- Revenue: $571 million
(PRNewswire) — �Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $571 million for its fiscal 2012 third quarter ended March 31, 2012, a 3% decrease from $591 million revenue recorded in the prior quarter.Tunc Doluca, President and Chief Executive Officer, commented, "Bookings recovered in all of our major markets, reaffirming our belief that the March quarter marked a cyclical bottom for our revenue. Channel inventories are lean, bookings have strengthened, and we see healthy demand for our mobility products."
Fiscal Year 2012 Third Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the March quarter was $0.18. The results were affected by certain items which primarily consisted of:
- $15.4 million pre-tax charge for acquisition related items
- $7.7 million pre-tax charge for impairment of long lived assets
- $65.3 million tax charge for international restructuring
- $31.8 million after tax gain from the sale of certain product lines
GAAP earnings per share excluding special expense items was $0.33. An analysis of GAAP versus GAAP excluding special items is provided in the last table of this press release.
Cash Flow Items
At the end of our fiscal 2012 third quarter total cash, cash equivalents and short term investments was $936 million, an increase of $119 million from the prior quarter. Notable items include:
- Cash flow from operations: $196 million (34% of revenue)
- Net capital expenditures: $56 million
- Dividends: $64 million ($0.22 per share)
- Stock repurchases: $29 million
- Proceeds from sale of discontinued operations: $57 million
Business Outlook
The Company's 90 day backlog at the beginning of the fourth fiscal quarter was $388 million. Based on our beginning backlog and expected turns, results for the June 2012 quarter are expected to be:
- Revenue: $590 million to $620 million
- Gross Margin: 58% to 61% GAAP (60% to 63% excluding special expense items)
- EPS: $0.34 to $0.38 GAAP ($0.37 to $0.41 excluding special expense items)
Maxim's Business Outlook does not include the potential impact of any restructuring activity or mergers, acquisitions, divestitures, or other business combinations that may be completed during the quarter.
Dividend
A cash dividend of $0.22 per share will be paid on June 6, 2012, to stockholders of record on May 21, 2012.
Conference Call
Maxim has scheduled a conference call on April 26, 2012, at 2:00 p.m. Pacific Time to discuss its financial results for the third quarter of fiscal year 2012 and its business outlook. To listen via telephone, dial (866) 227-1582 (toll free) or (703) 639-1129. This call will be webcast by Shareholder.com and can be accessed at Maxim's website at
www.maxim-ic.com/Investor.
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CONSOLIDATED STATEMENTS OF INCOME | ||||||
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(Unaudited) | ||||||
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|
|
Three Months Ended | ||||
|
|
|
March 31, |
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December 31, |
|
March 26, |
|
|
|
2012 |
|
2011 |
|
2011 |
|
|
|
(in thousands, except per share data) | ||||
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Net revenues |
|
$ 571,212 |
|
$ 591,359 |
|
$ 606,775 |
|
Cost of goods sold (1, 2, 3) |
|
235,782 |
|
243,399 |
|
234,125 |
|
Gross profit |
|
335,430 |
|
347,960 |
|
372,650 |
|
Operating expenses: |
|
|
|
|
|
|
|
Research and development (1) |
|
136,075 |
|
142,084 |
|
130,955 |
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Selling, general and administrative (1) |
|
78,011 |
|
80,826 |
|
73,617 |
|
Intangible asset amortization (2) |
|
4,029 |
|
4,338 |
|
4,092 |
|
Impairment of long-lived assets (4) |
|
7,712 |
|
- |
|
- |
|
Severance and restructuring |
|
228 |
|
6,047 |
|
16 |
|
Other operating (income) expenses, net (5) |
|
(2,511) |
|
155 |
|
(25) |
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Total operating expenses |
|
223,544 |
|
233,450 |
|
208,655 |
|
Operating income |
|
111,886 |
|
114,510 |
|
163,995 |
|
Interest and other (expense) income, net (6) |
|
(230) |
|
2,374 |
|
(1,570) |
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Income before provision for income taxes |
|
111,656 |
|
116,884 |
|
162,425 |
|
Provision for income taxes (7,8) |
|
88,948 |
|
28,754 |
|
26,149 |
|
Income from continuing operations |
|
22,708 |
|
88,130 |
|
136,276 |
|
Income from discontinued operations, net of tax (9) |
