Maxim Integrated Reports Results For The Third Quarter Of Fiscal

Maxim Integrated Reports Results For The Third Quarter Of Fiscal 2015

- Revenue: $577 million

(PRNewswire) — Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $577 million for its third quarter of fiscal 2015 ended March 28, 2015, a 2% increase from the $567 million revenue recorded in the prior quarter, and a 5% decrease from the same quarter of last year.

Tunc Doluca, President and Chief Executive Officer, commented, "Our March quarter revenue performance was stronger than seasonal levels, but slightly below the midpoint of our expectations. During the quarter, we diversified our revenue base in Consumer and continued to strongly grow our Automotive business." Mr. Doluca continued, "We are exceeding our cost-saving goals, improving profitability while investing in growth areas for the future."

Fiscal Year 2015 Third Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the March quarter was $0.28. The results were affected by pre-tax special items which primarily consisted of $23 million in charges related to acquisitions and $17 million in charges related to restructuring activities. GAAP earnings per share, excluding special items was $0.40. 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 third quarter of fiscal 2015, total cash, cash equivalents and short term investments were $1.47 billion, an increase of $86 million from the prior quarter. Notable items included:

Cash flow from operations: $182 million
Net capital additions: $9 million
Dividends: $79 million ($0.28 per share)
Stock repurchases: $37 million

Business Outlook
The Company's 90-day backlog at the beginning of the fourth fiscal quarter of 2015 was $387 million. Based on the beginning backlog and expected turns, results for the June 2015 quarter are expected to be as follows:

Revenue: $570 million to $610 million
Gross Margin: 53% to 56% GAAP (58% to 61% excluding special items)
EPS: $0.24 to $0.30 GAAP ($0.35 to $0.41 excluding special items)

Maxim Integrated's business outlook does not include the potential impact of any restructuring activity, 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 June 4, 2015, to stockholders of record on May 21, 2015.

Conference Call
Maxim Integrated has scheduled a conference call on April 23, 2015, at 2:00 p.m. Pacific Time to discuss its financial results for the third quarter of fiscal 2015 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.

A presentation summarizing financial information to be discussed on the conference call is posted at www.maximintegrated.com/company/investor.


CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
	Three Months Ended
	March 28,	December 27,	March 29,
	2015	2014	2014
	(in thousands, except per share data)
Net revenues	$ 577,263	$ 566,809	$ 605,681
Cost of goods sold (1)	261,995	252,732	265,744
Gross margin	315,268	314,077	339,937
Operating expenses:
Research and development	123,913	135,945	141,493
Selling, general and administrative	75,766	79,778	80,680
Intangible asset amortization	3,977	4,155	4,863
Impairment of long-lived assets (2)	5,522	50,745	-
Impairment of goodwill and intangible assets (3)	-	93,010	2,580
Severance and restructuring expenses (4)	2,824	13,635	3,338
Acquisition-related costs	-	-	(88)
Other operating expenses (income), net	(2,184)	885	333
Total operating expenses	209,818	378,153	233,199
Operating income (loss)	105,450	(64,076)	106,738
Interest and other income (expense), net (5)	(5,534)	(7,599)	5,174
Income (loss) before provision for income taxes	99,916	(71,675)	111,912
Provision (benefit) for income taxes (6)	20,483	359	(10,632)
Net Income (loss)	$ 79,433	$ (72,034)	$ 122,544

Earnings (loss) per share:
Basic	$ 0.28	$ (0.25)	$ 0.43
Diluted	$ 0.28	$ (0.25)	$ 0.42

Shares used in the calculation of earnings (loss) per share:
Basic	283,418	282,992	282,627
Diluted	288,840	282,992	288,575

Dividends paid per share	$ 0.28	$ 0.28	$ 0.26


SCHEDULE OF SPECIAL ITEMS
(Unaudited)
	Three Months Ended
	March 28,	December 27,	March 29,
	2015	2014	2014
	(in thousands)
Cost of goods sold:
Intangible asset amortization	$ 18,750	$ 18,750	$ 18,542
Accelerated depreciation (1)	9,834	8,895	-
Acquisition-related inventory write-up	-	-	5,518
Total	$ 28,584	$ 27,645	$ 24,060

Operating expenses:
Intangible asset amortization	$ 3,977	$ 4,155	$ 4,863
Impairment of long-lived assets (2)	5,522	50,745	-
Impairment of goodwill and intangible assets (3)	-	93,010	2,580
Severance and restructuring (4)	2,824	13,635	3,338
Acquisition-related costs	-	-	(88)
Other operating expenses (income), net	(2,184)	885	333
Total	$ 10,139	$ 162,430	$ 11,026

Interest and other expense (income), net (5)	$ -	$ (217)	$ 3,723
Total	$ -	$ (217)	$ 3,723

Provision (benefit) for income taxes:
Fixed Asset Tax Basis Adjustment (6)	$ -	$ -	$ (34,562)
Fiscal year 2014 research & development tax credits	-	(2,863)	-
Total	$ -	$ (2,863)	$ (34,562)

(1) Accelerated depreciation related to San Jose wafer manufacturing building and equipment.
(2) Includes impairment charges related to MEMS and non-MEMS wafer manufacturing equipment and end of line test equipment.
(3) Includes impairment of goodwill and write-off of in-process research and development related to MEMS and other business units.
(4) Include severance charges associated with the reorganization of various business units and manufacturing operations.
(5) Includes impairment of investments in privately-held companies.
(6) Includes one-time fixed asset tax basis adjustments relating to prior year depreciation expense.

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