-- Revenue: $608 million
(PRNewswire) — Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $608 million for its fourth quarter of fiscal 2013 ended June 29, 2013, an increase from the $605 million revenue recorded in the prior quarter.Tunc Doluca, President and Chief Executive Officer, commented, "We are disappointed by the weakness in end market demand for our smartphone products which resulted in revenue and earnings below expectations. This was partially offset by revenue growth in 22 of the 24 market segments that we address. We continue to generate strong profits and cash flow, and we are confident in our strategy and long-term business model as demonstrated by the increase in our dividend and share repurchases."
Fiscal Year 2013 Fourth Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the June quarter was $0.40. The results were primarily affected by an $11 million pre-tax charge for acquisition related items.
GAAP earnings per share, excluding special items, was $0.44. 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 fourth quarter of fiscal 2013, total cash, cash equivalents and short term investments was $1.20 billion, a decrease of $373 million from the prior quarter. Notable items include:
- Debt repayment: $300 million
- Cash flow from operations: $214 million
- Net capital expenditures: $34 million
- Dividends: $70 million ($0.24 per share)
- Stock repurchases: $193 million
Business Outlook
The Company's 90 day backlog at the beginning of the first fiscal quarter of 2014 was $357 million. Due to weakness in our smartphone business, results for the September 2013 quarter are expected to be:
- Revenue: $570 million to $600 million
- Gross Margin: 59% to 62% GAAP (60% to 63% excluding special items)
- EPS: $0.34 to $0.38 GAAP ($0.37 to $0.41 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 $0.26 per share will be paid on September 5, 2013, to stockholders of record on August 22, 2013. This is an 8% increase in the dividend compared to the prior quarter.
Share Repurchase Program
Maxim Integrated's Board of Directors has authorized the repurchase of up to $1.0 billion of the Company's Common Stock. All repurchases will be subject to market and economic conditions. The stock repurchase authorization does not have an expiration date and the pace of repurchase activity will depend on factors such as current stock price, levels of cash generation from operations, cash requirements and other factors. Under the Company's prior repurchase authorization from August 2011, which is now cancelled and superseded by this new authorization, the Company repurchased 23 million shares for $641 million.
Conference Call
Maxim Integrated has scheduled a conference call on July 25, 2013, at 2:00 p.m. Pacific Time to discuss its financial results for the fourth 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/company/investor.
Contact
Venk Nathamuni
Managing Director, Investor Relations
(408) 601-5293
|
|
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||
|
|
(Unaudited) | ||||||||||
|
|
|
|
Three Months Ended |
|
Year Ended | ||||||
|
|
|
|
June 29, |
|
March 30, |
|
June 30, |
|
June 29, |
|
June 30, |
|
|
|
|
2013 |
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
|
|
(in thousands, except per share data) | ||||||||
|
|
Net revenues |
|
$608,194 |
|
$604,884 |
|
$604,956 |
|
$2,441,459 |
|
$2,403,529 |
|
|
Cost of goods sold |
|
236,795 |
|
228,782 |
|
232,967 |
|
944,892 |
|
952,677 |
|
|
Gross margin |
|
371,399 |
|
376,102 |
|
371,989 |
|
1,496,567 |
|
1,450,852 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
132,009 |
|
134,138 |
|
134,007 |
|
534,819 |
|
552,379 |
|
|
Selling, general and administrative |
|
82,083 |
|
81,954 |
|
79,980 |
|
324,282 |
|
321,273 |
|
|
Intangible asset amortization |
|
3,670 |
|
3,903 |
|
4,049 |
|
15,525 |
