Maxim Integrated Reports Results For The Fourth Quarter Of Fiscal 2020

- Revenue: $545 million

SAN JOSE, Calif., July 28, 2020 — (PRNewswire) — Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $545 million for its fourth quarter of fiscal 2020 ended June 27, 2020, a 3% decrease from the $562 million revenue recorded in the prior quarter, and a 2% decrease from the same quarter of last year.

"Strong performance by our manufacturing operations, including our test facilities in the Philippines, resulted in better-than-expected June quarter revenue and earnings per share. I'm very proud of the resilience of our company, as shown by our ability to navigate these unprecedented times. We remain highly profitable due to our diversified business model and outstanding product portfolio," said Tunc Doluca, President and Chief Executive Officer.

Fiscal Year 2020 Fourth Quarter Results

Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the June quarter was $0.77, which benefitted from a net tax reserve release of $45 million. The results were affected by $9 million in pre-tax special items which primarily consisted of charges related to acquisitions and expenses related to COVID-19 response programs. GAAP earnings per share, excluding special items was $0.58. 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 2020, total cash, cash equivalents and short-term investments were $1.6 billion, down $72 million from the prior quarter.

Notable items included:

  • Cash flow from operations: $212 million
  • Capital expenditures: $16 million
  • Dividends paid: $128 million ($0.48 per share)
  • Stock repurchases: $82 million

Trailing twelve months free cash flow was $734 million. Free cash flow is a non-GAAP measure and is defined by cash flow from operations less capital expenditures.

Dividend and Stock Repurchase

A cash dividend of $0.48 per share will be paid on September 11, 2020, to stockholders of record on August 27, 2020.  We will not declare or pay a dividend in any of the next succeeding four fiscal quarters and have suspended our open market stock repurchase program as the Merger Agreement between the Company and Analog Devices restricts our ability to declare dividends and repurchase shares of our common stock.

Due to the pending transaction 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


Year Ended




June 27, 2020


March 28, 2020


June 29, 2019


June 27, 2020


June 29, 2019




(in thousands, except per share data)



Net revenues

$              545,369


$              561,916


$               556,545


$            2,191,395


$            2,314,329



Cost of goods sold

183,001


195,479


200,154


758,743


813,823



Gross margin

362,368


366,437


356,391


1,432,652


1,500,506



Operating expenses:












Research and development

110,173


109,091


105,136


440,166


435,222



Selling, general and administrative

72,893


71,643


75,130


296,722


308,617



Intangible asset amortization

810


756


756


3,078


3,041



Impairment of long-lived assets

-


-


-


-


753



Severance and restructuring expenses

678


523


1,715


5,363


5,632



Other operating expenses (income), net

(173)


1,077


83


929


143



Total operating expenses

184,381


183,090


182,820


746,258


753,408



Operating income

177,987


183,347


173,571


686,394


747,098



Interest and other income (expense), net

(8,488)


(1,622)


4,079


(8,298)


7,323



Income before taxes

169,499


181,725


177,650


678,096


754,421



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

(37,799)


20,535


(189,908)


23,402


(73,065)



Net income

$              207,298


$              161,190


$               367,558


$               654,694


$               827,486















Earnings per share:












Basic

$                     0.78


$                     0.60


$                      1.35


$                      2.43


$                      3.01



Diluted

$                     0.77


$                     0.59


$                      1.33


$                      2.41


$                      2.97















Shares used in the calculation of earnings per share:












Basic

266,639


269,003


272,382


269,341


274,966



Diluted

268,777


271,579


275,834


272,028


278,777















Dividends paid per share

$                     0.48


$                     0.48


$                      0.46


$                      1.92


$                      1.84



























SCHEDULE OF SPECIAL ITEMS



(Unaudited)















Three Months Ended


Year Ended




June 27, 2020


March 28, 2020


June 29, 2019


June 27, 2020


June 29, 2019




(in thousands)



Cost of goods sold:












Intangible asset amortization

$                   3,528


$                   3,111


$                   4,038


$                 12,860


$                 22,829



Cost of COVID-19 response programs

1,591


2,025


-


3,616


-



 Total 

$                   5,119


$                   5,136


$                 11,759


$                 16,476


$                 22,829















 Operating expenses: 












Intangible asset amortization

$                      810


$                      756


$                       756


$                   3,078


$                   3,041



Impairment of long-lived assets

-


-


-


-


753



Severance and restructuring

678


523


1,715


5,363


5,632



Other operating expenses (income), net

(173)


1,077

(3)

83


928


143



 Total 

$                   1,315


$                   2,356


$                   2,554


$                   9,369


$                   9,569















Interest and other expense (income), net

$                   1,484


$                    (587)


$                 (2,980)


$                     (541)


$                 (4,565)



 Total 

$                   1,484


$                    (587)


$                 (2,980)


$                     (541)


$                 (4,565)















Provision for (benefit from) for income taxes:












Impact of U.S. tax legislation (1)

$                   6,486


$                         -


$                 47,703


$                   6,486


$                 68,729



Impact of income tax audit settlements (2)

(51,197)


-


(251,599)


(51,197)


(251,599)



 Total 

$               (44,711)


$                         -


$             (203,896)


$               (44,711)


$             (182,870)















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



(2) Includes effect of income tax audit settlements.



(3) Includes approximately $0.5 million of acquisition-related costs and $0.5 million of cost related to COVID-19 response programs.



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