Maxim Reports Results for the Third Quarter of Fiscal 2012

- Revenue: $571 million

(PRNewswire) — �Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $571 million for its fiscal 2012 third quarter ended March 31, 2012, a 3% decrease from $591 million revenue recorded in the prior quarter.

Tunc Doluca, President and Chief Executive Officer, commented, "Bookings recovered in all of our major markets, reaffirming our belief that the March quarter marked a cyclical bottom for our revenue. Channel inventories are lean, bookings have strengthened, and we see healthy demand for our mobility products."

Fiscal Year 2012 Third Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the March quarter was $0.18. The results were affected by certain items which primarily consisted of:

$15.4 million pre-tax charge for acquisition related items
$7.7 million pre-tax charge for impairment of long lived assets
$65.3 million tax charge for international restructuring
$31.8 million after tax gain from the sale of certain product lines

GAAP earnings per share excluding special expense items was $0.33. An analysis of GAAP versus GAAP excluding special items is provided in the last table of this press release.

Cash Flow Items
At the end of our fiscal 2012 third quarter total cash, cash equivalents and short term investments was $936 million, an increase of $119 million from the prior quarter. Notable items include:

Cash flow from operations: $196 million (34% of revenue)
Net capital expenditures: $56 million
Dividends: $64 million ($0.22 per share)
Stock repurchases: $29 million
Proceeds from sale of discontinued operations: $57 million

Business Outlook
The Company's 90 day backlog at the beginning of the fourth fiscal quarter was $388 million. Based on our beginning backlog and expected turns, results for the June 2012 quarter are expected to be:

Revenue: $590 million to $620 million
Gross Margin: 58% to 61% GAAP (60% to 63% excluding special expense items)
EPS: $0.34 to $0.38 GAAP ($0.37 to $0.41 excluding special expense items)

Maxim's Business Outlook does not include the potential impact of any restructuring activity or mergers, acquisitions, divestitures, or other business combinations that may be completed during the quarter.

Dividend
A cash dividend of $0.22 per share will be paid on June 6, 2012, to stockholders of record on May 21, 2012.

Conference Call
Maxim has scheduled a conference call on April 26, 2012, at 2:00 p.m. Pacific Time to discuss its financial results for the third quarter of fiscal year 2012 and its business outlook. To listen via telephone, dial (866) 227-1582 (toll free) or (703) 639-1129. This call will be webcast by Shareholder.com and can be accessed at Maxim's website at www.maxim-ic.com/Investor.

CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
	Three Months Ended
	March 31,	December 31,	March 26,
	2012	2011	2011
	(in thousands, except per share data)
Net revenues	$ 571,212	$ 591,359	$ 606,775
Cost of goods sold (1, 2, 3)	235,782	243,399	234,125
Gross profit	335,430	347,960	372,650
Operating expenses:
Research and development (1)	136,075	142,084	130,955
Selling, general and administrative (1)	78,011	80,826	73,617
Intangible asset amortization (2)	4,029	4,338	4,092
Impairment of long-lived assets (4)	7,712	-	-
Severance and restructuring	228	6,047	16
Other operating (income) expenses, net (5)	(2,511)	155	(25)
Total operating expenses	223,544	233,450	208,655
Operating income	111,886	114,510	163,995
Interest and other (expense) income, net (6)	(230)	2,374	(1,570)
Income before provision for income taxes	111,656	116,884	162,425
Provision for income taxes (7,8)	88,948	28,754	26,149
Income from continuing operations	22,708	88,130	136,276
Income from discontinued operations, net of tax (9)	31,809	-	-
Net income	$ 54,517	$ 88,130	$ 136,276

Earnings per share: basic
From continuing operations	$ 0.08	$ 0.30	$ 0.46
From discontinued operations, net of tax (9)	0.11	-	-
Basic	$ 0.19	$ 0.30	$ 0.46

Earnings per share: diluted
From continuing operations	$ 0.07	$ 0.29	$ 0.45
From discontinued operations, net of tax (9)	0.11	-	-
Diluted	$ 0.18	$ 0.29	$ 0.45

Shares used in the calculation of earnings per share:
Basic	292,276	291,824	296,511
Diluted	300,221	299,290	304,515

Dividends paid per share	$ 0.22	$ 0.22	$ 0.21


SCHEDULE OF SPECIAL EXPENSE ITEMS
(Unaudited)

	Three Months Ended
	March 31,	December 31,	March 26,
	2012	2011	2011
	(in thousands)
Cost of goods sold:
Intangible asset amortization (2)	$ 9,787	$ 8,080	$ 7,919
Acquisition related inventory write up (3)	-	1,801	-
Total	$ 9,787	$ 9,881	$ 7,919

Operating expenses:
Intangible asset amortization (2)	$ 4,029	$ 4,338	$ 4,092
Impairment of long-lived assets (4)	7,712	-	-
Severance and restructuring	228	6,047	16
Other operating (income) expenses, net (5)	(2,511)	155	(25)
Total	$ 9,458	$ 10,540	$ 4,083

Interest and other (income), net (6)	$ -	$ (1,776)	$ -
Total	$ -	$ (1,776)	$ -

Provision for income taxes:
Reversal of tax reserves (7)	$ (2,272)	$ -	$ (37,324)
International restructuring (8)	$ 65,293	$ -	$ 15,010
Total	$ 63,021	$ -	$ (22,314)

Discontinued operations:
Income from discontinued operations, net of tax (9)	$ (31,809)	$ -	$ -
Total	$ (31,809)	$ -	$ -

(1) Includes stock-based compensation charges.
(2) Includes intangible asset amortization related to acquisitions.
(3) Includes expense related to fair value write up of inventory acquired as part of acquisitions.
(4) Includes impairment charges relating to wafer fab and end of line manufacturing equipment.
(5) Other operating (income) expenses, net are primarily for gain on sale of land and buildings, stock option related litigation, certain payroll taxes, interest and penalties and in-process research and development written off.
(6) Includes gain on sale of equity investment.
(7) Reversal of tax reserves related to audit completion and expiration of statute of limitations.
(8) Includes impact due to implementation of international restructuring.
(9) Includes gain on sale, net of tax relating to certain businesses divested.

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