- Revenue: $571 million
(PRNewswire) — �Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $571 million for its fiscal 2012 third quarter ended March 31, 2012, a 3% decrease from $591 million revenue recorded in the prior quarter.Tunc Doluca, President and Chief Executive Officer, commented, "Bookings recovered in all of our major markets, reaffirming our belief that the March quarter marked a cyclical bottom for our revenue. Channel inventories are lean, bookings have strengthened, and we see healthy demand for our mobility products."
Fiscal Year 2012 Third Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the March quarter was $0.18. The results were affected by certain items which primarily consisted of:
- $15.4 million pre-tax charge for acquisition related items
- $7.7 million pre-tax charge for impairment of long lived assets
- $65.3 million tax charge for international restructuring
- $31.8 million after tax gain from the sale of certain product lines
GAAP earnings per share excluding special expense items was $0.33. 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 fiscal 2012 third quarter total cash, cash equivalents and short term investments was $936 million, an increase of $119 million from the prior quarter. Notable items include:
- Cash flow from operations: $196 million (34% of revenue)
- Net capital expenditures: $56 million
- Dividends: $64 million ($0.22 per share)
- Stock repurchases: $29 million
- Proceeds from sale of discontinued operations: $57 million
Business Outlook
The Company's 90 day backlog at the beginning of the fourth fiscal quarter was $388 million. Based on our beginning backlog and expected turns, results for the June 2012 quarter are expected to be:
- Revenue: $590 million to $620 million
- Gross Margin: 58% to 61% GAAP (60% to 63% excluding special expense items)
- EPS: $0.34 to $0.38 GAAP ($0.37 to $0.41 excluding special expense items)
Maxim'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 $0.22 per share will be paid on June 6, 2012, to stockholders of record on May 21, 2012.
Conference Call
Maxim has scheduled a conference call on April 26, 2012, at 2:00 p.m. Pacific Time to discuss its financial results for the third quarter of fiscal year 2012 and its business outlook. To listen via telephone, dial (866) 227-1582 (toll free) or (703) 639-1129. This call will be webcast by Shareholder.com and can be accessed at Maxim's website at
www.maxim-ic.com/Investor.
CONSOLIDATED STATEMENTS OF INCOME | ||||||
(Unaudited) | ||||||
|
|
Three Months Ended | ||||
|
|
March 31, |
|
December 31, |
|
March 26, |
|
|
2012 |
|
2011 |
|
2011 |
|
|
(in thousands, except per share data) | ||||
Net revenues |
|
$ 571,212 |
|
$ 591,359 |
|
$ 606,775 |
Cost of goods sold (1, 2, 3) |
|
235,782 |
|
243,399 |
|
234,125 |
Gross profit |
|
335,430 |
|
347,960 |
|
372,650 |
Operating expenses: |
|
|
|
|
|
|
Research and development (1) |
|
136,075 |
|
142,084 |
|
130,955 |
Selling, general and administrative (1) |
|
78,011 |
|
80,826 |
|
73,617 |
Intangible asset amortization (2) |
|
4,029 |
|
4,338 |
|
4,092 |
Impairment of long-lived assets (4) |
|
7,712 |
|
- |
|
- |
Severance and restructuring |
|
228 |
|
6,047 |
|
16 |
Other operating (income) expenses, net (5) |
|
(2,511) |
|
155 |
|
(25) |
Total operating expenses |
|
223,544 |
|
233,450 |
|
208,655 |
Operating income |
|
111,886 |
|
114,510 |
|
163,995 |
Interest and other (expense) income, net (6) |
|
(230) |
|
2,374 |
|
(1,570) |
Income before provision for income taxes |
|
111,656 |
|
116,884 |
|
162,425 |
Provision for income taxes (7,8) |
|
88,948 |
|
28,754 |
|
26,149 |
Income from continuing operations |
|
22,708 |
|
88,130 |
|
136,276 |
Income from discontinued operations, net of tax (9) |
|
31,809 |
|
- |
|
- |
Net income |
|
$ 54,517 |
|
$ 88,130 |
|
$ 136,276 |
|
|
|
|
|
|
|
Earnings per share: basic |
|
|
|
|
|
|
From continuing operations |
|
$ 0.08 |
|
$ 0.30 |
|
$ 0.46 |
