Maxim Integrated Products (MXIM) 8-K/A Results of Operations and Financial Condition

CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
	Three Months Ended March 27, 2010									Three Months Ended
	As Originally Reported			Adjustments			As Revised			December 26, 2009		March 28, 2009
	(in thousands, except per share data)
Net revenues	$	508,880		$	—		$	508,880		$	473,515	$	339,665
Cost of goods sold (1,2)	200,177			—			200,177			181,727		171,960
Gross margin	308,703			—			308,703			291,788		167,705
Operating expenses:
Research and development (1)	117,100			—			117,100			118,367		120,974
Selling, general and administrative (1)	62,943			—			62,943			61,308		48,760
Severance and restructuring	(625		)	—			(625		)	2,063		10,956
Other operating expense, net (3)	4,546			173,000			177,546			921		3,969
Total operating expenses	183,964			173,000			356,964			182,659		184,659
Operating income (loss)	124,739			(173,000		)	(48,261		)	109,129		(16,954		)
Interest income and other, net	644			—			644			3,630		(228		)
Income (loss) before provision for income taxes	125,383			(173,000		)	(47,617		)	112,759		(17,182		)
Provision for (benefit from) income taxes (4)	59,626			(73,340		)	(13,714		)	54,124		9,244
Net income (loss)	$	65,757		$	(99,660	)	$	(33,903	)	$	58,635	$	(26,426	)
Earnings (loss) per share:
Basic	$	0.22		$	(0.33	)	$	(0.11	)	$	0.19	$	(0.09	)
Diluted	$	0.21		$	(0.32	)	$	(0.11	)	$	0.19	$	(0.09	)
Shares used in the calculation of earnings (loss) per share:
Basic	304,518						304,518			305,324		304,415
Diluted	309,445						304,518			310,090		304,415
Dividends declared per share	$	0.200					$	0.200		$	0.200	$	0.200
SCHEDULE OF STOCK BASED COMPENSATION EXPENSES
(Unaudited)
	Three Months Ended March 27, 2010									Three Months Ended
	As Originally Reported			Adjustments			As Revised			December 26, 2009		March 28, 2009
	(in thousands)
Cost of goods sold	$	1,071		$	—		$	1,071		$	5,265	$	7,574
Research and development	8,691			—			8,691			14,650		25,194
Selling, general and administrative	5,517			—			5,517			7,018		6,845
Total	$	15,279		$	—		$	15,279		$	26,933	$	39,613
SCHEDULE OF SPECIAL EXPENSE ITEMS
(Unaudited)
	Three Months Ended March 27, 2010									Three Months Ended
	As Originally Reported			Adjustments			As Revised			December 26, 2009		March 28, 2009
	(in thousands)
Cost of goods sold:
Accelerated depreciation (2)	$	—		$	—		$	—		$	—	$	12,372
Total	$	—		$	—		$	—		$	—	$	12,372
Operating expenses:
Severance and restructuring	$	(625	)	$	—		$	(625	)	$	2,063	$	10,956
Other operating expense, net (3)	4,546			173,000			177,546			921		3,969
Total	$	3,921		$	173,000		$	176,921		$	2,984	$	14,925
Provision for income taxes:
International restructuring (4)	$	14,021		$	(10,850	)	$	3,171		$	13,758	$	9,200
Interest income and other, net
Other income (5)	$	—		$	—		$	—		$	1,220	$	—
(1) Includes stock-based compensation charges as shown in the Schedule of Stock Based Compensation Expenses.
(2) Includes accelerated depreciation primarily related to long-lived assets resulting from the closure of the Dallas fab facility.
(3) (Income) expenses, net, primarily for stock option related litigation and certain payroll taxes, interest and penalties.
(4) Provision for income taxes includes tax provision impact due to international restructuring.
(5) Impact of investments obtained in exchange for intellectual property.

CONSOLIDATED BALANCE SHEETS
(Unaudited)
	March 27, 2010
	As Originally Reported			Adjustments			As Revised			June 27, 2009
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	758,436		$	—		$	758,436		$	709,348
Short-term investments	100,425			—			100,425			204,055
Total cash, cash equivalents and short-term investments	858,861			—			858,861			913,403
Accounts receivable, net	297,352			—			297,352			207,807
Inventories	190,589			—			190,589			217,847
Income tax refund receivable	5,247			10,361			15,608			13,072
Deferred tax assets	184,277			62,972			247,249			211,879
Other current assets	23,091			—			23,091			20,943
Total current assets	1,559,417			73,333			1,632,750			1,584,951
Property, plant and equipment, net	1,325,348			—			1,325,348			1,366,052
Other assets	120,575			—			120,575			130,772
TOTAL ASSETS	$	3,005,340		$	73,333		$	3,078,673		$	3,081,775
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	79,351		$	—		$	79,351		$	70,087
Income taxes payable	921			(7		)	914			2,140
Accrued salary and related expenses	163,661			—			163,661			141,334
Accrued expenses	34,572			—			34,572			38,455
Deferred income on shipments to distributors	21,105			—			21,105			16,760
Accrual for litigation settlement	—			173,000			173,000			—
Total current liabilities	299,610			172,993			472,603			268,776
Other liabilities	24,591			—			24,591			26,398
Income taxes payable	100,184			—			100,184			124,863
Deferred tax liabilities	76,173			—			76,173			67,273
Total liabilities	500,558			172,993			673,551			487,310
Stockholders' equity:
Common stock	303			—			303			21,511
Retained earnings	2,514,832			(99,660		)	2,415,172			2,580,610
Accumulated other comprehensive loss	(10,353		)	—			(10,353		)	(7,656		)
Total stockholders' equity	2,504,782			(99,660		)	2,405,122			2,594,465
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	3,005,340		$	73,333		$	3,078,673		$	3,081,775

