SAN JOSE, Calif., April 24, 2014 /PRNewswire/ -- Maxim Integrated
Products, Inc. (NASDAQ:MXIM) reported net revenue of $606 million for its third quarter of fiscal 2014
ended March 29, 2014, a 2% decrease
from the $620 million revenue
recorded in the prior quarter.
Tunc Doluca, President and Chief
Executive Officer, commented, "We achieved better-than-seasonal
results for our mix of businesses, driven by growth in automotive,
industrial and communications, as market requirements converge on
the need for lower power, higher functionality, and more integrated
designs. " Mr. Doluca continued, "Looking forward, we expect
continued growth in these businesses, accompanied by strength in
mobility."
Fiscal Year 2014 Third Quarter Results
Based on Generally Accepted Accounting Principles (GAAP),
diluted earnings per share in the March quarter was $0.42. Earnings per share included an
intellectual property licensing income amount of $17 million, included in Interest and Other
Income.
The results were affected by special items which primarily
consisted of a $35 million pre-tax
charge for items related to acquisitions and a $35 million benefit for income taxes. GAAP
earnings per share, excluding special items was $0.43. An analysis of GAAP versus GAAP excluding
special items is provided in the last table of this press
release.
Cash Flow Items
At the end of the third quarter of fiscal 2014, total cash, cash
equivalents and short term investments was $1.23 billion, an increase of $81 million from the prior quarter. Notable items
included:
- Cash flow from operations: $212
million
- Net capital expenditures: $26
million
- Dividends: $73 million
($0.26 per share)
- Stock repurchases: $51
million
Business Outlook
The Company's 90-day backlog at the beginning of the fourth
fiscal quarter of 2014 was $413
million. Based on the beginning backlog and expected turns,
results for the June 2014 quarter are
expected to be as follows:
- Revenue: $635 million to $665
million
- Gross Margin: 58% to 60% GAAP (61% to 63% excluding special
items)
- EPS: $0.38 to $0.42 GAAP
($0.45 to $0.49 excluding special
items)
Maxim Integrated's business outlook does not include the
potential impact of any restructuring activity or mergers,
acquisitions, or other business combinations that may be completed
during the quarter.
Dividend
A cash dividend of $0.26 per share
will be paid on June 5, 2014, to
stockholders of record on May 22,
2014.
Conference Call
Maxim Integrated has scheduled a conference call on April 24, 2014, at 2:00
p.m. Pacific Time to discuss its financial results for the
third quarter of fiscal 2014 and its business outlook. To listen
via telephone, dial (866) 804-3547 (toll free) or (703)
639-1328. This call will be webcast by Shareholder.com and
can be accessed at the Company's website at
www.maximintegrated.com/company/investor.
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
March
29,
|
|
December
28,
|
|
March
30,
|
|
|
|
|
|
2014
|
|
2013
|
|
2013
|
|
|
|
|
|
(in thousands, except
per share data)
|
|
|
|
Net
revenues
|
|
$
605,681
|
|
$
620,274
|
|
$
604,884
|
|
|
|
Cost of goods
sold
|
|
265,744
|
|
291,602
|
|
228,782
|
|
|
|
Gross
margin
|
|
339,937
|
|
328,672
|
|
376,102
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
141,493
|
|
142,971
|
|
134,138
|
|
|
|
Selling, general and administrative
|
|
80,680
|
|
83,471
|
|
81,954
|
|
|
|
Intangible asset amortization
|
|
4,863
|
|
4,968
|
|
3,903
|
|
|
|
Impairment of long-lived assets
|
|
-
|
|
5,197
|
|
-
|
|
|
|
Severance and restructuring expenses (1)
|
|
3,338
|
|
10,227
|
|
151
|
|
|
|
Acquisition-related costs
|
|
(88)
|
|
4,137
|
|
-
|
|
|
|
Other operating expenses (income), net (2)
|
|
2,913
|
|
7,307
|
|
1,678
|
|
|
|
Total operating
expenses
|
|
233,199
|
|
258,278