|
16,737 |
|
|
Impairment of long-lived assets (1) |
|
- |
|
- |
|
22,383 |
|
24,929 |
|
30,095 |
|
|
Severance and restructuring expenses |
|
442 |
|
151 |
|
18 |
|
2,829 |
|
6,785 |
|
|
Other operating expenses (income), net (2) |
|
2,105 |
|
1,678 |
|
(4,469) |
|
5,864 |
|
(11,214) |
|
|
Total operating expenses |
|
220,309 |
|
221,824 |
|
235,968 |
|
908,248 |
|
916,055 |
|
|
Operating income |
|
151,090 |
|
154,278 |
|
136,021 |
|
588,319 |
|
534,797 |
|
|
Interest and other income (expense), net (3) |
|
(6,830) |
|
(2,669) |
|
(108) |
|
(18,040) |
|
(2,064) |
|
|
Income before provision for income taxes |
|
144,260 |
|
151,609 |
|
135,913 |
|
570,279 |
|
532,733 |
|
|
Provision for income taxes (4) |
|
25,246 |
|
22,824 |
|
25,279 |
|
117,970 |
|
177,815 |
|
|
Income from continuing operations |
|
119,014 |
|
128,785 |
|
110,634 |
|
452,309 |
|
354,918 |
|
|
Income from discontinued operations, net of tax (5) |
|
- |
|
2,603 |
|
- |
|
2,603 |
|
31,809 |
|
|
Net income |
|
$119,014 |
|
$131,388 |
|
$110,634 |
|
$ 454,912 |
|
$ 386,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share: basic |
|
|
|
|
|
|
|
|
|
|
|
|
From continuing operations |
|
$ 0.41 |
|
$ 0.44 |
|
$ 0.38 |
|
$ 1.55 |
|
$ 1.21 |
|
|
From discontinued operations, net of tax (5) |
|
- |
|
0.01 |
|
- |
|
0.01 |
|
0.11 |
|
|
Basic |
|
$ 0.41 |
|
$ 0.45 |
|
$ 0.38 |
|
$ 1.56 |
|
$ 1.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share: diluted |
|
|
|
|
|
|
|
|
|
|
|
|
From continuing operations |
|
$ 0.40 |
|
$ 0.43 |
|
$ 0.37 |
|
$ 1.51 |
|
$ 1.18 |
|
|
From discontinued operations, net of tax (5) |
|
- |
|
0.01 |
|
- |
|
0.01 |
|
0.11 |
|
|
Diluted |
|
$ 0.40 |
|
$ 0.44 |
|
$ 0.37 |
|
$ 1.52 |
|
$ 1.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in the calculation of earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
290,146 |
|
292,888 |
|
292,757 |
|
291,835 |
|
292,810 |
|
|
Diluted |
|
296,756 |
|
300,082 |
|
299,793 |
|
298,596 |
|
300,002 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per share |
|
$ 0.24 |
|
$ 0.24 |
|
$ 0.22 |
|
$ 0.96 |
|
$ 0.88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCHEDULE OF SPECIAL ITEMS | ||||||||||
|
|
(Unaudited) | ||||||||||
|
|
|
|
Three Months Ended |
|
Year Ended | ||||||
|
|
|
|
June 29, |
|
March 30, |
|
June 30, |
|
June 29, |
|
June 30, |
|
|
|
|
2013 |
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
|
|
(in thousands) | ||||||||
|
|
Cost of goods sold: |
|
|
|
|
|
|
|
|
|
|
|
|
Intangible asset amortization |
|
$ 7,777 |
|
$ 7,777 |
|
$ 9,392 |
|
$ 33,994 |
|
$ 36,693 |
|
|
Acquisition related inventory write up |
|
- |
|
- |
|
- |
|
- |
|
1,801 |
|
|
Total |
|
$ 7,777 |
|
$ 7,777 |
|
$ 9,392 |
|
$ 33,994 |
|
$ 38,494 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Intangible asset amortization |
|
$ 3,670 |
|
$ 3,903 |
|
$ 4,049 |
|
$ 15,525 |
|
$ 16,737 |
|
|
Impairment of long-lived assets (1) |
|
- |
|
- |
|
22,383 |
|
24,929 |
|
30,095 |
|
|
Severance and restructuring |
|
442 |
|
151 |
|
18 |
|
2,829 |
|
6,785 |
|
|
Other operating expenses (income) , net (2) |
|
2,105 |
|
1,678 |
|
(4,469) |
|
5,864 |
|
(11,214) |
|
|
Total |
|
$ 6,217 |
|
$ 5,732 |
|
$ 21,981 |
|
$ 49,147 |
|
$ 42,403 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other expense (income), net (3) |
|
$ 700 |
|
$ - |
|
$ 550 |
|
$ 700 |
|
$ (1,226) |
|
|
Total |
|
$ 700 |
|
$ - |
|
$ 550 |
|
$ 700 |
|
$ (1,226) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
Reversal of tax reserves |
|
$ - |
|
$ - |
|
$ - |
|
$ - |
|
$ (2,272) |
|
|
International restructuring implementation (4) |
|
- |
|
- |
|
2,751 |
|
18,726 |
|
65,389 |
|
|
Fiscal year 2012 research & development tax credits |
|
- |
|
(3,899) |
|
- |
|
(3,899) |
|
- |
|
|
Total |
|
$ - |
|
$ (3,899) |
|
$ 2,751 |
|
$ 14,827 |
|
$ 63,117 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations: |
|
|
|
|
|
|
|
|
|
|
|
|
Income from discontinued operations, net of tax (5) |
|
$ - |
|
$ (2,603) |
|
$ - |
|
$ (2,603) |
|
$ (31,809) |
|
|
Total |
|
$ - |
|
$ (2,603) |
|
$ - |
|
$ (2,603) |
|
$ (31,809) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes impairment charges relating to wafer fab and end of line manufacturing equipment and land & building held for sale. | ||||||||||
|
|
(2) Other operating expenses (income), net are primarily for in-process research and development, certain payroll taxes, contingent consideration adjustments related to certain acquisitions, loss (gain) relating to sale of land and buildings, loss on lease abandonment, and stock option related litigation. | ||||||||||
|
|
(3) Includes gain on sale and impairment of privately-held companies. | ||||||||||
|
|
(4) Includes impact due to international restructuring. | ||||||||||
|
|
(5) 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 June 29, 2013 |
Stock Options |
|
Restricted Stock Units |
|
Employee Stock Purchase Plan |
|
Total |
|
|
|
Cost of goods sold |
$ 320 |
|
$ 1,999 |
|
$ 559 |
|
$ 2,878 |
|
|
|
Research and development expense |
1,673 |
|
6,748 |
|
1,226 |
|
9,647 |
|
|
|
Selling, general and administrative expense |
1,333 |
|
4,488 |
|
507 |
|
6,328 |
|
|
|
Total |
$ 3,326 |
|
$ 13,235 |
|
$ 2,292 |
|
$18,853 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 30, 2013 |
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
$ 337 |
|
$ 2,120 |
|
$ 598 |
|
$ 3,055 |
|
|
|
Research and development expense |
1,440 |
|
7,116 |
|
1,480 |
|
10,036 |
|
|
|
Selling, general and administrative expense |
1,157 |
|
4,764 |
|
601 |
|
6,522 |
|
|
|
Total |
$ 2,934 |
|
$ 14,000 |
|
$ 2,679 |
|
$19,613 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2012 |
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
$ 462 |
|
$ 2,206 |
|
$ 423 |
|
$ 3,091 |
|
|
|
Research and development expense |
1,607 |
|
8,331 |
|
1,413 |
|
11,351 |
|
|
|
Selling, general and administrative expense |
1,468 |
|
4,518 |
|
462 |
|
6,448 |
|
|
|
Total |
$ 3,537 |
|
$ 15,055 |
|
$ 2,298 |
|
$20,890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended June 29, 2013 |
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
$ 1,532 |
|
$ 8,862 |
|
$ 2,210 |
|
$12,604 |
|
|
|
Research and development expense |
7,230 |
|
31,475 |
|
5,441 |
|
44,146 |
|
|
|
Selling, general and administrative expense |
5,331 |
|
19,523 |
|
2,204 |
|
27,058 |
|
|
|
Total |
$ 14,093 |
|
$ 59,860 |
|
$ 9,855 |
|
$83,808 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended June 30, 2012 |
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
$ 2,014 |
|
$ 9,387 |
|
$ 1,738 |
|
$13,139 |
|
|
|
Research and development expense |
7,844 |
|
35,699 |
|
5,525 |
|
49,068 |
|
|
|
Selling, general and administrative expense |
6,436 |
|
19,493 |
|
1,731 |
|
27,660 |
|
|
|
Total |
$ 16,294 |
|
$ 64,579 |
|
$ 8,994 |
|
$89,867 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS |
| |||||
|
|
(Unaudited) |
| |||||
|
|
|
June 29, |
|
March 30, |
|
June 30, |
|
|
|
|
2013 |
|
2013 |
|
2012 |
|
|
|
|
(in thousands) |
| ||||
|
|
ASSETS |
| |||||
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$1,174,986 |
|
$1,547,980 |
|
$ 881,060 |
|
|
|
Short-term investments |
25,060 |
|
25,095 |
|
75,326 |
|
|
|
Total cash, cash equivalents and short-term investments |
1,200,046 |
|
1,573,075 |
|
956,386 |
|
|
|
Accounts receivable, net |
285,438 |
|
300,046 |
|
317,461 |
|
|
|
Inventories |
275,640 |
|
268,018 |
|
242,162 |
|
|
|
Deferred tax assets |
82,173 |
|
81,809 |
|
98,180 |
|
|
|
Other current assets |
96,609 |
|
113,010 |
|
85,177 |
|
|
|
Total current assets |
1,939,906 |
|
2,335,958 |
|
1,699,366 |
|
|
|
Property, plant and equipment, net |
1,373,124 |
|
1,368,905 |
|
1,353,606 |
|
|
|
