Maxim Reports $449.2 Million Revenue for the First Quarter Of Fiscal 2010
Oct 29, 2009 (GlobeNewswire via COMTEX) -- By Staff
Company: Maxim Integrated Products, Inc (MXIM)
* Revenue: $449.2 million * Gross Margin: 56.0% * GAAP earnings per share: $0.13 (after $0.03 special expense items) * Cash flow from operations: $138.5 million * Cash, cash equivalents, and short term investments: $937.6 million * Inventory: $192.3 million, representing 89 days of inventory * Dividend per share: $0.20
SUNNYVALE, Calif., Oct. 29, 2009 (GLOBE NEWSWIRE) -- Maxim Integrated Products, Inc. (Nasdaq:MXIM) reported net revenue of $449.2 million for its fiscal 2010 first quarter ended September 26, 2009, a 14% increase over the $394.5 million revenue recorded in the previous quarter.
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share was $0.13. The results include certain pre-tax and tax related special items which primarily consist of:
* $16.9 million pre-tax net benefit primarily for stock option related settlement & litigation and certain payroll taxes, interest and penalties * $8.3 million pre-tax expense for the write down to fair value of assets to be sold * $16.8 million additional tax provision due to international restructuring
Special expense items reduced earnings per share by $0.03. In the prior quarter special expense items reduced earnings per share by $0.08.
Cash Flow Items
Total cash, cash equivalents and short term investments was $937.6 million as of September 26, 2009, an increase of $24.2 million during the first quarter. Key items include:
* $138.5 million cash flow from operations, 30.8% of revenue * $26.5 million in net payments for property and equipment * $61.4 million for cash dividends * $17.6 million for share repurchase
Business Outlook
Maxim's fiscal first quarter bookings increased by 10% compared to the fourth quarter of fiscal 2009 and the Company's 90 day backlog increased by 4% to $288 million. Results for the December quarter are expected to be:
* Revenue: $450 million - $465 million * Gross Margin: 57% - 59% * Operating expenses: $175 - $178 million
Tunc Doluca, President and Chief Executive Officer, commented, "Maxim had a strong September quarter. Revenue grew double digits for the second consecutive quarter and has held up relatively well year over year during which our industry experienced a severe downturn. Quarter over quarter, we achieved operating leverage with significant improvements in gross and operating margins."
Dividend
A cash dividend for the first quarter of fiscal 2010 of $0.20 per share will be paid on December 4, 2009, to stockholders of record on November 20, 2009.
Conference Call
Maxim has scheduled a conference call on October 29, 2009, at 2:00 p.m. Pacific Time to discuss its financial results for the first quarter of fiscal year 2010 and its business outlook. To listen via telephone, dial (866) 802-4321 (toll free) or (703) 639-1318. This call will be webcast by Shareholder.com and can be accessed at Maxim's website at www.maxim-ic.com/Investor.
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CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
-------------------------------
Sept. 26, June 27, Sept. 27,
2009 2009 2008
--------- --------- ---------
(in thousands, except per
share data)
Net revenues $ 449,246 $ 394,471 $ 501,204
Cost of goods sold (1,2) 197,619 203,934 209,654
--------- --------- ---------
Gross profit 251,627 190,537 291,550
Operating expenses:
Research and development (1) 116,693 117,456 138,915
Selling, general and
administrative (1) 54,990 50,643 40,243
Impairment of long-lived
assets (3) 8,291 -- 7,343
Severance and restructuring (4) (1,561) (535) 4,106
Other operating (income)
expenses, net (5) (16,885) 1,386 7,358
--------- --------- ---------
Total operating expenses 161,528 168,950 197,965
--------- --------- ---------
Operating income 90,099 21,587 93,585
Interest income and other income,
net 1,901 983 9,101
--------- --------- ---------
Income before provision for
income taxes 92,000 22,570 102,686
Provision for income taxes 50,048 14,472 35,119
--------- --------- ---------
Net income $ 41,952 $ 8,098 $ 67,567
========= ========= =========
Earnings per share:
Basic $ 0.14 $ 0.03 $ 0.21
========= ========= =========
Diluted $ 0.13 $ 0.03 $ 0.21
========= ========= =========
Shares used in the calculation of
earnings per share:
Basic 306,276 305,347 320,553
========= ========= =========
Diluted 312,162 308,442 323,815
========= ========= =========
Dividends declared per share $ 0.200 $ 0.200 $ 0.200
========= ========= =========
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SCHEDULE OF STOCK BASED COMPENSATION EXPENSES
