- Revenue: $585 million
(PRNewswire) — Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $585 million for its first quarter of fiscal 2014 ended September 28, 2013, a 4% decrease from the $608 million revenue recorded in the prior quarter. Fiscal first quarter results exclude Volterra Semiconductor.Tunc Doluca, President and Chief Executive Officer, commented, "We are pleased that our first quarter results came in as expected as our diversified business model continues to serve us well. We also completed the acquisition of Volterra Semiconductor earlier this month and are excited to have the team on board."
Fiscal Year 2014 First Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the September quarter was $0.36. The results were affected by special items which primarily consisted of:
- $12 million pre-tax charge for acquisition related items
- $3 million pre-tax charge for expenses related to the Volterra acquisition
- $6 million pre-tax charge for restructuring and severance
GAAP earnings per share, excluding special items, was $0.41. 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 first quarter of fiscal 2014, total cash, cash equivalents and short term investments was $1.03 billion, a decrease of $165 million from the prior quarter. Notable items include:
- Cash flow from operations: $96 million
- Net capital expenditures: $33 million
- Dividends: $74 million ($0.26 per share)
- Stock repurchases: $154 million
Business Outlook
The Company's 90 day backlog at the beginning of the second fiscal quarter of 2014 was $417 million including $27 million of Volterra backlog. Based on our beginning backlog and expected turns, results for the December 2013 quarter including Volterra are expected to be:
- Revenue: $605 million to $635 million (including $35 million to $37 million from Volterra)
- Gross Margin: 58% to 61% GAAP (59% to 62% 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 impact of special items related to the Volterra acquisition or the potential impact of any restructuring activity or mergers, acquisitions, or other business combinations that may be completed during the quarter.
Dividend
A cash dividend of $0.26 per share will be paid on December 5, 2013, to stockholders of record on November 21, 2013.
Conference Call
Maxim Integrated has scheduled a conference call on October 24, 2013, at 2:00 p.m. Pacific Time to discuss its financial results for the first quarter of fiscal 2014 and its business outlook. To listen via telephone, dial (866) 802-4305 (toll free) or (703) 639-1317. This call will be webcast by Shareholder.com and can be accessed at the Company's website at
www.maximintegrated.com/company/investor.
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CONSOLIDATED STATEMENTS OF INCOME |
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(Unaudited) |
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Three Months Ended |
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September 28, |
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June 29, |
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September 29, |
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2013 |
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2013 |
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2012 |
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(in thousands, except per share data) |
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Net revenues |
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$ 585,241 |
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$ 608,194 |
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$ 623,075 |
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Cost of goods sold |
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238,045 |
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236,795 |
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237,384 |
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Gross margin |
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347,196 |
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371,399 |
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385,691 |
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Operating expenses: |
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Research and development |
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129,902 |
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132,009 |
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132,930 |
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Selling, general and administrative |
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77,430 |
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82,083 |
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80,187 |
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Intangible asset amortization |
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3,436 |
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3,670 |
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4,049 |
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Impairment of long-lived assets |
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- |
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- |
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2,707 |
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Severance and restructuring expenses (1) |
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5,547 |
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442 |
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- |
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Other operating expenses (income), net (2) |
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2,272 |
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2,105 |
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415 |
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Total operating expenses |
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218,587 |
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220,309 |
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220,288 |
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Operating income |
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128,609 |
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151,090 |
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165,403 |
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Interest and other income (expense), net (3) |
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(3,463) |
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(6,830) |
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(5,742) |
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Income before provision for income taxes |
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125,146 |
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144,260 |
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159,661 |
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Provision for income taxes |
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22,026 |
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25,246 |
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31,773 |
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Net income |
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$ 103,120 |
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$ 119,014 |
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$ 127,888 |
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Earnings per share: |
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Basic |
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$ 0.36 |
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$ 0.41 |
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$ 0.44 |
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Diluted |
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$ 0.36 |
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$ 0.40 |
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$ 0.43 |
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Shares used in the calculation of earnings per share: |
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Basic |
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284,654 |
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290,146 |
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292,213 |
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Diluted |
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290,260 |
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296,756 |
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298,782 |
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Dividends paid per share |
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$ 0.26 |
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$ 0.24 |
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$ 0.24 |
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SCHEDULE OF SPECIAL EXPENSE ITEMS |
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(Unaudited) |
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Three Months Ended |
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September 28, |
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June 29, |
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September 29, |
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2013 |
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2013 |
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2012 |
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(in thousands) |
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Cost of goods sold: |
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Intangible asset amortization |
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$ 8,092 |
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$ 7,777 |
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$ 9,454 |
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Total |
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$ 8,092 |
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$ 7,777 |
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$ 9,454 |
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Operating expenses: |
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Intangible asset amortization |
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$ 3,436 |
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$ 3,670 |
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$ 4,049 |
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Impairment of long-lived assets |
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- |
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- |
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2,707 |
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Severance and restructuring (1) |
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5,547 |
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442 |
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- |
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Other operating expenses (income), net (2) |
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2,272 |
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2,105 |
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415 |
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Total |
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$ 11,255 |
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$ 6,217 |
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$ 7,171 |
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Interest and other expense (income), net (3) |
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$ - |
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$ 700 |
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$ - |
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Total |
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$ - |
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$ 700 |
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$ - |
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(1) Includes severance charges associated with the reorganization of various business units and manufacturing operations. | |||||||
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(2) Other operating expenses (income), net are primarily for certain payroll taxes, contingent consideration adjustments related to certain acquisitions, loss (gain) relating to sale of land and buildings, acquisition related expenses and loss on lease abandonment. | |||||||
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(3) Includes impairment of investment in a privately held company. | |||||||
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