Why did ADI's operating expenses drop sharply in Q2 2024?

Analog Devices Inc. (ADI) experienced a significant drop in operating expenses in Q2 2024, which can be attributed to several strategic measures and operational efficiencies. Here are the key reasons:

1. **Strategic Cost Control**: ADI implemented disciplined cost control measures, which resulted in a notable decrease in operating expenses. This strategic approach allowed the company to manage expenses effectively despite challenging economic conditions.
2. **Reduced Gross Margin**: The adjusted gross margin contracted by 700 basis points to 66.7% compared to the previous year, indicating a reduction in cost of goods sold. This reduction in gross margin contributed to the overall decrease in operating expenses.

In summary, ADI's operating expenses dropped sharply in Q2 2024 due to strategic cost control measures and reduced gross margin. These factors collectively contributed to the company's profitability and financial resilience during the quarter.