MXIM - Earnings call transcript Q3 2018 | Maxim Integrated Products, Inc.

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Operator

Good day, ladies and gentlemen, and welcome to the Maxim Integrated Third Quarter of Fiscal 2018 Conference Call. At this time, all participants are in a listen-only mode. Later, we'll conduct a question-and-answer session and instructions will be given at that time.

As a reminder, today's program is being recorded. I would now like to introduce your host for today's program, Kathy Ta, Vice President, Investor Relations. Kathy. ahead, go Please

Kathy Ta

Welcome conference Maxim call. Jonathan. quarter fiscal XXXX earnings everyone, you, Integrated's to third Thank

call. Bruce on like Joining the presentation Chief posted Investor Doluca; earnings Officer, Relations Executive our on a financial Officer, I this me the to release information press Tunç disclosures and call supplemental financial website. Chief in our we The highlight accompanies that to today conference presentation are Kiddoo. and have would external Financial this in

involve today's be may Securities filings. the are In our Reform remind During will cautionary with warnings all light of must Act, in differ to statements the statements. that we some and made. forward-looking cautioned conjunction Investors appear statements that future and call, materially risks uncertainty this making like considered from events forward-looking these SEC the Litigation you call in be Private that that statements in I'd

filings and please For refer information, Commission website. additional posted company's to Securities on our Exchange which the are

Now, I'll to Tunç. over the call turn

Tunç Doluca

Good today. afternoon us and you participants, thank to Maxim our all joining Kathy. interest appreciate for Integrated. your We you, in Thank

the quarter, founding. This of the celebrating anniversary company's Maxim XX-year is

we expertise a in have X.X business through durable our Over last management products. the in decades, particularly analog, high-performance built power

of customers and We each differentiation toughest teams from our engineering in have customers problems. us our has us us is our what apart built their the of a world. gives lasting what that our the finest products analog markets. our strong in I And Maxim solving tell brand competitors performance in with sets the one really end of believe in

turn now me quarter's results. to Let this

U.S. sell-in June last transitioned quarter, during one accounting. of reminder, distributors our we a year's to As

will we revenue that last today, year. from the commentary of June quarter of our component During exclude

grew continued profitability. Automotive performance products March Industrial the with our driven last same the quarter our Compared solid year, and pleased management in are quarter. Consumer, to strongly, with revenue by We in power

we and forward, in continue Automotive, Industrial Looking growth significant drivers Center. Data to expect

comment First, on I will Automotive.

to management We systems, version BMS we grow China. lifecycle, product continue decommissioning design in year. products introduced basis, safety from our products. safety in to higher battery and safety production, double-digits. significant automotive growth, serial win ADAS our safety electric system China. paramount the power, In On and of battery March a system. in content the management products, in ASIL sequential momentum called electrical driven Automotive. to for customers strengths market management strong Automotive we the double infotainment, in current in when address to high certifications, to potential quarter, in earned expect an covers plays trend for designed battery already especially continues and design power BMS, This teens business that This grow. in year-over-year system buses. product or battery safety see highest-rated in hazards Automotive Maxim levels, has new and link wins ASIL in Quality of in continued quarter our us growth These the strong well. a This quarter, malfunction. confidence management, the giving digits In to important growth year-over-year the led systems in are the the product our the operation, Automotive Automotive is March serial in can demand a revenue in It entire as occur design differentiate and management low by Automotive. and customers. cars electrical continue become same as our power for development, the ratings management us interface grew certifications products last by quarter, link increasingly the compliant management has our service from June ASIL industry, driver-assist In

In Automotive. fact, in expect year-over-year the June in quarter, high-teens growth we

market. next me turn Industrial to the Let

the year. up made Industrial automation Our growth, strongly quarter products, and same quarter in progress in year-over-year market last was by medical Within by content Industrial, segment business growth our driven we March initiatives. factory from broad led the our core

also products our in industrial to mid-teens last June expect reach We up communications the and up, led to again to factory quarter, area. year. acquisition be small same with In expected closed medium we strategy is business in a small to period performance and the Industrial and through strongly by This partners. be automation compared distribution the sequentially, customers the

across in our engagements and factory Japan Americas, China. customer the in customers We broaden Europe, continue automation to

