Maxim Reports Results for the Third Quarter of Fiscal 2012

- 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.



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