From discontinued operations, net of tax (9) |
|
0.11 |
|
- |
|
- |
Basic |
|
$ 0.19 |
|
$ 0.30 |
|
$ 0.46 |
|
|
|
|
|
|
|
Earnings per share: diluted |
|
|
|
|
|
|
From continuing operations |
|
$ 0.07 |
|
$ 0.29 |
|
$ 0.45 |
From discontinued operations, net of tax (9) |
|
0.11 |
|
- |
|
- |
Diluted |
|
$ 0.18 |
|
$ 0.29 |
|
$ 0.45 |
|
|
|
|
|
|
|
Shares used in the calculation of earnings per share: |
|
|
|
|
|
|
Basic |
|
292,276 |
|
291,824 |
|
296,511 |
Diluted |
|
300,221 |
|
299,290 |
|
304,515 |
|
|
|
|
|
|
|
Dividends paid per share |
|
$ 0.22 |
|
$ 0.22 |
|
$ 0.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCHEDULE OF SPECIAL EXPENSE ITEMS | ||||||
(Unaudited) | ||||||
| ||||||
|
|
Three Months Ended | ||||
|
|
March 31, |
|
December 31, |
|
March 26, |
|
|
2012 |
|
2011 |
|
2011 |
|
|
(in thousands) | ||||
Cost of goods sold: |
|
|
|
|
|
|
Intangible asset amortization (2) |
|
$ 9,787 |
|
$ 8,080 |
|
$ 7,919 |
Acquisition related inventory write up (3) |
|
- |
|
1,801 |
|
- |
Total |
|
$ 9,787 |
|
$ 9,881 |
|
$ 7,919 |
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
Intangible asset amortization (2) |
|
$ 4,029 |
|
$ 4,338 |
|
$ 4,092 |
Impairment of long-lived assets (4) |
|
7,712 |
|
- |
|
- |
Severance and restructuring |
|
228 |
|
6,047 |
|
16 |
Other operating (income) expenses, net (5) |
|
(2,511) |
|
155 |
|
(25) |
Total |
|
$ 9,458 |
|
$ 10,540 |
|
$ 4,083 |
|
|
|
|
|
|
|
Interest and other (income), net (6) |
|
$ - |
|
$ (1,776) |
|
$ - |
Total |
|
$ - |
|
$ (1,776) |
|
$ - |
|
|
|
|
|
|
|
Provision for income taxes: |
|
|
|
|
|
|
Reversal of tax reserves (7) |
|
$ (2,272) |
|
$ - |
|
$ (37,324) |
International restructuring (8) |
|
$ 65,293 |
|
$ - |
|
$ 15,010 |
Total |
|
$ 63,021 |
|
$ - |
|
$ (22,314) |
|
|
|
|
|
|
|
Discontinued operations: |
|
|
|
|
|
|
Income from discontinued operations, net of tax (9) |
|
$ (31,809) |
|
$ - |
|
$ - |
Total |
|
$ (31,809) |
|
$ - |
|
$ - |
|
|
|
|
|
|
|
(1) Includes stock-based compensation charges. |
|
|
|
|
|
|
(2) Includes intangible asset amortization related to acquisitions. | ||||||
(3) Includes expense related to fair value write up of inventory acquired as part of acquisitions. | ||||||
(4) Includes impairment charges relating to wafer fab and end of line manufacturing equipment. | ||||||
(5) Other operating (income) expenses, net are primarily for gain on sale of land and buildings, stock option related litigation, certain payroll taxes, interest and penalties and in-process research and development written off. | ||||||
(6) Includes gain on sale of equity investment. | ||||||
(7) Reversal of tax reserves related to audit completion and expiration of statute of limitations. | ||||||
(8) Includes impact due to implementation of international restructuring. | ||||||
(9) Includes gain on sale, net of tax relating to certain businesses divested. | ||||||
|
|
|
|
|
|
|
|
|
|
STOCK-BASED COMPENSATION BY TYPE OF AWARD (in thousands) | ||||||||
(Unaudited) | ||||||||
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2012 |
Stock Options |
|
Restricted Stock Units |
|
Employee Stock Purchase Plan |
|
Total |
|
Cost of goods sold |
$ 470 |
|
$ 2,217 |
|
$ 412 |
|
$ 3,099 |
|
Research and development expense |
1,742 |
|
8,203 |
|
1,602 |
|
11,547 |
|
Selling, general and administrative expense |
1,836 |
|
5,072 |
|
484 |
|
7,392 |
|
Total |
$ 4,048 |
|
$ 15,492 |
|
$ 2,498 |
|
$ 22,038 |
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 26, 2011 |
|
|
|
|
|
|
|
|
Cost of goods sold |
$ 626 |
|
$ 2,308 |
|
$ 402 |
|
$ 3,336 |
|
Research and development expense |
2,050 |
|
8,326 |
|
1,367 |
|
11,743 |
|
Selling, general and administrative expense |
1,347 |
|
4,396 |
|
406 |
|
6,149 |
|
Total |
$ 4,023 |
|
$ 15,030 |
|
$ 2,175 |
|
$ 21,228 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS |
| |||||
(Unaudited) |
| |||||
|
| |||||
|
March 31, |
|
December 31, |
|
March 26, |
|
|
2012 |
|
2011 |
|
2011 |
|
|
