Maxim Integrated Reports Results For The First Quarter Of Fiscal 2020

- Revenue: $533 million

SAN JOSE, Calif., Oct. 29, 2019 — (PRNewswire) — Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $533 million for its first quarter of fiscal 2020 ended September 28, 2019, a 4% decrease from the $557 million revenue recorded in the prior quarter, and a 17% decrease from the same quarter of last year.

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

"Our September quarter results met our expectations, while also maintaining lean inventory levels," said Tunc Doluca, President and Chief Executive Officer. "Looking forward to the December quarter, we expect sequential growth in Communications and Data Center, Automotive and Industrial, partially offset by smartphone-related headwinds and holiday seasonality in Consumer."

Fiscal Year 2020 First Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the September quarter was $0.51. 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 $0.52. 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 2020, total cash, cash equivalents and short-term investments were $1.8 billion, down $105 million from the prior quarter.

Notable items included:

  • Cash flow from operations: $141 million
  • Capital expenditures: $21 million
  • Dividends paid: $130 million ($0.48 per share)
  • Stock repurchases: $94 million

Trailing twelve months free cash flow was $725 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 December 2019 quarter was $402 million. Based on the beginning backlog and expected turns, our results for the December 2019 quarter are forecasted to be as follows:

  • Revenue: $525 to $565 million
  • Gross Margin: 63.5% to 65.5% GAAP (64% to 66% excluding special items)
  • EPS: $0.47 to $0.55 GAAP ($0.49 to $0.57 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 December 13, 2019, to stockholders of record on November 27, 2019. 

Conference Call
Maxim Integrated has scheduled a conference call on October 29 at 2:00 p.m. Pacific Time to discuss its financial results for the first quarter of fiscal 2020 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




September 28, 2019


June 29, 2019


September 29, 2018




(in thousands, except per share data)



Net revenues

$                    533,040


$         556,545


$                    638,495



Cost of goods sold

189,717


200,154


208,259



Gross margin

343,323


356,391


430,236



Operating expenses:








Research and development

108,989


105,136


112,708



Selling, general and administrative

76,115


75,130


81,518



Intangible asset amortization

756


756


773



Severance and restructuring expenses

1,434


1,715


994



Other operating expenses (income), net

25


83


60



Total operating expenses (income), net

187,319


182,820


196,053



Operating income (loss)

156,004


173,571


234,183



Interest and other income (expense), net

1,829


4,079


(546)



Income (loss) before provision for income taxes

157,833


177,650


233,637



Income tax provision (benefit)

17,677


(189,908)


36,214



Net income (loss)

$                    140,156


$         367,558


$                    197,423



Earnings (loss) per share:








Basic

$                          0.52


$               1.35


$                          0.71



Diluted

$                          0.51


$               1.33


$                          0.70



Shares used in the calculation of earnings (loss) per share:








Basic

271,388


272,382


278,045



Diluted

274,436


275,834


282,454











Dividends paid per share

$                          0.48


$               0.46


$                          0.46











SCHEDULE OF SPECIAL ITEMS



(Unaudited)




Three Months Ended




September 28, 2019


June 29, 2019


September 29, 2018




(in thousands)



Cost of goods sold:








Intangible asset amortization

$                        3,111


$             4,038


$                        6,915



Total

$                        3,111


$             4,038


$                        6,915



Operating expenses:








Intangible asset amortization

$                           756


$                756


$                           773



Severance and restructuring

1,434


1,715


994



Other operating expenses (income), net

25


83


60



Total

$                        2,215


$             2,554


$                       1,827



Interest and other expense (income), net

$                          (207)


$            (2,980)


$                         (378)



Total

$                          (207)


$            (2,980)


$                         (378)



Income tax provision (benefit):








Impact of U.S. tax legislation (1)

$                                -


$           47,703


$                               -



Impact of income tax audit settlements (2)

-


(251,599)


-



 Total 

$                               -


$       (203,896)


$                               -











(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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