Although, only the logic in the most are IO-Link and a animation industry's our staplers, small that double-digit each into introduced management the converter. with dosimeters. a applications new estimate smart inductor efficient medical power and pulse controllers year-over-year as dialysis harsh management such early growth million space-constrained authentication surgical require year's efficient industrial fits products. machines installed genuine last and highly clinical communication is will line of oximeters, robust base This in March the programmable Sensors, footprints. XxX doubling we industrial In for These In market. remarkable XXXX, components from seeing quarter, globally, XX DC-to-DC in are for that factory days reach integrate we a environments, base. and of products we minimizes in These size electronics these requirements factory power are units deployment, to installed that that actuators revenue play strengths. ensure medical, small used automation millimeter modules addresses base the

quarters. business this partners. continue We grow distribution we market our coming through the broad expect on resales to growth In business, over our

and extended customers. distribution customer to same our March the have quarter, channel medium last reach, In global the business We small grew from resales XX% year. particularly period

to by Center. the softness growth Center me offset Data year to quarter, from from up high-speed period Center sequentially broad-based and Center for period rack March the Communications infrastructure. flat optical the In & products rack the we up last Let XXXG be Data the discuss in again Data last Comms connectivity. driven same with is This quarter, June next growth In products anticipate & year. was Communications same in & revenue Data strong Comms for optical by

offset Finally, Consumer. to Consumer unit consumer from quarter, the a significantly quarter, business in products, broad-based In business. our same growth strongly an our above growth flagship ago period March sequentially turn up and to flagship wearables. due shipments due year In by smartphone shipments the let the we in consumer to expect to June strongly was be partially tablets and me lower average down of smartphone

last from consumer period the be We in year. flat to June expect the quarter same

market is to to broaden acceptance financial growth. our our devices our we our in Consumer, headwind with profitably continued hearables continue longer To so revenue, summarize, proliferation to execute of As no peripherals. into In do a stability. with smart on to business such, of consumer strategy grow and products Maxim's to priorities strong are

We are three. all delivering on

have call distribution line and now Industrial strategy enhanced over is initiatives, delivering that, We business to business and partnership Through our With profitability now our customers. small broad-based. Automotive, broad medium top growth strong market I'll and the reach our improved in more turn Bruce. Data Center to Consumer is and growth,

Bruce E. Kiddoo

Tunç. Thanks,

on top execute our line. continue to successfully updated model grow We and business our

was due franchise driving shareholders. are target. our industrial Free management on our exceeded XXX% to cash line margin strong track finally, flow automotive share growth. $X.XX execution. commitment on in revenue the is our to free our delivering top per flow XX% Operating cash and And to Our quarter power in return we of to

$XXX QX quarter our me results. now discuss a was quarter same the for financial third million, ago. Revenue XX% from Let up year

in QX markets XX% Computing. from approximately mix Industrial; Our Data was Consumer; XX% and X% major revenue Comms XX%, & by Automotive; XX% Center;

an smartphone ramp expect As Consumer revenue we normalize expected, in and Consumer above increased to due in QX QX. shipment average to

turn We in days revenue the distribution XX% continued to channel, channel. management inventory Distribution now inventory of me was of strength The distribution by the of resales. XX comprise down decrease ended X-day Let in and QX. quarter. QX active channel the March from in driven Maxim's with

of are aware reports We of ordering. double

not with times, they of they are checked stable excess distributors we two So, lead with our orders. that, stated and largest aware our

