Maxim Integrated Reports Results For The First Quarter Of Fiscal 2021

- Revenue: $619 million

SAN JOSE, Calif., Oct. 27, 2020 — (PRNewswire) —  Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $619 million for its first quarter of fiscal 2021 ended September 26, 2020, a 14% increase from the $545 million revenue recorded in the prior quarter, and a 16% increase from the same quarter of last year.

"Revenue in the September quarter increased strongly in Consumer and Automotive on a sequential basis. The robust uptick was driven by infotainment, driver assistance and electric vehicle content in Automotive, and across smartphones, gaming, wearables, tablets and broad-based personal electronics in Consumer. Revenue also grew across all of our major end markets compared to the same quarter a year ago, with double-digit growth in Communications and Data Center, Industrial and Automotive. Additionally, we are progressing per plan towards closure of our merger with Analog Devices," said Tunc Doluca, President and Chief Executive Officer.

Fiscal Year 2021 First Quarter Results

Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the September quarter was $0.63. The results were affected by $30 million in pre-tax special items which primarily consisted of $15 million in charges related to the upcoming combination with Analog Devices, $9 million in restructuring costs unrelated to the merger, and $5 million of expenses related to prior acquisitions. GAAP earnings per share, excluding special items was $0.72. 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 2021, total cash, cash equivalents and short-term investments were $1.6 billion, down $2 million from the prior quarter.

Notable items included:

  • Cash flow from operations: $163 million
  • Capital expenditures: $13 million
  • Dividends paid: $128 million ($0.48 per share)
  • Stock repurchases: $9 million

Trailing twelve months free cash flow was $763 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 December, 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. 


CONSOLIDATED STATEMENTS OF INCOME



(Unaudited)




Three Months Ended




September 26, 2020


June 27, 2020


September 28, 2019




(in thousands, except per share data)



Net revenues

$                                619,357


$                         545,369


$                               533,040



Cost of goods sold

202,343


183,001


189,717



Gross margin

417,014


362,368


343,323



Operating expenses:








Research and development

115,466


110,173


108,989



Selling, general and administrative

82,954


72,893


76,115



Intangible asset amortization

919


810


756



Severance and restructuring expenses

8,813


678


1,434



Other operating expenses (income), net

7,428


(173)


25



Total operating expenses

215,580


184,381


187,319



Operating income

201,434


177,987


156,004



Interest and other income (expense), net

(7,037)


(8,488)


1,829



Income before taxes

194,397


169,499


157,833



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

24,883


(37,799)


17,677



Net income

$                                169,514


$                         207,298


$                               140,156











Earnings per share:








Basic

$                                      0.64


$                               0.78


$                                     0.52



Diluted

$                                      0.63


$                               0.77


$                                     0.51











Shares used in the calculation of earnings per share:








Basic

266,831


266,639


271,388



Diluted

269,529


268,777


274,436











Dividends paid per share

$                                      0.48


$                               0.48


$                                     0.48











SCHEDULE OF SPECIAL ITEMS



(Unaudited)




Three Months Ended




September 26, 2020


June 27, 2020


September 28, 2019




(in thousands)



Cost of goods sold:








Intangible asset amortization

$                                    4,363


$                             3,528


$                                   3,111



Merger related expenses (3)

1,335





Cost of COVID-19 response programs

938


1,591




Total

$                                    6,636


$                             5,119


$                                   3,111











Operating expenses:








Merger related expenses (3)

$                                    6,607


$                              —


$                                  —



Intangible asset amortization

918


810


756



Severance and restructuring

8,813


678


1,434



Other operating expenses (income), net (3)

7,428


(173)


25



Total

$                                  23,766


$                             1,315


$                                   2,215











Interest and other expense (income), net 

$                                     (535)


$                             1,484


$                                      207



Total

$                                     (535)


$                             1,484


$                                      207











 Provision for (benefit from) for income taxes: 








Impact of U.S. tax legislation (1)

$                                     —


$                             6,486


$                                    —



Impact of income tax audit settlements (2)


(51,197)




 Total 

$                                     —


$                         (44,711)


$                                    —











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






(2) Includes effect of income tax audit settlements.






(3) Includes ADI merger related expenses such as accelerated stock-based compensation expense resulting from the acceleration of certain RSAs for tax withholding purposes, as well as other legal and professional services.





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