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Performance summary
−Removed: Our third quarter revenue was $4.53 billion, net income was $1.71 billion and earnings per share (EPS) were $1.85.
−Removed: Revenue was flat sequentially and decreased 14% from the same quarter a year ago.
−Removed: During the quarter, automotive growth continued and industrial weakness broadened.
+Added: Our first quarter revenue was $3.66 billion, net income was $1.11 billion and earnings per share (EPS) were $1.20.
+Added: Revenue decreased 16% from the same quarter a year ago and 10% sequentially, as revenue declined across all end markets.
Our cash flow from operations of $6.3 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300mm production.
−Removed: Free cash flow for the same period was $1.6 billion and 9% of revenue.
+Added: Free cash flow for the same period was $940 million.
Over the past 12 months we invested $3.7 billion in R&D and SG&A, invested $5.3 billion in capital expenditures and returned $4.8 billion to shareholders.
−Removed: Results of operations – third quarter 2023 compared with third quarter 2022
−Removed: 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.
−Removed: 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.
+Added: Results of operations – first quarter 2024 compared with first quarter 2023
+Added: Revenue of $3.66 billion decreased $718 million, or 16%, primarily due to lower revenue from Analog and, to a lesser extent, Embedded Processing.
+Added: Gross profit of $2.10 billion was down $768 million, or 27%, primarily due to lower revenue and, to a lesser extent, higher manufacturing costs associated with reduced factory loadings and our planned capacity expansions.
As a percentage of revenue, gross profit decreased to 57.2% from 65.4%.
Operating expenses (R&D and SG&A) were $933 million compared with $929 million.
−Removed: This increase was due to higher employee-related costs as we invest to strengthen our competitive advantages.
−Removed: Restructuring charges/other in the year-ago period was $77 million due to preproduction costs at our Lehi, Utah, manufacturing facility.
−Removed: These costs transitioned primarily to cost of revenue after production began in December 2022.
+Added: Restructuring charges/other was a credit of $124 million primarily due to a gain on the sale of a property during 2024.
Operating profit was $1.29 billion, or 35.1% of revenue, compared with $1.93 billion, or 44.2% of revenue.
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Our provision for income taxes was $188 million compared with $238 million.
−Removed: This decrease was primarily due to lower income before income taxes.
+Added: This decrease was due to lower income before income taxes, partially offset by discrete tax items.
Net income was $1.11 billion compared with $1.71 billion.
EPS was $1.20 compared with $1.85.
−Removed: Third quarter 2023 segment results
+Added: First quarter 2024 segment results
Our segment results compared with the year-ago quarter are as follows:
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Operating profit % of revenue 35.5 % 47.9 %
−Removed: Analog revenue decreased in both product lines at about the same rate.
+Added: Analog revenue decreased in both product lines, led by Signal Chain.
Operating profit decreased primarily due to lower revenue and higher manufacturing costs.
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Operating profit % of revenue 16.1 % 28.5 %
−Removed: Embedded Processing revenue increased due to the mix of products shipped.
−Removed: Operating profit decreased primarily due to higher manufacturing costs, partially offset by higher revenue.
+Added: Embedded Processing revenue decreased.
+Added: Operating profit decreased primarily due to lower revenue and associated gross profit.
Other (includes DLP ® products, calculators and custom ASIC products)
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* Includes restructuring charges/other
−Removed: Other revenue decreased $138 million, and operating profit decreased $42 million.
−Removed: Results of operations – first nine months of 2023 compared with first nine months of 2022
−Removed: 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.
−Removed: 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.
−Removed: As a percentage of revenue, gross profit decreased to 63.9% from 69.6%.
−Removed: Operating expenses were $2.79 billion compared with $2.51 billion.
−Removed: This increase was due to higher employee-related costs as we invest to strengthen our competitive advantages.
−Removed: Restructuring charges/other in the year-ago period was $209 million due to preproduction costs at our Lehi, Utah, manufacturing facility.
−Removed: These costs transitioned primarily to cost of revenue after production began in December 2022.
−Removed: Operating profit was $5.80 billion, or 43.1% of revenue, compared with $7.96 billion, or 51.9% of revenue.
−Removed: OI&E was $327 million of income compared with $55 million of income, due to higher interest income.
−Removed: 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 $731 million compared with $1.08 billion.
−Removed: This decrease was due to lower income before income taxes.
−Removed: Net income was $5.14 billion compared with $6.79 billion.
−Removed: EPS was $5.58 compared with $7.27.
−Removed: Year-to-date segment results
−Removed: Our segment results compared with the year-ago period are as follows:
−Removed: YTD 2023 YTD 2022 Change
−Removed: Revenue $ 9,920 $ 11,801 (16) %
−Removed: Operating profit 4,541 6,561 (31) %
−Removed: Operating profit % of revenue 45.8 % 55.6 %
−Removed: Analog revenue decreased in both product lines, led by Power.
−Removed: Operating profit decreased primarily due to lower revenue and higher manufacturing costs.
