Press Release
Contact
Paresh Maniar
Executive Director, Investor Relations
(408) 470-5348
MAXIM REPORTS $394.5 MILLION REVENUE FOR THE FOURTH
QUARTER OF FISCAL 2009
- Revenue: $394.5 million
- GAAP earnings per share: $0.03 (after $0.08 special expense items)
- Cash flow from operations: $110.4 million
- Inventory: $217.8 million, a decline of $22.1 million
- Dividend per share: $0.20
- First quarter revenue outlook: $415 - $445 million
SUNNYVALE, CA - August 6, 2009 - Maxim Integrated Products, Inc. (NASDAQ:MXIM) reported net revenue of $394.5 million for its fiscal 2009 fourth quarter ended June 27, 2009, a 16% increase over the $339.7 million revenue recorded in the previous quarter.
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share was $0.03. The results include special expense items which primarily consist of the following pre-tax and tax related expenses:
- $18.9 million pre-tax for accelerated depreciation related to the closure of the Dallas wafer fabrication facility. This includes $6.5 million above the forecasted $12.4 million due to lower estimated salvage value of the Dallas equipment.
- $15.5 million tax provision impact due to international restructuring.
Special expense items reduced earnings per share by $0.08.
Balance Sheet Items
Total cash, cash equivalents and short term investments was $913.4 million as of June 27, 2009, an increase of $15.1 million during the fourth quarter. Cash flow from operations of $110.4 million was offset primarily by:
- $61.1 million for cash dividends
- $31.9 million in payments for property and equipment
Business Outlook
Maxim's fiscal fourth quarter bookings increased by 22% compared to the third quarter of fiscal 2009 and the Company's 90 day backlog increased by 18% to $278 million. Results for the September quarter are expected to be:
- Revenue: $415 million - $445 million
- Gross Margin: 53% - 56%
- Operating expenses: $170 - $172 million.
Tunc Doluca, President and Chief Executive Officer, commented, "We are pleased with the Company's execution during the economic downturn. Due to market share gains, our revenue performance versus the same quarter last year is better than our peers. We remain convinced that our balanced business model of serving all four major markets, and our continued strategy of driving innovation and integration uniquely position us for profitable growth in the analog and mixed signal market."
"The last several quarters have been a difficult period for our industry. We experienced a very rapid decline in our business brought on by the economic crisis. During this period of uncertainty, Maxim employees made significant sacrifices and we thank them for their dedication."
Dividend
A cash dividend for the fourth quarter of fiscal 2009 of $0.20 per share will be paid on September 4, 2009, to stockholders of record on August 21, 2009.
Conference Call
Maxim has scheduled a conference call on August 6, 2009, at 2:00 p.m. Pacific Time to discuss its financial results for the fourth quarter of fiscal year 2009 and its business outlook. To listen via telephone, dial (866) 802-4321 (toll free) or (703) 639-1318. This call will be webcast by Shareholder.com and can be accessed at Maxim's website atwww.maxim-ic.com/Investor.
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| CONSOLIDATED STATEMENTS OF OPERATIONS |
| | | | | | |
| | Three Months Ended
|
| | June 27, | | March 28, | | June 28, |
| | 2009
| | 2009
| | 2008
|
| | (in thousands, except per share data) |
| Net revenues | $ 394,471 | | $ 339,665 | | $ 501,267 |
| Cost of goods sold (1) | 203,934
| | 171,960
| | 197,234
|
| Gross profit | 190,537 | | 167,705 | | 304,033 |
| Operating expenses: | | | | | |
| Research and development (1) | 117,456 | | 120,974 | | 143,802 |
| Selling, general and administrative (1) | 50,643 | | 48,760 | | 40,907 |
| Severance and restructuring | (535) | | 10,956 | | 4,059 |
| Other operating expenses, net | 1,386
| | 3,969
| | 20,387
|
| Total operating expenses | 168,950
| | 184,659
| | 209,155
|
| Operating income (loss) | 21,587 | | (16,954) | | 94,878 |
| Interest income and other (expense) income, net | 983
| | (228)
| | 5,832
|
