- Revenue: $551 million
SAN JOSE, Calif., Jan. 28, 2020 — (PRNewswire) — Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $551 million for its second quarter of fiscal 2020 ended December 28, 2019, a 3% increase from the $533 million revenue recorded in the prior quarter, and a 4% decrease from the same quarter of last year.
"Our December quarter results met our expectations, while also maintaining lean inventory levels," said Tunc Doluca, President and Chief Executive Officer. "Looking forward to the March quarter, we expect a return to revenue growth for the company from the same quarter last year, driven by growth in Communications and Data Center, Industrial and Automotive markets."
Fiscal Year 2020 Second Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the December quarter was $0.53. The results were affected by $5 million in pre-tax special items which primarily consisted of charges related to acquisitions. GAAP earnings per share, excluding special items was $0.56. An analysis of GAAP versus GAAP excluding special items is provided in this press release.
Cash Flow Items
At the end of the second quarter of fiscal 2020, total cash, cash equivalents and short-term investments were $1.8 billion, down $10 million from the prior quarter.
Notable items included:
- Cash flow from operations: $237 million
- Capital expenditures: $14 million
- Dividends paid: $130 million ($0.48 per share)
- Stock repurchases: $108 million
Trailing twelve months free cash flow was $737 million. Free cash flow is a non-GAAP measure and is defined by cash flow from operations less capital expenditures.
Business Outlook
The Company's 90-day backlog at the beginning of the March 2020 quarter was $456 million. Based on the beginning backlog and expected turns, our results for the March 2020 quarter are forecasted to be as follows:
- Revenue: $555 to $595 million
- Gross Margin: 65% to 67% GAAP (65.5% to 67.5% excluding special items)
- EPS: $0.56 to $0.64 GAAP ($0.57 to $0.65 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 $0.48 per share will be paid on March 13, 2020, to stockholders of record on February 27, 2020.
Conference Call
Maxim Integrated has scheduled a conference call on January 28 at 2:00 p.m. Pacific Time to discuss its financial results for the second quarter of fiscal 2020 and its business outlook. An audio webcast of this call 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.
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| CONSOLIDATED STATEMENTS OF INCOME |
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| (Unaudited) |
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| Three Months Ended |
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| December 28, 2019 |
| September 28, 2019 |
| December 29, 2018 |
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| (in thousands, except per share data) |
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| Net revenues | $ 551,070 |
| $ 533,040 |
| $ 576,906 |
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| Cost of goods sold | 190,546 |
| 189,717 |
| 203,858 |
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| Gross margin | 360,524 |
| 343,323 |
| 373,048 |
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| Operating expenses: |
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| Research and development | 111,914 |
| 108,989 |
| 110,303 |
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| Selling, general and administrative | 76,071 |
| 76,115 |
| 77,853 |
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| Intangible asset amortization | 756 |
| 756 |
| 756 |
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| Impairment of long-lived assets | — |
| — |
| 753 |
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| Severance and restructuring expenses | 2,728 |
| 1,434 |
| 1,179 |
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| Other operating expenses (income), net | (1) |
| 25 |
| — |
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| Total operating expenses (income), net | 191,468 |
| 187,319 |
| 190,844 |
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| Operating income (loss) | 169,056 |
| 156,004 |
| 182,204 |
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| Interest and other income (expense), net | (17) |
| 1,829 |
| 472 |
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| Income (loss) before provision for income taxes | 169,039 |
| 157,833 |
| 182,676 |
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| Income tax provision (benefit) | 22,989 |
| 17,677 |
| 50,784 |
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| Net income (loss) | $ 146,050 |
| $ 140,156 |
| $ 131,892 |
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| Earnings (loss) per share: |
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| Basic | $ 0.54 |
| $ 0.52 |
| $ 0.48 |
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| Diluted | $ 0.53 |
| $ 0.51 |
| $ 0.47 |
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| Shares used in the calculation of earnings (loss) per share: |
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| Basic | 270,330 |
| 271,388 |
| 276,252 |
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| Diluted | 273,269 |
| 274,436 |
| 280,008 |
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| Dividends paid per share | $ 0.48 |
| $ 0.48 |
| $ 0.46 |
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| SCHEDULE OF SPECIAL ITEMS |
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| (Unaudited) |
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| Three Months Ended |
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| December 28, 2019 |
| September 28, 2019 |
| December 29, 2018 |
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| (in thousands) |
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| Cost of goods sold: |
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| Intangible asset amortization | $ 3,111 |
| $ 3,111 |
| $ 6,868 |
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| Total | $ 3,111 |
| $ 3,111 |
| $ 6,868 |
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| Operating expenses: |
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| Intangible asset amortization | $ 756 |
| $ 756 |
| $ 756 |
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| Impairment of long-lived assets | — |
| — |
| 753 |
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| Severance and restructuring | 2,728 |
| 1,434 |
| 1,179 |
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| Other operating expenses (income), net | (1) |
| 25 |
| — |
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| Total | $ 3,483 |
| $ 2,215 |
| $ 2,688 |
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| Interest and other expense (income), net | $ (1,230) |
| $ (207) |
| $ (351) |
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| Total | $ (1,230) |
| $ (207) |
| $ (351) |
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| Income tax provision (benefit): |
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| Impact of U.S. tax legislation (1) | $ — |
| $ — |
| $ 22,082 |
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| Total | $ — |
| $ — |
| $ 22,082 |
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| (1) Includes effect of U.S. tax legislation enacted on December 22, 2017. |
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