Our there need capacity seven not excess build years. over have delivery for five no are do double six for lead to customers or to Thus, have inventory. we and this weeks range order been constraints. is in times Also,

this closely. will to issue monitor We continue

acquisition-related rate excluding operating income, by prior excluding charges the QX. and P&L, Special items, to items operating in special the driven was the was excluding million, prior was XX-week reform. strategy. XX%. gross quarter up same quarter margin accounting in Maxim's GAAP to XXX XX% from due restructuring excluding quarter from expenses, same a of XXX excluding QX revenue from the intangible QX GAAP charges. operational special Turning from $X sell at special and Special our the acquisition. same strong basis tax from by a items, ago. the Operating from focused to XX.X% earnings in $XXX items, points last ago. is margin items, gross approximately Operating asset million margin special transformation a prior rate, due year, higher to the quarter year improvement million. is quarter quarter basis margin, transition QX revenue slightly in up from execution. QX level is points margin per This included to $XXX expenses basis previous $X.XX, of share, R&D points XX.X%, XX% included items operating were manufacturing up gross investment due This was down GAAP was amortization in than tax the special XXX quarter year and growth, QX. QX down items, driven lower our in

and flow Inventory in cash inventory $XXX short-term to in quarter. dollars expenditures year. billion. Trailing by investments XX% flow; ended or same revenue X from and Turning and free Capital the million, at over $XX QX. were the were quarter. days sheet XX-month XXX, quarter prior cash $X.XX decreased equivalents the the up cash, third the QX down X% total quarter days XX% last of was $XX up overall cash from million million balance to

at yield price. flow stock closing yesterday's cash free Our is X%

return XX% For $XXX due quarter, free XX% significantly increase as flow. quarter, QX the free our to Dividends repurchases totaled to This back was increased of XXX% from up a from capital policy flow. the from prior was share. of our we approximately prior in bought also $X.XX shares. XXX% capital policy of in million to million This increase return, as cash from million quarter X.X capital return we the of the totaled cash in XX% $XXX a or share

is yesterday's at closing yield Our approximately X% price. dividend stock

same of midpoint in the expected to excluding assets. distributor, low million ongoing accounting margin, to expenses, be Automotive. $XXX Moving June items one $XXX basis expected XX%, QX tailwinds QX gross quarter guidance million last QX $XXX gross million. consistent growth in amortization long-term to normalized XXXs, providing the at by a amortization on backlog operating in estimated beginning onto Industrial with model. margin items, sell driven gross double-digit at cost quarter a approximately margin. reflecting on and from intangible to revenue which at expenses special assets. QX last be revenue X% North at $X for million. primarily our up is results down turns, revenue are business updated mid special in the expected in beginning intangible estimated million, we $XX guidance, to American this controls million, of QX year's QX, are excluding in QX operating forecasted to with year quarter. at of normalized QX transition our for and to an XX% was backlog approximately tight primarily Based our of Special the bias delivered incremental is $XX We compared Special the forecast continued for items, are approximately items of to upward

Our special for to a to rate items, excluding than XX%, at tax is QX QX, be tax rate prior reform. lower flat and due from expected estimates

to compared last range Industrial. special to of share a in growth and $X.XX. same QX year, In expect per excluding $X.XX summary, earnings GAAP we Automotive items expect the QX, in strength we led by quarter revenue For

are We our continue we financial to model, which Kathy. to that, to stronger flow With returning to turn XXX% shareholders. and earnings free I'll resulting execute call updated cash back in the growth, of

Kathy Ta

take we like prepared used the Thanks, one would We now that open Bruce. We'll call That can caller to the and our we for same remarks from concludes process get each questions. to so Q&A we've continue the more in people question previously. queue. will

have the you have one we If hop Jonathan, question? please please could than back more our question, in first queue.

Operator

Certainly.

Seymore Ross of question Deutsche Our from comes first from Bank. line

Your question, please.

Jeriel Ong

prepared This something want said ask your is me Ross. remarks. Jeriel on Thanks for you clarify in behalf I letting of to question.