|
|
221,824
|
|
|
|
Operating income
|
|
106,738
|
|
70,394
|
|
154,278
|
|
|
|
Interest and other
income (expense), net (3)
|
|
5,174
|
|
(5,833)
|
|
(2,669)
|
|
|
|
Income before
provision for income taxes
|
|
111,912
|
|
64,561
|
|
151,609
|
|
|
|
Provision (benefit)
for income taxes (4)
|
|
(10,632)
|
|
20,208
|
|
22,824
|
|
|
|
Income from continuing operations
|
|
122,544
|
|
44,353
|
|
128,785
|
|
|
|
Income from discontinued operations, net of tax
|
|
-
|
|
-
|
|
2,603
|
|
|
|
Net income
|
|
$
122,544
|
|
$
44,353
|
|
$
131,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
Basic
|
|
|
|
|
|
|
|
|
|
From continuing operations
|
|
$
0.43
|
|
$
0.16
|
|
$
0.44
|
|
|
|
From discontinued operations, net of tax
|
|
-
|
|
-
|
|
0.01
|
|
|
|
Basic
|
|
$
0.43
|
|
$
0.16
|
|
$
0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
Diluted
|
|
|
|
|
|
|
|
|
|
From continuing operations
|
|
$
0.42
|
|
$
0.15
|
|
$
0.43
|
|
|
|
From discontinued operations, net of tax
|
|
-
|
|
-
|
|
0.01
|
|
|
|
Diluted
|
|
$
0.42
|
|
$
0.15
|
|
$
0.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in the
calculation of earnings per share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
282,627
|
|
282,664
|
|
292,888
|
|
|
|
Diluted
|
|
288,575
|
|
288,565
|
|
300,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
share
|
|
$
0.26
|
|
$
0.26
|
|
$
0.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
severance, retention and lease abandonment charges related to
acquisitions, and severance charges related to the reorganization
of various business units and manufacturing operations.
|
|
|
|
(2) Other operating
expenses (income), net are primarily for legal settlement,
in-process research and development abandoned, contingent
consideration adjustments related to certain acquisitions and legal
expenses related to Volterra acquisition.
|
|
|
|
(3) Includes
impairment of investments in privately-held companies.
|
|
|
|
(4) Includes one-time
fixed asset tax basis adjustments relating to prior year
depreciation expense.
|
|
|
|
|
|
|
|
|
|
|
|
SCHEDULE OF
SPECIAL EXPENSE ITEMS
|
|
|
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
March
29,
|
|
December
28,
|
|
March
30,
|
|
|
|
|
|
2014
|
|
2013
|
|
2013
|
|
|
|
|
|
(in
thousands)
|
|
|
|
Cost of goods
sold:
|
|
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
|
$
18,542
|
|
$
19,098
|
|
$
7,777
|
|
|
|
Acquisition-related
inventory write-up
|
|
5,518
|
|
13,066
|
|
-
|
|
|
|
Total
|
|
$
24,060
|
|
$
32,164
|
|
$
7,777
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Intangible asset amortization
|
|
$
4,863
|
|
$
4,968
|
|
$
3,903
|
|
|
|
Impairment of long-lived assets
|
|
-
|
|
5,197
|
|
-
|
|
|
|
Severance and restructuring (1)
|
|
3,338
|
|
10,227
|
|
151
|
|
|
|
Acquisition-related costs
|
|
(88)
|
|
4,137
|
|
-
|
|
|
|
Other
operating expenses (income), net (2)
|
|
2,913
|
|
7,307
|
|
1,678
|
|
|
|
Total
|
|
$
11,026
|
|
$
31,836
|
|
$
5,732
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other expense
(income), net (3)
|
|
$
3,723
|
|
$
-
|
|
$
-
|
|
|
|
Total
|
|
$
3,723
|
|
$
-
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes:
|
|
|
|
|
|
|
|
|
|
Fixed assets tax basis
adjustment (4)
|
|
$
(34,562)
|
|
$
-
|
|
$
-
|
|
|
|
Research & development
tax credits
|
|
-
|
|
-
|
|
(3,899)
|
|
|
|
Total
|
|
$
(34,562)
|
|
$
-
|
|
$
(3,899)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
|
|
Income from discontinued
operations, net of tax
|
|
$
-
|
|
$
-
|
|
$
(2,603)
|
|
|
|
Total
|
|
$
-
|
|
$
-
|
|
$
(2,603)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
severance, retention and lease abandonment charges related to
acquisitions, and severance charges related to the reorganization
of various business units and manufacturing operations.