|
31,809 |
|
- |
|
- |
|
Net income |
|
$ 54,517 |
|
$ 88,130 |
|
$ 136,276 |
|
|
|
|
|
|
|
|
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Earnings per share: basic |
|
|
|
|
|
|
|
From continuing operations |
|
$ 0.08 |
|
$ 0.30 |
|
$ 0.46 |
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From discontinued operations, net of tax (9) |
|
0.11 |
|
- |
|
- |
|
Basic |
|
$ 0.19 |
|
$ 0.30 |
|
$ 0.46 |
|
|
|
|
|
|
|
|
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Earnings per share: diluted |
|
|
|
|
|
|
|
From continuing operations |
|
$ 0.07 |
|
$ 0.29 |
|
$ 0.45 |
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From discontinued operations, net of tax (9) |
|
0.11 |
|
- |
|
- |
|
Diluted |
|
$ 0.18 |
|
$ 0.29 |
|
$ 0.45 |
|
|
|
|
|
|
|
|
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Shares used in the calculation of earnings per share: |
|
|
|
|
|
|
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Basic |
|
292,276 |
|
291,824 |
|
296,511 |
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Diluted |
|
300,221 |
|
299,290 |
|
304,515 |
|
|
|
|
|
|
|
|
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Dividends paid per share |
|
$ 0.22 |
|
$ 0.22 |
|
$ 0.21 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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SCHEDULE OF SPECIAL EXPENSE ITEMS | ||||||
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(Unaudited) | ||||||
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| ||||||
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|
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Three Months Ended | ||||
|
|
|
March 31, |
|
December 31, |
|
March 26, |
|
|
|
2012 |
|
2011 |
|
2011 |
|
|
|
(in thousands) | ||||
|
Cost of goods sold: |
|
|
|
|
|
|
|
Intangible asset amortization (2) |
|
$ 9,787 |
|
$ 8,080 |
|
$ 7,919 |
|
Acquisition related inventory write up (3) |
|
- |
|
1,801 |
|
- |
|
Total |
|
$ 9,787 |
|
$ 9,881 |
|
$ 7,919 |
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Intangible asset amortization (2) |
|
$ 4,029 |
|
$ 4,338 |
|
$ 4,092 |
|
Impairment of long-lived assets (4) |
|
7,712 |
|
- |
|
- |
|
Severance and restructuring |
|
228 |
|
6,047 |
|
16 |
|
Other operating (income) expenses, net (5) |
|
(2,511) |
|
155 |
|
(25) |
|
Total |
|
$ 9,458 |
|
$ 10,540 |
|
$ 4,083 |
|
|
|
|
|
|
|
|
|
Interest and other (income), net (6) |
|
$ - |
|
$ (1,776) |
|
$ - |
|
Total |
|
$ - |
|
$ (1,776) |
|
$ - |
|
|
|
|
|
|
|
|
|
Provision for income taxes: |
|
|
|
|
|
|
|
Reversal of tax reserves (7) |
|
$ (2,272) |
|
$ - |
|
$ (37,324) |
|
International restructuring (8) |
|
$ 65,293 |
|
$ - |
|
$ 15,010 |
|
Total |
|
$ 63,021 |
|
$ - |
|
$ (22,314) |
|
|
|
|
|
|
|
|
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Discontinued operations: |
|
|
|
|
|
|
|
Income from discontinued operations, net of tax (9) |
|
$ (31,809) |
|
$ - |
|
$ - |
|
Total |
|
$ (31,809) |
|
$ - |
|
$ - |
|
|
|
|
|
|
|
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(1) Includes stock-based compensation charges. |
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|
|
|
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(2) Includes intangible asset amortization related to acquisitions. | ||||||
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(3) Includes expense related to fair value write up of inventory acquired as part of acquisitions. | ||||||
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(4) Includes impairment charges relating to wafer fab and end of line manufacturing equipment. | ||||||
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(5) Other operating (income) expenses, net are primarily for gain on sale of land and buildings, stock option related litigation, certain payroll taxes, interest and penalties and in-process research and development written off. | ||||||
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(6) Includes gain on sale of equity investment. | ||||||
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(7) Reversal of tax reserves related to audit completion and expiration of statute of limitations. | ||||||
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(8) Includes impact due to implementation of international restructuring. | ||||||
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(9) Includes gain on sale, net of tax relating to certain businesses divested. | ||||||
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