Exhibit 99.1
PRESS INFORMATION
FOR IMMEDIATE RELEASE
NASDAQ SYMBOL MXIM
Contact: John F. Gifford, Chairman,
President and Chief Executive Officer
(408) 737-7600
MAXIM REPORTS REVENUES AND EARNINGS
FOR THE FOURTH QUARTER AND FISCAL YEAR 2003
AND DOUBLES QUARTERLY DIVIDEND
FROM $0.04 PER SHARE TO $0.08 PER SHARE
SUNNYVALE, CA - August 12, 2003 - Maxim Integrated Products, Inc., (MXIM)
reported net revenues of $295.0 million for its fiscal fourth quarter ending
June 28, 2003, an $8.8 million increase over the $286.2 million reported for the
third quarter of fiscal 2003. Diluted earnings per share were $0.24 for the
fourth quarter on net income of $81.7 million compared to diluted earnings per
share of $0.23 on net income of $77.6 million reported for the third quarter of
fiscal 2003. Dallas Semiconductor contributed 18.6% of the Corporation's fourth
quarter earnings per share.
For the 2003 fiscal year, Maxim reported net revenues of $1.153 billion
compared to $1.025 billion for last year, a 12.5% increase. Net income for the
2003 fiscal year was $309.6 million compared to $259.2 million reported for
fiscal 2002. Dallas Semiconductor contributed 16.8% of the Company's fiscal 2003
net income. Diluted earnings per share for the Company grew 24.7% from the $0.73
per share reported for fiscal 2002 to $0.91 per share in fiscal 2003.
- more -
During the fourth quarter of fiscal 2003, the Company repurchased 1.3
million shares of its common stock for $46.7 million and acquired $28.4 million
of property and equipment. Year-end cash, cash equivalents, and short-term
investments increased $107.3 million during the quarter to $1.2 billion and
increased $398.5 million or 52.1% from the end of fiscal 2002. Accounts
receivable increased by $2.9 million in the fourth quarter to $126.8 million on
increased revenues, and inventories decreased $2.6 million to $121.2 million.
Gross margin increased slightly from 69.9% in the third quarter to 70.0%
in the fourth quarter after increasing inventory reserves $2.7 million.
Operating margin increased from 39.2% in the third quarter to 40.1% in the
fourth quarter. Operating margin for Dallas Semiconductor improved from 24.4% in
the third quarter to 30.7% in the fourth quarter. Research and development
expense increased to $67.2 million or 22.8% of net revenues in the fourth
quarter, compared to $66.8 million or 23.3% of net revenues in the third
quarter. The increase in research and development spending was the result of
hiring additional engineers and increased spending to support new product
development efforts. Selling, general and administrative expenses remained
relatively unchanged during the quarter.
Fourth quarter bookings were approximately $313 million. Turns orders
received in the quarter were $161 million (turns orders are customer orders that
are for delivery within the same quarter and may result in revenue within the
same quarter if the Company has available inventory that matches those orders).
Fourth quarter ending backlog shippable within the next 12 months was
approximately $227 million, including approximately $199 million requested for
shipment in the first quarter of fiscal 2004. The Company's third quarter ending
backlog shippable within the next 12 months was approximately $219 million,
including approximately $196 million that was requested for shipment in the
fourth quarter.
- more -
Jack Gifford, Chairman, President, and Chief Executive Officer, commented
on the fiscal year: "Maxim's net revenues for the 2003 fiscal year increased 12%
from fiscal 2002 net revenues, and our diluted earnings per share for the year
were up 25% for the same period. Revenues for Dallas Semiconductor grew 4% year
over year, and their earnings per share grew 42%. As a comparison, Maxim without
Dallas Semiconductor saw revenue growth of 15% year over year and earnings per
share growth of 21%. The Company's gross margins and operating margins improved
year over year as we controlled costs and improved efficiencies. Unlike many
semiconductor companies, Maxim has been highly profitable during the industry
downturn, in part because of the success of our proprietary products and in part
because of our effective expense management."
Mr. Gifford continued: "Maxim remained committed to investing in new
product and process development this year, with an annual R&D expense of 23.6%
of net revenues. Our continued focus on R&D resulted in the introduction of 1959
engineering man-months of new products this past product announcement year, and
we have had important design wins in the next generation of cellular phones,
digital cameras, 802.11 wireless LAN, high-speed data networks, flat panel
displays, and other new electronics. We believe that Maxim continues to be well
positioned to gain market share as corporate and consumer spending levels
improve and our customers become more confident."
