-- Revenue: $605 million
(PRNewswire) — �Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $605 million for its second quarter of fiscal 2013 ended December 29, 2012, a 3% decrease from $623 million revenue recorded in the prior quarter.Tunc Doluca, President and Chief Executive Officer, commented, "We are pleased that the breadth of our businesses allowed us to achieve revenues near the midpoint of our guidance range despite ongoing uncertainty. We have an attractive product portfolio with design wins for new model launches in the mobility market and we are also well positioned to benefit from a recovery in the industrial and communications markets."
Fiscal Year 2013 Second Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the December quarter was $0.26. The results were affected by special items which primarily consisted of:
- $13 million pre-tax charge for acquisition related items
- $22 million pre-tax charge for impairment of long-lived assets
- $19 million tax charge for international restructuring
GAAP earnings per share, excluding special items, was $0.42. 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 second quarter of fiscal 2013, total cash, cash equivalents and short term investments was $1.03 billion, an increase of $105 million from the prior quarter. Notable items include:
- Cash flow from operations: $255 million
- Net capital expenditures: $58 million
- Dividends: $70 million ($0.24 per share)
- Stock repurchases: $50 million
Business Outlook
The Company's 90 day backlog at the beginning of the third fiscal quarter of 2013 was $353 million. Based on our beginning backlog and expected turns, results for the March 2013 quarter are expected to be:
- Revenue: $580 million to $610 million
- Gross Margin: 58% to 61% GAAP (60% to 63% excluding special expense items)
- EPS: $0.39 to $0.43 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 March 6, 2013, to stockholders of record on February 20, 2013.
Conference Call
Maxim Integrated has scheduled a conference call on January 24, 2013, at 2:00 p.m. Pacific Time to discuss its financial results for the second quarter of fiscal 2013 and its business outlook. To listen via telephone, dial (866) 206-6154 (toll free) or (703) 639-1107. 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 |
| ||||
|
|
|
December 29, |
|
September 29, |
|
December 31, |
|
|
|
|
2012 |
|
2012 |
|
2011 |
|
|
|
|
(in thousands, except per share data) |
| ||||
|
Net revenues |
|
$ 605,306 |
|
$ 623,075 |
|
$ 591,359 |
|
|
Cost of goods sold |
|
241,931 |
|
237,384 |
|
243,399 |
|
|
Gross margin |
|
363,375 |
|
385,691 |
|
347,960 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Research and development |
|
135,742 |
|
132,930 |
|
142,084 |
|
|
Selling, general and administrative |
|
80,058 |
|
80,187 |
|
80,826 |
|
|
Intangible asset amortization |
|
3,903 |
|
4,049 |
|
4,338 |
|
|
Impairment of long-lived assets (1) |
|
22,222 |
|
2,707 |
|
- |
|
|
Severance and restructuring |
|
2,236 |
|
- |
|
6,047 |
|
|
Other operating expenses (income), net (2) |
|
1,666 |
|
415 |
|
155 |
|
|
Total operating expenses |
|
245,827 |
|
220,288 |
|
233,450 |
|
|
Operating income |
|
117,548 |
|
165,403 |
|
114,510 |
|
|
Interest and other income (expense), net (3) |
|
(2,798) |
|
(5,742) |
|
2,374 |
|
|
Income before provision for income taxes |
|
114,750 |
|
159,661 |
|
116,884 |
|
|
Provision for income taxes (4) |
|
38,128 |
|
31,773 |
|
28,754 |
|
|
Net income |
|
$ 76,622 |
|
$ 127,888 |
|
$ 88,130 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
Basic |
|
$ 0.26 |
|
$ 0.44 |
|
$ 0.30 |
|
|
Diluted |
|
$ 0.26 |
|
$ 0.43 |
|
$ 0.29 |
|
|
|
|
|
|
|
|
|
|
|
Shares used in the calculation of earnings per share: |
|
|
|
|
|
|
|
|
Basic |
|
292,075 |
|
292,213 |
|
291,824 |
|
|
Diluted |
|
298,759 |
|
298,782 |
|
299,290 |
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per share |
|
$ 0.24 |
|
$ 0.24 |
|
$ 0.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCHEDULE OF SPECIAL EXPENSE ITEMS | |||||||
|
(Unaudited) | |||||||
|
|
|
Three Months Ended |
| ||||
|
|
|
December 29, |
|
September 29, |
|
December 31, |
|
|
|
|
2012 |
|
2012 |
|
2011 |
|
|
|
|
(in thousands) |
| ||||
|
Cost of goods sold: |
|
|
|
|
|
|
|
|
Intangible asset amortization |
|
$ 8,986 |
|
$ 9,454 |
|
$ 8,080 |
|
|
Acquisition related inventory write up |
|
- |
|
- |
|
1,801 |
|
|
Total |
|
$ 8,986 |
|
$ 9,454 |
|
$ 9,881 |
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Intangible asset amortization |
|
$ 3,903 |
|
$ 4,049 |
|
$ 4,338 |
|
|
Impairment of long-lived assets (1) |
|
22,222 |
|
2,707 |
|
- |
|
|
Severance and restructuring |
|
2,236 |
|
- |
|
6,047 |
|
|
Other operating expenses (income) , net (2) |
|
1,666 |
|
415 |
|
155 |
|
|
Total |
|
$ 30,027 |
|
$ 7,171 |
|
$ 10,540 |
|
|
|
|
|
|
|
|
|
|
|
Interest and other expenses (income) , net (3) |
|
$ - |
|
$ - |
|
$ (1,776) |
|
|
Total |
|
$ - |
|
$ - |
|
$ (1,776) |
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes: |
|
|
|
|
|
|
|
|
International restructuring implementation (4) |
|
$ 18,726 |
|
$ - |
|
$ - |
|
|
Total |
|
$ 18,726 |
|
$ - |
|
$ - |
|
|
|
|
|
|
|
|
|
|
|
(1) Includes impairment charges relating to land and buildings held for sale, wafer fab and end of line manufacturing equipment. | |||||||
|
(2) Other operating expenses (income), net are primarily for contingent consideration adjustments related to certain acquisitions, certain payroll taxes, interest and penalties and loss relating to sale of land and building. | |||||||
|
(3) Includes gain on sale of privately-held companies. | |||||||
|
(4) Includes impact due to international restructuring. |
|
STOCK-BASED COMPENSATION BY TYPE OF AWARD (in thousands) | ||||||||
|
(Unaudited) | ||||||||
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 29, 2012 |
Stock Options |
|
Restricted Stock Units |
|
Employee Stock Purchase Plan |
|
Total |
|
|
Cost of goods sold |
$ 477 |
|
$ 2,572 |
|
$ 634 |
|
$ 3,683 |
|
|
Research and development expense |
2,288 |
|
8,401 |
|
1,451 |
|
12,140 |
|
|
Selling, general and administrative expense |
1,286 |
|
5,152 |
|
584 |
|
7,022 |
|
|
Total |
$ 4,051 |
|
$ 16,125 |
|
$ 2,669 |
|
$ 22,845 |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 29, 2012 |
|
|
|
|
|
|
|
|
|
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 December 31, 2011 |
|
|
|
|
|
|
|
|
|
Cost of goods sold |
$ 565 |
|
$ 2,657 |
|
$ 470 |
|
$ 3,692 |
|
|
Research and development expense |
2,440 |
|
9,207 |
|
1,262 |
|
12,909 |
|
|
Selling, general and administrative expense |
1,704 |
|
4,778 |
|
391 |
|
6,873 |
|
|
Total |
$ 4,709 |
|
$ 16,642 |
|
$ 2,123 |
|
$ 23,474 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS |
| |||||
|
(Unaudited) |
| |||||
|
|
December 29, |
|
September 29, |
|
December 31, |
|
|
|
2012 |
|
2012 |
|
2011 |
|
|
|
(in thousands) |
| ||||
|
ASSETS |
| |||||
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ 955,107 |
|
$ 849,850 |
|
$ 741,160 |
|
|
Short-term investments |
75,192 |
|
75,283 |
|
75,375 |
|
|
Total cash, cash equivalents and short-term investments |
1,030,299 |
|
925,133 |
|
816,535 |
|
|
Accounts receivable, net |
264,545 |
|
316,538 |
|
246,229 |
|
|
Inventories |
257,690 |
|
258,689 |
|
233,404 |
|
|
Deferred tax assets |
80,991 |
|
71,561 |
|
87,636 |
|
|
Other current assets |
90,470 |
|
94,875 |
|
81,396 |
|
|
Total current assets |
1,723,995 |
|
1,666,796 |
|
1,465,200 |
|
|
Property, plant and equipment, net |
1,359,014 |
|
1,359,882 |
|
1,365,815 |
|
|
Intangible assets, net |
182,521 |
|
195,410 |
|
237,776 |
|
|
Goodwill |
422,083 |
|
422,083 |
|
432,809 |
|
|
Other assets |
50,940 |
|
60,403 |
|
19,055 |
|
|
TOTAL ASSETS |
$ 3,738,553 |
|
$ 3,704,574 |
|
$ 3,520,655 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
| |||||
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
$ 110,495 |
|
$ 127,306 |
|
$ 118,427 |
|
|
Income taxes payable |
22,146 |
|
19,437 |
|
7,866 |
|
|
Accrued salary and related expenses |
