31 unchanged sentences
Performance summary
−Removed: Our second quarter revenue was $3.82 billion, net income was $1.13 billion and earnings per share (EPS) were $1.22.
+Added: Our third quarter revenue was $4.15 billion, net income was $1.36 billion and earnings per share (EPS) were $1.47.
Revenue decreased 8% from the same quarter a year ago and increased 9% sequentially.
−Removed: Industrial and automotive continued to decline sequentially, while all other end markets grew.
+Added: Industrial continued to decline sequentially, while all other end markets grew.
Our cash flow from operations of $6.2 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.
1 unchanged sentence
Over the past 12 months we invested $3.7 billion in R&D and SG&A, invested $4.8 billion in capital expenditures and returned $5.2 billion to shareholders.
−Removed: Results of operations – second quarter 2024 compared with second quarter 2023
−Removed: Revenue of $3.82 billion decreased $709 million, or 16%, primarily due to lower revenue from Analog and Embedded Processing.
−Removed: Gross profit of $2.21 billion was down $699 million, or 24%, primarily due to lower revenue and, to a lesser extent, higher manufacturing unit costs associated with our planned capacity expansions and reduced factory loadings.
+Added: Results of operations – third quarter 2024 compared with third quarter 2023
+Added: Revenue of $4.15 billion decreased $381 million, or 8%, due to lower revenue from Embedded Processing and, to a lesser extent, Analog.
+Added: Gross profit of $2.47 billion was down $341 million, or 12%, primarily due to lower revenue and, to a lesser extent, higher manufacturing costs associated with our planned capacity expansions.
As a percentage of revenue, gross profit decreased to 59.6% from 62.1%.
−Removed: Sequentially, gross profit margin increased 60 basis points, primarily due to higher revenue as well as lower manufacturing unit costs due to increased factory loadings and more manufacturing internally, with more wafers on 300mm.
Operating expenses (R&D and SG&A) were $920 million compared with $923 million.
Operating profit was $1.55 billion, or 37.4% of revenue, compared with $1.89 billion, or 41.7% of revenue.
−Removed: OI&E was $130 million of income compared with $119 million of income, primarily due to higher interest income.
+Added: OI&E was $131 million of income compared with $128 million of income.
Interest and debt expense of $131 million increased $33 million due to the issuance of additional long-term debt.
1 unchanged sentence
Our provision for income taxes was $192 million compared with $213 million.
−Removed: This decrease was due to lower income before income taxes and higher discrete tax benefits.
+Added: This decrease was primarily due to lower income before income taxes and higher discrete tax benefits.
Net income was $1.36 billion compared with $1.71 billion.
EPS was $1.47 compared with $1.85.
−Removed: Second quarter 2024 segment results
+Added: Third quarter 2024 segment results
Our segment results compared with the year-ago quarter are as follows:
4 unchanged sentences
Operating profit % of revenue 40.8 % 44.9 %
−Removed: Analog revenue decreased due to the mix of products shipped in both product lines, led by Signal Chain.
+Added: Analog revenue decreased in Signal Chain due to the mix of products shipped.
+Added: Power was about even.
Operating profit decreased primarily due to lower revenue and higher manufacturing costs.
5 unchanged sentences
Embedded Processing revenue decreased.
−Removed: Operating profit decreased primarily due to lower revenue and associated gross profit.
+Added: Operating profit decreased due to lower revenue and associated gross profit.
Other (includes DLP ® products, calculators and custom ASIC products)
5 unchanged sentences
Other revenue decreased $14 million, and operating profit decreased $1 million.
−Removed: Results of operations – first six months of 2024 compared with first six months of 2023
−Removed: Revenue of $7.48 billion decreased $1.43 billion, or 16%, primarily due to lower revenue from Analog and, to a lesser extent, Embedded Processing.
−Removed: Gross profit of $4.31 billion was down $1.47 billion, or 25%, primarily due to lower revenue and, to a lesser extent, higher manufacturing unit costs associated with reduced factory loadings and our planned capacity expansions.
+Added: Results of operations – first nine months of 2024 compared with first nine months of 2023
+Added: Revenue of $11.63 billion decreased $1.81 billion, or 13%, due to lower revenue from Analog and, to a lesser extent, Embedded Processing.
+Added: Gross profit of $6.78 billion was down $1.81 billion, or 21%, primarily due to lower revenue and, to a lesser extent, higher manufacturing costs associated with our planned capacity expansions.
As a percentage of revenue, gross profit decreased to 58.3% from 63.9%.
30 unchanged sentences
Financial condition
−Removed: At the end of the second quarter of 2024, total cash (cash and cash equivalents plus short-term investments) was $9.69 billion, an increase of $1.11 billion from the end of 2023.
