-- Revenue: $605 million
(PRNewswire) — Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $605 million for its third quarter of fiscal 2013 ended March 30, 2013, unchanged from the prior quarter.Tunc Doluca, President and Chief Executive Officer, commented, "While Maxim's Mobility business has driven our revenue growth for several quarters, it is good to see strength in orders for our Industrial business. Our diverse business model has positioned Maxim to participate in growth across multiple end markets."
Fiscal Year 2013 Third Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the March quarter was $0.44. The results were affected by special items which primarily consisted of:
- $14 million pre-tax charge for acquisition related items
- $4 million tax benefit for re-instatement of R&D tax credit for fiscal year 2012
GAAP earnings per share, excluding special 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 third quarter of fiscal 2013, total cash, cash equivalents and short term investments was $1.57 billion, an increase of $543 million from the prior quarter. Notable items include:
- Cash flow from operations: $212 million
- Net capital expenditures: $45 million
- Dividends: $70 million ($0.24 per share)
- Stock repurchases: $66 million
- Cash from issuance of debt: $491 million
Business Outlook
The Company's 90 day backlog at the beginning of the fourth fiscal quarter of 2013 was $386 million. Based on our beginning backlog and expected turns, results for the June 2013 quarter are expected to be:
- Revenue: $610 million to $640 million
- Gross Margin: 60% to 63% GAAP (61% to 64% excluding special items)
- EPS: $0.42 to $0.46 GAAP ($0.45 to $0.49 excluding special 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 $0.24 per share will be paid on June 5, 2013, to stockholders of record on May 22, 2013.
Conference Call
Maxim Integrated has scheduled a conference call on April 25, 2013, at 2:00 p.m. Pacific Time to discuss its financial results for the third quarter of fiscal 2013 and its business outlook. To listen via telephone, dial (866) 804-3545 (toll free) or (703) 639-1326. This call will be webcast by Shareholder.com and can be accessed at the Company's website at
www.maximintegrated.com.
Contact
Venk Nathamuni
Managing Director, Investor Relations
(408) 601-5293
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CONSOLIDATED STATEMENTS OF INCOME | |||||||
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(Unaudited) | |||||||
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Three Months Ended |
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March 30, |
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December 29, |
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March 31, |
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2013 |
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2012 |
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2012 |
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(in thousands, except per share data) |
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Net revenues |
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$ 604,884 |
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$ 605,306 |
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$ 571,212 |
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Cost of goods sold |
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228,782 |
|
241,931 |
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235,782 |
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Gross margin |
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376,102 |
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363,375 |
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335,430 |
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Operating expenses: |
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Research and development |
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134,138 |
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135,742 |
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136,075 |
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Selling, general and administrative |
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81,954 |
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80,058 |
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78,011 |
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Intangible asset amortization |
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3,903 |
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3,903 |
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4,029 |
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Impairment of long-lived assets (1) |
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- |
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22,222 |
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7,712 |
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Severance and restructuring expenses |
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151 |
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2,236 |
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228 |
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Other operating expenses (income), net (2) |
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1,678 |
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1,666 |
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(2,511) |
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Total operating expenses |
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221,824 |
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245,827 |
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223,544 |
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Operating income |
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154,278 |
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117,548 |
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111,886 |
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Interest and other income (expense), net |
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(2,669) |
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(2,798) |
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(230) |
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Income before provision for income taxes |
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151,609 |
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114,750 |
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111,656 |
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Provision for income taxes (3) |
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22,824 |
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38,128 |
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88,948 |
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Income from continuing operations |
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128,785 |
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76,622 |
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22,708 |
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Income from discontinued operations, net of tax (4) |
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2,603 |
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- |
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31,809 |
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Net income |
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$ 131,388 |
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$ 76,622 |
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$ 54,517 |
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Earnings per share: basic |
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From continuing operations |
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$ 0.44 |
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$ 0.26 |
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$ 0.08 |
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From discontinued operations, net of tax |
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0.01 |
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- |
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0.11 |
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Basic |
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$ 0.45 |
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$ 0.26 |
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$ 0.19 |
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Earnings per share: diluted |
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From continuing operations |
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$ 0.43 |
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$ 0.26 |
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$ 0.07 |
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From discontinued operations, net of tax |
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0.01 |
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- |
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0.11 |
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Diluted |
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$ 0.44 |
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$ 0.26 |
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$ 0.18 |
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Shares used in the calculation of earnings per share: |
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Basic |
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292,888 |
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292,075 |
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292,276 |
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Diluted |
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300,082 |
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298,759 |
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300,221 |
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Dividends paid per share |
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$ 0.24 |
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$ 0.24 |
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$ 0.22 |
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SCHEDULE OF SPECIAL ITEMS | |||||||
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(Unaudited) | |||||||
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Three Months Ended |
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March 30, |
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December 29, |
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March 31, |
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2013 |
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2012 |
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2012 |
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(in thousands) |
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Cost of goods sold: |
|
|
|
|
|
|
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Intangible asset amortization |
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$ 7,777 |
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$ 8,986 |
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$ 9,787 |
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Total |
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$ 7,777 |
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$ 8,986 |
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$ 9,787 |
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Operating expenses: |
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|
|
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|
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Intangible asset amortization |
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$ 3,903 |
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$ 3,903 |
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$ 4,029 |
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Impairment of long-lived assets (1) |
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- |
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22,222 |
|
7,712 |
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|
Severance and restructuring |
|
151 |
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2,236 |
|
228 |
|
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Other operating expenses (income) , net (2) |
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1,678 |
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1,666 |
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(2,511) |
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Total |
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$ 5,732 |
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$ 30,027 |
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$ 9,458 |
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Provision for income taxes: |
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Reversal of tax reserves |
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$ - |
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$ - |
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$ (2,272) |
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International restructuring implementation (3) |
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- |
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18,726 |
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65,293 |
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Fiscal year 2012 research & development tax credits |
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(3,899) |
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- |
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- |
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Total |
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$ (3,899) |
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$ 18,726 |
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$ 63,021 |
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Discontinued operations: |
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Income from discontinued operations, net of tax (4) |
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$ (2,603) |
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$ - |
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$ (31,809) |
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Total |
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$ (2,603) |
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$ - |
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$ (31,809) |
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(1) Includes impairment charges relating to wafer fab and end of line manufacturing equipment and land & building held for sale. |
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(2) Other operating expenses (income), net are primarily for in-process research and development, contingent consideration adjustments related to certain acquisitions, gain relating to sale of land and buildings, and stock option related litigation. | |||||||
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(3) Includes impact due to international restructuring. |
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(4) Includes gain on sale, net of tax relating to certain businesses divested. |
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