152,122 |
|
132,847 |
|
159,651 |
|
|
Accrued expenses |
58,900 |
|
72,510 |
|
62,579 |
|
|
Current portion of long term debt |
304,794 |
|
303,272 |
|
- |
|
|
Deferred income on shipments to distributors |
25,362 |
|
27,025 |
|
31,136 |
|
|
Total current liabilities |
673,819 |
|
682,397 |
|
379,659 |
|
|
Long term debt |
3,997 |
|
5,592 |
|
308,700 |
|
|
Income taxes payable |
260,770 |
|
226,001 |
|
108,462 |
|
|
Deferred tax liabilities |
192,434 |
|
195,893 |
|
197,839 |
|
|
Other liabilities |
26,321 |
|
26,254 |
|
21,529 |
|
|
Total liabilities |
1,157,341 |
|
1,136,137 |
|
1,016,189 |
|
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
Common stock |
7,040 |
|
292 |
|
292 |
|
|
Retained earnings |
2,589,619 |
|
2,583,060 |
|
2,517,166 |
|
|
Accumulated other comprehensive loss |
(15,447) |
|
(14,915) |
|
(12,992) |
|
|
Total stockholders' equity |
2,581,212 |
|
2,568,437 |
|
2,504,466 |
|
|
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY |
$ 3,738,553 |
|
$ 3,704,574 |
|
$ 3,520,655 |
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
| |||||
|
(Unaudited) |
| |||||
|
|
Three Months Ended |
| ||||
|
|
December 29, |
|
September 29, |
|
December 31, |
|
|
|
2012 |
|
2012 |
|
2011 |
|
|
|
(in thousands) |
| ||||
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
Net income |
$ 76,622 |
|
$ 127,888 |
|
$ 88,130 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
Stock-based compensation |
22,845 |
|
22,497 |
|
23,474 |
|
|
Depreciation and amortization |
51,880 |
|
53,674 |
|
51,995 |
|
|
Deferred taxes |
(12,979) |
|
22,772 |
|
(368) |
|
|
Loss (Gain) from sale of property, plant and equipment |
(88) |
|
(51) |
|
124 |
|
|
Loss (Gain) from sale of investments in privately-held companies |
- |
|
- |
|
(1,811) |
|
|
Tax benefit (shortfall) related to stock-based compensation |
5,187 |
|
1,335 |
|
(2,581) |
|
|
Impairment of long-lived assets |
22,222 |
|
2,707 |
|
- |
|
|
Excess tax benefit from stock-based compensation |
(6,615) |
|
(5,219) |
|
(4,242) |
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
Accounts receivable |
51,993 |
|
923 |
|
82,760 |
|
|
Inventories |
570 |
|
(16,015) |
|
19,045 |
|
|
Other current assets |
4,091 |
|
(7,839) |
|
(1,615) |
|
|
Accounts payable |
(9,536) |
|
(26,466) |
|
(18,397) |
|
|
Income taxes payable |
37,477 |
|
10,461 |
|
12,619 |
|
|
Deferred income on shipments to distributors |
(1,663) |
|
745 |
|
(3,444) |
|
|
All other accrued liabilities |
13,091 |
|
(50,667) |
|
3,631 |
|
|
Net cash provided by operating activities |
255,097 |
|
136,745 |
|
249,320 |
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
Payments for property, plant and equipment |
(62,102) |
|
(50,703) |
|
(68,361) |
|
|
Proceeds from sales of property, plant and equipment |
4,115 |
|
344 |
|
1,709 |
|
|
Acquisitions |
- |
|
- |
|
(12,018) |
|
|
Purchases of available-for-sale securities |
- |
|
- |
|
(25,108) |
|
|
Proceeds from sales of investments in privately-held companies |
- |
|
- |
|
3,225 |
|
|
Net cash used in investing activities |
(57,987) |
|
(50,359) |
|
(100,553) |
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
Excess tax benefit from stock-based compensation |
6,615 |
|
5,219 |
|
4,242 |
|
|
Dividends paid |
(70,063) |
|
(70,199) |
|
(64,158) |
|
|
Repayment of notes payable |
(74) |
|
(224) |
|
(4,189) |
|
|
Contingent consideration paid |
(7,476) |
|
- |
|
- |
|
|
Repurchase of common stock |
(50,435) |
|
(65,149) |
|
(72,486) |
|
|
Issuance of ESPP |
16,768 |
|
- |
|
14,906 |
|
|
Net issuance of restricted stock units |
(6,538) |
|
(7,107) |
|
(7,976) |
|
|
Proceeds from stock options exercised |
19,350 |
|
19,864 |
|
12,013 |
|
|
Net cash used in financing activities |
(91,853) |
|
(117,596) |
|
(117,648) |
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents |
105,257 |
|
(31,210) |
|
31,119 |
|
|
Cash and cash equivalents: |
|
|
|
|
|
|
|
Beginning of period |
849,850 |
|
881,060 |
|
710,041 |
|
|
End of period |
$ 955,107 |
|
$ 849,850 |
|
$ 741,160 |