(in thousands) |
| ||||
ASSETS |
| |||||
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
$ 860,551 |
|
$ 741,160 |
|
$ 868,923 |
|
Short-term investments |
75,405 |
|
75,375 |
|
49,924 |
|
Total cash, cash equivalents and short-term investments |
935,956 |
|
816,535 |
|
918,847 |
|
Accounts receivable, net |
296,255 |
|
246,229 |
|
304,591 |
|
Inventories |
220,153 |
|
233,404 |
|
234,933 |
|
Deferred tax assets |
105,298 |
|
87,636 |
|
128,371 |
|
Other current assets |
79,584 |
|
81,396 |
|
89,851 |
|
Total current assets |
1,637,246 |
|
1,465,200 |
|
1,676,593 |
|
Property, plant and equipment, net |
1,361,300 |
|
1,365,815 |
|
1,286,061 |
|
Intangible assets, net |
222,354 |
|
237,776 |
|
216,439 |
|
Goodwill |
423,073 |
|
432,809 |
|
247,526 |
|
Other assets |
26,264 |
|
19,055 |
|
25,798 |
|
TOTAL ASSETS |
$ 3,670,237 |
|
$ 3,520,655 |
|
$ 3,452,417 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
| |||||
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
$ 132,906 |
|
$ 118,427 |
|
$ 107,444 |
|
Income taxes payable |
21,807 |
|
7,866 |
|
5,363 |
|
Accrued salary and related expenses |
181,943 |
|
159,651 |
|
201,791 |
|
Accrued expenses |
72,242 |
|
62,579 |
|
40,984 |
|
Deferred income on shipments to distributors |
28,729 |
|
31,136 |
|
35,571 |
|
Total current liabilities |
437,627 |
|
379,659 |
|
391,153 |
|
Long term debt |
308,700 |
|
308,700 |
|
300,000 |
|
Income taxes payable |
192,842 |
|
108,462 |
|
92,110 |
|
Deferred tax liabilities |
205,727 |
|
197,839 |
|
180,442 |
|
Other liabilities |
22,143 |
|
21,529 |
|
23,672 |
|
Total liabilities |
1,167,039 |
|
1,016,189 |
|
987,377 |
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
Common stock |
9,125 |
|
292 |
|
5,865 |
|
Retained earnings |
2,507,298 |
|
2,517,166 |
|
2,473,271 |
|
Accumulated other comprehensive loss |
(13,225) |
|
(12,992) |
|
(14,096) |
|
Total stockholders' equity |
2,503,198 |
|
2,504,466 |
|
2,465,040 |
|
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY |
$ 3,670,237 |
|
$ 3,520,655 |
|
$ 3,452,417 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
(Unaudited) | |||||
|
Three Months Ended | ||||
|
March 31, |
|
December 31, |
|
March 26, |
|
2012 |
|
2011 |
|
2011 |
|
(in thousands) | ||||
Cash flows from operating activities: |
|
|
|
|
|
Net income |
$ 54,517 |
|
$ 88,130 |
|
$ 136,276 |
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
Stock-based compensation |
22,038 |
|
23,474 |
|
21,228 |
Depreciation and amortization |
53,476 |
|
51,995 |
|
50,684 |
Deferred taxes |
(9,942) |
|
(368) |
|
15,733 |
In-process research and development |
1,600 |
|
- |
|
- |
(Gain) Loss from sale of property, plant and equipment |
(6,487) |
|
124 |
|
(51) |
Gain from discontinued operations |
(45,372) |
|
- |
|
- |
Gain from sale of equity investments |
- |
|
(1,811) |
|
- |
Tax shortfall (benefit) related to stock-based compensation plans |
2,957 |
|
(2,581) |
|
33,411 |
Impairment of long-lived assets |
7,712 |
|
- |
|
- |
Excess tax benefit related to stock-based compensation |
(5,172) |
|
(4,242) |
|
(4,229) |
Changes in assets and liabilities: |
|
|
|
|
|
Accounts receivable |
(50,026) |
|
82,760 |
|
(11,327) |
Inventories |
12,412 |
|
19,045 |
|
(17,673) |
Other current assets |
2,332 |
|
(1,615) |
|
44,654 |
Accounts payable |
27,228 |
|
(18,397) |
|
10,952 |
Income taxes payable |
98,321 |
|
12,619 |
|
(70,201) |
Deferred income on shipments to distributors |
(2,407) |
|
(3,444) |
|
1,306 |
All other accrued liabilities |
33,312 |
|
3,631 |
|
45,934 |
Net cash provided by operating activities |
196,499 |
|
249,320 |
|
256,697 |
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
Payments for property, plant and equipment |
(70,053) |
|
(68,361) |
|
(29,593) |
Proceeds from sales of property, plant and equipment |
13,774 |
|
1,709 |
|
80 |
Acquisitions |
- |
|
(12,018) |
|
- |
Discontinued operations |
56,607 |
|
- |
|
- |
Purchases of equity investments |
(1,980) |
|
