Maxim Integrated Reports Results For The Third Quarter Of Fiscal

Maxim Integrated Reports Results For The Third Quarter Of Fiscal 2013

-- Revenue: $605 million

(PRNewswire) — Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $605 million for its third quarter of fiscal 2013 ended March 30, 2013, unchanged from the prior quarter.

Tunc Doluca, President and Chief Executive Officer, commented, "While Maxim's Mobility business has driven our revenue growth for several quarters, it is good to see strength in orders for our Industrial business. Our diverse business model has positioned Maxim to participate in growth across multiple end markets."

Fiscal Year 2013 Third Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the March quarter was $0.44. The results were affected by special items which primarily consisted of:

$14 million pre-tax charge for acquisition related items
$4 million tax benefit for re-instatement of R&D tax credit for fiscal year 2012

GAAP earnings per share, excluding special 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 third quarter of fiscal 2013, total cash, cash equivalents and short term investments was $1.57 billion, an increase of $543 million from the prior quarter. Notable items include:

Cash flow from operations: $212 million
Net capital expenditures: $45 million
Dividends: $70 million ($0.24 per share)
Stock repurchases: $66 million
Cash from issuance of debt: $491 million

Business Outlook
The Company's 90 day backlog at the beginning of the fourth fiscal quarter of 2013 was $386 million. Based on our beginning backlog and expected turns, results for the June 2013 quarter are expected to be:

Revenue: $610 million to $640 million
Gross Margin: 60% to 63% GAAP (61% to 64% excluding special items)
EPS: $0.42 to $0.46 GAAP ($0.45 to $0.49 excluding special items)

Maxim Integrated'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 June 5, 2013, to stockholders of record on May 22, 2013.

Conference Call
Maxim Integrated has scheduled a conference call on April 25, 2013, at 2:00 p.m. Pacific Time to discuss its financial results for the third quarter of fiscal 2013 and its business outlook. To listen via telephone, dial (866) 804-3545 (toll free) or (703) 639-1326. This call will be webcast by Shareholder.com and can be accessed at the Company's website at www.maximintegrated.com.

Contact
Venk Nathamuni
Managing Director, Investor Relations
(408) 601-5293

CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
	Three Months Ended
	March 30,	December 29,	March 31,
	2013	2012	2012
	(in thousands, except per share data)
Net revenues	$ 604,884	$ 605,306	$ 571,212
Cost of goods sold	228,782	241,931	235,782
Gross margin	376,102	363,375	335,430
Operating expenses:
Research and development	134,138	135,742	136,075
Selling, general and administrative	81,954	80,058	78,011
Intangible asset amortization	3,903	3,903	4,029
Impairment of long-lived assets (1)	-	22,222	7,712
Severance and restructuring expenses	151	2,236	228
Other operating expenses (income), net (2)	1,678	1,666	(2,511)
Total operating expenses	221,824	245,827	223,544
Operating income	154,278	117,548	111,886
Interest and other income (expense), net	(2,669)	(2,798)	(230)
Income before provision for income taxes	151,609	114,750	111,656
Provision for income taxes (3)	22,824	38,128	88,948
Income from continuing operations	128,785	76,622	22,708
Income from discontinued operations, net of tax (4)	2,603	-	31,809
Net income	$ 131,388	$ 76,622	$ 54,517

Earnings per share: basic
From continuing operations	$ 0.44	$ 0.26	$ 0.08
From discontinued operations, net of tax	0.01	-	0.11
Basic	$ 0.45	$ 0.26	$ 0.19

Earnings per share: diluted
From continuing operations	$ 0.43	$ 0.26	$ 0.07
From discontinued operations, net of tax	0.01	-	0.11
Diluted	$ 0.44	$ 0.26	$ 0.18

Shares used in the calculation of earnings per share:
Basic	292,888	292,075	292,276
Diluted	300,082	298,759	300,221

Dividends paid per share	$ 0.24	$ 0.24	$ 0.22


SCHEDULE OF SPECIAL ITEMS
(Unaudited)
	Three Months Ended
	March 30,	December 29,	March 31,
	2013	2012	2012
	(in thousands)
Cost of goods sold:
Intangible asset amortization	$ 7,777	$ 8,986	$ 9,787
Total	$ 7,777	$ 8,986	$ 9,787

Operating expenses:
Intangible asset amortization	$ 3,903	$ 3,903	$ 4,029
Impairment of long-lived assets (1)	-	22,222	7,712
Severance and restructuring	151	2,236	228
Other operating expenses (income) , net (2)	1,678	1,666	(2,511)
Total	$ 5,732	$ 30,027	$ 9,458

Provision for income taxes:
Reversal of tax reserves	$ -	$ -	$ (2,272)
International restructuring implementation (3)	-	18,726	65,293
Fiscal year 2012 research & development tax credits	(3,899)	-	-
Total	$ (3,899)	$ 18,726	$ 63,021

Discontinued operations:
Income from discontinued operations, net of tax (4)	$ (2,603)	$ -	$ (31,809)
Total	$ (2,603)	$ -	$ (31,809)

(1) Includes impairment charges relating to wafer fab and end of line manufacturing equipment and land & building held for sale.
(2) Other operating expenses (income), net are primarily for in-process research and development, contingent consideration adjustments related to certain acquisitions, gain relating to sale of land and buildings, and stock option related litigation.
(3) Includes impact due to international restructuring.
(4) Includes gain on sale, net of tax relating to certain businesses divested.

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