Intangible assets, net |
157,146 |
|
165,591 |
|
208,913 |
|
|
|
Goodwill |
422,004 |
|
422,004 |
|
423,073 |
|
|
|
Other assets |
43,730 |
|
41,660 |
|
52,988 |
|
|
|
TOTAL ASSETS |
$3,935,910 |
|
$4,334,118 |
|
$3,737,946 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
| |||||
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
$ 105,322 |
|
$ 114,629 |
|
$ 147,086 |
|
|
|
Income taxes payable |
22,437 |
|
20,200 |
|
22,589 |
|
|
|
Accrued salary and related expenses |
187,970 |
|
182,894 |
|
191,846 |
|
|
|
Accrued expenses |
60,592 |
|
59,075 |
|
64,092 |
|
|
|
Current portion of long term debt |
2,015 |
|
304,314 |
|
303,496 |
|
|
|
Deferred income on shipments to distributors |
26,557 |
|
25,851 |
|
26,280 |
|
|
|
Total current liabilities |
404,893 |
|
706,963 |
|
755,389 |
|
|
|
Long term debt |
503,573 |
|
503,573 |
|
5,592 |
|
|
|
Income taxes payable |
282,697 |
|
271,815 |
|
212,389 |
|
|
|
Deferred tax liabilities |
206,855 |
|
213,138 |
|
198,502 |
|
|
|
Other liabilities |
29,894 |
|
26,063 |
|
27,797 |
|
|
|
Total liabilities |
1,427,912 |
|
1,721,552 |
|
1,199,669 |
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
Common stock |
288 |
|
292 |
|
293 |
|
|
|
Retained earnings |
2,523,457 |
|
2,629,895 |
|
2,553,418 |
|
|
|
Accumulated other comprehensive loss |
(15,747) |
|
(17,621) |
|
(15,434) |
|
|
|
Total stockholders' equity |
2,507,998 |
|
2,612,566 |
|
2,538,277 |
|
|
|
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY |
$3,935,910 |
|
$4,334,118 |
|
$3,737,946 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
|
|
| |||||||||
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
|
|
(Unaudited) | |||||||||
|
|
|
Three Months Ended |
|
Year Ended | ||||||
|
|
|
June 29, |
|
March 30, |
|
June 30, |
|
June 29, |
|
June 30, |
|
|
|
2013 |
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
|
(in thousands) | ||||||||
|
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ 119,014 |
|
$ 131,388 |
|
$110,634 |
|
$ 454,912 |
|
$386,727 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
18,853 |
|
19,613 |
|
20,890 |
|
83,808 |
|
89,867 |
|
|
Depreciation and amortization |
51,191 |
|
50,391 |
|
53,554 |
|
207,136 |
|
211,096 |
|
|
Deferred taxes |
(2,813) |
|
18,392 |
|
1,224 |
|
25,372 |
|
30,759 |
|
|
Loss (gain) from sale of property, plant and equipment |
1,380 |
|
(2,397) |
|
(1,412) |
|
(1,156) |
|
(7,648) |
|
|
Tax benefit (shortfall) related to stock-based compensation |
358 |
|
1,317 |
|
1,309 |
|
8,197 |
|
3,113 |
|
|
Impairment of long-lived assets |
- |
|
- |
|
22,933 |
|
24,929 |
|
30,645 |
|
|
Excess tax benefit from stock-based compensation |
(2,792) |
|
(4,297) |
|
(5,247) |
|
(18,923) |
|
(17,482) |
|
|
In-process research and development written-off |
- |
|
2,800 |
|
- |
|
2,800 |
|
1,600 |
|
|
Loss (gain) on sale of discontinued operations |
- |
|
(3,285) |
|
- |
|
(3,285) |
|
(45,372) |
|
|
Gain from sale of investments in privately-held companies |
- |
|
- |
|
- |
|
- |
|
(1,811) |
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
14,608 |
|
(35,501) |
|
(21,206) |
|
32,023 |
|
(19,262) |
|
|
Inventories |
(7,657) |
|
(12,143) |
|
(22,090) |
|
(35,245) |
|
(432) |
|
|
Other current assets |
(2,132) |
|
(14,653) |
|
(5,634) |
|
(20,533) |
|
(16,757) |
|
|
Accounts payable |
(6,961) |
|
10,453 |
|
11,802 |
|
(32,510) |
|
25,515 |
|
|
Income taxes payable |
13,118 |
|
9,100 |
|
20,329 |
|
70,156 |
|
134,967 |
|
|
Deferred revenue on shipments to distributors |
706 |
|
489 |
|
(2,449) |
|
277 |
|
(10,601) |
|
|
All other accrued liabilities |
17,527 |
|
40,026 |
|
5,457 |
|
19,977 |
|
(38,202) |
|
|
Net cash provided by (used in) operating activities |
214,400 |
|
211,693 |
|
190,094 |
|
817,935 |
|
756,722 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
Payments for property, plant and equipment |
