Maxim Integrated Reports Results For The First Quarter Of Fiscal 2015

- Revenue: $580 million

(PRNewswire) — Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $580 million for its first quarter of fiscal 2015 ended September 27, 2014, a 10% decrease from the $642 million revenue recorded in the prior quarter, and a 1% decrease year over year.

Logo for Maxim Integrated Products Inc.

Tunc Doluca, President and Chief Executive Officer, commented, "Our September quarter revenue performance was at the low end of our expectations, driven by weakness in smartphone revenue. This continued weakness was the catalyst for our decision to lower operating spending and reduce our manufacturing cost structure.  These actions will enable us to improve Maxim's profitability and focus our investment in opportunities with higher returns." Mr. Doluca continued, "I am confident in our strategy in mixed-signal and analog integration, which is bearing fruit, as evidenced by the strong year-over-year revenue growth performance of every one of our segments outside of Consumer."

Fiscal Year 2015 First Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the September quarter was $0.35. The results were affected by special items which primarily consisted of $24 million in pre-tax charges related to acquisitions, $13 million in pre-tax charges related to impairment of long-lived assets and other items, and a $22 million benefit for income taxes.  GAAP earnings per share, excluding special items was $0.38. 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 first quarter of fiscal 2015, total cash, cash equivalents and short term investments was $1.32 billion, a decrease of $53 million from the prior quarter. Notable items included:

  • Cash flow from operations: $117 million
  • Net capital expenditures: $31 million
  • Dividends: $80 million ($0.28 per share)
  • Stock repurchases: $63 million

Business Outlook
The Company's 90-day backlog at the beginning of the second fiscal quarter of 2015 was $379 million. Based on the beginning backlog and expected turns, results for the December 2014 quarter are expected to be as follows:

  • Revenue: $540 million to $580 million
  • Gross Margin: 55% to 59% GAAP (58% to 62% excluding special items)
  • EPS: $0.19 to $0.25 GAAP ($0.26 to $0.32 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 December 4, 2014, to stockholders of record on November 20, 2014.   

Conference Call
Maxim Integrated has scheduled a conference call on October 23, 2014, at 2:00 p.m. Pacific Time to discuss its financial results for the first 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





September 27,


June 28,


September 28,





2014


2014


2013





(in thousands, except per share data)



Net revenues


$ 580,275


$ 642,467


$ 585,241



Cost of goods sold 


241,454


273,507


238,045



        Gross margin


338,821


368,960


347,196



Operating expenses:









    Research and development 


140,362


143,802


129,902



    Selling, general and administrative 


79,989


83,153


77,430



    Intangible asset amortization 


4,327


4,423


3,436



    Impairment of long-lived assets (1)


10,226


6,447


-



    Severance and restructuring expenses (2)


1,385


5,790


5,547



    Other operating expenses (income), net (3)


1,574


8,795


2,272



       Total operating expenses 


237,863


252,410


218,587



          Operating income


100,958


116,550


128,609



Interest and other income (expense), net (4)


(6,477)


(8,943)


(3,463)



Income before provision for income taxes


94,481


107,607


125,146



Provision (benefit) for income taxes (5,6)


(5,499)


22,814


22,026



       Net Income


$   99,980


$   84,793


$ 103,120












Earnings per share:









    Basic


$       0.35


$       0.30


$       0.36



    Diluted


$       0.35


$       0.29


$       0.36












Shares used in the calculation of earnings per share: 









    Basic


284,086


283,431


284,654



    Diluted 


289,430


289,487


290,260












Dividends paid per share 


$       0.28


$       0.26


$       0.26





















SCHEDULE OF SPECIAL ITEMS



(Unaudited)





Three Months Ended





September 27,


June 28,


September 28,





2014


2014


2013





(in thousands)



Cost of goods sold:









      Intangible asset amortization 


$   18,750


$   18,750


$     8,092



      Acquisition-related inventory write-up 


-


371


-



 Total 


$   18,750


$   19,121


$     8,092












 Operating expenses: 









      Intangible asset amortization


$     4,327


$     4,423


$     3,436



      Impairment of long-lived assets (1)


10,226


6,447


-



     Severance and restructuring (2) 


1,385


5,790


5,547



     Other operating expenses (income), net (3)


1,574


8,795


2,272



 Total 


$   17,512


$   25,455


$   11,255












      Interest and other expense (income), net (4) 


$           -


$     2,432


$           -



 Total 


$           -


$     2,432


$           -












Provision (benefit) for income taxes: 









 Fixed assets tax basis adjustment (5) 


$           -


$   (1,041)


$           -



 Reversal of tax reserves (6) 


(21,747)


-


-



 Total 


$ (21,747)


$   (1,041)


$           -












(1) Includes impairment charges relating to EDA software, wafer fab tools, land and buildings held-for-sale, and end of line manufacturing equipment.



(2) include severance charges associated with the reorganizaton of various business units and manufacturing operations.



(3) Other operating expenses (income), net are primarily for loss (gain) relating to sale of land and buildings, reserve for uncollectible note related to a divestiture, expected loss on rent expense, and contingent consideration adjustments related to certain acquisitions.



(4) Includes impairment of investment in a privately-held company.



(5) Includes one-time fixed asset tax basis adjustments relating to prior year depreciation expense.



(6) Reversal of tax reserves related to the favorable settlement of a foreign tax issue.






1 | 2 | 3 | 4 | 5  Next Page »



Review Article Be the first to review this article

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
Manager, Field Applications Engineering for Real Intent at Sunnyvale, CA
ACCOUNT MANAGER MUNICH GERMANY EU for EDA Careers at MUNICH, Germany
Principal Circuit Design Engineer for Rambus at Sunnyvale, CA
AE-APPS SUPPORT/TMM for EDA Careers at San Jose-SOCAL-AZ, CA
Development Engineer-WEB SKILLS +++ for EDA Careers at North Valley, 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