Maxim Integrated Reports Results For The Fourth Quarter Of Fiscal 2019, Increases Dividend By 4%

- Revenue: $557 million

SAN JOSE, Calif., July 30, 2019 — (PRNewswire) —  Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $557 million for its fourth quarter of fiscal 2019 ended June 29, 2019, a 3% increase from the $542 million revenue recorded in the prior quarter, and a 12% decrease from the same quarter of last year.

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

"Our June quarter results met our expectations, while we lowered both internal and distribution channel inventory.  Given the soft business environment, we will continue to tightly manage inventory and spending in the September quarter," said Tunc Doluca, President and Chief Executive Officer. "Today, we are announcing a 4% increase in our dividend, reflecting our commitment to return cash to shareholders and confidence in our long-term outlook."

Fiscal Year 2019 Fourth Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the June quarter was $1.33, which benefitted from a $204 million tax reserve release. GAAP earnings per share, excluding special items was $0.57. An analysis of GAAP versus GAAP excluding special items is provided in this press release.

Cash Flow Items
At the end of the fourth quarter of fiscal 2019, total cash, cash equivalents and short-term investments were $1.9 billion, flat from the prior quarter.

Notable items included:

  • Cash flow from operations: $237 million
  • Capital expenditures: $31 million
  • Dividends paid: $125 million ($0.46 per share)
  • Stock repurchases: $102 million

Trailing twelve months free cash flow was $793 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 September 2019 quarter was $391 million. Based on the beginning backlog and expected turns, our results for the September 2019 quarter are forecasted to be as follows:

  • Revenue: $510 to $550 million
  • Gross Margin: 62% to 64% GAAP (63% to 65% excluding special items)
  • EPS: $0.45 to $0.51 GAAP ($0.46 to $0.52 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
Our Board of Directors approved a 4% increase in the quarterly dividend. A cash dividend of $0.48 per share will be paid on September 13, 2019, to stockholders of record on August 29, 2019. 

Conference Call
Maxim Integrated has scheduled a conference call on July 30 at 2:00 p.m. Pacific Time to discuss its financial results for the fourth quarter of fiscal 2019 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


Year Ended




June 29,


March 30, 


June 30,


June 29,


June 30,




2019


2019


2018


2019


2018




(in thousands, except per share data)



Net revenues

$  556,545


$    542,383


$ 633,154


$ 2,314,329


$ 2,480,066



Cost of goods sold 

200,154


201,552


214,486


813,823


853,945



Gross margin

356,391


340,831


418,668


1,500,506


1,626,121



Operating expenses:












Research and development

105,136


107,075


112,056


435,222


450,943



Selling, general and administrative

75,130


74,116


82,611


308,617


322,918



Intangible asset amortization

756


756


844


3,041


4,467



Impairment of long-lived assets 

-


-


-


753


892



Severance and restructuring expenses

1,715


1,744


833


5,632


15,060



Other operating expenses (income), net 

83


-


(71)


143


(1,607)



Total operating expenses (income), net

182,820


183,691


196,273


753,408


792,673



Operating income (loss)

173,571


157,140


222,395


747,098


833,448



Interest and other income (expense), net 

4,079


3,318


1,305


7,323


(8,563)



Income before taxes

177,650


160,458


223,700


754,421


824,885



Provision (benefit) for income taxes (1) (2)

(189,908)


29,845


29,528


(73,065)


357,567



Net income

$  367,558


$    130,613


$ 194,172


$    827,486


$    467,318



























Earnings per share:












Basic

$        1.35


$          0.48


$       0.70


$          3.01


$          1.66



Diluted

$        1.33


$          0.47


$       0.68


$          2.97


$          1.64















Shares used in the calculation of earnings per share:












Basic

272,382


273,221


279,304


274,966


280,979



Diluted

275,835


276,610


283,934


278,777


285,674















Dividends paid per share

$0.46


$0.46


$0.42


$1.84


$1.56



























SCHEDULE OF SPECIAL ITEMS



(Unaudited)















Three Months Ended


Year Ended




June 29,


March 30, 


June 30,


June 29,


June 30,




2019


2019


2018


2019


2018




(in thousands)



Cost of goods sold:












Intangible asset amortization

$      4,038


$        5,008


$   11,759


$      22,829


$      46,064



 Total 

$      4,038


$        5,008


$   11,759


$      22,829


$      46,064















 Operating expenses: 












Intangible asset amortization

$         756


$           756


$        844


$        3,041


$        4,467



Impairment of long-lived assets 

-


-


-


753


892



Severance and restructuring

1,715


1,744


833


5,632


15,060



Other operating expenses (income), net 

83


-


(71)


143


(1,607)



 Total 

$      2,554


$        2,500


$     1,606


$        9,569


$      18,812















Interest and other expense (income), net 

$     (2,980)


$         (857)


$      (941)


$      (4,565)


$      (1,243)



 Total 

$     (2,980)


$         (857)


$      (941)


$      (4,565)


$      (1,243)















Provision (benefit) for income taxes 












Impact of U.S. tax legislation (1)

$    47,703


$      (1,056)


$           -


$      68,729


$    243,550



Impact of income tax audit settlements (2)

(251,599)


-


-


(251,599)


-



 Total 

$ (203,896)


$      (1,056)


$           -


$  (182,870)


$    243,550















(1) Includes effect of U.S. tax legislation enacted on December 22, 2017.



(2) Includes effect of income tax audit settlements.















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