- 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)
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Three Months Ended | ||||
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September 29, |
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June 30, |
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September 24, |
|
|
2012 |
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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 |
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$ 127,888 |
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$ 110,634 |
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$ 133,446 |
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Earnings per share: |
|
|
|
|
|
|
Basic |
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$ 0.44 |
|
$ 0.38 |
|
$ 0.45 |
Diluted |
|
$ 0.43 |
|
$ 0.37 |
|
$ 0.44 |
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|
|
|
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|
Shares used in the calculation of earnings per share: |
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|
|
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|
|
Basic |
|
292,213 |
|
292,757 |
|
294,475 |
Diluted |
|
298,782 |
|
299,793 |
|
301,076 |
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|
|
|
|
|
|
Dividends paid per share |
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$ 0.24 |
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$ 0.22 |
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$ 0.22 |
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|
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SCHEDULE OF SPECIAL EXPENSE ITEMS | ||||||
(Unaudited)
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Three Months Ended | ||||
|
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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 |
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$ 9,454 |
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$ 9,392 |
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$ 9,434 |
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|
|
|
|
|
|
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) |
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|
|
|
|
|
|
(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) | ||||||||||
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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 |
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|
|
|
|
|
|
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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 |
| ||
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|
|
|
|
|
|
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Three Months Ended September 24, 2011 |
|
|
|
|
|
|
|
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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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