Maxim Integrated Reports Results For The First Quarter Of Fiscal

Maxim Integrated Reports Results For The First Quarter Of Fiscal 2014

- Revenue: $585 million

(PRNewswire) — Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $585 million for its first quarter of fiscal 2014 ended September 28, 2013, a 4% decrease from the $608 million revenue recorded in the prior quarter. Fiscal first quarter results exclude Volterra Semiconductor.

Tunc Doluca, President and Chief Executive Officer, commented, "We are pleased that our first quarter results came in as expected as our diversified business model continues to serve us well. We also completed the acquisition of Volterra Semiconductor earlier this month and are excited to have the team on board."

Fiscal Year 2014 First Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the September quarter was $0.36. The results were affected by special items which primarily consisted of:

$12 million pre-tax charge for acquisition related items
$3 million pre-tax charge for expenses related to the Volterra acquisition
$6 million pre-tax charge for restructuring and severance

GAAP earnings per share, excluding special items, was $0.41. 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 first quarter of fiscal 2014, total cash, cash equivalents and short term investments was $1.03 billion, a decrease of $165 million from the prior quarter. Notable items include:

Cash flow from operations: $96 million
Net capital expenditures: $33 million
Dividends: $74 million ($0.26 per share)
Stock repurchases: $154 million

Business Outlook
The Company's 90 day backlog at the beginning of the second fiscal quarter of 2014 was $417 million including $27 million of Volterra backlog. Based on our beginning backlog and expected turns, results for the December 2013 quarter including Volterra are expected to be:

Revenue: $605 million to $635 million (including $35 million to $37 million from Volterra)
Gross Margin: 58% to 61% GAAP (59% to 62% excluding special items)
EPS: $0.34 to $0.38 GAAP ($0.37 to $0.41 excluding special items)

Maxim Integrated's business outlook does not include the impact of special items related to the Volterra acquisition or the potential impact of any restructuring activity or mergers, acquisitions, or other business combinations that may be completed during the quarter.

Dividend
A cash dividend of $0.26 per share will be paid on December 5, 2013, to stockholders of record on November 21, 2013.

Conference Call
Maxim Integrated has scheduled a conference call on October 24, 2013, at 2:00 p.m. Pacific Time to discuss its financial results for the first quarter of fiscal 2014 and its business outlook. To listen via telephone, dial (866) 802-4305 (toll free) or (703) 639-1317. This call will be webcast by Shareholder.com and can be accessed at the Company's website at www.maximintegrated.com/company/investor.

CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
	Three Months Ended
	September 28,	June 29,	September 29,
	2013	2013	2012
	(in thousands, except per share data)
Net revenues	$ 585,241	$ 608,194	$ 623,075
Cost of goods sold	238,045	236,795	237,384
Gross margin	347,196	371,399	385,691
Operating expenses:
Research and development	129,902	132,009	132,930
Selling, general and administrative	77,430	82,083	80,187
Intangible asset amortization	3,436	3,670	4,049
Impairment of long-lived assets	-	-	2,707
Severance and restructuring expenses (1)	5,547	442	-
Other operating expenses (income), net (2)	2,272	2,105	415
Total operating expenses	218,587	220,309	220,288
Operating income	128,609	151,090	165,403
Interest and other income (expense), net (3)	(3,463)	(6,830)	(5,742)
Income before provision for income taxes	125,146	144,260	159,661
Provision for income taxes	22,026	25,246	31,773
Net income	$ 103,120	$ 119,014	$ 127,888

Earnings per share:
Basic	$ 0.36	$ 0.41	$ 0.44
Diluted	$ 0.36	$ 0.40	$ 0.43

Shares used in the calculation of earnings per share:
Basic	284,654	290,146	292,213
Diluted	290,260	296,756	298,782

Dividends paid per share	$ 0.26	$ 0.24	$ 0.24


SCHEDULE OF SPECIAL EXPENSE ITEMS
(Unaudited)
	Three Months Ended
	September 28,	June 29,	September 29,
	2013	2013	2012
	(in thousands)
Cost of goods sold:
Intangible asset amortization	$ 8,092	$ 7,777	$ 9,454
Total	$ 8,092	$ 7,777	$ 9,454

Operating expenses:
Intangible asset amortization	$ 3,436	$ 3,670	$ 4,049
Impairment of long-lived assets	-	-	2,707
Severance and restructuring (1)	5,547	442	-
Other operating expenses (income), net (2)	2,272	2,105	415
Total	$ 11,255	$ 6,217	$ 7,171

Interest and other expense (income), net (3)	$ -	$ 700	$ -
Total	$ -	$ 700	$ -


(1) Includes severance charges associated with the reorganization of various business units and manufacturing operations.
(2) Other operating expenses (income), net are primarily for certain payroll taxes, contingent consideration adjustments related to certain acquisitions, loss (gain) relating to sale of land and buildings, acquisition related expenses and loss on lease abandonment.
(3) Includes impairment of investment in a privately held company.

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