-- Revenue: $605 million
(PRNewswire) — �Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $605 million for its fiscal 2012 fourth quarter ended June 30, 2012, a 6% increase from $571 million revenue recorded in the prior quarter.The Company announced that its Board of Directors approved an increase in its quarterly dividend from $0.22 per share to $0.24 per share.
Tunc Doluca, President and Chief Executive Officer, commented, "During our just completed fiscal year, Maxim's unique approach to innovation and integration enabled us to perform well in an uncertain economic environment. We are confident that our balanced business model is sustainable, and as a result we increased our quarterly dividend by 9%."
Fiscal Year 2012 Fourth Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the June quarter was $0.37. The results were affected by certain items which primarily consisted of:
- $13.4 million pre-tax charge for acquisition related items
- $22.4 million pre-tax charge for impairment of long-lived assets
GAAP earnings per share, excluding special expense items, was $0.45. 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 fourth quarter, total cash, cash equivalents and short term investments was $956 million, an increase of $20 million from the prior quarter. Notable items include:
- Cash flow from operations: $190 million (31% of revenue)
- Net capital expenditures: $75 million
- Dividends: $64 million ($0.22 per share)
- Stock repurchases: $56 million
Business Outlook
The Company's 90 day backlog at the beginning of the first fiscal quarter was $393 million. Based on our beginning backlog and expected turns, results for the September 2012 quarter are expected to be:
- Revenue: $605 million to $635 million
- Gross Margin: 59% to 62% GAAP (61% to 64% excluding special expense items)
- EPS: $0.38 to $0.42 GAAP ($0.41 to $0.45 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 $0.24 per share will be paid on September 5, 2012, to stockholders of record on August 22, 2012.
Conference Call
Maxim has scheduled a conference call on July 26, 2012, at 2:00 p.m. Pacific Time to discuss its financial results for the fourth quarter of fiscal year 2012 and its business outlook. To listen via telephone, dial (866) 227-1582 (toll free) or (703) 639-1129. This call will be webcast by Shareholder.com and can be accessed at Maxim's website at www.maxim-ic.com/Investor.
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CONSOLIDATED STATEMENTS OF INCOME | ||||||||||
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(Unaudited) | ||||||||||
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Three Months Ended |
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Year Ended | ||||||
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June 30, |
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March 31, |
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June 25, |
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June 30, |
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June 25, |
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2012 |
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2012 |
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2011 |
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2012 |
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2011 |
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(in thousands, except per share data) | ||||||||
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Net revenues |
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$ 604,956 |
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$ 571,212 |
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$ 626,491 |
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$ 2,403,529 |
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$ 2,472,341 |
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Cost of goods sold (1, 2, 3) |
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232,967 |
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235,782 |
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235,666 |
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952,677 |
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942,377 |
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Gross profit |
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371,989 |
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335,430 |
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390,825 |
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1,450,852 |
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1,529,964 |
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Operating expenses: |
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Research and development (1) |
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134,007 |
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136,075 |
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136,573 |
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552,379 |
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525,308 |
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Selling, general and administrative (1) |
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79,980 |
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78,011 |
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74,537 |
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321,273 |
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292,494 |
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Intangible asset amortization (2) |
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4,049 |
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4,029 |
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4,200 |
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16,737 |
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18,752 |
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Impairment of long-lived assets (4) |
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22,383 |
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7,712 |
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- |
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30,095 |
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- |
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Severance and restructuring |
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18 |
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228 |
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(423) |
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6,785 |
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1,247 |
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Other operating (income) expenses, net (5) |
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(4,469) |
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(2,511) |
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(1,984) |
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(11,214) |
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19,124 |
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Total operating expenses |
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235,968 |
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223,544 |
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212,903 |
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916,055 |
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856,925 |
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Operating income |
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136,021 |
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111,886 |
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177,922 |
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534,797 |
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673,039 |
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Interest and other (expense) income, net (6) |
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(108) |
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(230) |
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(2,022) |
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(2,064) |
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(11,368) |
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Income before provision for income taxes |
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135,913 |
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111,656 |
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175,900 |
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532,733 |
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661,671 |
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Provision for income taxes (7,8) |
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25,279 |
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88,948 |
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50,307 |
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177,815 |
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172,662 |
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Income from continuing operations |
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110,634 |
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22,708 |
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125,593 |
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354,918 |
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489,009 |
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Income from discontinued operations, net of tax (9) |
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- |
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31,809 |
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- |
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31,809 |
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- |
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Net income |
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$ 110,634 |
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$ 54,517 |
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$ 125,593 |
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$ 386,727 |
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$ 489,009 |
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Earnings per share: basic |
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From continuing operations |
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$ 0.38 |
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$ 0.08 |
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$ 0.42 |
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$ 1.21 |
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$ 1.65 |
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From discontinued operations, net of tax (9) |
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- |
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0.11 |
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- |
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0.11 |
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- |
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Basic |
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$ 0.38 |
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$ 0.19 |
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$ 0.42 |
