Maxim Integrated Reports Results For The Fourth Quarter Of

Maxim Integrated Reports Results For The Fourth Quarter Of Fiscal 2014; Increases Dividend By 8%

- Revenue: $642 million

(PRNewswire) — Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $642 million for its fourth quarter of fiscal 2014 ended June 28, 2014, a 6% increase from the $606 million revenue recorded in the prior quarter.

Tunc Doluca, President and Chief Executive Officer, commented, "While we experienced softness in our mobility business, our revenue performance in the quarter reflected the overall strength of Maxim's balanced portfolio, with growth in every one of our other major businesses." Mr. Doluca continued, "Although our near-term outlook for mobility remains cautious, we are executing on our strategy to bring new integrated designs to the Industrial, Automotive, Communications and Data Center markets, and to diversify our customer base in mobility."

Fiscal Year 2014 Fourth Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the June quarter was $0.29. The results were affected by special items which primarily consisted of $24 million in pre-tax charges related to acquisitions and $23 million in pre-tax charges related to restructuring and other items. GAAP earnings per share, excluding special items was $0.43. 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 fourth quarter of fiscal 2014, total cash, cash equivalents and short term investments was $1.37 billion, an increase of $141 million from the prior quarter. Notable items included:

Cash flow from operations: $234 million
Net capital expenditures: $22 million
Dividends: $74 million ($0.26 per share)
Stock repurchases: $41 million

Business Outlook
The Company's 90-day backlog at the beginning of the first fiscal quarter of 2015 was $377 million. Based on :the beginning backlog and expected turns, results for the September 2014 quarter are expected to be as follows:

Revenue $580 million to $620 million
Gross Margin: 56% to 59% GAAP (59% to 62% excluding special items)
EPS: $0.27 to $0.33 GAAP ($0.34 to $0.40 excluding special items)

Maxim Integrated's business outlook does not include 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 $0.28 per share will be paid on September 4, 2014, to stockholders of record on August 21, 2014. This represents an 8% increase in the dividend compared to the prior quarter.

Conference Call
Maxim Integrated has scheduled a conference call on July 24, 2014, at 2:00 p.m. Pacific Time to discuss its financial results for the fourth quarter of fiscal 2014 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.

CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
	Three Months Ended			Year Ended
	June 28,	March 29,	June 29,	June 28,	June 29,
	2014	2014	2013	2014	2013
	(in thousands, except per share data)
Net revenues	$ 642,467	$ 605,681	$ 608,194	$ 2,453,663	$ 2,441,459
Cost of goods sold	273,507	265,744	236,795	1,068,898	944,892
Gross margin	368,960	339,937	371,399	1,384,765	1,496,567
Operating expenses:
Research and development	143,802	141,493	132,009	558,168	534,819
Selling, general and administrative	83,153	80,680	82,083	324,734	324,282
Intangible asset amortization	4,423	4,863	3,670	17,690	15,525
Impairment of long-lived assets (1)	6,447	-	-	11,644	24,929
Severance and restructuring expenses	5,790	3,338	442	24,902	2,829
Acquisition-related costs	-	(88)	-	6,983	-
Other operating expenses (income), net (2)	8,795	2,913	2,105	18,353	5,864
Total operating expenses	252,410	233,199	220,309	962,474	908,248
Operating income	116,550	106,738	151,090	422,291	588,319
Interest and other income (expense), net (3)	(8,943)	5,174	(6,830)	(13,065)	(18,040)
Income before provision for income taxes	107,607	111,912	144,260	409,226	570,279
Provision (benefit) for income taxes (4)	22,814	(10,632)	25,246	54,416	117,970
Income from continuing operations	84,793	122,544	119,014	354,810	452,309
Income from discontinued operations, net of tax (5)	-	-	-	-	2,603
Net income	$ 84,793	$ 122,544	$ 119,014	$ 354,810	$ 454,912

Earnings per share: Basic
From continuing operations	$ 0.30	$ 0.43	$ 0.41	$ 1.25	$ 1.55
From discontinued operations, net of tax	-	-	-	-	0.01
Basic	$ 0.30	$ 0.43	$ 0.41	$ 1.25	$ 1.56

Earnings per share: Diluted
From continuing operations	$ 0.29	$ 0.42	$ 0.40	$ 1.23	$ 1.51
From discontinued operations, net of tax	-	-	-	-	0.01
Diluted	$ 0.29	$ 0.42	$ 0.40	$ 1.23	$ 1.52

Shares used in the calculation of earnings per share:
Basic	283,431	282,627	290,146	283,344	291,835
Diluted	289,487	288,575	296,756	289,108	298,596

Dividends paid per share	$ 0.26	$ 0.26	$ 0.24	$ 1.04	$ 0.96


SCHEDULE OF SPECIAL ITEMS
(Unaudited)
	Three Months Ended			Year Ended
	June 28,	March 29,	June 29,	June 28,	June 29,
	2014	2014	2013	2014	2013
	(in thousands)
Cost of goods sold:
Intangible asset amortization	$ 18,750	$ 18,542	$ 7,777	$ 64,483	$ 33,994
Acquisition-related inventory write-up	371	5,518	-	18,955	-
Total	$ 19,121	$ 24,060	$ 7,777	$ 83,438	$ 33,994

Operating expenses:
Intangible asset amortization	$ 4,423	$ 4,863	$ 3,670	$ 17,690	$ 15,525
Impairment of long-lived assets (1)	6,447	-	-	11,644	24,929
Severance and restructuring	5,790	3,338	442	24,902	2,829
Acquisition-related costs	-	(88)	-	6,983	-
Other operating expenses (income), net (2)	8,795	2,913	2,105	18,353	5,864
Total	$ 25,455	$ 11,026	$ 6,217	$ 79,572	$ 49,147

Interest and other expense (income), net (3)	$ 2,432	$ 3,723	$ 700	$ 6,155	$ 700
Total	$ 2,432	$ 3,723	$ 700	$ 6,155	$ 700

Provision (benefit) for income taxes:
Fixed assets tax basis adjustment (4)	$ (1,041)	$ (34,562)	$ -	$ (35,603)	$ -
International restructuring implementation	-	-	-	-	18,726
Fiscal year 2012 research & development tax credits	-	-	-	-	(3,899)
Total	$ (1,041)	$ (34,562)	$ -	$ (35,603)	$ 14,827

Discontinued operations:
Income from discontinued operations, net of tax (5)	$ -	$ -	$ -	$ -	$ (2,603)
Total	$ -	$ -	$ -	$ -	$ (2,603)

(1) Includes impairment charges relating to EDA software, wafer fab tools, land and buildings held-for-sale, and end of line manufacturing equipment.
(2) Other operating expenses (income), net are primarily for legal settlement, legal expenses related to Volterra acquisition, reserve for uncollectible note related to a divestiture, contingent consideration adjustments related to certain acquisitions, in-process research and development abandoned, loss (gain) relating to sale of land and buildings,expected loss on lease abandonment,and certain payroll taxes.
(3) Includes impairment of investment in privately-held companies.
(4) Includes one-time fixed asset tax basis adjustments relating to prior year depreciation expense.
(5) Includes gain on sale, net of tax relating to certain business divested.

1 | 2 | 3 | 4 | 5 | 6 Next Page »