|
|
|
|
(2) Other operating
expenses (income), net are primarily for legal settlement,
in-process research and development abandoned, contingent
consideration adjustments related to certain acquisitions and legal
expenses related to Volterra acquisition.
|
|
|
|
(3) Includes
impairment of investments in privately-held companies.
|
|
|
|
(4) Includes one-time
fixed asset tax basis adjustments relating to prior year
depreciation expense.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCK-BASED
COMPENSATION BY TYPE OF AWARD (in thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 29, 2014
|
Stock
Options
|
|
Restricted
Stock Units
|
|
Employee
Stock Purchase Plan
|
|
Total
|
|
|
Cost of goods
sold
|
$
451
|
|
$
2,108
|
|
$
594
|
|
$
3,153
|
|
|
Research and
development expense
|
2,124
|
|
7,917
|
|
1,623
|
|
11,664
|
|
|
Selling, general and
administrative expense
|
1,391
|
|
5,186
|
|
663
|
|
7,240
|
|
|
Total
|
$
3,966
|
|
$
15,211
|
|
$
2,880
|
|
$
22,057
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 28, 2013
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
$
438
|
|
$
2,395
|
|
$
533
|
|
$
3,366
|
|
|
Research and
development expense
|
2,616
|
|
8,728
|
|
1,153
|
|
12,497
|
|
|
Selling, general and
administrative expense
|
1,476
|
|
4,996
|
|
534
|
|
7,006
|
|
|
Total
|
$
4,530
|
|
$
16,119
|
|
$
2,220
|
|
$
22,869
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 30, 2013
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
$
337
|
|
$
2,120
|
|
$
598
|
|
$
3,055
|
|
|
Research and
development expense
|
1,440
|
|
7,116
|
|
1,480
|
|
10,036
|
|
|
Selling, general and
administrative expense
|
1,157
|
|
4,764
|
|
601
|
|
6,522
|
|
|
Total
|
$
2,934
|
|
$
14,000
|
|
$
2,679
|
|
$
19,613
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
(Unaudited)
|
|
|
|
March
29,
|
|
December
28,
|
|
March
30,
|
|
|
|
2014
|
|
2013
|
|
2013
|
|
|
|
(in
thousands)
|
|
|
ASSETS
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
1,231,248
|
|
$
1,149,909
|
|
$
1,547,980
|
|
|
Short-term investments
|
-
|
|
-
|
|
25,095
|
|
|
Total
cash, cash equivalents and short-term investments
|
1,231,248
|
|
1,149,909
|
|
1,573,075
|
|
|
Accounts receivable, net
|
304,128
|
|
288,285
|
|
300,046
|
|
|
Inventories
|
290,518
|
|
297,234
|
|
268,018
|
|
|
Deferred tax assets
|
74,038
|
|
69,154
|
|
81,809
|
|
|
Other current assets
|
79,346
|
|
85,554
|
|
113,010
|
|
|
Total
current assets
|
1,979,278
|
|
1,890,136
|
|
2,335,958
|
|
|
Property, plant and
equipment, net
|
1,355,268
|
|
1,372,393
|
|
1,368,905
|
|
|
Intangible assets,
net
|
384,167
|
|
404,652
|
|
165,591
|
|
|
Goodwill
|
597,676
|
|
596,898
|
|
422,004
|
|
|
Other
assets
|
38,176
|
|
42,803
|
|
41,660
|
|
|
TOTAL ASSETS
|
$
4,354,565
|
|
$
4,306,882
|
|
$
4,334,118
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
$
94,315
|
|
$
99,009
|
|
$
114,629
|
|
|
Income taxes payable
|
20,720
|
|
21,717
|
|
20,200
|
|
|
Accrued salary and related expenses
|
168,336
|
|
140,738
|
|