−Removed: Accounts receivable were $1.71 billion, a decrease of $76 million compared with the end of 2023.
−Removed: Days sales outstanding for the second quarter of 2024 were 40 compared with 39 at the end of 2023.
+Added: At the end of the third quarter of 2024, total cash (cash and cash equivalents plus short-term investments) was $8.75 billion, an increase of $177 million from the end of 2023.
+Added: Accounts receivable were $1.86 billion, an increase of $75 million compared with the end of 2023.
+Added: Days sales outstanding for the third quarter of 2024 were 40 compared with 39 at the end of 2023.
Inventory was $4.30 billion, an increase of $297 million from the end of 2023.
−Removed: Days of inventory for the second quarter of 2024 were 229 compared with 219 at the end of 2023.
+Added: Days of inventory for the third quarter of 2024 were 231 compared with 219 at the end of 2023.
Liquidity and capital resources
2 unchanged sentences
We also have a variable-rate, revolving credit facility.
−Removed: As of June 30, 2024, our credit facility was undrawn, and we had no commercial paper outstanding.
−Removed: Cash flows from operating activities for the first six months of 2024 were $2.59 billion, an increase of $29 million from the year-ago period primarily due to lower cash used for working capital, partially offset by lower net income.
−Removed: Cash flows from operating activities for the first six months of 2024 include a cash benefit of $312 million from the U.S.
−Removed: CHIPS and Science Act investment tax credit used to reduce income taxes payable.
−Removed: Investing activities for the first six months of 2024 used $3.33 billion compared with $2.36 billion in the year-ago period.
+Added: As of September 30, 2024, our credit facility was undrawn, and we had no commercial paper outstanding.
+Added: Cash flows from operating activities for the first nine months of 2024 were $4.32 billion, a decrease of $176 million from the year-ago period primarily due to lower net income, partially offset by lower cash used for working capital.
+Added: Cash flows from operating activities for the first nine months of 2024 include a cash benefit of $532 million from the U.S.
+Added: CHIPS and Science Act (CHIPS Act) investment tax credit used to reduce income taxes payable.
+Added: Investing activities for the first nine months of 2024 used $3.82 billion compared with $4.05 billion in the year-ago period.
Capital expenditures were $3.63 billion compared with $3.92 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 $1.20 billion compared with $31 million of cash provided in the year-ago period.
+Added: Short-term investments used cash of $346 million compared with $164 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 remain at elevated levels.
−Removed: In August 2022, the U.S.
−Removed: government enacted the U.S.
−Removed: CHIPS and Science Act, which provides funding for manufacturing grants and research investments and establishes a 25% investment tax credit for certain investments in U.S.
−Removed: semiconductor manufacturing.
−Removed: We began receiving the cash benefit associated with the investment tax credit for qualifying capital expenditures in the second quarter of 2024.
−Removed: See Note 9 to the financial statements.
−Removed: We have also submitted applications for the manufacturing grants provided by the legislation.
−Removed: Financing activities for the first six months of 2024 provided $517 million compared with $187 million in the year-ago period.
+Added: We expect to receive an estimated $6 billion to $8 billion through 2034 from the U.S.
+Added: Department of Treasury’s investment tax credit for qualified U.S.
+Added: manufacturing investments.
+Added: We have received $532 million of the associated cash benefit for qualifying capital expenditures in the first nine months of 2024.
+Added: Additionally, in August 2024, we signed a non-binding preliminary memorandum of terms with the U.S.
+Added: Department of Commerce for up to $1.6 billion in direct funding under the CHIPS Act.
+Added: In September 2024, we announced we would increase our dividend by 5%, marking 21 consecutive years of dividend increases.
+Added: Financing activities for the first nine months of 2024 provided $879 million compared with $929 million in the year-ago period.
In 2024, we received net proceeds of $2.98 billion from the issuance of fixed-rate, long-term debt and retired maturing debt of $300 million.
3 unchanged sentences
Employee exercises of stock options provided cash proceeds of $430 million compared with $218 million in the year-ago period.
−Removed: We had $2.74 billion of cash and cash equivalents and $6.95 billion of short-term investments as of June 30, 2024.
+Added: We had $2.59 billion of cash and cash equivalents and $6.16 billion of short-term investments as of September 30, 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.
7 unchanged sentences
For 12 Months Ended
+Added: September 30,
2024 2023 Change
6 unchanged sentences
* Includes a cash benefit of $532 million from the U.S.
−Removed: CHIPS and Science Act ITC used to reduce income taxes payable for the twelve months ended June 30, 2024
+Added: CHIPS and Science Act ITC used to reduce income taxes payable for the twelve months ended September 30, 2024
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.