Maxim Increases Dividend 9% and Reports Results for the Fourth Quarter of Fiscal 2012

-- Revenue: $605 million

(PRNewswire) — �Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $605 million for its fiscal 2012 fourth quarter ended June 30, 2012, a 6% increase from $571 million revenue recorded in the prior quarter.

The Company announced that its Board of Directors approved an increase in its quarterly dividend from $0.22 per share to $0.24 per share.

Tunc Doluca, President and Chief Executive Officer, commented, "During our just completed fiscal year, Maxim's unique approach to innovation and integration enabled us to perform well in an uncertain economic environment. We are confident that our balanced business model is sustainable, and as a result we increased our quarterly dividend by 9%."

Fiscal Year 2012 Fourth Quarter Results

Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the June quarter was $0.37. The results were affected by certain items which primarily consisted of:

  • $13.4 million pre-tax charge for acquisition related items
  • $22.4 million pre-tax charge for impairment of long-lived assets

GAAP earnings per share, excluding special expense items, was $0.45. 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 fourth quarter, total cash, cash equivalents and short term investments was $956 million, an increase of $20 million from the prior quarter. Notable items include:

  • Cash flow from operations: $190 million (31% of revenue)
  • Net capital expenditures: $75 million
  • Dividends: $64 million ($0.22 per share)
  • Stock repurchases: $56 million

Business Outlook

The Company's 90 day backlog at the beginning of the first fiscal quarter was $393 million. Based on our beginning backlog and expected turns, results for the September 2012 quarter are expected to be:

  • Revenue: $605 million to $635 million
  • Gross Margin: 59% to 62% GAAP (61% to 64% excluding special expense items)
  • EPS: $0.38 to $0.42 GAAP ($0.41 to $0.45 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 $0.24 per share will be paid on September 5, 2012, to stockholders of record on August 22, 2012.

Conference Call

Maxim has scheduled a conference call on July 26, 2012, at 2:00 p.m. Pacific Time to discuss its financial results for the fourth 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


Year Ended




June 30,


March 31,


June 25,


June 30,


June 25,




2012


2012


2011


2012


2011




(in thousands, except per share data)


Net revenues


$       604,956


$          571,212


$       626,491


$    2,403,529


$    2,472,341


Cost of goods sold (1, 2, 3)


232,967


235,782


235,666


952,677


942,377


        Gross profit


371,989


335,430


390,825


1,450,852


1,529,964


Operating expenses:












    Research and development (1)


134,007


136,075


136,573


552,379


525,308


    Selling, general and administrative (1)


79,980


78,011


74,537


321,273


292,494


    Intangible asset amortization (2)


4,049


4,029


4,200


16,737


18,752


    Impairment of long-lived assets (4)


22,383


7,712


-


30,095


-


    Severance and restructuring


18


228


(423)


6,785


1,247


    Other operating (income) expenses, net (5)


(4,469)


(2,511)


(1,984)


(11,214)


19,124


       Total operating expenses 


235,968


223,544


212,903


916,055


856,925


          Operating income


136,021


111,886


177,922


534,797


673,039


Interest and other (expense) income, net (6)


(108)


(230)


(2,022)


(2,064)


(11,368)


Income before provision for income taxes


135,913


111,656


175,900


532,733


661,671


Provision for income taxes (7,8)


25,279


88,948


50,307


177,815


172,662


    Income from continuing operations


110,634


22,708


125,593


354,918


489,009


    Income from discontinued operations, net of tax (9)


-


31,809


-


31,809


-


      Net income


$       110,634


$            54,517


$       125,593


$       386,727


$       489,009














Earnings per share: basic












    From continuing operations


$             0.38


$                0.08


$             0.42


$             1.21


$             1.65


    From discontinued operations, net of tax (9)


-


0.11


-


0.11


-


    Basic 


$             0.38


$                0.19


$             0.42


$             1.32


$             1.65














Earnings per share: diluted












    From continuing operations


$             0.37


$                0.07


$             0.41


$             1.18


$             1.61


    From discontinued operations, net of tax (9)


-


0.11


-


0.11


-


    Diluted 


$             0.37


$                0.18


$             0.41


$             1.29


$             1.61














Shares used in the calculation of earnings per share: 












    Basic


292,757


292,276


295,751


292,810


296,755


    Diluted 


299,793


300,221


303,944


300,002


303,377














Dividends paid per share 


$             0.22


$                0.22


$             0.21


$             0.88


$             0.84


























SCHEDULE OF SPECIAL EXPENSE ITEMS


(Unaudited)




Three Months Ended


Year Ended




June 30,


March 31,


June 25,


June 30,


June 25,




2012


2012


2011


2012


2011




(in thousands)


Cost of goods sold:












      Intangible asset amortization (2)


$               9,392


$                  9,787


$               7,977


$             36,693


$             30,164


      Acquisition related inventory write up (3)


-


-


-


1,801


5,677


 Total 


$               9,392


$                  9,787


$               7,977


$             38,494


$             35,841














 Operating expenses: 












     Intangible asset amortization (2)


$               4,049


$                  4,029


$               4,200


$             16,737


$             18,752


     Impairment of long-lived assets (4)


22,383


7,712


-


30,095


-


     Severance and restructuring 


18


228


(423)


6,785


1,247


     Other operating (income) expenses, net (5)


(4,469)


(2,511)


(1,984)


(11,214)


19,124


 Total 


$             21,981


$                  9,458


$               1,793


$             42,403


$             39,123














     Interest and other expense (income), net (6) 


$                  550


$                       -


$                     -


$             (1,226)


$                     -


 Total 


$                  550


$                       -


$                     -


$             (1,226)


$                     -














Provision for income taxes:












     Reversal of tax reserves (7) 


$                     -


$                (2,272)


$             (1,624)


$             (2,272)


$           (38,947)


     International restructuring (8) 


2,751


65,293


6,791


65,389


21,801


 Total 


$               2,751


$                63,021


$               5,167


$             63,117


$           (17,146)














Discontinued operations:












     Income from discontinued operations, net of tax (9)


$                     -


$              (31,809)


$                     -


$           (31,809)


$                     -


 Total 


$                     -


$              (31,809)


$                     -


$           (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 land and buildings held for sale, wafer fab and end of line manufacturing equipment.






(5) Other operating (income) expenses, net are primarily for loss (gain) on sale of land and buildings, contingent consideration adjustments related to certain acquisitions, stock option related litigation, certain payroll taxes, interest and penalties and in-process research and development written off.


(6) Includes gain on sale and impairment of privately-held companies.






(7) Includes 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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