Maxim Integrated Reports Results For The Second Quarter Of Fiscal 2015

- Revenue: $567 million

(PRNewswire) —  Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $567 million for its second quarter of fiscal 2015 ended December 27, 2014, a 2% decrease from the $580 million revenue recorded in the prior quarter, and a 9% decrease year over year.

Logo for Maxim Integrated Products Inc.

Tunc Doluca, President and Chief Executive Officer, commented, "We are pleased with our December quarter revenue performance, driven by our diversification in Consumer and continued strength in our Automotive business." Mr. Doluca continued, "We are on track to achieve our previously announced cost reduction plans, which will enable us to reduce spending while we focus investment in our growth businesses. We also decided to stop investment in Consumer MEMS and Touch technology."

Fiscal Year 2015 Second Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the December quarter was a $0.25 loss. The results were affected by pre-tax special items which primarily consisted of $138 million in charges related to impairment of goodwill and other assets  related to our MEMS business,  $28 million in charges related to restructuring activities and $23 million in charges related to acquisitions.  GAAP earnings per share, excluding special 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 the second quarter of fiscal 2015, total cash, cash equivalents and short term investments was $1.38 billion, an increase of $62 million from the prior quarter. Notable items included:

  • Cash flow from operations: $173 million
  • Capital additions: $17 million
  • Proceeds from property sales: $24 million
  • Dividends: $79 million ($0.28 per share)
  • Stock repurchases: $60 million

Business Outlook
The Company's 90-day backlog at the beginning of the third fiscal quarter of 2015 was $378 million. Based on the beginning backlog and expected turns, results for the March 2015 quarter are expected to be as follows:

  • Revenue: $565 million to $605 million
  • Gross Margin: 52% to 56% GAAP (58% to 62% excluding special items)
  • EPS: $0.20 to $0.26 GAAP ($0.32 to $0.38 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 March 5, 2015, to stockholders of record on February 19, 2015.   

Conference Call
Maxim Integrated has scheduled a conference call on January 22, 2015, at 2:00 p.m. Pacific Time to discuss its financial results for the second 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





December 27,


September 27,


December 28,





2014


2014


2013





(in thousands, except per share data)



Net revenues


$       566,809


$        580,275


$       620,274



Cost of goods sold (1)


252,732


241,454


291,602



        Gross margin


314,077


338,821


328,672



Operating expenses:









    Research and development 


135,945


140,362


142,971



    Selling, general and administrative 


79,778


79,989


83,471



    Intangible asset amortization 


4,155


4,327


4,968



    Impairment of long-lived assets (2)


50,745


10,226


5,197



    Impairment of goodwill and intangible assets (3)


93,010


-


-



    Severance and restructuring expenses (4)


13,635


1,385


10,227



Acquisition-related costs


-


-


4,137



    Other operating expenses (income), net  (5)


885


1,574


7,307



       Total operating expenses 


378,153


237,863


258,278



          Operating income (loss)


(64,076)


100,958


70,394



Interest and other income (expense), net


(7,599)


(6,477)


(5,833)



Income (loss) before provision for income taxes


(71,675)


94,481


64,561



Provision (benefit) for income taxes (6)


359


(5,499)


20,208



       Net Income (loss)


$       (72,034)


$          99,980


$         44,353












Earnings (loss) per share:









    Basic


$           (0.25)


$              0.35


$             0.16



    Diluted


$           (0.25)


$              0.35


$             0.15












Shares used in the calculation of earnings (loss) per share: 









    Basic


282,992


284,086


282,664



    Diluted 


282,992


289,430


288,565












Dividends paid per share 


$             0.28


$              0.28


$             0.26





















SCHEDULE OF SPECIAL ITEMS



(Unaudited)





Three Months Ended





December 27,


September 27,


December 28,





2014


2014


2013





(in thousands)



Cost of goods sold:









      Intangible asset amortization 


$         18,750


$          18,750


$           19,098



      Accelerated depreciation (1)


8,895


-


-



      Acquisition-related inventory write-up


-


-


13,066



 Total 


$         27,645


$          18,750


$           32,164












 Operating expenses: 









      Intangible asset amortization


$           4,155


$            4,327


$             4,968



      Impairment of long-lived assets (2)


50,745


10,226


5,197



      Impairment of goodwill and intangible assets (3)


93,010


-


-



     Severance and restructuring (4) 


13,635


1,385


10,227



 Acquisition-related costs 


-


-


4,137



     Other operating expenses (income), net (5)


885


1,574


7,307



 Total 


$       162,430


$          17,512


$         31,836












      Interest and other expense (income), net 


$            (217)


$                    -


$                   -



 Total 


$            (217)


$                    -


$                   -












Provision (benefit) for income taxes: 









 Reversal of tax reserves (6) 


$                  -


$        (21,747)


$                  -



 Fiscal year 2014 research & development tax credits 


(2,863)


-


-



 Total 


$         (2,863)


$        (21,747)


$                  -












(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 business unit.



(4) Includes severance charges associated with closure of San Jose wafer manufacturing facility and  reorganization of various business units, and severance & retention and lease abandonment charges related to Volterra acquisition.



(5) Includes loss related to sale of land & buildings, expected loss on rent expense for vacated office space, legal settlement,  and contingent consideration adjustments related to certain acquisitions.



(6) Includes reversal of tax reserves related to a favorable settlement of a foreign tax issue.








1 | 2 | 3 | 4 | 5  Next Page »



Review Article Be the first to review this article
Downstreamtech.com

EMA:

Featured Video
Editorial
Peggy AycinenaWhat Would Joe Do?
by Peggy Aycinena
Retail Therapy: Jump starting Black Friday
Peggy AycinenaIP Showcase
by Peggy Aycinena
REUSE 2016: Addressing the Four Freedoms
More Editorial  
Jobs
AE-APPS SUPPORT/TMM for EDA Careers at San Jose-SOCAL-AZ, CA
Principal Circuit Design Engineer for Rambus at Sunnyvale, CA
Manager, Field Applications Engineering for Real Intent at Sunnyvale, CA
Development Engineer-WEB SKILLS +++ for EDA Careers at North Valley, CA
ACCOUNT MANAGER MUNICH GERMANY EU for EDA Careers at MUNICH, Germany
FAE FIELD APPLICATIONS SAN DIEGO for EDA Careers at San Diego, CA
Upcoming Events
Zuken Innovation World 2017, April 24 - 26, 2017, Hilton Head Marriott Resort & Spa in Hilton Head Island, SC at Hilton Head Marriott Resort & Spa Hilton Head Island NC - Apr 24 - 26, 2017
CST Webinar Series



Internet Business Systems © 2016 Internet Business Systems, Inc.
595 Millich Dr., Suite 216, Campbell, CA 95008
+1 (408)-337-6870 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy