Chief Executive Officer and Chair at Analog Devices
Thank you very much, Mike, and a very good morning to you all. Though the industry is obviously moving through a more challenging period of the business cycle, I'm very pleased to share that we're preserving the strength of our financial performance, while preparing for the market's recovery. Fourth quarter revenue was $2.7 billion, led by double-digit year-over-year growth in our automotive sector. The combination of careful expense management and our employees' commitment to high standards of execution enabled us to deliver operating margins of 44.7% and EPS of $2.01 for the quarter.
For the fiscal year '23 again set new high watermarks with revenue reaching $12.3 billion supported by all-time highs in the industrial and automotive sectors. This resulted in EPS of $10.09, up 5% from a year ago. Notably, we returned a record $4.6 billion to shareholders in 2023, exceeding our 100% free cash flow return targets. Since the closing of Maxim just over two years ago, ADI has returned roughly $12 billion to shareholders are nearly 15% of our market cap. Over the same time, we've reduced our share count by more than 6% and increased our dividend per share by 25%.
Now looking to fiscal '24, the near-term dynamics remain uncertain. As you will recall, last quarter we outlined a broad-based inventory correction across all markets and geographies, reflecting the deteriorating macro conditions and our improving lead times. Consistent with our view 90 days ago, we expect the customer inventory overhang to persist through the first half of the year. Challenging times like these confirm the wisdom and the strength of our business model. The diversification of our business across customers, applications and products helps to limit volatility while preserving profitability. Building upon that foundation, we took actions to better ensure we can deliver operating margins in the low-40s and solid free cash flow despite the revenue decline.
Importantly, however, we're not simply battening down the hatches. Our resilient financial model enables us to continue making the strategic investments necessary to allow us to capitalize on the upside when the business inflects [Phonetic] higher. That longer-term focus and commitment is why our customers have the confidence to increasingly dependent on us as a key strategic partner. I've been very heartened by my conversations with customers across many markets and geographies over this past quarter. Despite the near-term challenges, they share our optimism that the Intelligent Edge is enabling a future replete with opportunity. And they are clear about the expanding role that they expect ADI to play in their success.
Our customers' optimism is reflected in the continued expansion of our design win pipeline, which increased by double-digits again in 2023. That growth was enhanced by sustained momentum in our Maxim revenue synergies pipeline which is tracking ahead of our initial expectations. We expect synergy-driven revenue acceleration in 2025, putting us on a path to achieve our goal of more than $1 billion in revenue synergy by 2027. The combination of our strong design win growth with recurring revenue streams from our 75,000 product SKUs, which have average life spans of a decade or more, creates a business with high barriers-to-entry, that's both resilient and rich with growth opportunities.
Now let me share some examples of recent wins with you. In industrial automation, we are increasingly delivering more complete solutions. As a top digital factory automation supplier for example, we recently leveraged our anchor position in software configurable IO to attach additional solutions value across power, isolation and connectivity. As a result, we captured three times the bill of materials and secured design wins across their entire platform.
In industrial instrumentation, we've increased our design wins at SoC memory test market leaders. Our next-generation solutions increased channel density and throughput, while reducing energy consumption by up to an incredible 30% per system. These are critical parameters for testing complex high-performance compute GPUs and high-bandwidth memory for artificial intelligence systems.
Looking now to automotive and electrification, momentum continues for our wireless battery management system. This novel solution enables lower weight, greater scalability and improved manufacturing productivity, driving down the total cost of ownership for our customers, while increasing ADI's content. Last quarter, we secured our fifth customer, a top 10 EV OEM, will begin to deploy our wireless solution in their next-gen EVs in 2026.
Now furthermore, during the year, ADI reinforced our industry-leading position in automotive high-performance functionally safe power. To that end, we won next-generation power for ADAS systems at four top suppliers this past year. These wins at another growth vector to our automotive franchise which has benefited from strong momentum across electrification and in-cabin connectivity. This proliferation of ADAS is benefiting our high-speed GMSL connectivity portfolio. GMSL has been one of our fastest-growing areas and a major revenue synergy generator for us.
In the last year, we were awarded four new wins across leading North American, Asian and European OEMs. We're also expanding our opportunity and increasing our ROI, winning multiple design wins in industrial areas -- in adjacent areas, such as autonomous robotic systems. Our cloud infrastructure business is beginning to benefit from the power challenges in connectivity requirements necessary in AI/ML systems. Notably, a large hyperscaler designed our high-performance power and protection solutions into their next-generation AI platform. And in connectivity, systems are upgrading now to 1 terabit [Phonetic] per second and require our highest level of precision controlled solutions to efficiently support the growth in data generation.
In consumer, we won multiple power management sockets and a portable application at a key customer. These wins truly show the combinatorial power of our acquisition strategy. We leveraged our industry-leading Silent Switcher, Maxim's cost optimized process technology and our customer relationships to secure these wins. And lastly, in healthcare, Maxim strengthened our comprehensive suite of technology for personal monitoring solutions, adding sensor AFEs, microcontrollers of ultra-low power technologies. We secured a design win at a leading continuous glucose monitoring customer this year. Our solution increases the robustness, accuracy and power efficiency of their glucose sensor, thereby helping to extend its life from days to weeks.
So in summary, we're proud of another year of record revenue and earnings. We continue to demonstrate the power of our business model which delivers results through all phases of the business cycle. Our continued strong investments in technology and business innovation, customer engagement and our hybrid manufacturing model positions ADI and our customers to take maximum advantage of the opportunities at the Intelligent Edge when the business recovery arrives.
Now I'd like to pass the call over to Jim. Over the past 35 years, Jim has taken on a number of critical financial leadership roles across ADI, enabling him to develop a breadth and depth of understanding of our business that very, very few possess. So I'm pleased now to have him on my leadership team and to be joined by Jim, on today's call. Over to you, Jim.