(48,922) |
|
(54,945) |
|
(76,610) |
|
(216,672) |
|
(264,348) |
|
|
Proceeds from sales of property, plant and equipment |
4,538 |
|
10,199 |
|
1,400 |
|
19,196 |
|
16,883 |
|
|
Proceeds from sales of property, plant and equipment through note receivable |
10,786 |
|
- |
|
- |
|
10,786 |
|
- |
|
|
Proceeds from sale of discontinued operations |
- |
|
- |
|
- |
|
- |
|
56,607 |
|
|
Proceeds from maturity of available-for-sale securities |
- |
|
50,000 |
|
- |
|
50,000 |
|
- |
|
|
Purchases of available-for-sale securities |
- |
|
- |
|
- |
|
- |
|
(25,108) |
|
|
Purchases of privately-held companies securities |
(500) |
|
- |
|
(1,500) |
|
(500) |
|
(3,480) |
|
|
Acquisitions |
(2,767) |
|
- |
|
(2,257) |
|
(2,767) |
|
(168,544) |
|
|
Proceeds from sales of investments of privately-held companies |
585 |
|
- |
|
- |
|
585 |
|
3,225 |
|
|
Net cash provided by (used in) investing activities |
(36,280) |
|
5,254 |
|
(78,967) |
|
(139,372) |
|
(384,765) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
Excess tax benefit from stock-based compensation |
2,792 |
|
4,297 |
|
5,247 |
|
18,923 |
|
17,482 |
|
|
Contingent consideration paid |
(6,305) |
|
- |
|
- |
|
(13,781) |
|
- |
|
|
Dividends paid |
(69,532) |
|
(70,421) |
|
(64,408) |
|
(280,215) |
|
(257,731) |
|
|
Repayment of notes payable |
(302,299) |
|
(903) |
|
(400) |
|
(303,500) |
|
(20,806) |
|
|
Issuance of debt |
- |
|
494,395 |
|
- |
|
494,395 |
|
- |
|
|
Debt issuance cost |
(671) |
|
(3,250) |
|
- |
|
(3,921) |
|
- |
|
|
Repurchase of common stock |
(193,221) |
|
(66,330) |
|
(56,282) |
|
(375,135) |
|
(246,412) |
|
|
Issuance of ESPP |
19,529 |
|
- |
|
18,807 |
|
36,297 |
|
33,772 |
|
|
Net issuance of restricted stock units |
(7,456) |
|
(7,941) |
|
(6,929) |
|
(29,042) |
|
(29,649) |
|
|
Proceeds from stock options exercised |
6,049 |
|
26,079 |
|
13,347 |
|
71,342 |
|
49,906 |
|
|
Net cash provided by (used in) financing activities |
(551,114) |
|
375,926 |
|
(90,618) |
|
(384,637) |
|
(453,438) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents |
(372,994) |
|
592,873 |
|
20,509 |
|
293,926 |
|
(81,481) |
|
|
Cash and cash equivalents: |
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
1,547,980 |
|
955,107 |
|
860,551 |
|
881,060 |
|
962,541 |
|
|
End of period |
$1,174,986 |
|
$1,547,980 |
|
$881,060 |
|
$1,174,986 |
|
$881,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash, cash equivalents, and short-term investments |
$1,200,046 |
|
$1,573,075 |
|
$956,386 |
|
$1,200,046 |
|
$956,386 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
|
| ||||||||||
|
|
ANALYSIS OF GAAP VERSUS GAAP EXCLUDING SPECIAL ITEMS DISCLOSURES | ||||||||||
|
|
(Unaudited) | ||||||||||
|
|
|
|
Three Months Ended |
|
Year Ended | ||||||
|
|
|
|
June 29, |
|
March 30, |
|
June 30, |
|
June 29, |
|
June 30, |
|
|
|
|
2013 |
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
|
|
(in thousands, except per share data) | ||||||||
|
|
Reconciliation of GAAP gross profit to GAAP gross profit excluding special items: |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit |
|
$ 371,399 |
|
$ 376,102 |
|
$ 371,989 |
|
$ 1,496,567 |
|
$ 1,450,852 |
|
|
GAAP gross profit % |
|
61.1% |
|
62.2% |
|
61.5% |
|
61.3% |
|
60.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special expense items: |
|
|
|
|
|
|
|
|
|
|
|
|
Intangible asset amortization |
|
7,777 |
|
7,777 |
|
9,392 |
|
33,994 |
|
36,693 |
|
|
Acquisition related inventory write up |
|
- |
|
- |
|
- |
|
- |
|
1,801 |
|
|
Total special expense items |
|
7,777 |
|
7,777 |
|
9,392 |
|
33,994 |
|
38,494 |
|
|
GAAP gross profit excluding special expense items |
|
$ 379,176 |
|
$ 383,879 |
|
$ 381,381 |
|
$ 1,530,561 |
|
$ 1,489,346 |
|
|
GAAP gross profit % excluding special expense items |
|
62.3% |
|
63.5% |
|
63.0% |
|
62.7% |
|