You expect to to be you consumer mentioned headwind guys a longer that no growth.

the mean year-on-year average line Or is that line, drag be segment? that won't that grow top going Thanks. to does you going to your in a positive see by your from Now, growth forecast? interpreted Consumer forward forward it i.e. will with expect mean that the corporate it on

Bruce E. Kiddoo

Yeah, we our we said Certainly, to fourth basically flat our year Consumer be a QX about knew issue comment we've dual attributable something year-over-year. guidance, we lap the of quarter. sourcing in ago that sort that's was would where our talked would from

that And that. view, of from point achieved so, we've

point from to we a it's grow be so, don't of the We're average. And going a at headwind corporate growth view. saying expect not that to

mid-single extent be trying in It no if growth our won't a that what negative view But bit XXXX that to-date. the it still we've is, a which point was a from to your it So, will will it – be that longer seen FY drag. headwind won't year-over-year, grow little we're throughout of digits, to of question. be view, is

Kathy Ta

Thanks, Jeriel.

Operator

you. Thank

from Our of Stifel. from Tore next question the comes line Svanberg

please. question, Your

Tore Egil Svanberg

last Bruce, I think If quarter. delta really distribution XX% this that XX% was about quarter. X% Thank you. to? attributed it was recall I mentioned revenue of that correctly, What's Yes. you'd like

Bruce E. Kiddoo

Yeah.

had primarily quarter. that's that in just strength we due in third Tore, the So, the to Consumer

year-over-year. ramp So, at had If of up kind we shipments. to revenue the the look overall, obviously smartphone resales strong were due early XX% distribution, we of

across business, up the XX%, we're up year-over-year. were tremendous the Europe, and China and and really was strength were So, Americas in were XX% XX% that year-over-year. board. Japan still it around up Korea seeing even around

And recovered so, shown they've and kind return growth. of that to

on to just comes to in QX. that is goes the back and solely trend line early change we the see That of distribution you'll down, normal ramp due before. That were away that kind So Consumer. in

Tore Egil Svanberg

That's you. great. Thank

Bruce E. Kiddoo

Yeah.

Kathy Ta

Tore. Thanks,

Operator

you. Thank

the Our next question comes from Chris Danley with of line Citi.

Your question, please.

Philip Lee

behalf want than some end expected sooner as Lee or on And quarter? Consumer Hey. decline of year. Chris driven, around just unit it well? more This Danley. also the that I than next the some is you. Thank there understand happened We is Philip clarification is to this steeper get content market. there mainly the Is expected ramp involved

Bruce E. Kiddoo

most Yeah. weighted into Fundamentally, and part, customer in much largest their between which simply our QX our for did spread It ramp, pull QX. was what normally, was more is the QX.

in unit view, a lower was And higher and than so, it QX, QX. from traditional it's traditional much much point than of in

we timing shifted And kind a so, our that is of from expected what and we that's actually, than guidance. of view, reflected QX, our QX into now even revenue so when gave had in guidance. from point expected more They we

the look on you issue that the kind of if so, timing. at And guidance, QX shipment there's

is Industrial in mid-teens have high-teens If you our which up up year-over-year, have take the you Automotive year-over-year. our in you out, business which is that the business

growing then basically you XX%, year-over-year. We said have small base flat Data the have Consumer we right, phase, hyper year-over-year. in XX% also which of our off that is business cloud growth Center, And

or So, growth which midpoint year-over-year very be you Industrial with from exactly we strong up good where our Data at end guidance the and about. of to and is wanted up Center, Automotive, feel cloud very

Kathy Ta

Philip. Thanks,

Operator

Thank you.

Our next from of question Srivastava comes from Ambrish line BMO.

please. question, Your

Jamison Phillips-Crone

up it's wondering Hi. the comment for than just or on four for This on receivables. is a if Looks the higher which Jamison XX% Ambrish. question. was bit I you three years. like little could is Thanks last quarter-over-quarter,

that Thank us could elevation going would see if you. be that where some of So, that commentary on you just the helpful. and you give ahead

Bruce E. Kiddoo

Yeah. Absolutely.

were they shipments, been February had normal and terms. much by customer that was that previously, ramp payment in than has XX-day stronger than again of that So March smartphone and that the large all driven

XX. those fall collections and back come much into that expect So, come And fully see of QX. will in under cash you'll to DSO benefit We to flow see down receivables QX. the back

Jamison Phillips-Crone

you. Thank

Bruce E. Kiddoo

Yeah.

Kathy Ta

so Thanks much.