Mr. Gifford concluded: "With consideration for our stockholders and the
Company's profitability, strong cash position, and business outlook, the
Company's Board of Directors has increased this quarter's dividend from $0.04
per share to $0.08 per share. Payment will be made on September 5, 2003 to
stockholders of record on August 22, 2003."
***
- more -
Certain statements in this press release are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
These statements involve risk and uncertainty. They include the Company's
positioning to gain market share, increased confidence among the Company's
customers, and the Company's profitability and business outlook. Actual results
could differ materially from those forecasted based upon, among other things,
the Company's incorrectly assessing customer end-user demand, order cancellation
levels, inventory levels, consumption levels for the Company's products and
general market conditions; market developments that could adversely affect the
growth of the mixed-signal analog market, such as declines in customer forecasts
or greater than expected cyclical downturns within the mixed-signal analog
segment of the semiconductor market; and the Company's being unable to sustain
its successes in the markets its products are introduced in, as well as other
risks described in the Company's Form 10K for the fiscal year ended June 29,
2002.
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.
Maxim Integrated Products is a leading international supplier of quality
analog and mixed-signal products for applications that require real world signal
processing.
# # #
Consolidated Balance Sheets
(In thousands) 6/28/03 6/29/02
(audited)
----------- -----------
Assets Current assets:
Cash and cash equivalents $ 210,841 $ 173,807
Short-term investments 953,166 591,694
----------- -----------
Total cash, cash equivalents
and short-term investments 1,164,007 765,501
----------- -----------
Accounts receivable, net 126,760 129,812
Inventories 121,192 139,206
Deferred tax assets
and other current assets 152,683 201,145
----------- -----------
Total current assets 1,564,642 1,235,664
----------- -----------
Property, plant and equipment, at cost 1,507,546 1,432,184
Less accumulated depreciation (737,661) (686,023)
----------- -----------
Net property, plant and equipment 769,885 746,161
Other assets 33,435 28,987
----------- -----------
Total assets $ 2,367,962 $ 2,010,812
----------- -----------
Liabilities and Current liabilities:
Stockholders' Accounts payable $ 42,041 $ 45,284
Equity Accrued expenses 141,394 145,927
Deferred income on
shipments to distributors 21,582 27,183
Income taxes payable 10,900 10,633
----------- -----------
Total current liabilities 215,917 229,027
----------- -----------
Deferred tax liabilities 77,633 36,634
Other liabilities 4,000 4,000
----------- -----------
Total liabilities 297,550 269,661
----------- -----------
Stockholders' equity:
Common stock 112,497 55,255
Retained earnings 1,956,491 1,686,816
Accumulated other
comprehensive income (loss) 1,424 (920)
----------- -----------
Total stockholders' equity 2,070,412 1,741,151
----------- -----------
Total liabilities and
stockholders' equity $ 2,367,962 $ 2,010,812
----------- -----------
Consolidated Statements of Income
(In thousands Three Months Ending Twelve Months Ending
except per share data)
6/28/03 6/29/02 6/28/03 6/29/02
(unaudited) (unaudited) (audited)
-------- -------- ---------- ----------
Net revenues $295,029 $280,089 $1,153,219 $1,025,104
Cost of goods sold 88,454 89,428 348,264 312,223
-------- -------- ---------- ----------
Gross margin 206,575 190,661 804,955 712,881
70.0% 68.1% 69.8% 69.5%
-------- -------- ---------- ----------
Operating expenses:
Research and
development 67,210 72,032 272,322 275,547
Selling, general and
administrative 20,991 22,083 85,597 91,982
-------- -------- ---------- ----------
Operating income 118,374 96,546 447,036 345,352
40.1% 34.5% 38.8% 33.7%
Interest income, net 3,631 5,854 15,055 41,488
-------- -------- ---------- ----------
Income before provision
for income taxes 122,005 102,400 462,091 386,840
Provision for income taxes 40,262 33,792 152,490 127,657
-------- -------- ---------- ----------
Net income $ 81,743 $ 68,608 $ 309,601 $ 259,183
-------- -------- ---------- ----------
Basic earnings per share $ 0.25 $ 0.21 $ 0.96 $ 0.80
-------- -------- ---------- ----------
Shares used in the
calculation of basic
earnings per share 324,821 321,273 322,106 325,527
-------- -------- ---------- ----------
Diluted earnings per share $ 0.24 $ 0.20 $ 0.91 $ 0.73
-------- -------- ---------- ----------
Shares used in the
calculation of diluted
earnings per share 344,882 349,387 341,253 355,821
-------- -------- ---------- ----------
Dividends declared per share $ 0.04 $ -- $ 0.08 $ --
-------- -------- ---------- ----------
MAXIM INTEGRATED PRODUCTS, INCORPORATED
COMPANY PROFILE
NASDAQ Symbol: MXIM - Founded 1983 - Public since: February 29, 1988
OPERATIONS
Corporate Offices: 120 San Gabriel Drive, Sunnyvale, California 94086
U.S. Sales Offices: Sunnyvale and Costa Mesa, CA; Wheeling, IL; Roswell, GA;
Chelmsford, MA; Austin and Dallas, TX; Beaverton, OR;
Horsham, PA
Foreign Offices: Munich, Germany; Tokyo, Japan; London, UK; Paris, France;
Taipei, Taiwan; Seoul, South Korea; Hong Kong; Singapore;
Milan, Italy; Beijing, China; Stockholm, Sweden; Zurich,
Switzerland; Viborg, Denmark; Helsinki, Finland
PRODUCTS
Maxim designs, develops, manufactures and markets a broad range of linear and
mixed-signal integrated circuits for use in a variety of electronic products.
