- Revenue: $619 million
SAN JOSE, Calif., Oct. 27, 2020 — (PRNewswire) — Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $619 million for its first quarter of fiscal 2021 ended September 26, 2020, a 14% increase from the $545 million revenue recorded in the prior quarter, and a 16% increase from the same quarter of last year.
"Revenue in the September quarter increased strongly in Consumer and Automotive on a sequential basis. The robust uptick was driven by infotainment, driver assistance and electric vehicle content in Automotive, and across smartphones, gaming, wearables, tablets and broad-based personal electronics in Consumer. Revenue also grew across all of our major end markets compared to the same quarter a year ago, with double-digit growth in Communications and Data Center, Industrial and Automotive. Additionally, we are progressing per plan towards closure of our merger with Analog Devices," said Tunc Doluca, President and Chief Executive Officer.
Fiscal Year 2021 First Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the September quarter was $0.63. The results were affected by $30 million in pre-tax special items which primarily consisted of $15 million in charges related to the upcoming combination with Analog Devices, $9 million in restructuring costs unrelated to the merger, and $5 million of expenses related to prior acquisitions. GAAP earnings per share, excluding special items was $0.72. An analysis of GAAP versus GAAP excluding special items is provided in this press release.
Cash Flow Items
At the end of the first quarter of fiscal 2021, total cash, cash equivalents and short-term investments were $1.6 billion, down $2 million from the prior quarter.
Notable items included:
- Cash flow from operations: $163 million
- Capital expenditures: $13 million
- Dividends paid: $128 million ($0.48 per share)
- Stock repurchases: $9 million
Trailing twelve months free cash flow was $763 million. Free cash flow is a non-GAAP measure and is defined by cash flow from operations less capital expenditures.
Dividend and Stock Repurchase
Per the terms of the Merger Agreement between the Company and Analog Devices, we will not declare dividends that would have been paid in the upcoming months of December, March, June and September and have suspended our open market stock repurchase program.
Due to the pending merger with Analog Devices, Maxim Integrated will not be hosting a quarterly earnings conference call and has suspended the practice of providing forward-looking guidance. Investors are requested to review our Investor Relations website for the quarterly financial highlights and SEC filings for the latest updates on the pending transaction.
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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 26, 2020 |
| June 27, 2020 |
| September 28, 2019 |
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| (in thousands, except per share data) |
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| Net revenues | $ 619,357 |
| $ 545,369 |
| $ 533,040 |
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| Cost of goods sold | 202,343 |
| 183,001 |
| 189,717 |
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| Gross margin | 417,014 |
| 362,368 |
| 343,323 |
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| Operating expenses: |
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| Research and development | 115,466 |
| 110,173 |
| 108,989 |
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| Selling, general and administrative | 82,954 |
| 72,893 |
| 76,115 |
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| Intangible asset amortization | 919 |
| 810 |
| 756 |
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| Severance and restructuring expenses | 8,813 |
| 678 |
| 1,434 |
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| Other operating expenses (income), net | 7,428 |
| (173) |
| 25 |
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| Total operating expenses | 215,580 |
| 184,381 |
| 187,319 |
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| Operating income | 201,434 |
| 177,987 |
| 156,004 |
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| Interest and other income (expense), net | (7,037) |
| (8,488) |
| 1,829 |
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| Income before taxes | 194,397 |
| 169,499 |
| 157,833 |
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| Provision for (benefit from) income taxes (1)(2) | 24,883 |
| (37,799) |
| 17,677 |
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| Net income | $ 169,514 |
| $ 207,298 |
| $ 140,156 |
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| Earnings per share: |
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| Basic | $ 0.64 |
| $ 0.78 |
| $ 0.52 |
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| Diluted | $ 0.63 |
| $ 0.77 |
| $ 0.51 |
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| Shares used in the calculation of earnings per share: |
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| Basic | 266,831 |
| 266,639 |
| 271,388 |
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| Diluted | 269,529 |
| 268,777 |
| 274,436 |
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| Dividends paid per share | $ 0.48 |
| $ 0.48 |
| $ 0.48 |
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| SCHEDULE OF SPECIAL ITEMS |
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| (Unaudited) |
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| Three Months Ended |
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| September 26, 2020 |
| June 27, 2020 |
| September 28, 2019 |
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| (in thousands) |
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| Cost of goods sold: |
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| Intangible asset amortization | $ 4,363 |
| $ 3,528 |
| $ 3,111 |
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| Merger related expenses (3) | 1,335 |
| — |
| — |
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| Cost of COVID-19 response programs | 938 |
| 1,591 |
| — |
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| Total | $ 6,636 |
| $ 5,119 |
| $ 3,111 |
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| Operating expenses: |
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| Merger related expenses (3) | $ 6,607 |
| $ — |
| $ — |
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| Intangible asset amortization | 918 |
| 810 |
| 756 |
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| Severance and restructuring | 8,813 |
| 678 |
| 1,434 |
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| Other operating expenses (income), net (3) | 7,428 |
| (173) |
| 25 |
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| Total | $ 23,766 |
| $ 1,315 |
| $ 2,215 |
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| Interest and other expense (income), net | $ (535) |
| $ 1,484 |
| $ 207 |
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| Total | $ (535) |
| $ 1,484 |
| $ 207 |
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| Provision for (benefit from) for income taxes: |
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| Impact of U.S. tax legislation (1) | $ — |
| $ 6,486 |
| $ — |
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| Impact of income tax audit settlements (2) | — |
| (51,197) |
| — |
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| Total | $ — |
| $ (44,711) |
| $ — |
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| (1) Includes effect of U.S. tax legislation enacted on December 22, 2017. |
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| (2) Includes effect of income tax audit settlements. |
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| (3) Includes ADI merger related expenses such as accelerated stock-based compensation expense resulting from the acceleration of certain RSAs for tax withholding purposes, as well as other legal and professional services. |
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