- |
|
(49,787) |
Purchases of available-for-sale securities |
- |
|
(25,108) |
|
- |
Proceeds from sales of equity securities |
- |
|
3,225 |
|
- |
Net cash used in investing activities |
(1,652) |
|
(100,553) |
|
(79,300) |
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
Dividends paid |
(64,384) |
|
(64,158) |
|
(62,323) |
Repayment of notes payable |
- |
|
(4,189) |
|
- |
Repurchase of common stock |
(28,970) |
|
(72,486) |
|
(46,689) |
Issuance of ESPP |
- |
|
14,906 |
|
- |
Proceeds from stock options exercised |
20,395 |
|
12,013 |
|
6,197 |
Other |
(2,497) |
|
(3,734) |
|
(4,003) |
Net cash used in financing activities |
(75,456) |
|
(117,648) |
|
(106,818) |
|
|
|
|
|
|
Net increase in cash and cash equivalents |
119,391 |
|
31,119 |
|
70,579 |
Cash and cash equivalents: |
|
|
|
|
|
Beginning of period |
741,160 |
|
710,041 |
|
798,344 |
End of period |
$ 860,551 |
|
$ 741,160 |
|
$ 868,923 |
|
|
|
|
|
|
Total cash, cash equivalents, and short-term investments |
$ 935,956 |
|
$ 816,535 |
|
$ 918,847 |
|
|
|
|
|
|
|
|
|
|
|
|
ANALYSIS OF GAAP VERSUS GAAP EXCLUDING SPECIAL EXPENSE ITEMS DISCLOSURES | ||||||
(Unaudited) | ||||||
| ||||||
|
|
Three Months Ended | ||||
|
|
March 31, |
|
December 31, |
|
March 26, |
|
|
2012 |
|
2011 |
|
2011 |
|
|
(in thousands, except per share data) | ||||
Reconciliation of GAAP gross profit to GAAP gross profit excluding special expense items: |
|
|
|
|
|
|
GAAP gross profit |
|
$ 335,430 |
|
$ 347,960 |
|
$ 372,650 |
GAAP gross profit % |
|
58.7% |
|
58.8% |
|
61.4% |
|
|
|
|
|
|
|
Special expense items: |
|
|
|
|
|
|
Intangible asset amortization (1) |
|
9,787 |
|
8,080 |
|
7,919 |
Acquisition related inventory write up (2) |
|
- |
|
1,801 |
|
- |
Total special expense items |
|
9,787 |
|
9,881 |
|
7,919 |
GAAP gross profit excluding special expense items |
|
$ 345,217 |
|
$ 357,841 |
|
$ 380,569 |
GAAP gross profit % excluding special expense items |
|
60.4% |
|
60.5% |
|
62.7% |
|
|
|
|
|
|
|
Reconciliation of GAAP operating expenses to GAAP operating expenses excluding special expense items: |
|
|
|
|
|
|
GAAP operating expenses |
|
$ 223,544 |
|
$ 233,450 |
|
$ 208,655 |
|
|
|
|
|
|
|
Special expense (income) items: |
|
|
|
|
|
|
Intangible asset amortization (1) |
|
4,029 |
|
4,338 |
|
4,092 |
Impairment of long-lived assets (3) |
|
7,712 |
|
- |
|
- |
Severance and restructuring |
|
228 |
|
6,047 |
|
16 |
Other operating (income) expenses, net (4) |
|
(2,511) |
|
155 |
|
(25) |
Total special expense items |
|
9,458 |
|
10,540 |
|
4,083 |
GAAP operating expenses excluding special expense items |
|
$ 214,086 |
|
$ 222,910 |
|
$ 204,572 |
|
|
|
|
|
|
|
Reconciliation of GAAP net income to GAAP net income excluding special expense items: |
|
|
|
|
|
|
GAAP net income |
|
$ 54,517 |
|
$ 88,130 |
|
$ 136,276 |
|
|
|
|
|
|
|
Special expense (income) items: |
|
|
|
|
|
|
Intangible asset amortization (1) |
|
13,816 |
|
12,418 |
|
12,011 |
Acquisition related inventory write up (2) |
|
- |
|
1,801 |
|
- |
Impairment of long-lived assets (3) |
|
7,712 |
|
- |
|
- |
Severance and restructuring |
|
228 |
|
6,047 |
|
16 |
Other operating expenses (income), net (4) |
|
(2,511) |
|
155 |
|
(25) |
Interest and other (income), net (5) |
|
- |
|
(1,776) |
|
- |
Pre-tax total special expense items |
|
19,245 |
|
18,645 |
|
12,002 |
Tax effect of special items |
|
(5,445) |
|
(6,102) |
|
(4,233) |
Reversal of tax reserves (6) |
|
(2,272) |
|
- |
|
(37,324) |
International restructuring (7) |
|
65,293 |
|
- |
|
15,010 |
Discontinued operations, net of tax (8) |
|
(31,809) |
|
- |
|
- |
GAAP net income excluding special expense items |
|
$ 99,529 |
|
$ 100,673 |
|
$ 121,731 |
|
|
|
|
|
|
|
GAAP net income per share excluding special expense items: |
|
|
|
|
|
|
Basic |
|
$ 0.34 |
|
$ 0.34 |
|
$ 0.41 |
Diluted |
|
$ 0.33 |
|
$ 0.34 |
|
$ 0.40 |
|
|
|
|
|
|
|
Shares used in the calculation of earnings per share excluding special expense items: |
|
|
|