Tunç Doluca

Thank you.

Operator

Thank you.

Stanley. comes Our question Hettenbach of Craig from from Morgan next the line

please. question, Your

Craig M. Hettenbach

you. Thank Hello.

a in think had Data just seeing of new any type wanted piece, power question architectures, Just Center that? management should – for how you're on to about traction the we particular and

Tunç Doluca

one. So, I'll that take

I a in And think about doing Data side, the I the well. is it we've by commented said saying on hyper-growth. really side, optical think which it's Center quite Bruce So, right bit

On more the of really higher from for on side, that servers. is also power and bodes And power tapes seeing of bodes customers well requirements solution well management it demands Maxim. in the the management essentially for actually voltage shrinking CPUs or And power. XX-volt GPUs, we're power for what that distribution and these terms its of higher space on

favor also is end that is of terms is seeing direction spot conversion. the of of the Maxim market the taking Data but sweet into the in XX-volt we're what in So, distribution, solutions goes Center the

years leading us for Data essentially that I telling growth the take turn So, dynamics beneficial these indicators as are future but the revenue, see things opportunity And in to the multiple market for Center. for good in that are us actually into we us. an think

Craig M. Hettenbach

follow-up, then just in know lot side, on as And there's it. Got a a the BMS just activity focused China. of I

Just you be kind And are broadly. of seeing how BMS? should beyond it then, China? looking for market there seeing breadth are that things the we you're for of Or

Tunç Doluca

mean, we China, in So, the just the but few the it's got BMS, in previous not lot revenue story. China quarters growth a of I

are wins over at you If spread got look XX our they We've at models. to the in almost OEMs geographies. XX design wins, all design

lot happening incentives, not of because the be to of So, country needs combat able government story. one growth, China just terms the terms in to their in air in of essentially is the a in they're it's near-term a and But country. pollution it

of vehicles by makes as world consumers. well, in them the other there's parts But move faster commitment to a the that rest driver deployment the large world. electric a So that's of probably than

is offer for or in safety good story think it's So, in I are basically in all mentioned demand, the to China. comments, opportunity We across everywhere. talked ASIL But that a with us. the I of us they happening you alluded, as is quick high our design prepared getting we're that And why enabling about of revenue wins most capabilities. get because great products ramps better

Craig M. Hettenbach

you. Thank Okay.

Tunç Doluca

You're welcome.

Kathy Ta

Craig. Thanks,

Operator

you. Thank

Our from line John Credit of from Suisse. next Pitzer comes question the

the particularly Kazarian please. a Suisse (USA) Credit - strong and John segment. Pitzer, Charlie This results thanks me Securities Congratulations question, and is Your Charles letting ask for Hi. Auto LLC on on behalf of Kazarian in the question.

kind June quarter XX to you've strong very growing your implies low again. double-digits, So, of high and teens been growth

Thank You I a And a of curious noted China the you're dynamics vehicles as electric I how or of industry seeing And would of hybrid strength. kind of any kind of to of curious bucket as in expect not of lot just you. you was kind vehicles. mean, kind to there. there was your management electric impact seeing to business. I whether around accelerating what pickup in battery and as conversation and you're there's just that kind

Tunç Doluca

me Well, color make that more I bit so sure there. add little let a

we're large large of the first in lot still strong BMS limited the from growth and the coming in really all. It applications. solid have really in to teens are to But applications growth China, that percentages, guiding And just in percentages a of not large infotainment. high of growth So, of in terms ADAS terms is we Automotive is dollars, growth global.

than rapidly, to some faster a really everybody sure are four one smaller from base. all growing want these of others pretty I limited not It's that understands it's make to space. So, segments

So, products story company. China. and (USA) Suisse in particularly Securities global. you. it's And it's are link ADAS one region Okay. in some for Thank in or those But - BMS those products, faster LLC or other, Charles in Kazarian Credit growth faster growth is the segments, of serial a infotainment the global

Tunç Doluca

Thank you.

Kathy Ta

Thank you.

Operator

Thank you.

