Maxim Integrated Reports Results For The Third Quarter Of Fiscal 2018

- 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.

Logo for Maxim Integrated Products Inc. (PRNewsfoto/Maxim Integrated)

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.






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