Maxim Integrated Reports Results For The Fourth Quarter Of

Maxim Integrated Reports Results For The Fourth Quarter Of Fiscal 2020

- Revenue: $545 million

SAN JOSE, Calif., July 28, 2020 — (PRNewswire) — Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $545 million for its fourth quarter of fiscal 2020 ended June 27, 2020, a 3% decrease from the $562 million revenue recorded in the prior quarter, and a 2% decrease from the same quarter of last year.

"Strong performance by our manufacturing operations, including our test facilities in the Philippines, resulted in better-than-expected June quarter revenue and earnings per share. I'm very proud of the resilience of our company, as shown by our ability to navigate these unprecedented times. We remain highly profitable due to our diversified business model and outstanding product portfolio," said Tunc Doluca, President and Chief Executive Officer.

Fiscal Year 2020 Fourth Quarter Results

Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the June quarter was $0.77, which benefitted from a net tax reserve release of $45 million. The results were affected by $9 million in pre-tax special items which primarily consisted of charges related to acquisitions and expenses related to COVID-19 response programs. GAAP earnings per share, excluding special items was $0.58. An analysis of GAAP versus GAAP excluding special items is provided in this press release.

Cash Flow Items

At the end of the fourth quarter of fiscal 2020, total cash, cash equivalents and short-term investments were $1.6 billion, down $72 million from the prior quarter.

Notable items included:

Cash flow from operations: $212 million
Capital expenditures: $16 million
Dividends paid: $128 million ($0.48 per share)
Stock repurchases: $82 million

Trailing twelve months free cash flow was $734 million. Free cash flow is a non-GAAP measure and is defined by cash flow from operations less capital expenditures.

Dividend and Stock Repurchase

A cash dividend of $0.48 per share will be paid on September 11, 2020, to stockholders of record on August 27, 2020. We will not declare or pay a dividend in any of the next succeeding four fiscal quarters and have suspended our open market stock repurchase program as the Merger Agreement between the Company and Analog Devices restricts our ability to declare dividends and repurchase shares of our common stock.

Due to the pending transaction with Analog Devices, Maxim Integrated will not be hosting a quarterly earnings conference call and has suspended the practice of providing forward-looking guidance. Investors are requested to review our Investor Relations website for the quarterly financial highlights and SEC filings for the latest updates on the pending transaction.


CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

	Three Months Ended				Year Ended
	June 27, 2020	March 28, 2020		June 29, 2019	June 27, 2020	June 29, 2019
	(in thousands, except per share data)
Net revenues	$ 545,369	$ 561,916		$ 556,545	$ 2,191,395	$ 2,314,329
Cost of goods sold	183,001	195,479		200,154	758,743	813,823
Gross margin	362,368	366,437		356,391	1,432,652	1,500,506
Operating expenses:
Research and development	110,173	109,091		105,136	440,166	435,222
Selling, general and administrative	72,893	71,643		75,130	296,722	308,617
Intangible asset amortization	810	756		756	3,078	3,041
Impairment of long-lived assets	-	-		-	-	753
Severance and restructuring expenses	678	523		1,715	5,363	5,632
Other operating expenses (income), net	(173)	1,077		83	929	143
Total operating expenses	184,381	183,090		182,820	746,258	753,408
Operating income	177,987	183,347		173,571	686,394	747,098
Interest and other income (expense), net	(8,488)	(1,622)		4,079	(8,298)	7,323
Income before taxes	169,499	181,725		177,650	678,096	754,421
Provision for (benefit from) income taxes ⁽¹⁾⁽²⁾	(37,799)	20,535		(189,908)	23,402	(73,065)
Net income	$ 207,298	$ 161,190		$ 367,558	$ 654,694	$ 827,486

Earnings per share:
Basic	$ 0.78	$ 0.60		$ 1.35	$ 2.43	$ 3.01
Diluted	$ 0.77	$ 0.59		$ 1.33	$ 2.41	$ 2.97

Shares used in the calculation of earnings per share:
Basic	266,639	269,003		272,382	269,341	274,966
Diluted	268,777	271,579		275,834	272,028	278,777

Dividends paid per share	$ 0.48	$ 0.48		$ 0.46	$ 1.92	$ 1.84


SCHEDULE OF SPECIAL ITEMS
(Unaudited)

	Three Months Ended				Year Ended
	June 27, 2020	March 28, 2020		June 29, 2019	June 27, 2020	June 29, 2019
	(in thousands)
Cost of goods sold:
Intangible asset amortization	$ 3,528	$ 3,111		$ 4,038	$ 12,860	$ 22,829
Cost of COVID-19 response programs	1,591	2,025		-	3,616	-
Total	$ 5,119	$ 5,136		$ 11,759	$ 16,476	$ 22,829

Operating expenses:
Intangible asset amortization	$ 810	$ 756		$ 756	$ 3,078	$ 3,041
Impairment of long-lived assets	-	-		-	-	753
Severance and restructuring	678	523		1,715	5,363	5,632
Other operating expenses (income), net	(173)	1,077	⁽³⁾	83	928	143
Total	$ 1,315	$ 2,356		$ 2,554	$ 9,369	$ 9,569

Interest and other expense (income), net	$ 1,484	$ (587)		$ (2,980)	$ (541)	$ (4,565)
Total	$ 1,484	$ (587)		$ (2,980)	$ (541)	$ (4,565)

Provision for (benefit from) for income taxes:
Impact of U.S. tax legislation ⁽¹⁾	$ 6,486	$ -		$ 47,703	$ 6,486	$ 68,729
Impact of income tax audit settlements ⁽²⁾	(51,197)	-		(251,599)	(51,197)	(251,599)
Total	$ (44,711)	$ -		$ (203,896)	$ (44,711)	$ (182,870)

(1) Includes effect of U.S. tax legislation enacted on December 22, 2017.
(2) Includes effect of income tax audit settlements.
(3) Includes approximately $0.5 million of acquisition-related costs and $0.5 million of cost related to COVID-19 response programs.

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