Craig from question line from next comes Ellis B. Our Riley. of

please. question, Your

Thomas Curran

guys. is commentary in deeper taking more follow just here, Thomas ADAS company. Auto Thanks you versus provide seeing and steepest dive bit question BMS? a Hi, for of birthday are to the deflection up that maybe Craig. the This the Auto on to little the the wanted where into actually and provided. kind sub-segment my calling in for on Can you happy commentary of segment you I

Tunç Doluca

Okay.

going in those the growth infotainment, closer So, that's previous really the what I solidly, of ADAS just have and but the of basically, growth which pretty said I'm today. think we probably largest growing BMS. segments small. infotainment segments, to automotive; BMS. overall some the percentage give the summarize And three to And business Automotive, assist revenue to I is is about growing the but the or ones is are it the to driver generator rate of two-thirds the are business pieces of and dominant divided the infotainment piece. It's and the are numbers, the fastest as that But of other think and a that just assist driver I section two-thirds of there, you question,

safety ADAS, give closer and kind about segment, or fast. really growth are to the range, be of They're Automotive two that is you powertrain it's Those so. in is about that So, of security infotainment XX% growing XX% XX% It's to businesses business. maybe and may basically, the growing hyper-growth, rate is which and then in an idea.

which low basically, – teens. the So in is

kind of a that's So background.

think with really products. happy a in. Maxim. the the them We're more I happy our we're happy long-term with growth they are it's be performance – and of the going importantly, designing investment. keep to for And with driver Therefore, customers So

Thomas Curran

that. for you Thank

Tunç Doluca

You're welcome.

Kathy Ta

(XX:XX). Thanks

Operator

Thank you.

from the Cody Our question next of Drexel Hamilton. from line comes Acree

Your question, please.

Cody Acree

Thanks for the and questions, taking on congrats progress. my

knowing percentage the side, the quarter, remainder through just Consumer diversification beyond what June seasonality of the year? the you're thoughts revenue and On in your of direction of getting are the

Bruce E. Kiddoo

Sure.

at last Our of of revenue, Consumer quarters, several blip running kind of this the before XX% business had around over really in revenue, XX%, QX. XX% been

stronger QX to flat just in the basically given the range look is calendar of much for business, that broad-based expectation normal and half go usually it that about kind that the June, of if think will If the year-over-year. Consumer guidance in of of year. back beyond you we seasonality, second seasonally Our we've that with is normalize our out

on second seasonality with in see calendar broad-based the get continues then, extent to course, that our strength Samsung you'll and in more of of think their the usually half; first the the the launches I so, half And business year.

Cody Acree

guys. Great. Thank you,

Bruce E. Kiddoo

Yeah.

Kathy Ta

Thanks, Cody.

Operator

you. Thank

Blayne Our comes next from Barclays. of from Curtis line question

Your question, please?

Jerry Zhang

This is and Comm Zhang Thanks had taking my on on for for guys. Center I Data the Hey, something for Jerry Blayne. question. portion.

talked pieces have how two right the that pieces growth about and beyond the out term. the obviously, to rest you. very of about two have long rate? But blended bucket trajectories guys I think form how year Thank different So, to to directionally? for you guess, kind And think way June, calendar the about the looking of what's does that interact a

Bruce E. Kiddoo

Yeah.

Center So, if our one we Data it's that think of the & not business Comms business, is probably seasonal.

tied know you lots the of in is not part a builds CapEx us, and As the infrastructure better telecom our strategic to of than business That's business. industry. times

year-on-year seasonal as a kind XXX-gig growth we've of as off the kind small that. is of it this third of think is it business. again, a have the about lot unique Comm June have infrastructure out. was sort quarter, down it in quarter, we We we in connectivity, very fast. slightly. when nothing have said, we side, on Obviously, business a business around, about And insights But there's kind That very we're the rate. and, don't into XX% catalog-driven – sort for literally, it broad-based growing seen the we hyper-growth very, just, probably of that still And optical people and think flattens optical of of base, adopt

and isn't Data business still & about is the Center so, the of side Center And about Comm two-thirds infrastructure really one-third. The Data is seasonal. Comms still

going larger the strongly. rate of and growth still to continues Obviously, business grow the continues becomes as company Center it'll overall the the very that's impact overall that growth on So to rate. as grow percent, a to have influence larger a Data

Jerry Zhang

That's great. Thanks.