Maxim circuits "connect" the real world and the digital world by detecting,
measuring, amplifying, and converting real world and communication signals, such
as temperature, pressure, sound, voice, or light into the digital signals
necessary for computer and DSP processing.
- MAXIM SERVES APPROXIMATELY
35,000 CUSTOMERS WORLDWIDE.
- MAXIM HAS DEVELOPED MORE
PRODUCTS THAN ANY OTHER ANALOG
[GRAPHIC] COMPANY IN THE PAST 18 YEARS.
- MAXIM IS RECOGNIZED AS THE
LEADER IN CMOS ANALOG AND
BIPOLAR HIGH-FREQUENCY
TECHNOLOGIES.
- 68% INTERNATIONAL SALES FOR
Q4 FY03.
FINANCIAL HIGHLIGHTS (In thousands, except EPS)
FY1999 FY2000 FY2001 FY2002 FY2003
------ ------ ------ ------ ------
Net Revenues $ 1,002,849 $ 1,376,085 $ 1,576,613 $ 1,025,104 $ 1,153,219
Net Income $ 265,281 $ 373,083 $ 334,939 $ 259,183 $ 309,601
Shares 344,360 359,548 361,620 355,821 341,253
Diluted EPS $ 0.77 $ 1.04 $ 0.93 $ 0.73 $ 0.91
Cash and Short-Term
Investments $ 710,074 $ 896,936 $ 1,220,352 $ 765,501 $ 1,164,007
Total Assets $ 1,603,122 $ 2,087,438 $ 2,430,531 $ 2,010,812 $ 2,367,962
Stockholders' Equity $ 1,369,449 $ 1,719,939 $ 2,101,154 $ 1,741,151 $ 2,070,412
ROE 22.1% 24.2% 17.5% 13.5% 16.2%
Market Cap $11,026,352 $25,276,091 $14,535,766 $13,391,992 $11,870,840
RESEARCH COVERAGE
A.G. Edwards, Brett Miller (314) 955-2620 Morgan Stanley, Louis Gerhardy (415) 576-2391
CIBC, Richard Schafer, (720) 554-1119 and Pacific Crest Securities, Michael McConnell (503) 790-7788
Daniel Gelbtuch (212) 667-8108 Pacific Growth Equities, Jim Liang (415) 274-6889
Credit Suisse First Boston, Michael Masdea (415) 836-7779 Salomon Smith Barney, Clark Westmont (415) 951-1886
Deutsche Banc Alex Brown, Ross Seymore (212) 469-8463 SoundView Financial Group, Scott Randall (203) 462-7246
Fulcrum Global Partners, Clark Fuhs (415) 248-2549 U.S. Bancorp Piper Jaffray, Tore Svanberg (650) 838-1411
Investec, Bobby Burleson (212) 898-7716 Wedbush Morgan Securities, David Wu (213) 688-4547
JMP Securities, Krishna Shankar (415) 835-8971 William Blair & Company LLC, Jeff Rosenberg (312) 364-8342
Lehman Brothers, Joseph To (415) 274-5242
Merrill Lynch, Joseph Osha (415) 676-3510
Midwest Research, Woody Calleri (216) 592-1902