Maxim Integrated Reports Results For The Third Quarter Of Fiscal 2019

- Revenue: $542 million

SAN JOSE, Calif., April 30, 2019 — (PRNewswire) —  Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $542 million for its third quarter of fiscal 2019 ended March 30, 2019, a 6% decrease from the $577 million revenue recorded in the prior quarter, and a 16% decrease from the same quarter of last year.

Logo for Maxim Integrated Products Inc. (PRNewsfoto/Maxim Integrated)

Tunc Doluca, President and Chief Executive Officer, commented, "Our March quarter results met our expectations and end market demand appears to have stabilized.  Looking ahead to the June quarter, we expect a return to seasonality in Industrial and Automotive, with both end markets trending up sequentially from the soft March quarter. Our profitability remains at industry-leading levels in this cycle due to our flexible manufacturing structure and overall business model."

Fiscal Year 2019 Third Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the March quarter was $0.47. The results were affected by $7 million in pre-tax special items which primarily consisted of charges related to acquisitions. GAAP earnings per share, excluding special items was $0.52. An analysis of GAAP versus GAAP excluding special items is provided in this press release.

Cash Flow Items
At the end of the third quarter of fiscal 2019, total cash, cash equivalents and short-term investments were $1.90 billion, a decrease of $62 million from the prior quarter.

Notable items included:

  • Cash flow from operations: $207 million
  • Capital expenditures: $21 million
  • Dividends paid: $126 million ($0.46 per share)
  • Stock repurchases: $117 million

Adjusted trailing twelve months free cash flow was $899 million, which excludes a one-time tax payment of $178 million in the fourth quarter of fiscal 2018. Free cash flow is a non-GAAP measure and is defined by cash flow from operations less capital expenditures.

Business Outlook
The Company's 90-day backlog at the beginning of the June 2019 quarter was $399 million. Based on the beginning backlog and expected turns, our results for the June 2019 quarter are forecasted to be as follows:

  • Revenue: $540 to $580 million
  • Gross Margin: 63% to 66% GAAP (64% to 67% excluding special items)
  • EPS: $0.53 to $0.59 GAAP ($0.54 to $0.60 excluding special items)

Maxim Integrated's business outlook does not include the potential impact of any special items related to restructuring activity, acquisitions, or other business combinations that may be completed during the quarter.

Dividend
A cash dividend of $0.46 per share will be paid on June 14, 2019, to stockholders of record on May 30, 2019. 

Conference Call
Maxim Integrated has scheduled a conference call on April 30 at 2:00 p.m. Pacific Time to discuss its financial results for the third quarter of fiscal 2019 and its business outlook. This call will be webcast by Shareholder.com and can be accessed at the Company's website at investor.maximintegrated.com

A presentation summarizing financial information to be discussed on the conference call is posted at investor.maximintegrated.com.


CONSOLIDATED STATEMENTS OF INCOME


(Unaudited)



Three Months Ended




March 30,
2019


December 29,
2018


March 31,
2018




(in thousands, except per share data)



Net revenues

$

542,383



$

576,906



$

648,599




Cost of goods sold

201,552



203,858



224,653




Gross margin

340,831



373,048



423,946




Operating expenses:








Research and development

107,075



110,303



114,390




Selling, general and administrative

74,116



77,853



81,304




Intangible asset amortization

756



756



876




Impairment of long-lived assets



753






Severance and restructuring expenses

1,744



1,179



2,272




Other operating expenses (income), net





266




Total operating expenses (income), net

183,691



190,844



199,108




Operating income (loss)

157,140



182,204



224,838




Interest and other income (expense), net

3,318



472



(2,534)




Income (loss) before provision for income taxes

160,458



182,676



222,304




Income tax provision (benefit)

29,845



50,784



28,677




Net income (loss)

$

130,613



$

131,892



$

193,627




Earnings (loss) per share:








Basic

$

0.48



$

0.48



$

0.69




Diluted

$

0.47



$

0.47



$

0.68




Shares used in the calculation of earnings (loss) per share:








Basic

273,221



276,252



280,850




Diluted

276,610



280,008



285,881




Dividends paid per share

$

0.46



$

0.46



$

0.42












SCHEDULE OF SPECIAL ITEMS



(Unaudited)




Three Months Ended




March 30,
2019


December 29,
2018


March 31,
2018




(in thousands)



Cost of goods sold:








Intangible asset amortization

$

5,008



$

6,868



$

12,101




 Total

$

5,008



$

6,868



$

12,101




Operating expenses:








Intangible asset amortization

756



$

756



$

876




Impairment of long-lived assets   (1)



753






Severance and restructuring

1,744



1,179



2,272




Other operating expenses (income), net





266




 Total

$

2,500



$

2,688



$

3,414




Interest and other expense (income), net

$

(857)



$

(351)



$

(97)




Total

$

(857)



$

(351)



$

(97)




Income tax provision (benefit):








Impact of U.S. tax legislation   (2)

$

(1,056)



$

22,082



$




Total

$

(1,056)



$

22,082



$












(1) Includes impairment of investments in privately-held companies and other equipment charges.



(2) Includes effect of U.S. tax legislation enacted on December 22, 2017.











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