62.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP operating expenses to GAAP operating expenses excluding special items: |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating expenses |
|
$ 220,309 |
|
$ 221,824 |
|
$ 235,968 |
|
$ 908,248 |
|
$ 916,055 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special expense (income) items: |
|
|
|
|
|
|
|
|
|
|
|
|
Intangible asset amortization |
|
3,670 |
|
3,903 |
|
4,049 |
|
15,525 |
|
16,737 |
|
|
Impairment of long-lived assets (1) |
|
- |
|
- |
|
22,383 |
|
24,929 |
|
30,095 |
|
|
Severance and restructuring |
|
442 |
|
151 |
|
18 |
|
2,829 |
|
6,785 |
|
|
Other operating expenses (income), net (2) |
|
2,105 |
|
1,678 |
|
(4,469) |
|
5,864 |
|
(11,214) |
|
|
Total special expense items |
|
6,217 |
|
5,732 |
|
21,981 |
|
49,147 |
|
42,403 |
|
|
GAAP operating expenses excluding special expense items |
|
$ 214,092 |
|
$ 216,092 |
|
$ 213,987 |
|
$ 859,101 |
|
$ 873,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP net income to GAAP net income excluding special items: |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income |
|
$ 119,014 |
|
$ 131,388 |
|
$ 110,634 |
|
$ 454,912 |
|
$ 386,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special expense (income) items: |
|
|
|
|
|
|
|
|
|
|
|
|
Intangible asset amortization |
|
11,447 |
|
11,680 |
|
13,441 |
|
49,519 |
|
53,430 |
|
|
Acquisition related inventory write up |
|
- |
|
- |
|
- |
|
- |
|
1,801 |
|
|
Impairment of long-lived assets (1) |
|
- |
|
- |
|
22,383 |
|
24,929 |
|
30,095 |
|
|
Severance and restructuring |
|
442 |
|
151 |
|
18 |
|
2,829 |
|
6,785 |
|
|
Other operating expenses (income) , net (2) |
|
2,105 |
|
1,678 |
|
(4,469) |
|
5,864 |
|
(11,214) |
|
|
Interest and other expense (income), net (3) |
|
700 |
|
- |
|
550 |
|
700 |
|
(1,226) |
|
|
Pre-tax total special expense items |
|
14,694 |
|
13,509 |
|
31,923 |
|
83,841 |
|
79,671 |
|
|
Tax effect of special items |
|
(4,231) |
|
(3,806) |
|
(10,613) |
|
(22,963) |
|
(25,579) |
|
|
Reversal of tax reserves |
|
- |
|
- |
|
- |
|
- |
|
(2,272) |
|
|
International restructuring implementation (4) |
|
- |
|
- |
|
2,751 |
|
18,726 |
|
65,389 |
|
|
Fiscal year 2012 research & development tax credits |
|
- |
|
(3,899) |
|
- |
|
(3,899) |
|
- |
|
|
Discontinued operations, net of tax (5) |
|
- |
|
(2,603) |
|
- |
|
(2,603) |
|
(31,809) |
|
|
GAAP net income excluding special expense items |
|
$ 129,477 |
|
$ 134,589 |
|
$ 134,695 |
|
$ 528,014 |
|
$ 472,127 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income per share excluding special expense items: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ 0.45 |
|
$ 0.46 |
|
$ 0.46 |
|
$ 1.81 |
|
$ 1.61 |
|
|
Diluted |
|
$ 0.44 |
|
$ 0.45 |
|
$ 0.45 |
|
$ 1.77 |
|
$ 1.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in the calculation of earnings per share excluding special expense items: |
|
|
|
|
|
|
|
|
| |
|
|
Basic |
|
290,146 |
|
292,888 |
|
292,757 |
|
291,835 |
|
292,810 |
|
|
Diluted |
|
296,756 |
|
300,082 |
|
299,793 |
|
298,596 |
|
300,002 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes impairment charges relating to wafer fab and end of line manufacturing equipment and land & building held for sale. | ||||||||||
|
|
(2) Other operating expenses (income), net are primarily for in-process research and development, certain payroll taxes, contingent consideration adjustments related to certain acquisitions, loss (gain) relating to sale of land and buildings, loss on lease abandonment, and stock option related litigation. | ||||||||||
|
|
(3) Includes gain on sale and impairment of privately-held companies. | ||||||||||
|
|
(4) Includes impact due to international restructuring. | ||||||||||
|
|