182,894
|
|
|
Accrued expenses
|
81,232
|
|
91,145
|
|
59,075
|
|
|
Current portion of long-term debt
|
2,526
|
|
2,965
|
|
304,314
|
|
|
Deferred income on shipments to distributors
|
24,259
|
|
25,542
|
|
25,851
|
|
|
Total
current liabilities
|
391,388
|
|
381,116
|
|
706,963
|
|
|
Long-term
debt
|
1,000,871
|
|
1,000,871
|
|
503,573
|
|
|
Income taxes
payable
|
352,294
|
|
337,053
|
|
271,815
|
|
|
Deferred tax
liabilities
|
171,431
|
|
202,435
|
|
213,138
|
|
|
Other
liabilities
|
37,977
|
|
29,343
|
|
26,063
|
|
|
Total
liabilities
|
1,953,961
|
|
1,950,818
|
|
1,721,552
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
Common stock and capital in excess of par value
|
283
|
|
283
|
|
292
|
|
|
Retained earnings
|
2,412,627
|
|
2,368,350
|
|
2,629,895
|
|
|
Accumulated other comprehensive loss
|
(12,306)
|
|
(12,569)
|
|
(17,621)
|
|
|
Total
stockholders' equity
|
2,400,604
|
|
2,356,064
|
|
2,612,566
|
|
|
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY
|
$
4,354,565
|
|
$
4,306,882
|
|
$
4,334,118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
|
March
29,
|
|
December
28,
|
|
March
30,
|
|
|
|
2014
|
|
2013
|
|
2013
|
|
|
|
(in
thousands)
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net income
|
$
122,544
|
|
$
44,353
|
|
$
131,388
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Stock-based compensation
|
22,057
|
|
22,869
|
|
19,613
|
|
|
Depreciation and amortization
|
64,665
|
|
64,404
|
|
50,391
|
|
|
Deferred
taxes
|
(36,482)
|
|
(11,705)
|
|
18,392
|
|
|
In-process
research and development written-off
|
2,580
|
|
-
|
|
2,800
|
|
|
Loss
(gain) from sale of property, plant and equipment
|
818
|
|
265
|
|
(2,397)
|
|
|
Tax
benefit (shortfall) related to stock-based
compensation
|
3,204
|
|
(726)
|
|
1,317
|
|
|
Impairment
of long-lived assets
|
-
|
|
5,197
|
|
-
|
|
|
Impairment
of investments in privately-held companies
|
3,723
|
|
-
|
|
-
|
|
|
Excess tax
benefit from stock-based compensation
|
(5,139)
|
|
(2,459)
|
|
(4,297)
|
|
|
Loss
(gain) on sale of discontinued operations
|
-
|
|
-
|
|
(3,285)
|
|
|
Changes in
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable
|
(15,566)
|
|
33,056
|
|
(35,501)
|
|
|
Inventories
|
7,717
|
|
14,030
|
|
(12,143)
|
|
|
Other current assets
|
7,194
|
|
30,330
|
|
(14,653)
|
|
|
Accounts payable
|
(4,044)
|
|
(3,252)
|
|
10,453
|
|
|
Income taxes payable
|
14,244
|
|
19,002
|
|
9,100
|
|
|
Deferred revenue on shipments to distributors
|
(1,283)
|
|
(1,637)
|
|
489
|
|
|
All other accrued liabilities
|
25,466
|
|
20,704
|
|
40,026
|
|
|
Net cash provided by
(used in) operating activities
|
211,698
|
|
234,431
|
|
211,693
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Purchase
of property, plant and equipment
|
(26,407)
|
|
(46,133)
|
|
(54,945)
|
|
|
Proceeds
from sales of property, plant and equipment
|
618
|
|
-
|
|
10,199
|
|
|
Payments
in connection with business acquisition, net of cash
acquired
|
(5,750)
|
|
(453,506)
|
|
-
|
|
|
Proceeds
