Maxim Integrated Reports Results For The First Quarter Of Fiscal

Maxim Integrated Reports Results For The First Quarter Of Fiscal 2013

- Revenue: $623 million

(PRNewswire) — Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $623 million for its first quarter of fiscal 2013 ended September 29, 2012, a 3% increase from $605 million revenue recorded in the prior quarter.

Tunc Doluca, President and Chief Executive Officer, commented, "Maxim Integrated continues to perform very well in the current environment of macro uncertainty. Our fiscal Q1 financial performance and our fiscal Q2 guidance illustrate the effectiveness of our strategy to provide high integration solutions."

Fiscal Year 2013 First Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the September quarter was $0.43. The results were affected by certain items which primarily consisted of a $13.5 million pre-tax charge for acquisition related items.

GAAP earnings per share, excluding special items, was $0.47. 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 first quarter of fiscal 2013, total cash, cash equivalents and short term investments was $925 million, a decrease of $31 million from the prior quarter. Notable items include:

Cash flow from operations: $137 million
Net capital expenditures: $50 million
Dividends: $70 million ($0.24 per share)
Stock repurchases: $65 million

Business Outlook
The Company's 90 day backlog at the beginning of the second fiscal quarter of 2013 was $400 million. Based on our beginning backlog and expected turns, results for the December 2012 quarter are expected to be:

Revenue: $595 million to $625 million
Gross Margin: 58% to 61% GAAP (60% to 63% excluding special expense items)
EPS: $0.36 to $0.40 GAAP ($0.39 to $0.43 excluding special expense items)

Maxim Integrated'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 December 5, 2012, to stockholders of record on November 21, 2012.

Conference Call
Maxim Integrated has scheduled a conference call on October 25, 2012, at 2:00 p.m. Pacific Time to discuss its financial results for the first quarter of fiscal 2013 and its business outlook. To listen via telephone, dial (866) 793-1307 (toll free) or (703) 639-1309. This call will be webcast by Shareholder.com and can be accessed at the Company's website at www.maximintegrated.com.

Contact
Venk Nathamuni
Managing Director, Investor Relations
(408) 601-5293

CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
	Three Months Ended
	September 29,	June 30,	September 24,
	2012	2012	2011
	(in thousands, except per share data)
Net revenues	$ 623,075	$ 604,956	$ 636,002
Cost of goods sold	237,384	232,967	240,529
Gross margin	385,691	371,989	395,473
Operating expenses:
Research and development	132,930	134,007	140,213
Selling, general and administrative	80,187	79,980	82,456
Intangible asset amortization	4,049	4,049	4,321
Impairment of long-lived assets	2,707	22,383	-
Severance and restructuring	-	18	492
Other operating expenses (income), net (1)	415	(4,469)	(4,389)
Total operating expenses	220,288	235,968	223,093
Operating income	165,403	136,021	172,380
Interest and other expense, net (2)	(5,742)	(108)	(4,100)
Income before provision for income taxes	159,661	135,913	168,280
Provision for income taxes	31,773	25,279	34,834
Net income	$ 127,888	$ 110,634	$ 133,446

Earnings per share:
Basic	$ 0.44	$ 0.38	$ 0.45
Diluted	$ 0.43	$ 0.37	$ 0.44

Shares used in the calculation of earnings per share:
Basic	292,213	292,757	294,475
Diluted	298,782	299,793	301,076

Dividends paid per share	$ 0.24	$ 0.22	$ 0.22


SCHEDULE OF SPECIAL EXPENSE ITEMS
(Unaudited)
	Three Months Ended
	September 29,	June 30,	September 24,
	2012	2012	2011
	(in thousands)
Cost of goods sold:
Intangible asset amortization	$ 9,454	$ 9,392	$ 9,434
Total	$ 9,454	$ 9,392	$ 9,434

Operating expenses:
Intangible asset amortization	$ 4,049	$ 4,049	$ 4,321
Impairment of long-lived assets	2,707	22,383	-
Severance and restructuring	-	18	492
Other operating expenses (income) , net (1)	415	(4,469)	(4,389)
Total	$ 7,171	$ 21,981	$ 424

Interest and other expense, net (2)	$ -	$ 550	$ -
Total	$ -	$ 550	$ -

Provision for income taxes:
International restructuring implementation	$ -	2,751	(2,655)
Total	$ -	$ 2,751	$ (2,655)

(1) Other operating expenses (income), net are primarily for contingent consideration adjustments related to certain acquisitions, stock option related litigation and certain payroll taxes, interest and penalties.
(2) Includes impairment of privately-held companies.

STOCK-BASED COMPENSATION BY TYPE OF AWARD (in thousands)
(Unaudited)

Three Months Ended September 29, 2012	Stock Options	Restricted Stock Units	Employee Stock Purchase Plan	Total
Cost of goods sold	$ 398	$ 2,171	$ 419	$ 2,988
Research and development expense	1,829	9,210	1,284	12,323
Selling, general and administrative expense	1,555	5,119	512	7,186
Total	$ 3,782	$ 16,500	$ 2,215	$22,497

Three Months Ended June 30, 2012
Cost of goods sold	$ 462	$ 2,206	$ 423	$ 3,091
Research and development expense	1,607	8,331	1,413	11,351
Selling, general and administrative expense	1,468	4,518	462	6,448
Total	$ 3,537	$ 15,055	$ 2,298	$20,890

Three Months Ended September 24, 2011
Cost of goods sold	$ 517	$ 2,307	$ 433	$ 3,257
Research and development expense	2,055	9,958	1,248	13,261
Selling, general and administrative expense	1,428	5,125	394	6,947
Total	$ 4,000	$ 17,390	$ 2,075	$23,465

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