|
|
|
|
|
|
|
|
|
|
Total cash, cash equivalents, and short-term investments |
$ 1,030,299 |
|
$ 925,133 |
|
$ 816,535 |
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
ANALYSIS OF GAAP VERSUS GAAP EXCLUDING SPECIAL EXPENSE ITEMS DISCLOSURES |
| |||||||
|
(Unaudited) |
| |||||||
|
|
|
Three Months Ended |
|
| ||||
|
|
|
December 29, |
|
September 29, |
|
December 31, |
|
|
|
|
|
2012 |
|
2012 |
|
2011 |
|
|
|
|
|
(in thousands, except per share data) |
|
| ||||
|
Reconciliation of GAAP gross profit to GAAP gross profit excluding special expense items: |
|
|
|
|
|
|
|
|
|
GAAP gross profit |
|
$ 363,375 |
|
$ 385,691 |
|
$ 347,960 |
|
|
|
GAAP gross profit % |
|
60.0% |
|
61.9% |
|
58.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Special expense items: |
|
|
|
|
|
|
|
|
|
Intangible asset amortization |
|
8,986 |
|
9,454 |
|
8,080 |
|
|
|
Acquisition related inventory write up |
|
- |
|
- |
|
1,801 |
|
|
|
Total special expense items |
|
8,986 |
|
9,454 |
|
9,881 |
|
|
|
GAAP gross profit excluding special expense items |
|
$ 372,361 |
|
$ 395,145 |
|
$ 357,841 |
|
|
|
GAAP gross profit % excluding special expense items |
|
61.5% |
|
63.4% |
|
60.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP operating expenses to GAAP operating expenses excluding special expense items: |
|
|
|
|
|
|
|
|
|
GAAP operating expenses |
|
$ 245,827 |
|
$ 220,288 |
|
$ 233,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Special expense (income) items: |
|
|
|
|
|
|
|
|
|
Intangible asset amortization |
|
3,903 |
|
4,049 |
|
4,338 |
|
|
|
Impairment of long-lived assets (1) |
|
22,222 |
|
2,707 |
|
- |
|
|
|
Severance and restructuring |
|
2,236 |
|
- |
|
6,047 |
|
|
|
Other operating expenses (income), net (2) |
|
1,666 |
|
415 |
|
155 |
|
|
|
Total special expense items |
|
30,027 |
|
7,171 |
|
10,540 |
|
|
|
GAAP operating expenses excluding special expense items |
|
$ 215,800 |
|
$ 213,117 |
|
$ 222,910 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP net income to GAAP net income excluding special expense items: |
|
|
|
|
|
|
|
|
|
GAAP net income |
|
$ 76,622 |
|
$ 127,888 |
|
$ 88,130 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Special expense (income) items: |
|
|
|
|
|
|
|
|
|
Intangible asset amortization |
|
12,889 |
|
13,503 |
|
12,418 |
|
|
|
Acquisition related inventory write up |
|
- |
|
- |
|
1,801 |
|
|
|
Impairment of long-lived assets (1) |
|
22,222 |
|
2,707 |
|
- |
|
|
|
Severance and restructuring |
|
2,236 |
|
- |
|
6,047 |
|
|
|
Other operating expenses (income) , net (2) |
|
1,666 |
|
415 |
|
155 |
|
|
|
Interest and other expenses (income), net (3) |
|
- |
|
- |
|
(1,776) |
|
|
|
Pre-tax total special expense items |
|
39,013 |
|
16,625 |
|
18,645 |
|
|
|
Tax effect of special items |
|
(9,555) |
|
(5,371) |
|
(6,102) |
|
|
|
International restructuring implementation (4) |
|
18,726 |
|
- |
|
- |
|
|
|
GAAP net income excluding special expense items |
|
$ 124,806 |
|
$ 139,142 |
|
$ 100,673 |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income per share excluding special expense items: |
|
|
|
|
|
|
|
|
|
Basic |
|
$ 0.43 |
|
$ 0.48 |
|
$ 0.34 |
|
|
|
Diluted |
|
$ 0.42 |
|
$ 0.47 |
|
$ 0.34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in the calculation of earnings per share excluding special expense items: |
|
|
|
|
|
|
| |
|
Basic |
|
292,075 |
|
292,213 |
|
291,824 |
|
|
|
Diluted |
|
298,759 |
|
298,782 |
|
299,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes impairment charges relating to land and buildings held for sale, wafer fab and end of line manufacturing equipment. |
|
| ||||||
|
(2) Other operating expenses (income), net are primarily for contingent consideration adjustments related to certain acquisitions, certain payroll taxes, interest and penalties and loss relating to sale of land and building. |
| |||||||
|
(3) Includes gain on sale of privately-held companies. |
|
| ||||||
|
(4) Includes impact due to international restructuring. |
|
|