−Removed: Embedded Processing
−Removed: YTD 2023 YTD 2022 Change
−Removed: Revenue $ 2,616 $ 2,424 8 %
−Removed: Operating profit 813 960 (15) %
−Removed: Operating profit % of revenue 31.1 % 39.6 %
−Removed: Embedded Processing revenue increased due to the mix of products shipped.
−Removed: Operating profit decreased primarily due to higher manufacturing costs, partially offset by higher revenue.
−Removed: YTD 2023 YTD 2022 Change
−Removed: Revenue $ 906 $ 1,133 (20) %
−Removed: Operating profit* 444 443 — %
−Removed: Operating profit % of revenue 49.0 % 39.1 %
−Removed: * Includes restructuring charges/other
Other revenue decreased $85 million, and operating profit increased $50 million.
Financial condition
−Removed: 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.
−Removed: Accounts receivable were $1.98 billion, an increase of $81 million compared with the end of 2022.
−Removed: Days sales outstanding for the third quarter of 2023 were 39 compared with 37 at the end of 2022.
−Removed: Inventory was $3.91 billion, an increase of $1.15 billion from the end of 2022.
−Removed: Days of inventory for the third quarter of 2023 were 205 compared with 157 at the end of 2022.
+Added: At the end of the first quarter of 2024, total cash (cash and cash equivalents plus short-term investments) was $10.39 billion, an increase of $1.82 billion from the end of 2023.
+Added: Accounts receivable were $1.67 billion, a decrease of $116 million compared with the end of 2023.
+Added: Days sales outstanding for the first quarter of 2024 were 41 compared with 39 at the end of 2023.
+Added: Inventory was $4.08 billion, an increase of $84 million from the end of 2023.
+Added: Days of inventory for the first quarter of 2024 were 235 compared with 219 at the end of 2023.
Liquidity and capital resources
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We also have a variable-rate, revolving credit facility.
−Removed: As of September 30, 2023, our credit facility was undrawn, and we had no commercial paper outstanding.
−Removed: 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.
−Removed: Investing activities for the first nine months of 2023 used $4.05 billion compared with $2.56 billion in the year-ago period.
−Removed: 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 used cash of $164 million compared with $788 million in the year-ago period.
−Removed: 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.
+Added: As of March 31, 2024, our credit facility was undrawn, and we had no commercial paper outstanding.
+Added: Cash flows from operating activities for the first three months of 2024 were $1.02 billion, a decrease of $143 million from the year-ago period primarily due to lower net income, partially offset by lower cash used for working capital.
+Added: Investing activities for the first three months of 2024 used $3.33 billion compared with $28 million of cash provided in the year-ago period.
+Added: Capital expenditures were $1.25 billion compared with $982 million in the year-ago period and were primarily for semiconductor manufacturing equipment and facilities in both periods.
+Added: Short-term investments used cash of $2.23 billion compared with $1.01 billion of cash provided in the year-ago period.
+Added: 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 remain at elevated levels.
In August 2022, the U.S.
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semiconductor manufacturing.
−Removed: We expect to receive the cash benefit associated with the investment tax credit for qualifying capital expenditures in future periods.
+Added: We will begin receiving the cash benefit associated with the investment tax credit for qualifying capital expenditures in the second quarter of 2024.
See Note 9 to the financial statements.
−Removed: Financing activities for the first nine months of 2023 used $929 million compared with $5.58 billion in the year-ago period.
−Removed: 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 received net proceeds of $695 million from the issuance of fixed-rate, long-term debt, and we retired maturing debt of $500 million.
−Removed: 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.
−Removed: We used $228 million to repurchase 1.3 million shares of our common stock compared with $2.77 billion used in the year-ago period to repurchase 16.8 million shares.
+Added: We have also submitted applications for the manufacturing grants provided by the legislation.
+Added: Financing activities for the first three months of 2024 provided $1.83 billion compared with $239 million in the year-ago period.
+Added: In 2024, we received net proceeds of $2.98 billion from the issuance of fixed-rate, long-term debt.
+Added: In the year-ago period, we received net proceeds of $1.40 billion from the issuance of fixed-rate, long-term debt.
+Added: Dividends paid were $1.18 billion compared with $1.13 billion in the year-ago period, reflecting an increased dividend rate.
+Added: We used $3 million to repurchase shares of our common stock compared with $103 million in the year-ago period.
Employee exercises of stock options provided cash proceeds of $65 million compared with $85 million in the year-ago period.
−Removed: In September 2023, we announced we would increase our dividend by 5%, marking 20 consecutive years of dividend increases.
−Removed: We had $2.57 billion of cash and cash equivalents and $6.38 billion of short-term investments as of September 30, 2023.
+Added: We had $2.48 billion of cash and cash equivalents and $7.91 billion of short-term investments as of March 31, 2024.
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.
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For 12 Months Ended
−Removed: September 30,
2024 2023 Change
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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.