|
| |
Basic |
|
292,276 |
|
291,824 |
|
296,511 |
Diluted |
|
300,221 |
|
299,290 |
|
304,515 |
|
|
|
|
|
|
|
(1) Includes intangible asset amortization related to acquisitions. | ||||||
(2) Includes expense related to fair value write up of inventory acquired as part of acquisitions. | ||||||
(3) Includes impairment charges relating to wafer fab and end of line manufacturing equipment. | ||||||
(4) Other operating (income) expenses, net are primarily for gain on sale of land and buildings, stock option related litigation, certain payroll taxes, interest and penalties and in-process research and development written off. | ||||||
(5) Includes gain on sale of equity investment. | ||||||
(6) Reversal of tax reserves related to audit completion and expiration of statute of limitations. | ||||||
(7) Includes impact due to implementation of international restructuring. | ||||||
(8) Includes gain on sale, net of tax relating to certain businesses divested. | ||||||
|
Non-GAAP Measures
To supplement the consolidated financial results prepared under GAAP, Maxim uses non-GAAP measures which are adjusted from the most directly comparable GAAP results to exclude special expense items related to intangible asset amortization; acquisition related inventory write up to fair value; impairment charges related to manufacturing equipment; severance and restructuring; stock option related litigation; certain payroll taxes, interest and penalties; in-process research and development written off; gain on the sale of land and buildings; gain on sale of equity investment; reversal of tax reserves related to audit completion and expiration of statute of limitations; the tax provision impacts due to implementation of international restructuring; and gain on sale, net of tax relating to certain businesses divested. Management uses these non-GAAP measures internally to make strategic decisions, forecast future results and evaluate Maxim's current performance. Many analysts covering Maxim use the non-GAAP measures as well. Given management's use of these non-GAAP measures, Maxim believes these measures are important to investors in understanding Maxim's current and future operating results as seen through the eyes of management. In addition, management believes these non-GAAP measures are useful to investors in enabling them to better assess changes in Maxim's core business across different time periods. These non-GAAP measures are not in accordance with or an alternative to GAAP financial data and may be different from non-GAAP measures used by other companies. Because non-GAAP financial measures are not standardized it may not be possible to compare these financial measures with other companies' non-GAAP financial measures, even if they have similar names. The non-GAAP measures displayed in the table above include the following:
GAAP gross profit excluding special expense items
The use of GAAP gross profit excluding special expense items allows management to evaluate the gross margin of the company's core businesses and trends across different reporting periods on a consistent basis, independent of special expense items including intangible asset amortization and acquisition related inventory write up to fair value. In addition, it is an important component of management's internal performance measurement and reward process as it is used to assess the current and historical financial results of the business, for strategic decision making, preparing budgets and forecasting future results. Management presents GAAP gross profit excluding special expense items to enable investors and analysts to evaluate our revenue generation performance relative to the direct costs of revenue of Maxim's core businesses.
GAAP operating expenses excluding special expense items
