- Revenue: $642 million
(PRNewswire) — Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $642 million for its fourth quarter of fiscal 2014 ended June 28, 2014, a 6% increase from the $606 million revenue recorded in the prior quarter.Tunc Doluca, President and Chief Executive Officer, commented, "While we experienced softness in our mobility business, our revenue performance in the quarter reflected the overall strength of Maxim's balanced portfolio, with growth in every one of our other major businesses." Mr. Doluca continued, "Although our near-term outlook for mobility remains cautious, we are executing on our strategy to bring new integrated designs to the Industrial, Automotive, Communications and Data Center markets, and to diversify our customer base in mobility."
Fiscal Year 2014 Fourth Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the June quarter was $0.29. The results were affected by special items which primarily consisted of $24 million in pre-tax charges related to acquisitions and $23 million in pre-tax charges related to restructuring and other items. GAAP earnings per share, excluding special items was $0.43. 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 the fourth quarter of fiscal 2014, total cash, cash equivalents and short term investments was $1.37 billion, an increase of $141 million from the prior quarter. Notable items included:
- Cash flow from operations: $234 million
- Net capital expenditures: $22 million
- Dividends: $74 million ($0.26 per share)
- Stock repurchases: $41 million
Business Outlook
The Company's 90-day backlog at the beginning of the first fiscal quarter of 2015 was $377 million. Based on :the beginning backlog and expected turns, results for the September 2014 quarter are expected to be as follows:
- Revenue $580 million to $620 million
- Gross Margin: 56% to 59% GAAP (59% to 62% excluding special items)
- EPS: $0.27 to $0.33 GAAP ($0.34 to $0.40 excluding special items)
Maxim Integrated's business outlook does not include the potential impact of any restructuring activity or mergers, acquisitions, or other business combinations that may be completed during the quarter.
Dividend
A cash dividend of $0.28 per share will be paid on September 4, 2014, to stockholders of record on August 21, 2014. This represents an 8% increase in the dividend compared to the prior quarter.
Conference Call
Maxim Integrated has scheduled a conference call on July 24, 2014, at 2:00 p.m. Pacific Time to discuss its financial results for the fourth quarter of fiscal 2014 and its business outlook. To listen via telephone, dial (866) 804-3547 (toll free) or (703) 639-1328. This call will be webcast by Shareholder.com and can be accessed at the Company's website at
www.maximintegrated.com/company/investor.
CONSOLIDATED STATEMENTS OF INCOME | |||||||||
(Unaudited) | |||||||||
|
Three Months Ended |
|
Year Ended | ||||||
|
June 28, |
|
March 29, |
|
June 29, |
|
June 28, |
|
June 29, |
|
2014 |
|
2014 |
|
2013 |
|
2014 |
|
2013 |
|
(in thousands, except per share data) | ||||||||
Net revenues |
$ 642,467 |
|
$ 605,681 |
|
$ 608,194 |
|
$ 2,453,663 |
|
$ 2,441,459 |
Cost of goods sold |
273,507 |
|
265,744 |
|
236,795 |
|
1,068,898 |
|
944,892 |
Gross margin |
368,960 |
|
339,937 |
|
371,399 |
|
1,384,765 |
|
1,496,567 |
Operating expenses: |
|
|
|
|
|
|
|
|
|
Research and development |
143,802 |
|
141,493 |
|
132,009 |
|
558,168 |
|
534,819 |
Selling, general and administrative |
83,153 |
|
80,680 |
|
82,083 |
|
324,734 |
|
324,282 |
Intangible asset amortization |
4,423 |
|
4,863 |
|
3,670 |
|
17,690 |
|
15,525 |
Impairment of long-lived assets (1) |
6,447 |
|
- |
|
- |
|
11,644 |
|
24,929 |
Severance and restructuring expenses |
5,790 |
|
3,338 |
|
442 |
|
24,902 |
|
2,829 |
Acquisition-related costs |
- |
|
(88) |
|
- |
|
6,983 |
|
- |
Other operating expenses (income), net (2) |
8,795 |
|
2,913 |
|
2,105 |
|
18,353 |
|
5,864 |
Total operating expenses |
252,410 |
|
233,199 |
|
220,309 |
|
962,474 |
|
908,248 |
Operating income |
116,550 |
|
106,738 |
|
151,090 |
|
422,291 |
|
588,319 |
Interest and other income (expense), net (3) |
(8,943) |
|
5,174 |
|
(6,830) |
