- Revenue: $577 million
(PRNewswire) — Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $577 million for its third quarter of fiscal 2015 ended March 28, 2015, a 2% increase from the $567 million revenue recorded in the prior quarter, and a 5% decrease from the same quarter of last year.
Tunc Doluca, President and Chief Executive Officer, commented, "Our March quarter revenue performance was stronger than seasonal levels, but slightly below the midpoint of our expectations. During the quarter, we diversified our revenue base in Consumer and continued to strongly grow our Automotive business." Mr. Doluca continued, "We are exceeding our cost-saving goals, improving profitability while investing in growth areas for the future."
Fiscal Year 2015 Third Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the March quarter was $0.28. The results were affected by pre-tax special items which primarily consisted of $23 million in charges related to acquisitions and $17 million in charges related to restructuring activities. GAAP earnings per share, excluding special items was $0.40. 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 the third quarter of fiscal 2015, total cash, cash equivalents and short term investments were $1.47 billion, an increase of $86 million from the prior quarter. Notable items included:
- Cash flow from operations: $182 million
- Net capital additions: $9 million
- Dividends: $79 million ($0.28 per share)
- Stock repurchases: $37 million
Business Outlook
The Company's 90-day backlog at the beginning of the fourth fiscal quarter of 2015 was $387 million. Based on the beginning backlog and expected turns, results for the June 2015 quarter are expected to be as follows:
- Revenue: $570 million to $610 million
- Gross Margin: 53% to 56% GAAP (58% to 61% excluding special items)
- EPS: $0.24 to $0.30 GAAP ($0.35 to $0.41 excluding special items)
Maxim Integrated's business outlook does not include the potential impact of any restructuring activity, acquisitions, or other business combinations that may be completed during the quarter.
Dividend
A cash dividend of $0.28 per share will be paid on June 4, 2015, to stockholders of record on May 21, 2015.
Conference Call
Maxim Integrated has scheduled a conference call on April 23, 2015, at 2:00 p.m. Pacific Time to discuss its financial results for the third quarter of fiscal 2015 and its business outlook. To listen via telephone, dial (866) 804-3547 (toll free) or (703) 639-1328. This call will be webcast by Shareholder.com and can be accessed at the Company's website at
www.maximintegrated.com/company/investor.
A presentation summarizing financial information to be discussed on the conference call is posted at www.maximintegrated.com/company/investor.
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CONSOLIDATED STATEMENTS OF INCOME |
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(Unaudited) |
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Three Months Ended |
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March 28, |
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December 27, |
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March 29, |
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2015 |
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2014 |
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2014 |
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(in thousands, except per share data) |
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Net revenues |
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$ 577,263 |
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$ 566,809 |
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$ 605,681 |
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Cost of goods sold (1) |
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261,995 |
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252,732 |
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265,744 |
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Gross margin |
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315,268 |
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314,077 |
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339,937 |
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Operating expenses: |
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Research and development |
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123,913 |
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135,945 |
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141,493 |
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Selling, general and administrative |
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75,766 |
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79,778 |
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80,680 |
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Intangible asset amortization |
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3,977 |
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4,155 |
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4,863 |
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Impairment of long-lived assets (2) |
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5,522 |
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50,745 |
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- |
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Impairment of goodwill and intangible assets (3) |
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- |
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93,010 |
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2,580 |
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Severance and restructuring expenses (4) |
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2,824 |
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13,635 |
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3,338 |
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Acquisition-related costs |
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- |
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- |
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(88) |
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Other operating expenses (income), net |
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(2,184) |
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885 |
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333 |
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Total operating expenses |
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209,818 |
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378,153 |
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233,199 |
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Operating income (loss) |
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105,450 |
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(64,076) |
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106,738 |
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Interest and other income (expense), net (5) |
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(5,534) |
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(7,599) |
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5,174 |
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Income (loss) before provision for income taxes |
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99,916 |
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(71,675) |
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111,912 |
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Provision (benefit) for income taxes (6) |
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20,483 |
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359 |
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(10,632) |
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Net Income (loss) |
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$ 79,433 |
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$ (72,034) |
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$ 122,544 |
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Earnings (loss) per share: |
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Basic |
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$ 0.28 |
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$ (0.25) |
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$ 0.43 |
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Diluted |
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$ 0.28 |
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$ (0.25) |
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$ 0.42 |
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Shares used in the calculation of earnings (loss) per share: |
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Basic |
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283,418 |
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282,992 |
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282,627 |
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Diluted |
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288,840 |
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282,992 |
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288,575 |
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Dividends paid per share |
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$ 0.28 |
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$ 0.28 |
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$ 0.26 |
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SCHEDULE OF SPECIAL ITEMS |
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(Unaudited) |
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Three Months Ended |
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March 28, |
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December 27, |
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March 29, |
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2015 |
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2014 |
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2014 |
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(in thousands) |
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Cost of goods sold: |
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Intangible asset amortization |
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$ 18,750 |
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$ 18,750 |
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$ 18,542 |
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Accelerated depreciation (1) |
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9,834 |
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8,895 |
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- |
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Acquisition-related inventory write-up |
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- |
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- |
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5,518 |
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Total |
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$ 28,584 |
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$ 27,645 |
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$ 24,060 |
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Operating expenses: |
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Intangible asset amortization |
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$ 3,977 |
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$ 4,155 |
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$ 4,863 |
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Impairment of long-lived assets (2) |
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5,522 |
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50,745 |
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- |
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Impairment of goodwill and intangible assets (3) |
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- |
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93,010 |
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2,580 |
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Severance and restructuring (4) |
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2,824 |
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13,635 |
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3,338 |
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Acquisition-related costs |
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- |
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- |
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(88) |
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Other operating expenses (income), net |
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(2,184) |
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885 |
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333 |
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Total |
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$ 10,139 |
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$ 162,430 |
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$ 11,026 |
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Interest and other expense (income), net (5) |
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$ - |
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$ (217) |
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$ 3,723 |
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Total |
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$ - |
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$ (217) |
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$ 3,723 |
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Provision (benefit) for income taxes: |
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Fixed Asset Tax Basis Adjustment (6) |
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$ - |
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$ - |
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$ (34,562) |
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Fiscal year 2014 research & development tax credits |
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- |
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(2,863) |
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- |
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Total |
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$ - |
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$ (2,863) |
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$ (34,562) |
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(1) Accelerated depreciation related to San Jose wafer manufacturing building and equipment. |
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(2) Includes impairment charges related to MEMS and non-MEMS wafer manufacturing equipment and end of line test equipment. |
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(3) Includes impairment of goodwill and write-off of in-process research and development related to MEMS and other business units. |
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(4) Include severance charges associated with the reorganization of various business units and manufacturing operations. |
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(5) Includes impairment of investments in privately-held companies. |
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(6) Includes one-time fixed asset tax basis adjustments relating to prior year depreciation expense. |
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