(Unaudited)
Three Months Ended
-------------------------------
Sept. 26, June 27, Sept. 27,
2009 2009 2008
--------- --------- ---------
(in thousands)
Cost of goods sold $ 5,461 $ 6,772 $ 11,920
Research and development 16,741 22,783 19,419
Selling, general and
administrative 4,263 5,442 6,222
--------- --------- ---------
Total $ 26,465 $ 34,997 $ 37,561
========= ========= =========
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SCHEDULE OF SPECIAL EXPENSE ITEMS
(Unaudited)
Three Months Ended
-------------------------------
Sept. 26, June 27, Sept. 27,
2009 2009 2008
--------- --------- ---------
(in thousands)
Cost of goods sold:
Accelerated depreciation (2) $ -- $ 18,932 $ 11,329
========= ========= =========
Operating expenses:
Impairment of long-lived assets
(3) $ 8,291 $ -- $ 7,343
Severance and restructuring (4) (1,561) (535) 4,106
Other operating (income) expenses,
net (5) (16,885) 1,386 7,358
--------- --------- ---------
Total $ (10,155) $ 851 $ 18,807
========= ========= =========
Provision for income taxes:
International restructuring (6) $ 16,843 $ 15,500 $ --
========= ========= =========
(1) Includes stock-based compensation charges as shown in the
Schedule of Stock Based Compensation Expenses.
(2) Includes accelerated depreciation primarily related to long-
lived assets resulting from the closure of the Dallas fab
facility.
(3) Write down of assets to be sold to fair value and impairment of
long-lived assets recorded in connection with reduced demand and
transfer of production from the San Jose fab facility.
(4) Primarily severance and benefit expenses and associated accrual
adjustments related to Business Unit; Selling, General &
Administrative; and Manufacturing organizations.
(5) (Income) expenses, net, primarily for stock option related
settlement & litigation and certain payroll taxes, interest and
penalties.
(6) Tax provision impact due to international restructuring.
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STOCK-BASED COMPENSATION BY TYPE OF AWARD (in thousands)
(Unaudited)
Employee
Restricted Stock
Three Months Ended Stock Stock Purchase
September 26, 2009 Options Units Plan Total
-------- -------- -------- --------
Cost of goods sold $ 2,015 $ 3,078 $ 368 $ 5,461
Research and development
expense 4,131 11,197 1,413 16,741
Selling, general and
administrative expense 1,749 2,378 136 4,263
-------- -------- -------- --------
Total $ 7,895 $ 16,653 $ 1,917 $ 26,465
======== ======== ======== ========
Three Months Ended
June 27, 2009
Cost of goods sold $ 1,599 $ 4,917 $ 256 $ 6,772
Research and development
expense 4,751 17,036 996 22,783
Selling, general and
administrative expense 1,737 3,618 87 5,442
-------- -------- -------- --------
Total $ 8,087 $ 25,571 $ 1,339 $ 34,997
======== ======== ======== ========
Three Months Ended
September 27, 2008
Cost of goods sold $ 6,115 $ 5,805 $ -- $ 11,920
Research and development
expense 7,735 11,684 -- 19,419
Selling, general and
administrative expense 2,410 3,812 -- 6,222
-------- -------- -------- --------
Total $ 16,260 $ 21,301 $ -- $ 37,561
======== ======== ======== ========
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CONSOLIDATED BALANCE SHEETS
(Unaudited)
Sept. 26, June 27,
2009 2009
----------- -----------
(in thousands)
ASSETS
Current assets:
Cash and cash equivalents $ 836,029 $ 709,348
Short-term investments 101,551 204,055
----------- -----------
Total cash, cash equivalents and short-
term investments 937,580 913,403
----------- -----------
Accounts receivable, net 228,843 207,807
Inventories 192,277 217,847
Income tax refund receivable 1,260 13,072
Deferred tax assets 194,373 211,879
Other current assets 24,078 20,943
----------- -----------
Total current assets 1,578,411 1,584,951
Property, plant and equipment, net 1,352,857 1,366,052
Other assets 130,039 130,772
----------- -----------
TOTAL ASSETS $ 3,061,307 $ 3,081,775
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 57,966 $ 70,087
Income taxes payable 26,333 2,140
Accrued salary and related expenses 125,821 141,334
Accrued expenses 40,059 38,455
Deferred income on shipments to
distributors 18,764 16,760
----------- -----------
Total current liabilities 268,943 268,776
Other liabilities 26,210 26,398
Income taxes payable 126,055 124,863
Deferred tax liabilities 67,760 67,273
----------- -----------
Total liabilities 488,968 487,310
----------- -----------
Stockholders' equity:
Common stock 19,499 21,511
Retained earnings 2,561,185 2,580,610
Accumulated other comprehensive loss (8,345) (7,656)
----------- -----------
Total stockholders' equity 2,572,339 2,594,465
