- Revenue: $581 million
(PRNewswire) — Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $581 million for its third quarter of fiscal 2017 ended March 25, 2017, a 5% increase from the $551 million revenue recorded in the prior quarter, and a 5% increase from the same quarter of last year.
Tunc Doluca, President and Chief Executive Officer, commented, "Our strong growth in the March quarter enabled us to exceed our revenue and profitability targets. This momentum was led by Automotive and Industrial growth relative to the March quarter of last year." Mr. Doluca continued, "Our return to growth and strong profitability confirms that our R&D investment strategy and manufacturing transformation are on track and delivering great results."
Fiscal Year 2017 Third Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the March quarter was $0.49. The results were affected by pre-tax special items which primarily consisted of $13 million in charges related to acquisitions and $3 million in charges related to restructuring activities. GAAP earnings per share, excluding special items was $0.56. 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 2017, total cash, cash equivalents and short term investments were $2.16 billion, an increase of $69 million from the prior quarter.
Notable items included:
- Cash flow from operations: $221 million
- Gross capital expenditures: $8 million
- Dividends: $93 million ($0.33 per share)
- Stock repurchases: $57 million
Business Outlook
The Company's 90-day backlog at the beginning of the June 2017 quarter was $382 million. Based on the beginning backlog, expected turns, and the start of the transition to sell-in revenue accounting for distribution, our results for the June 2017 quarter are expected to be as follows:
- Revenue: $590 to $630 million (including $15 to $20 million for sell-in transition)
- Gross Margin: 63% to 65% GAAP (65% to 67% excluding special items)
- EPS: $0.54 to $0.60 GAAP ($0.59 to $0.65 excluding special items)
Maxim Integrated's business outlook does not include the potential impact of any special items related to restructuring activity, acquisitions, or other business combinations that may be completed during the quarter.
Dividend
A cash dividend of $0.33 per share will be paid on June 15, 2017, to stockholders of record on June 1, 2017.
Conference Call
Maxim Integrated has scheduled a conference call on April 20 at 2:00 p.m. Pacific Time to discuss its financial results for the third quarter of fiscal 2017 and its business outlook. This call will be webcast by Shareholder.com and can be accessed at the Company's website at
investor.maximintegrated.com.
A presentation summarizing financial information to be discussed on the conference call is posted at investor.maximintegrated.com.
Contact
Kathy Ta
Managing Director, Investor Relations
(408) 601-5697
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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 25, |
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December 24, |
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March 26, |
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2017 |
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2016 |
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2016 |
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(in thousands, except per share data) |
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Net revenues |
$ 581,216 |
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$ 550,998 |
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$ 555,252 |
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Cost of goods sold (1) (2) |
214,312 |
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210,820 |
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236,411 |
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Gross margin |
366,904 |
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340,178 |
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318,841 |
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Operating expenses: |
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Research and development |
113,163 |
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114,057 |
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119,178 |
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Selling, general and administrative |
73,987 |
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71,543 |
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71,778 |
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Intangible asset amortization |
2,348 |
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2,348 |
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2,538 |
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Impairment of long-lived assets (3) |
1,000 |
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383 |
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506 |
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Severance and restructuring expenses |
450 |
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864 |
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2,552 |
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Other operating expenses (income), net |
1,704 |
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1,909 |
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(55,419) |
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Total operating expenses (income), net |
192,652 |
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191,104 |
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141,133 |
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Operating income (loss) |
174,252 |
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149,074 |
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177,708 |
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Interest and other income (expense), net (4) |
(3,884) |
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(636) |
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(6,373) |
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Income (loss) before provision for income taxes |
170,368 |
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148,438 |
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171,335 |
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Income tax provision (benefit) |
30,155 |
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17,961 |
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31,525 |
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Net income (loss) |
$ 140,213 |
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$ 130,477 |
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$ 139,810 |
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Earnings (loss) per share: |
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Basic |
$ 0.50 |
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$ 0.46 |
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$ 0.49 |
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Diluted |
$ 0.49 |
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$ 0.45 |
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$ 0.48 |
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Shares used in the calculation of earnings (loss) per share: |
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Basic |
282,903 |
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283,294 |
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285,854 |
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Diluted |
287,882 |
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288,106 |
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289,783 |
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Dividends paid per share |
$ 0.33 |
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$ 0.33 |
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$ 0.30 |
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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 25, |
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December 24, |
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March 26, |
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2017 |
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2016 |
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2016 |
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(in thousands) |
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Cost of goods sold: |
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Intangible asset amortization |
$ 11,064 |
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$11,755 |
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$ 11,829 |
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Accelerated depreciation (1) |
1,103 |
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1,178 |
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4,066 |
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Other cost of goods sold (2) |
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6,123 |
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Total |
$ 12,167 |
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$ 12,933 |
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$ 22,018 |
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Operating expenses: |
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Intangible asset amortization |
$2,348 |
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$2,348 |
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$2,538 |
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Impairment of long-lived assets (3) |
1,000 |
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383 |
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506 |
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Severance and restructuring |
450 |
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864 |
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2,552 |
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Other operating expenses (income), net |
1,704 |
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1,909 |
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(55,419) |
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Total |
$ 5,502 |
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$ 5,504 |
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$ (49,823) |
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Interest and other expense (income), net (4) |
$ (48) |
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$ (5,052) |
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$ (45) |
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Total |
$ (48) |
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$ (5,052) |
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$ (45) |
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(1) Includes building and equipment accelerated depreciation related to the Dallas manufacturing facility. |
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(2) Includes expense related to patent license settlement. |
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(3) Includes impairment of investments in privately-held companies and other equipment impairment charges. |
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(4) Includes gain on sale of shares received for the sale of the wafer manufacturing facility in San Antonio, Texas. |
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