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$ 1.32 |
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$ 1.65 |
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Earnings per share: diluted |
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From continuing operations |
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$ 0.37 |
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$ 0.07 |
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$ 0.41 |
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$ 1.18 |
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$ 1.61 |
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From discontinued operations, net of tax (9) |
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- |
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0.11 |
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- |
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0.11 |
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- |
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Diluted |
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$ 0.37 |
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$ 0.18 |
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$ 0.41 |
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$ 1.29 |
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$ 1.61 |
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Shares used in the calculation of earnings per share: |
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Basic |
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292,757 |
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292,276 |
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295,751 |
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292,810 |
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296,755 |
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Diluted |
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299,793 |
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300,221 |
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303,944 |
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300,002 |
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303,377 |
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Dividends paid per share |
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$ 0.22 |
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$ 0.22 |
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$ 0.21 |
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$ 0.88 |
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$ 0.84 |
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SCHEDULE OF SPECIAL EXPENSE ITEMS | ||||||||||
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(Unaudited) | ||||||||||
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Three Months Ended |
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Year Ended | ||||||
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June 30, |
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March 31, |
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June 25, |
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June 30, |
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June 25, |
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2012 |
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2012 |
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2011 |
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2012 |
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2011 |
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(in thousands) | ||||||||
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Cost of goods sold: |
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Intangible asset amortization (2) |
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$ 9,392 |
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$ 9,787 |
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$ 7,977 |
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$ 36,693 |
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$ 30,164 |
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Acquisition related inventory write up (3) |
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- |
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- |
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- |
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1,801 |
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5,677 |
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Total |
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$ 9,392 |
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$ 9,787 |
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$ 7,977 |
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$ 38,494 |
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$ 35,841 |
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Operating expenses: |
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Intangible asset amortization (2) |
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$ 4,049 |
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$ 4,029 |
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$ 4,200 |
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$ 16,737 |
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$ 18,752 |
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Impairment of long-lived assets (4) |
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22,383 |
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7,712 |
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- |
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30,095 |
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- |
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Severance and restructuring |
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18 |
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228 |
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(423) |
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6,785 |
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1,247 |
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Other operating (income) expenses, net (5) |
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(4,469) |
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(2,511) |
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(1,984) |
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(11,214) |
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19,124 |
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Total |
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$ 21,981 |
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$ 9,458 |
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$ 1,793 |
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$ 42,403 |
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$ 39,123 |
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Interest and other expense (income), net (6) |
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$ 550 |
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$ - |
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$ - |
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$ (1,226) |
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$ - |
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Total |
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$ 550 |
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$ - |
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$ - |
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$ (1,226) |
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$ - |
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Provision for income taxes: |
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Reversal of tax reserves (7) |
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$ - |
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$ (2,272) |
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$ (1,624) |
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$ (2,272) |
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$ (38,947) |
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International restructuring (8) |
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2,751 |
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65,293 |
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6,791 |
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65,389 |
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21,801 |
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Total |
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$ 2,751 |
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$ 63,021 |
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$ 5,167 |
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$ 63,117 |
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$ (17,146) |
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Discontinued operations: |
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Income from discontinued operations, net of tax (9) |
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$ - |
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$ (31,809) |
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$ - |
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$ (31,809) |
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$ - |
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Total |
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$ - |
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$ (31,809) |
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$ - |
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$ (31,809) |
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$ - |
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(1) Includes stock-based compensation charges. |
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(2) Includes intangible asset amortization related to acquisitions. |
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(3) Includes expense related to fair value write up of inventory acquired as part of acquisitions. |
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(4) Includes impairment charges relating to land and buildings held for sale, wafer fab and end of line manufacturing equipment. |
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(5) Other operating (income) expenses, net are primarily for loss (gain) on sale of land and buildings, contingent consideration adjustments related to certain acquisitions, stock option related litigation, certain payroll taxes, interest and penalties and in-process research and development written off. | ||||||||||
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(6) Includes gain on sale and impairment of privately-held companies. |
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(7) Includes reversal of tax reserves related to audit completion and expiration of statute of limitations. |
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(8) Includes impact due to implementation of international restructuring. |
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(9) Includes gain on sale, net of tax relating to certain businesses divested. |
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