- Revenue: $628 million
SAN JOSE, Calif., Jan. 26, 2021 — (PRNewswire) — Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $628 million for its second quarter of fiscal 2021 ended December 26, 2020, a 1% increase from the $619 million revenue recorded in the prior quarter, and a 14% increase from the same quarter of last year.
"Our strong performance in the December quarter relative to the same quarter last year benefitted from robust demand from automotive, industrial and consumer customers. Automotive and Industrial reached a record revenue level and comprised 63 percent of Maxim's total revenue. In addition, progress toward closure of our merger with Analog Devices is on track," said Tunc Doluca, President and Chief Executive Officer.
Fiscal Year 2021 Second Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the December quarter was $0.68. The results were affected by $15 million in pre-tax special items which primarily consisted of $9 million in charges related to the upcoming combination with Analog Devices, $3 million in restructuring costs unrelated to the merger, and $7 million of expenses related to prior acquisitions, which were partially offset by $5 million of unrealized other income from private company investments. GAAP earnings per share, excluding special items was $0.73. 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 2021, total cash, cash equivalents and short-term investments were $1.8 billion, up $194 million from the prior quarter.
Notable items included:
- Cash flow from operations: $210 million
- Capital expenditures: $16 million
Trailing twelve months free cash flow was $733 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 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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| December 26, 2020 |
| September 26, 2020 |
| December 28, 2019 |
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| (in thousands, except per share data) |
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| Net revenues | $ 628,288 |
| $ 619,357 |
| $ 551,070 |
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| Cost of goods sold | 211,866 |
| 202,343 |
| 190,546 |
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| Gross margin | 416,422 |
| 417,014 |
| 360,524 |
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| Operating expenses: |
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| Research and development | 114,802 |
| 115,466 |
| 111,914 |
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| Selling, general and administrative | 80,153 |
| 82,954 |
| 76,071 |
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| Intangible asset amortization | 943 |
| 919 |
| 756 |
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| Severance and restructuring expenses | 3,327 |
| 8,813 |
| 2,728 |
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| Other operating expenses (income), net | 3,532 |
| 7,428 |
| (1) |
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| Total operating expenses | 202,757 |
| 215,580 |
| 191,468 |
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| Operating income | 213,665 |
| 201,434 |
| 169,056 |
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| Interest and other income (expense), net | (3,202) |
| (7,037) |
| (17) |
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| Income before taxes | 210,463 |
| 194,397 |
| 169,039 |
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| Provision for (benefit from) income taxes | 26,518 |
| 24,883 |
| 22,989 |
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| Net income | $ 183,945 |
| $ 169,514 |
| $ 146,050 |
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| Earnings per share: |
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| Basic | $ 0.69 |
| $ 0.64 |
| $ 0.54 |
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| Diluted | $ 0.68 |
| $ 0.63 |
| $ 0.53 |
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| Shares used in the calculation of earnings per share: |
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| Basic | 267,299 |
| 266,831 |
| 270,330 |
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| Diluted | 270,792 |
| 269,529 |
| 273,269 |
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| Dividends paid per share | $ - |
| $ 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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| December 26, 2020 |
| September 26, 2020 |
| December 28, 2019 |
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| (in thousands) |
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| Cost of goods sold: |
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| Intangible asset amortization | $ 5,569 |
| $ 4,363 |
| $ 3,111 |
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| Merger-related expenses (1) | 1,059 |
| 1,335 |
| - |
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| Cost of COVID-19 response programs | 565 |
| 938 |
| - |
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| Total | $ 7,193 |
| $ 6,636 |
| $ 3,111 |
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| Operating expenses: |
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| Merger-related expenses (1) | $ 4,750 |
| $ 6,607 |
| $ - |
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| Intangible asset amortization | 943 |
| 918 |
| 756 |
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| Severance and restructuring | 3,327 |
| 8,813 |
| 2,728 |
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| Other operating expenses (income), net (1) | 3,531 |
| 7,428 |
| (1) |
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| Total | $ 12,551 |
| $ 23,766 |
| $ 3,483 |
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| Interest and other expense (income), net | $ (5,131) |
| $ (535) |
| $ (1,230) |
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| Total | $ (5,131) |
| $ (535) |
| $ (1,230) |
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| (1) Includes ADI merger-related expenses such as accelerated stock-based compensation expense resulting from the acceleration of certain RSAs and RSUs, and other legal and professional services. |
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