The use of GAAP operating expenses excluding special expense items allows management to evaluate the operating expenses of the company's core businesses and trends across different reporting periods on a consistent basis, independent of special expense items including intangible asset amortization; impairment charges related to manufacturing equipment; severance and restructuring; stock option related litigation; certain payroll taxes, interest and penalties; in-process research and development written off; and gain on the sale of land and buildings. In addition, it is an important component of management's internal performance measurement and reward process as it is used to assess the current and historical financial results of the business, for strategic decision making, preparing budgets and forecasting future results. Management presents GAAP operating expenses excluding special expense items to enable investors and analysts to evaluate our core business and its direct operating expenses.
GAAP net income and GAAP net income per share excluding special items
The use of GAAP net income and GAAP net income per share excluding special items allow management to evaluate the operating results of Maxim's core businesses and trends across different reporting periods on a consistent basis, independent of special items including intangible asset amortization; acquisition related inventory write up to fair value; impairment charges related to manufacturing equipment; severance and restructuring; stock option related litigation; certain payroll taxes, interest and penalties; in-process research and development written off; gain on the sale of land and buildings; gain on sale of equity investment; reversal of tax reserves related to audit completion and expiration of statute of limitations; the tax provision impacts due to implementation of international restructuring; and gain on sale, net of tax relating to certain businesses divested. In addition, they are important components of management's internal performance measurement and reward process as it is used to assess the current and historical financial results of the business, for strategic decision making, preparing budgets and forecasting future results. Management presents GAAP net income and GAAP net income per share excluding special items to enable investors and analysts to understand the results of operations of Maxim's core businesses and to compare our results of operations on a more consistent basis against that of other companies in our industry.
"Safe Harbor" Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include the Company's financial projections for its fourth quarter of fiscal 2012 ending in June 2012, which includes revenue, gross margin and earnings per share, as well as the Company's belief that the March quarter marked a cyclical bottom for its revenue given lean channel inventories, strengthening of bookings and healthy demand for the Company's mobility products. These statements involve risk and uncertainty. Actual results could differ materially from those forecasted based upon, among other things, general market and economic conditions and market developments that could adversely affect the growth of the mixed-signal analog market, product mix shifts, customer cancellations and price competition, as well as other risks described in the Company's Annual Report on Form 10-K for the fiscal year ended June 25, 2011 (the "10-K") and Quarterly Reports on Form 10-Q filed after the 10-K.
All forward-looking statements included in this news release are made as of the date hereof, based on the information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement except as required by law.
About Maxim
Maxim makes highly integrated analog and mixed-signal semiconductors. Maxim reported revenue of approximately $2.5 billion for fiscal 2011. For more information, go to www.Maxim-ic.com.
Contact
Venk Nathamuni
Managing Director, Investor Relations
(408) 470-5715
SOURCE Maxim Integrated Products, Inc.
Contact: |
Maxim Integrated Products, Inc.
Web: http://www.maxim-ic.com |