Maxim Integrated Reports Results For The Second Quarter Of Fiscal 2020

- Revenue: $551 million

SAN JOSE, Calif., Jan. 28, 2020 — (PRNewswire) —  Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $551 million for its second quarter of fiscal 2020 ended December 28, 2019, a 3% increase from the $533 million revenue recorded in the prior quarter, and a 4% decrease from the same quarter of last year.

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

"Our December quarter results met our expectations, while also maintaining lean inventory levels," said Tunc Doluca, President and Chief Executive Officer. "Looking forward to the March quarter, we expect a return to revenue growth for the company from the same quarter last year, driven by growth in Communications and Data Center, Industrial and Automotive markets."

Fiscal Year 2020 Second Quarter Results

Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the December quarter was $0.53. 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 $0.56. 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 2020, total cash, cash equivalents and short-term investments were $1.8 billion, down $10 million from the prior quarter.

Notable items included:

  • Cash flow from operations: $237 million
  • Capital expenditures: $14 million
  • Dividends paid: $130 million ($0.48 per share)
  • Stock repurchases: $108 million

Trailing twelve months free cash flow was $737 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 March 2020 quarter was $456 million. Based on the beginning backlog and expected turns, our results for the March 2020 quarter are forecasted to be as follows:

  • Revenue: $555 to $595 million
  • Gross Margin: 65% to 67% GAAP (65.5% to 67.5% excluding special items)
  • EPS: $0.56 to $0.64 GAAP ($0.57 to $0.65 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 March 13, 2020, to stockholders of record on February 27, 2020. 

Conference Call

Maxim Integrated has scheduled a conference call on January 28 at 2:00 p.m. Pacific Time to discuss its financial results for the second quarter of fiscal 2020 and its business outlook. An audio webcast of this call 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




December 28, 2019


September 28, 2019


December 29, 2018




(in thousands, except per share data)



Net revenues

$                          551,070


$                          533,040


$                   576,906



Cost of goods sold

190,546


189,717


203,858



Gross margin

360,524


343,323


373,048



Operating expenses:








Research and development

111,914


108,989


110,303



Selling, general and administrative

76,071


76,115


77,853



Intangible asset amortization

756


756


756



Impairment of long-lived assets



753



Severance and restructuring expenses

2,728


1,434


1,179



Other operating expenses (income), net

(1)


25




Total operating expenses (income), net

191,468


187,319


190,844



Operating income (loss)

169,056


156,004


182,204



Interest and other income (expense), net

(17)


1,829


472



Income (loss) before provision for income taxes

169,039


157,833


182,676



Income tax provision (benefit)

22,989


17,677


50,784



Net income (loss)

$                          146,050


$                          140,156


$                   131,892



Earnings (loss) per share:








Basic

$                                0.54


$                                0.52


$                         0.48



Diluted

$                                0.53


$                                0.51


$                         0.47



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








Basic

270,330


271,388


276,252



Diluted

273,269


274,436


280,008











Dividends paid per share

$                                0.48


$                                0.48


$                         0.46











SCHEDULE OF SPECIAL ITEMS



(Unaudited)




Three Months Ended




December 28, 2019


September 28, 2019


December 29, 2018




(in thousands)



Cost of goods sold:








Intangible asset amortization

$                              3,111


$                              3,111


$                       6,868



Total

$                              3,111


$                              3,111


$                       6,868



Operating expenses:








Intangible asset amortization

$                                 756


$                                 756


$                          756



Impairment of long-lived assets 



753



Severance and restructuring

2,728


1,434


1,179



Other operating expenses (income), net

(1)


25




Total

$                              3,483


$                              2,215


$                       2,688



Interest and other expense (income), net

$                            (1,230)


$                               (207)


$                        (351)



Total

$                            (1,230)


$                               (207)


$                        (351)



Income tax provision (benefit):








Impact of U.S. tax legislation (1)

$                                 —


$                                 —


$                     22,082



 Total 

$                                 —


$                                 —


$                     22,082











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












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