----------- -----------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 3,061,307 $ 3,081,775
=========== ===========
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CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
----------------------------------
Sept. 26, June 27, Sept. 27,
2009 2009 2008
---------- ---------- ----------
(in thousands)
Cash flows from operating
activities:
Net income $ 41,952 $ 8,098 $ 67,567
Adjustments to reconcile net
income to net cash provided by
operating activities:
Stock-based compensation 26,465 34,997 37,561
Depreciation and amortization 36,496 56,513 46,781
Deferred taxes 17,809 (7,277) (924)
Tax (detriment) benefit related
to stock-based compensation (4,347) (12,493) 1,062
Impairment of long-lived assets 8,291 -- 7,343
Other (1,135) 194 648
Changes in assets and
liabilities:
Accounts receivable (21,036) (11,463) 3,460
Inventories 24,525 21,624 6,429
Other current assets 10,595 28,728 11,146
Accounts payable (14,891) 2,042 15,471
Income taxes payable 24,490 11,872 21,503
Deferred income on shipments
to distributors 2,004 (1,250) (138)
Accrued liabilities - goodwill
and tender offer payments
above fair value (453) (2,346) (8,948)
All other accrued liabilities (12,250) (18,888) (51,897)
---------- ---------- ----------
Net cash provided by operating
activities 138,515 110,351 157,064
---------- ---------- ----------
Cash flows from investing
activities:
Payments for property, plant
and equipment (26,463) (31,897) (37,995)
Acquisition (4,000) -- --
Proceeds from sales/maturities
of available-for-sale
securities 100,233 1,313 2,438
Other 1,293 (1,392) (4,254)
---------- ---------- ----------
Net cash provided by (used in)
investing activities 71,063 (31,976) (39,811)
---------- ---------- ----------
Cash flows from financing
activities:
Dividends paid (61,377) (61,126) (64,111)
Repurchase of common stock (17,569) -- --
Equity proceeds from
derivative litigation
settlement 2,460 -- --
Issuance of common stock (8,175) (637) --
Equity settlements and payouts -- -- (15,109)
Other 1,764 (89) 42
---------- ---------- ----------
Net cash used in financing
activities (82,897) (61,852) (79,178)
---------- ---------- ----------
Net increase in cash and cash
equivalents 126,681 16,523 38,075
Cash and cash equivalents:
Beginning of period 709,348 692,825 1,013,119
---------- ---------- ----------
End of period $ 836,029 $ 709,348 $1,051,194
========== ========== ==========
Total cash, cash equivalents,
and short-term investments $ 937,580 $ 913,403 $1,256,456
========== ========== ==========
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"Safe Harbor" Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include the Company's financial projections for its second quarter of fiscal 2010 ending in December 2009, which includes revenue, gross margin and operating expenses projections. These statements involve risk and uncertainty. Actual results could differ materially from those forecasted based upon, among other things, general market and economic conditions and market developments that could adversely affect the growth of the mixed-signal analog market, product mix shifts, customer cancellations and price competition, as well as other risks described in the Company's Annual Report on Form 10-K for the fiscal year ended June 27, 2009.
All forward-looking statements included in this news release are made as of the date hereof, based on the information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement.
About Maxim
Maxim Integrated Products is a publicly traded company that designs, manufactures, and sells high-performance semiconductor products. The Company was founded over 25 years ago with the mission to deliver innovative analog and mixed-signal engineering solutions that add value to its customers' products. To date, it has developed over 6100 products serving the industrial, communications, consumer, and computing markets.
Maxim reported revenue in excess of $1.6 billion for fiscal 2009. A Fortune 1000 company, Maxim is included in the Nasdaq 100, the Russell 1000, and the MSCI USA indices. For more information, go to www.maxim-ic.com.
The Maxim Integrated Products, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5753
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Maxim Integrated Products, Inc.
CONTACT: Maxim Integrated Products, Inc. Paresh Maniar, Executive Director, Investor Relations (408) 470-5348
Copyright (C) 2009 GlobeNewswire. All rights reserved
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Company: Maxim Integrated Products, Inc (MXIM)
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