- Revenue: $649 million
SAN JOSE, Calif., April 26, 2018 — (PRNewswire) — Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $649 million for its third quarter of fiscal 2018 ended March 31, 2018, a 4% increase from the $623 million revenue recorded in the prior quarter, and a 12% increase from the same quarter of last year.
Tunc Doluca, President and Chief Executive Officer, commented, "We are pleased with our performance in the March quarter. Compared to the same quarter last year, revenue grew strongly, driven by our power management products in Consumer, Automotive and Industrial with continued solid profitability." Mr. Doluca continued, "Looking forward, we continue to expect significant growth drivers in Automotive, Industrial and Data Center."
Fiscal Year 2018 Third Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the March quarter was $0.68. The results were affected by pre-tax special items which primarily consisted of $13 million in charges related to acquisitions and $3 million in charges related to restructuring activities. GAAP earnings per share, excluding special items was $0.73. 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 2018, total cash, cash equivalents and short term investments were $2.72 billion, a decrease of $99 million from the prior quarter.
Notable items included:
- Cash flow from operations: $223 million
- Capital expenditures: $17 million
- Dividends paid: $118 million ($0.42 per share)
- Stock repurchases: $128 million
Trailing twelve months free cash flow was $843 million. Free cash flow is a non-GAAP measure and is defined by net cash flow from operations less capital expenditures.
Business Outlook
The Company's 90-day backlog at the beginning of the June 2018 quarter was $436 million. Based on the beginning backlog and expected turns, our results for the June 2018 quarter are forecasted to be as follows:
- Revenue: $610 to $650 million
- Gross Margin: 64% to 66% GAAP (66% to 68% excluding special items)
- EPS: $0.62 to $0.68 GAAP ($0.67 to $0.73 excluding special items)
Maxim Integrated's business outlook does not include the potential impact of any special items related to restructuring activity, acquisitions, or other business combinations that may be completed during the quarter.
Dividend
A cash dividend of $0.42 per share will be paid on June 14, 2018, to stockholders of record on May 31, 2018.
Conference Call
Maxim Integrated has scheduled a conference call on April 26 at 2:00 p.m. Pacific Time to discuss its financial results for the third quarter of fiscal 2018 and its business outlook. This call will be webcast by Shareholder.com and can be accessed at the Company's website at
investor.maximintegrated.com.
A presentation summarizing financial information to be discussed on the conference call is posted at investor.maximintegrated.com.
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF INCOME |
| |||||
|
|
(Unaudited) |
| |||||
|
|
|
Three Months Ended |
| ||||
|
|
|
March 31, |
|
December 30, |
|
March 25, |
|
|
|
|
2018 |
|
2017 |
|
2017 |
|
|
|
|
(in thousands, except per share data) |
| ||||
|
|
Net revenues |
$ 648,599 |
|
$ 622,637 |
|
$ 581,216 |
|
|
|
Cost of goods sold (1) |
224,653 |
|
212,961 |
|
214,312 |
|
|
|
Gross margin |
423,946 |
|
409,676 |
|
366,904 |
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Research and development |
114,390 |
|
115,896 |
|
113,163 |
|
|
|
Selling, general and administrative |
81,304 |
|
85,323 |
|
73,987 |
|
|
|
Intangible asset amortization |
876 |
|
995 |
|
2,348 |
|
|
|
Impairment of long-lived assets (2) |
— |
|
850 |
|
1,000 |
|
|
|
Severance and restructuring expenses |
2,272 |
|
6,523 |
|
450 |
|
|
|
Other operating expenses (income), net |
266 |
|
(959) |
|
1,704 |
|
|
|
Total operating expenses (income), net |
199,108 |
|
208,628 |
|
192,652 |
|
|
|
Operating income (loss) |
224,838 |
|
201,048 |
|
174,252 |
|
|
|
Interest and other income (expense), net |
(2,534) |
|
(3,121) |
|
(3,884) |
|
|
|
Income (loss) before provision for income taxes |
222,304 |
|
197,927 |
|
170,368 |
|
|
|
Income tax provision (benefit) (3) |
28,677 |
|
272,942 |
|
30,155 |
|
|
|
Net income (loss) |
$ 193,627 |
|
$ (75,015) |
|
$ 140,213 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share: |
|
|
|
|
|
|
|
|
Basic |
$ 0.69 |
|
$ (0.27) |
|
$ 0.50 |
|
|
|
Diluted |
$ 0.68 |
|
$ (0.27) |
|
$ 0.49 |
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in the calculation of earnings (loss) per share: |
|
|
|
|
|
|
|
|
Basic |
280,850 |
|
281,560 |
|
282,903 |
|
|
|
Diluted |
285,881 |
|
281,560 |
|
287,882 |
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per share |
$ 0.42 |
|
$ 0.36 |
|
$ 0.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCHEDULE OF SPECIAL ITEMS |
| |||||
|
|
(Unaudited) |
| |||||
|
|
|
Three Months Ended |
| ||||
|
|
|
March 31, |
|
December 30, |
|
March 25, |
|
|
|
|
2018 |
|
2017 |
|
2017 |
|
|
|
|
(in thousands) |
| ||||
|
|
Cost of goods sold: |
|
|
|
|
|
|
|
|
Intangible asset amortization |
$ 12,101 |
|
$ 11,139 |
|
$ 11,064 |
|
|
|
Accelerated depreciation (1) |
— |
|
— |
|
1,103 |
|
|
|
Total |
$ 12,101 |
|
$ 11,139 |
|
$ 12,167 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Intangible asset amortization |
$ 876 |
|
$ 995 |
|
$ 2,348 |
|
|
|
Impairment of long-lived assets (2) |
— |
|
850 |
|
1,000 |
|
|
|
Severance and restructuring |
2,272 |
|
6,523 |
|
450 |
|
|
|
Other operating expenses (income), net |
266 |
|
(959) |
|
1,704 |
|
|
|
Total |
$ 3,414 |
|
$ 7,409 |
|
$ 5,502 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other expense (income), net |
$ (97) |
|
$ (119) |
|
$ (48) |
|
|
|
Total |
$ (97) |
|
$ (119) |
|
$ (48) |
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit) for income taxes: |
|
|
|
|
|
|
|
|
Impact of U.S. tax legislation (3) |
$ — |
|
$ 243,550 |
|
$ — |
|
|
|
Total |
$ — |
|
$ 243,550 |
|
$ — |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes building and equipment accelerated depreciation related to the Dallas manufacturing facility during the third quarter of fiscal year 2017. |
| |||||
|
|
(2) Includes impairment of investments in privately-held companies. |
| |||||
|
|
(3) Includes effect of U.S. tax legislation enacted on December 22, 2017. |
| |||||
|
|
|
| |||||