(5) 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 Integrated uses non-GAAP measures which are adjusted from the most directly comparable GAAP results to exclude special items related to intangible asset amortization; impairment of long-lived assets; severance and restructuring; in-process research and development; contingent consideration adjustments relating to certain acquisitions; loss (gain) relating to sale of land and buildings; stock option related litigation; certain payroll taxes; the tax provision impacts due to international restructuring implementation; reversal of tax reserves; fiscal year 2012 research and development tax credits; loss on lease abandonment; and gain on sale, net of tax relating to certain business divested. Management uses these non-GAAP measures internally to make strategic decisions, forecast future results and evaluate Maxim Integrated's current performance. Many analysts covering Maxim Integrated use the non-GAAP measures as well. Given management's use of these non-GAAP measures, Maxim Integrated believes these measures are important to investors in understanding Maxim Integrated'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 Integrated'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 items
The use of GAAP gross profit excluding special 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 items including intangible asset amortization. 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 items to enable investors and analysts to evaluate our revenue generation performance relative to the direct costs of revenue of Maxim Integrated's core businesses.
GAAP operating expenses excluding special items
The use of GAAP operating expenses excluding special 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 items including intangible asset amortization; impairment of long-lived assets; severance and restructuring; in-process research and development; contingent consideration adjustments relating to certain acquisitions; loss on lease abandonment; loss (gain) relating to sale of land and buildings; certain payroll taxes; and stock option related litigation. 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 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 Integrated's core businesses and trends across different reporting periods on a consistent basis, independent of special items including intangible asset amortization; impairment of long-lived assets; severance and restructuring; in-process research and development; contingent consideration adjustments relating to certain acquisitions; loss on lease abandonment; loss (gain) relating to sale of land and buildings; stock option related litigation; certain payroll taxes; the tax provision impacts due to international restructuring implementation; reversal of tax reserves; fiscal year 2012 research and development tax credits; and gain on sale, net of tax relating to certain business 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 Integrated'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 business outlook and financial projections for its first quarter of fiscal 2014 ending in September 2013, which includes revenue, gross margin and earnings per share, as well as the Company's confidence in its strategy and long-term business model as demonstrated by the increase in its dividend and share repurchases . 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, the loss of all or a substantial portion of our sales to one of our large customers, 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 30, 2012 (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 Integrated
At Maxim Integrated, we put analog together in a way that sets our customers apart. In Fiscal 2013, we reported revenues of $2.4 billion. For more information, go to www.maximintegrated.com.
SOURCE Maxim Integrated Products, Inc.
Contact: |
Maxim Integrated Products, Inc.
Web: http://www.maximintegrated.com |