- Revenue: $606 million
(PRNewswire) — Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $606 million for its third quarter of fiscal 2014 ended March 29, 2014, a 2% decrease from the $620 million revenue recorded in the prior quarter.
Tunc Doluca, President and Chief Executive Officer, commented, "We achieved better-than-seasonal results for our mix of businesses, driven by growth in automotive, industrial and communications, as market requirements converge on the need for lower power, higher functionality, and more integrated designs. " Mr. Doluca continued, "Looking forward, we expect continued growth in these businesses, accompanied by strength in mobility."
Fiscal Year 2014 Third Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the March quarter was $0.42. Earnings per share included an intellectual property licensing income amount of $17 million, included in Interest and Other Income.
The results were affected by special items which primarily consisted of a $35 million pre-tax charge for items related to acquisitions and a $35 million benefit for income taxes. GAAP earnings per share, excluding special items was $0.43. 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 third quarter of fiscal 2014, total cash, cash equivalents and short term investments was $1.23 billion, an increase of $81 million from the prior quarter. Notable items included:
- Cash flow from operations: $212 million
- Net capital expenditures: $26 million
- Dividends: $73 million ($0.26 per share)
- Stock repurchases: $51 million
Business Outlook
The Company's 90-day backlog at the beginning of the fourth fiscal quarter of 2014 was $413 million. Based on the beginning backlog and expected turns, results for the June 2014 quarter are expected to be as follows:
- Revenue: $635 million to $665 million
- Gross Margin: 58% to 60% GAAP (61% to 63% excluding special items)
- EPS: $0.38 to $0.42 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, or other business combinations that may be completed during the quarter.
Dividend
A cash dividend of $0.26 per share will be paid on June 5, 2014, to stockholders of record on May 22, 2014.
Conference Call
Maxim Integrated has scheduled a conference call on April 24, 2014, at 2:00 p.m. Pacific Time to discuss its financial results for the third quarter of fiscal 2014 and its business outlook. To listen via telephone, dial (866) 804-3547 (toll free) or (703) 639-1328. This call will be webcast by Shareholder.com and can be accessed at the Company's website at www.maximintegrated.com/company/investor.
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CONSOLIDATED STATEMENTS OF INCOME |
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(Unaudited) |
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Three Months Ended |
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March 29, |
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December 28, |
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March 30, |
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2014 |
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2013 |
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2013 |
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(in thousands, except per share data) |
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Net revenues |
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$ 605,681 |
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$ 620,274 |
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$ 604,884 |
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Cost of goods sold |
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265,744 |
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291,602 |
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228,782 |
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Gross margin |
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339,937 |
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328,672 |
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376,102 |
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Operating expenses: |
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Research and development |
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141,493 |
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142,971 |
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134,138 |
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Selling, general and administrative |
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80,680 |
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83,471 |
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81,954 |
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Intangible asset amortization |
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4,863 |
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4,968 |
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3,903 |
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Impairment of long-lived assets |
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- |
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5,197 |
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- |
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Severance and restructuring expenses (1) |
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3,338 |
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10,227 |
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151 |
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Acquisition-related costs |
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(88) |
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4,137 |
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- |
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Other operating expenses (income), net (2) |
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2,913 |
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7,307 |
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1,678 |
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Total operating expenses |
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233,199 |
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258,278 |
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221,824 |
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Operating income |
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106,738 |
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70,394 |
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154,278 |
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Interest and other income (expense), net (3) |
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5,174 |
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(5,833) |
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(2,669) |
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Income before provision for income taxes |
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111,912 |
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64,561 |
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151,609 |
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Provision (benefit) for income taxes (4) |
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(10,632) |
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20,208 |
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22,824 |
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Income from continuing operations |
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122,544 |
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44,353 |
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128,785 |
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Income from discontinued operations, net of tax |
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- |
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- |
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2,603 |
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Net income |
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$ 122,544 |
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$ 44,353 |
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$ 131,388 |
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Earnings per share: Basic |
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From continuing operations |
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$ 0.43 |
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$ 0.16 |
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$ 0.44 |
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From discontinued operations, net of tax |
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- |
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- |
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0.01 |
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Basic |
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$ 0.43 |
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$ 0.16 |
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$ 0.45 |
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Earnings per share: Diluted |
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From continuing operations |
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$ 0.42 |
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$ 0.15 |
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$ 0.43 |
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From discontinued operations, net of tax |
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- |
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- |
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0.01 |
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Diluted |
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$ 0.42 |
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$ 0.15 |
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$ 0.44 |
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Shares used in the calculation of earnings per share: |
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Basic |
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282,627 |
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282,664 |
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292,888 |
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Diluted |
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288,575 |
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288,565 |
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300,082 |
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Dividends paid per share |
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$ 0.26 |
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$ 0.26 |
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$ 0.24 |
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(1) Includes severance, retention and lease abandonment charges related to acquisitions, and severance charges related to the reorganization of various business units and manufacturing operations. |
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(2) Other operating expenses (income), net are primarily for legal settlement, in-process research and development abandoned, contingent consideration adjustments related to certain acquisitions and legal expenses related to Volterra acquisition. |
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(3) Includes impairment of investments in privately-held companies. |
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(4) Includes one-time fixed asset tax basis adjustments relating to prior year depreciation expense. |
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