|
(13,065) |
|
(18,040) |
Income before provision for income taxes |
107,607 |
|
111,912 |
|
144,260 |
|
409,226 |
|
570,279 |
Provision (benefit) for income taxes (4) |
22,814 |
|
(10,632) |
|
25,246 |
|
54,416 |
|
117,970 |
Income from continuing operations |
84,793 |
|
122,544 |
|
119,014 |
|
354,810 |
|
452,309 |
Income from discontinued operations, net of tax (5) |
- |
|
- |
|
- |
|
- |
|
2,603 |
Net income |
$ 84,793 |
|
$ 122,544 |
|
$ 119,014 |
|
$ 354,810 |
|
$ 454,912 |
|
|
|
|
|
|
|
|
|
|
Earnings per share: Basic |
|
|
|
|
|
|
|
|
|
From continuing operations |
$ 0.30 |
|
$ 0.43 |
|
$ 0.41 |
|
$ 1.25 |
|
$ 1.55 |
From discontinued operations, net of tax |
- |
|
- |
|
- |
|
- |
|
0.01 |
Basic |
$ 0.30 |
|
$ 0.43 |
|
$ 0.41 |
|
$ 1.25 |
|
$ 1.56 |
|
|
|
|
|
|
|
|
|
|
Earnings per share: Diluted |
|
|
|
|
|
|
|
|
|
From continuing operations |
$ 0.29 |
|
$ 0.42 |
|
$ 0.40 |
|
$ 1.23 |
|
$ 1.51 |
From discontinued operations, net of tax |
- |
|
- |
|
- |
|
- |
|
0.01 |
Diluted |
$ 0.29 |
|
$ 0.42 |
|
$ 0.40 |
|
$ 1.23 |
|
$ 1.52 |
|
|
|
|
|
|
|
|
|
|
Shares used in the calculation of earnings per share: |
|
|
|
|
|
|
|
|
|
Basic |
283,431 |
|
282,627 |
|
290,146 |
|
283,344 |
|
291,835 |
Diluted |
289,487 |
|
288,575 |
|
296,756 |
|
289,108 |
|
298,596 |
|
|
|
|
|
|
|
|
|
|
Dividends paid per share |
$ 0.26 |
|
$ 0.26 |
|
$ 0.24 |
|
$ 1.04 |
|
$ 0.96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCHEDULE OF SPECIAL ITEMS | |||||||||
(Unaudited) | |||||||||
|
Three Months Ended |
|
Year Ended | ||||||
|
June 28, |
|
March 29, |
|
June 29, |
|
June 28, |
|
June 29, |
|
2014 |
|
2014 |
|
2013 |
|
2014 |
|
2013 |
|
(in thousands) | ||||||||
Cost of goods sold: |
|
|
|
|
|
|
|
|
|
Intangible asset amortization |
$ 18,750 |
|
$ 18,542 |
|
$ 7,777 |
|
$ 64,483 |
|
$ 33,994 |
Acquisition-related inventory write-up |
371 |
|
5,518 |
|
- |
|
18,955 |
|
- |
Total |
$ 19,121 |
|
$ 24,060 |
|
$ 7,777 |
|
$ 83,438 |
|
$ 33,994 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Intangible asset amortization |
$ 4,423 |
|
$ 4,863 |
|
$ 3,670 |
|
$ 17,690 |
|
$ 15,525 |
Impairment of long-lived assets (1) |
6,447 |
|
- |
|
- |
|
11,644 |
|
24,929 |
Severance and restructuring |
5,790 |
|
3,338 |
|
442 |
|
24,902 |
|
2,829 |
Acquisition-related costs |
- |
|
(88) |
|
- |
|
6,983 |
|
- |
Other operating expenses (income), net (2) |
8,795 |
|
2,913 |
|
2,105 |
|
18,353 |
|
5,864 |
Total |
$ 25,455 |
|
$ 11,026 |
|
$ 6,217 |
|
$ 79,572 |
|
$ 49,147 |
|
|
|
|
|
|
|
|
|
|
Interest and other expense (income), net (3) |
$ 2,432 |
|
$ 3,723 |
|
$ 700 |
|
$ 6,155 |
|
$ 700 |
Total |
$ 2,432 |
|
$ 3,723 |
|
$ 700 |
|
$ 6,155 |
|
$ 700 |
|
|
|
|
|
|
|
|
|
|
Provision (benefit) for income taxes: |
|
|
|
|
|
|
|
|
|
Fixed assets tax basis adjustment (4) |
$ (1,041) |
|
$ (34,562) |
|
$ - |
|
$ (35,603) |
|
$ - |
International restructuring implementation |
- |
|
- |
|
- |
|
- |
|
18,726 |
Fiscal year 2012 research & development tax credits |
- |
|
- |
|
- |
|
- |
|
(3,899) |
Total |
$ (1,041) |
|
$ (34,562) |
|
$ - |
|
$ (35,603) |
|
$ 14,827 |
|
|
|
|
|
|
|
|
|
|
Discontinued operations: |
|
|
|
|
|
|
|
|
|
Income from discontinued operations, net of tax (5) |
$ - |
|
$ - |
|
$ - |
|
$ - |
|
$ (2,603) |
Total |
$ - |
|
$ - |
|
$ - |
|
$ - |
|
$ (2,603) |
(1) Includes impairment charges relating to EDA software, wafer fab tools, land and buildings held-for-sale, and end of line manufacturing equipment. | |||||||||
(2) Other operating expenses (income), net are primarily for legal settlement, legal expenses related to Volterra acquisition, reserve for uncollectible note related to a divestiture, contingent consideration adjustments related to certain acquisitions, in-process research and development abandoned, loss (gain) relating to sale of land and buildings,expected loss on lease abandonment,and certain payroll taxes. | |||||||||
(3) Includes impairment of investment in privately-held companies. | |||||||||
(4) Includes one-time fixed asset tax basis adjustments relating to prior year depreciation expense. | |||||||||
(5) Includes gain on sale, net of tax relating to certain business divested. | |||||||||
|