−Removed: Gross profit of $2.91 billion was down $715 million, or 20%, due to lower revenue and higher manufacturing costs associated with planned capacity expansion.
+Added: Results of operations – third quarter 2023 compared with third quarter 2022
+Added: Revenue of $4.53 billion decreased $709 million, or 14%, primarily due to lower revenue from Analog, partially offset by higher revenue from Embedded Processing.
+Added: Gross profit of $2.82 billion was down $802 million, or 22%, primarily due to lower revenue and, to a lesser extent, higher manufacturing costs associated with planned capacity expansion and reduced factory loadings.
As a percentage of revenue, gross profit decreased to 62.1% from 69.0%.
4 unchanged sentences
Operating profit was $1.89 billion, or 41.7% of revenue, compared with $2.68 billion, or 51.1% of revenue.
−Removed: OI&E was $119 million of income compared with $7 million of income, due to higher interest income.
+Added: OI&E was $128 million of income compared with $33 million of income, primarily due to higher interest income.
Interest and debt expense of $98 million increased $45 million due to the issuance of additional long-term debt.
4 unchanged sentences
EPS was $1.85 compared with $2.47.
−Removed: Second quarter 2023 segment results
+Added: Third quarter 2023 segment results
Our segment results compared with the year-ago quarter are as follows:
4 unchanged sentences
Operating profit % of revenue 44.9 % 54.7 %
−Removed: Analog revenue decreased in both product lines, led by Power.
+Added: Analog revenue decreased in both product lines at about the same rate.
Operating profit decreased primarily due to lower revenue and higher manufacturing costs.
12 unchanged sentences
* Includes restructuring charges/other
−Removed: Other revenue decreased $40 million, and operating profit increased $18 million.
−Removed: Results of operations – first six months of 2023 compared with first six months of 2022
−Removed: Revenue of $8.91 billion decreased $1.21 billion, or 12%, due to lower revenue from Analog, partially offset by higher revenue from Embedded Processing.
−Removed: Gross profit of $5.77 billion was down $1.29 billion, or 18%, due to lower revenue and higher manufacturing costs associated with planned capacity expansion.
+Added: Other revenue decreased $138 million, and operating profit decreased $42 million.
+Added: Results of operations – first nine months of 2023 compared with first nine months of 2022
+Added: Revenue of $13.44 billion decreased $1.92 billion, or 12%, primarily due to lower revenue from Analog, partially offset by higher revenue from Embedded Processing.
+Added: Gross profit of $8.59 billion was down $2.10 billion, or 20%, due to lower revenue and, to a lesser extent, higher manufacturing costs associated with planned capacity expansion and reduced factory loadings.
As a percentage of revenue, gross profit decreased to 63.9% from 69.6%.
6 unchanged sentences
Interest and debt expense of $255 million increased $101 million due to the issuance of additional long-term debt.
−Removed: Our provision for income taxes was $518 million compared with $715 million.
−Removed: This decrease was primarily due to lower income before income taxes.
+Added: Our provision for income taxes was $731 million compared with $1.08 billion.
+Added: This decrease was due to lower income before income taxes.
Net income was $5.14 billion compared with $6.79 billion.
22 unchanged sentences
Financial condition
−Removed: At the end of the second quarter of 2023, total cash (cash and cash equivalents plus short-term investments) was $9.55 billion, an increase of $485 million from the end of 2022.
+Added: At the end of the third quarter of 2023, total cash (cash and cash equivalents plus short-term investments) was $8.95 billion, a decrease of $119 million from the end of 2022.
Accounts receivable were $1.98 billion, an increase of $81 million compared with the end of 2022.
−Removed: Days sales outstanding for the second quarter of 2023 were 39 compared with 37 at the end of 2022.
−Removed: Inventory was $3.73 billion, an increase of $972 million from the end of 2022.
−Removed: Days of inventory for the second quarter of 2023 were 207 compared with 157 at the end of 2022.
+Added: Days sales outstanding for the third quarter of 2023 were 39 compared with 37 at the end of 2022.
+Added: Inventory was $3.91 billion, an increase of $1.15 billion from the end of 2022.
+Added: Days of inventory for the third quarter of 2023 were 205 compared with 157 at the end of 2022.
Liquidity and capital resources
2 unchanged sentences
We also have a variable-rate, revolving credit facility.
−Removed: As of June 30, 2023, our credit facility was undrawn, and we had no commercial paper outstanding.
−Removed: Cash flows from operating activities for the first six months of 2023 were $2.56 billion, a decrease of $1.35 billion from the year-ago period due to lower net income and higher cash used for working capital, as we continued to strategically build inventory.
−Removed: Investing activities for the first six months of 2023 used $2.36 billion compared with $443 million in the year-ago period.
+Added: As of September 30, 2023, our credit facility was undrawn, and we had no commercial paper outstanding.
+Added: Cash flows from operating activities for the first nine months of 2023 were $4.50 billion, a decrease of $2.18 billion from the year-ago period due to lower net income and higher cash used for working capital, as we continued to strategically build inventory.
+Added: Investing activities for the first nine months of 2023 used $4.05 billion compared with $2.56 billion in the year-ago period.
Capital expenditures were $3.92 billion compared with $1.83 billion in the year-ago period and were primarily for semiconductor manufacturing equipment and facilities in both periods.
−Removed: Short-term investments provided cash of $31 million compared with $525 million in the year-ago period.
+Added: Short-term investments used cash of $164 million compared with $788 million in the year-ago period.
As we continue to invest to strengthen our competitive advantage in manufacturing and technology as part of our long-term capacity planning, our capital expenditures are expected to be higher than historical levels.
5 unchanged sentences
See Note 9 to the financial statements.
−Removed: Financing activities for the first six months of 2023 provided $187 million compared with $4.30 billion of cash used in the year-ago period.
+Added: Financing activities for the first nine months of 2023 used $929 million compared with $5.58 billion in the year-ago period.
In 2023, we received net proceeds of $3.00 billion from the issuance of fixed-rate, long-term debt, and we retired maturing debt of $500 million.
−Removed: In the year-ago period, we retired maturing debt of $500 million.
+Added: In the year-ago period, we received net proceeds of $695 million from the issuance of fixed-rate, long-term debt, and we retired maturing debt of $500 million.
Dividends paid were $3.38 billion compared with $3.17 billion in the year-ago period, reflecting an increased dividend rate, partially offset by fewer shares outstanding.
1 unchanged sentence
Employee exercises of stock options provided cash proceeds of $218 million compared with $191 million in the year-ago period.
−Removed: We had $3.44 billion of cash and cash equivalents and $6.11 billion of short-term investments as of June 30, 2023.
+Added: In September 2023, we announced we would increase our dividend by 5%, marking 20 consecutive years of dividend increases.
+Added: We had $2.57 billion of cash and cash equivalents and $6.38 billion of short-term investments as of September 30, 2023.
We believe we have the necessary financial resources and operating plans to fund our working capital needs, capital expenditures, dividend and debt-related payments, and other business requirements for at least the next 12 months.
7 unchanged sentences
For 12 Months Ended
+Added: September 30,
2023 2022 Change
6 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.