| Income (loss) before provision for income taxes | 22,570 | | (17,182) | | 100,710 |
| Provision for income taxes | 14,472
| | 9,244
| | 34,664
|
| Net income (loss) | $ 8,098
| | $ (26,426)
| | $ 66,046
|
| | | | | | |
| Earnings (loss) per share: | | | | | |
| Basic | $ 0.03
| | $ (0.09)
| | $ 0.21
|
| Diluted | $ 0.03
| | $ (0.09)
| | $ 0.20
|
| | | | | | |
| Shares used in the calculation of earnings (loss) per share: | | | | | |
| Basic | 305,347
| | 304,415
| | 320,553
|
| Diluted | 308,442
| | 304,415
| | 323,843
|
| | | | | | |
| Dividends declared per share | $ 0.200
| | $ 0.200
| | $ 0.188
|
| | | | | | |
| (1)Includes stock-based compensation charges as follows: |
| | Three Months Ended
|
| | June 27, | | March 28, | | June 28, |
| | 2009
| | 2009
| | 2008
|
| | (in thousands) |
| Cost of goods sold | $ 6,772 | | $ 7,574 | | $ 8,125 |
| Research and development | 22,783 | | 25,194 | | 24,138 |
| Selling, general and administrative | 5,442
| | 6,845
| | 7,399
|
| Total | $ 34,997
| | $ 39,613
| | $ 39,662
|
| | | | | | |
| | | | | | |
| SCHEDULE OF SPECIAL EXPENSE ITEMS |
| | Three Months Ended
|
| | June 27, | | March 28, | | June 28, |
| | 2009
| | 2009
| | 2008
|
| | (in thousands) |
| Cost of goods sold: | | | | | |
| Accelerated depreciation (2) | $ 18,932
| | $ 12,372
| | $ 11,329
|
| | | | | | |
| Operating expenses: | | | | | |
| Severance and restructuring (3) | (535) | | 10,956 | | 4,059 |
| Other operating expenses, net (4) | 1,386
| | 3,969
| | 20,387
|
| Total | $ 851
| | $ 14,925
| | $ 24,446
|
| | | | | | |
| Provision for income taxes (5) | $ 15,500
| | $ 9,200
| | $ -
|
| | | | | | |
| (2) Accelerated depreciation primarily related to long-lived assets resulting from the anticipated closure of the Dallas fab facility. |
| (3) Severance and benefit expenses primarily related to Business Unit; Selling, General & Administrative; and Manufacturing organizations. |
| (4) Expenses, net, primarily for stock option related litigation and certain payroll taxes, interest and penalties. |
| (5) Tax provision impact due to international restructuring. Without this impact, the tax provision for the fourth quarter of fiscal year 2009 would have been negative due to favorable adjustments of tax accruals in the quarter. |
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| CONSOLIDATED BALANCE SHEETS |
| |
| | June 27, | | June 28, |
| | 2009
| | 2008
|
| | (in thousands) |
| ASSETS |
| Current assets: | | | |
| Cash and cash equivalents | $ 709,348 | | $ 1,013,119 |
| Short-term investments | 204,055
| | 205,079
|
| Total cash, cash equivalents and short-term investments | 913,403 | | 1,218,198 |
| | | | |
| Accounts receivable, net | 207,807 | | 272,029 |
| Inventories | 217,847 | | 272,421 |
| Income tax refund receivable | 13,072 | | 14,411 |
| Deferred tax assets | 211,879 | | 253,490 |
| Other current assets | 20,943
| | 16,012
|
| Total current assets | 1,584,951 | | 2,046,561 |
| Property, plant and equipment, net | 1,366,052 | | 1,485,200 |
| Other assets | 130,772
| | 176,629
|
| TOTAL ASSETS | $ 3,081,775
| | $ 3,708,390
|
| | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY |
| Current liabilities: | | | |
| Accounts payable | $ 70,087 | | $ 79,673 |
| Income taxes payable | 2,140 | | 825 |
| Accrued salary and related expenses | 141,334 | | 249,079 |
| Accrued expenses | 38,455 | | 68,131 |
| Deferred income on shipments to distributors | 16,760
| | 21,447
|
| Total current liabilities | 268,776 | | 419,155 |
| Other liabilities | 26,398 | | 30,791 |
| Income taxes payable | 124,863 | | 110,633 |
| Deferred tax liabilities | 67,273
| | -
|
| Total liabilities | 487,310
| | 560,579
|
| | | | |
| Stockholders' equity: | | | |
| Common stock | 21,511 | | 251,799 |
| Retained earnings | 2,580,610 | | 2,901,139 |
| Accumulated other comprehensive loss | (7,656)
| | (5,127)
|
| Total stockholders' equity | 2,594,465
| | 3,147,811
|
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ 3,081,775
| | $ 3,708,390
|
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| CONSOLIDATED STATEMENTS OF CASH FLOWS |
| | |
| | Three Months Ended
|
| | June 27, | | March 28, | | June 28, |
| | 2009
| | 2009
| | 2008
|
| | (in thousands) |