Bruce E. Kiddoo

Yes.

Kathy Ta

Thanks, Jerry.

Operator

you. Thank

Our Markets comes Capital KeyBanc next Markets]. Wang James from question the of line from (sic) [KeyBanc

question, Your please?

James Wang

Thank you Hi. strong was me are the so I was ask if that. question. the Thanks comment trends, demand in Automotive, and seeing pricing a wondering, anything wondering just I especially have on for Industrial you trends? to letting you. given how

Tunç Doluca

that special and We make happening there's you when the say nothing products trends. when pricing you on want, that we really than pricing more find that then need prices. performance I would the got power give develop always commodity-type customers

has semiconductors our been markets, more other some the be lot of So, companies general, not a producing stabilized there's and have difficulty the though, view frankly, more everything. that might demand in in for because pricing having us, but most

help So that all us.

has And helped as consolidation, some obviously, well. of the

are from pricing we companies. the I in trends So, of they're definitely standpoint, And one favor these good, think a are of high-performance companies.

there's not happening So, I think special there. really much

James Wang

you. I was to could my rate XX% from wondering where the follow-up about And any Thank beyond guidance go beyond think there's how question, tax like if QX.

Bruce E. Kiddoo

Yeah.

work down XX% of there. U.S. XX% lot that a done simply fact still took So, that year being fiscal we the a Obviously, and tax on straddles. came XX%, it just from to more rate to

be at will you the second XX%; will And so, XX%. if the be look between at the our year fiscal half difference first half at of

weighted come XX%, so been benefit to you of the down there. that's sort a average, on So, a

Tunç Doluca

tax. the That's just U.S.

Bruce E. Kiddoo

look a ex-FDI That's allowed too U.S. the tax that to just kind talk what tax of down doing reform then a the that XX% that. amount And work tax at from means. little about It's obviously, us and to to, XX% so right. to tremendous rate, come still We're of rate. early a

our think earnings I to to for July for on you FY on it's reasonable we'll what expect in an long-term. update and XXXX call QX, use that give

James Wang

Thank you.

Bruce E. Kiddoo

Yeah.

Kathy Ta

James. Thanks,

Operator

you. Thank

follow-up from Tore a line Svanberg is Stifel. question the next of Our from

Your question, please.

Tore Egil Svanberg

Yeah. Thank you.

being only March you off this June to a and with right, is usually seasonal. start, one quarter seasonality stronger I So, out. being weird year, know But guide

think go the we of September some quarter? as should are into what you So, the dynamics about

Bruce E. Kiddoo

Yeah.

of broad-based, we So of I think, that usually stronger. in half general, in if we think year. about more parts In the the second the those become business launches our business, year, as of there's are more time business, the Consumer product usually the

Automotive is Both we'll so, down look doing very a Industrial flat. of now. and right at. are is well businesses think something I And Usually those take that is

have so, general, said, to think, think be then, we to Comms grow I very I really right, side. it's from to Data a going is the And biased, on don't think I in infrastructure but the strongly. optical insights I And early too & And tell. continue as could that little upward Center,

Tore Egil Svanberg

XX That's and years. the on helpful, congratulations

Bruce E. Kiddoo

Great. Thanks, Tore.

Tunç Doluca

Thanks, Tore.

Kathy Ta

Thanks, Tore.

Operator

Thank to to for hand you. conclude the today's program Kathy session of program. the back any I'd does This remarks. question-and-answer like closing

Kathy Ta

Thank your you, and you conference that, participation will Maxim. for in Jonathan. With Thank interest today's call. your for conclude we

Operator

and participation the Thank program. in today's ladies conclude gentlemen, conference. your This for you, does

disconnect. You may Good day. now

Maxim Integrated Products (MXIM) 26 Apr 182018 Q3 Earnings call transcript