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
	Three Months Ended March 27, 2010									Three Months Ended
	As Originally Reported			Adjustments			As Revised			December 26, 2009			March 28, 2009
	(in thousands)
Cash flows from operating activities:
Net income (loss)	$	65,757		$	(99,660	)	$	(33,903	)	$	58,635		$	(26,426	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Stock-based compensation	15,279			—			15,279			26,933			39,613
Depreciation and amortization	40,810			—			40,810			39,832			51,236
Deferred taxes	9,041			(62,972		)	(53,931		)	8,594			41,055
Tax shortfall related to stock-based compensation	(2,040		)	—			(2,040		)	(5,796		)	(55,260		)
Other	(2,067		)	—			(2,067		)	(1,522		)	405
Changes in assets and liabilities:
Accounts receivable	(16,257		)	—			(16,257		)	(52,279		)	17,815
Inventories	5,208			—			5,208			(5,522		)	13,291
Other current assets	896			(10,361		)	(9,465		)	(1,700		)	35,224
Accounts payable	15,388			—			15,388			14,248			(7,906		)
Income taxes payable	(718		)	(7		)	(725		)	(50,565		)	1,192
Deferred income on shipments to distributors	2,878			—			2,878			(537		)	(2,587		)
Accrued liabilities - goodwill and tender offer payments above fair value	(171		)	—			(171		)	(540		)	(1,294		)
Accrued liabilities - litigation settlement	—			173,000			173,000			—			—
All other accrued liabilities	30,473			—			30,473			1,180			(393		)
Net cash provided by operating activities	164,477			—			164,477			30,961			105,965
Cash flows from investing activities:
Payments for property, plant and equipment	(25,482		)	—			(25,482		)	(28,289		)	(35,997		)
Acquisition	—			—			—			—			(30,700		)
Proceeds from sales/maturities of available-for-sale securities	—			—			—			—			2,438
Other	(1,485		)	—			(1,485		)	1,109			727
Net cash used in investing activities	(26,967		)	—			(26,967		)	(27,180		)	(63,532		)
Cash flows from financing activities:
Dividends paid	(60,949		)	—			(60,949		)	(61,017		)	(60,961		)
Repayment of notes payable	—			—			—			—			(1,154		)
Repurchase of common stock	(49,146		)	—			(49,146		)	(46,901		)	—
Issuance of ESPP	—			—			—			10,703			—
Issuance of common stock	(7,860		)	—			(7,860		)	(6,795		)	(4,777		)
Other	1,359			—			1,359			1,722			(916		)
Net cash used in financing activities	(116,596		)	—			(116,596		)	(102,288		)	(67,808		)
Net increase (decrease) in cash and cash equivalents	20,914			—			20,914			(98,507		)	(25,375		)
Cash and cash equivalents:
Beginning of period	737,522			—			737,522			836,029			718,200
End of period	$	758,436		—			$	758,436		$	737,522		$	692,825
Total cash, cash equivalents, and short-term investments	$	858,861		—			$	858,861		$	838,560		$	898,299

STOCK-BASED COMPENSATION BY TYPE OF AWARD (in thousands)
(Unaudited)
Three Months Ended March 27, 2010	Stock Options		Restricted Stock Units		Employee Stock Purchase Plan		Total
Cost of goods sold	$	232	$	586	$	253	$	1,071
Research and development expense	1,318		6,038		1,335		8,691
Selling, general and administrative expense	1,194		3,993		330		5,517
Total	$	2,744	$	10,617	$	1,918	$	15,279
Three Months Ended December 26, 2009	Stock Options		Restricted Stock Units		Employee Stock Purchase Plan		Total
Cost of goods sold	$	401	$	4,730	$	134	$	5,265
Research and development expense	3,625		9,821		1,204		14,650
Selling, general and administrative expense	2,273		4,454		291		7,018
Total	$	6,299	$	19,005	$	1,629	$	26,933
Three Months Ended March 28, 2009	Stock Options		Restricted Stock Units		Employee Stock Purchase Plan		Total
Cost of goods sold	$	1,881	$	5,579	$	114	$	7,574
Research and development expense	3,773		20,975		446		25,194
Selling, general and administrative expense	1,910		4,899		36		6,845
Total	$	7,564	$	31,453	$	596	$	39,613