| Cash flows from operating activities: | | | | | |
| Net income (loss) | $ 8,098 | | $ (26,426) | | $ 66,047 |
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
| Stock-based compensation | 34,997 | | 39,613 | | 39,662 |
| Depreciation and amortization | 56,513 | | 51,236 | | 50,731 |
| Deferred taxes | (7,277) | | 41,055 | | (20,973) |
| Tax benefit related to stock-based compensation | (12,493) | | (55,260) | | (90) |
| Other | 194 | | 405 | | 170 |
| Changes in assets and liabilities: | | | | | |
| Accounts receivable | (11,463) | | 17,815 | | (2,737) |
| Inventories | 21,624 | | 13,291 | | (5,552) |
| Other current assets | 28,728 | | 35,224 | | 931 |
| Accounts payable | 2,042 | | (7,906) | | 1,293 |
| Income taxes payable | 11,872 | | 1,192 | | 5,511 |
| Deferred income on shipments to distributors | (1,250) | | (2,587) | | 1,656 |
| Accrued liabilities - goodwill and tender offer payments above fair value | (2,346) | | (1,294) | | (11,291) |
| All other accrued liabilities | (18,888)
| | (393)
| | (2,796)
|
| Net cash provided by operating activities | 110,351
| | 105,965
| | 122,562
|
| | | | | | |
| Cash flows from investing activities: | | | | | |
| Payments for property, plant and equipment | (31,897) | | (35,997) | | (36,247) |
| Acquisition | - | | (30,700) | | - |
| Purchases of available-for-sale securities | (1,392) | | (1,392) | | (204,335) |
| Proceeds from sales/maturities of available-for-sale securities | 1,313 | | 2,438 | | - |
| Other | -
| | 2,119
| | 14,354
|
| Net cash used in investing activities | (31,976)
| | (63,532)
| | (226,228)
|
| | | | | | |
| Cash flows from financing activities: | | | | | |
| Dividends paid | (61,126) | | (60,961) | | (60,104) |
| Repayment of notes payable | - | | (1,154) | | - |
| Issuance of common stock | (637) | | (4,777) | | - |
| Equity settlements and payouts | - | | (985) | | (12,231) |
| Other | (89)
| | 69
| | 69
|
| Net cash used in financing activities | (61,852)
| | (67,808)
| | (72,266)
|
| | | | | | |
| Net increase (decrease) in cash and cash equivalents | 16,523 | | (25,375) | | (175,932) |
| Cash and cash equivalents: | | | | | |
| Beginning of period | 692,825
| | 718,200
| | 1,189,051
|
| End of period | $ 709,348
| | $ 692,825
| | $ 1,013,119
|
| | | | | | |
| Total cash, cash equivalents, and short-term investments | $ 913,403
| | $ 898,299
| | $ 1,218,198
|
"Safe Harbor" Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include the Company's financial projections for its first quarter of fiscal 2010 ending in September 2009, which includes revenue, gross margin, operating expense and tax provision projections, as well as the Company's belief that its balanced business model of serving all four major markets and its continued strategy of driving innovation and integration uniquely position it for profitable growth in the analog
and mixed signal market. These statements involve risk and uncertainty. Actual results could differ materially from those forecasted based upon, among other things, general market and economic conditions and market developments that could adversely affect the growth of the mixed-signal analog market, product mix shifts, customer cancellations and price competition, as well as other risks described in the Company's Annual Report on Form 10-K for the fiscal year ended June 28, 2008.
All forward-looking statements included in this news release are made as of the date hereof, based on the information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement.
About Maxim
Maxim Integrated Products is a publicly traded company that designs, manufactures, and sells high-performance semiconductor products. The Company was founded over 25 years ago with the mission to deliver innovative analog and mixed-signal engineering solutions that add value to its customers' products. To date, it has developed over 6000 products serving the industrial, communications, consumer, and computing markets.
Maxim reported revenue in excess of $1.6 billion for fiscal 2009. A Fortune 1000 company, Maxim is included in the Nasdaq 100, the Russell 1000, and the MSCI USA indices. For more information, go towww.maxim-ic.com.
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