from maturity of available-for-sale securities
|
-
|
|
27,000
|
|
50,000
|
|
|
Net cash provided by
(used in) investing activities
|
(31,539)
|
|
(472,639)
|
|
5,254
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Excess tax
benefit from stock-based compensation
|
5,139
|
|
2,459
|
|
4,297
|
|
|
Contingent
consideration paid
|
(104)
|
|
(4,601)
|
|
-
|
|
|
Dividends
paid
|
(73,481)
|
|
(73,324)
|
|
(70,421)
|
|
|
Repayment
of notes payable
|
(439)
|
|
(1,839)
|
|
(903)
|
|
|
Issuance
of debt
|
-
|
|
497,795
|
|
491,145
|
|
|
Debt
issuance cost
|
-
|
|
(3,431)
|
|
-
|
|
|
Repurchase
of common stock
|
(51,083)
|
|
(59,101)
|
|
(66,330)
|
|
|
Issuance
of ESPP shares under employee stock purchase
program
|
-
|
|
19,096
|
|
-
|
|
|
Net
issuance of restricted stock units
|
(8,390)
|
|
(7,106)
|
|
(7,941)
|
|
|
Proceeds
from stock options exercised
|
29,538
|
|
8,622
|
|
26,079
|
|
|
Net cash provided by
(used in) financing activities
|
(98,820)
|
|
378,570
|
|
375,926
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
81,339
|
|
140,362
|
|
592,873
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
Beginning of period
|
1,149,909
|
|
1,009,547
|
|
955,107
|
|
|
End of period
|
$
1,231,248
|
|
$
1,149,909
|
|
$
1,547,980
|
|
|
|
|
|
|
|
|
|
|
Total cash, cash
equivalents, and short-term investments
|
$
1,231,248
|
|
$
1,149,909
|
|
$
1,573,075
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ANALYSIS OF GAAP
VERSUS GAAP EXCLUDING SPECIAL ITEMS DISCLOSURES
|
|
|
(Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
March
29,
|
|
December
28,
|
|
March
30,
|
|
|
|
|
2014
|
|
2013
|
|
2013
|
|
|
|
|
(in thousands, except
per share data)
|
|
|
Reconciliation of
GAAP gross profit to GAAP gross profit excluding special
items:
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
|
$
339,937
|
|
$
328,672
|
|
$
376,102
|
|
|
GAAP gross profit
%
|
|
56.1%
|
|
53.0%
|
|
62.2%
|
|
|
|
|
|
|
|
|
|
|
|
Special
items:
|
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
|
18,542
|
|
19,098
|
|
7,777
|
|
|
Acquisition-related
inventory write-up
|
|
5,518
|
|
13,066
|
|
-
|
|
|
Total special
items
|
|
24,060
|
|
32,164
|
|
7,777
|
|
|
GAAP gross
profit excluding special items
|
|
$
363,997
|
|
$
360,836
|
|
$
383,879
|
|
|
GAAP gross
profit % excluding special items
|
|
60.1%
|
|
58.2%
|
|
63.5%
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP operating expenses to GAAP operating expenses excluding
special items:
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
|
$
233,199
|
|
$
258,278
|
|
$
221,824
|
|
|
|
|
|
|
|
|
|
|
|
Special
items:
|
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
|
4,863
|
|
4,968
|
|
3,903
|
|
|
Impairment of long-lived assets
|
|
-
|
|
5,197
|
|
-
|
|
|
Severance and restructuring (1)
|
|
3,338
|
|
10,227
|
|
151
|
|
|
Acquisition-related
costs
|
|
(88)
|
|
4,137
|
|
-
|
|
|
Other
operating expenses (income), net (2)
|
|
2,913
|
|
7,307
|
|
1,678
|
|
|
Total special
items
|
|
11,026
|
|
31,836
|
|
5,732
|
|
|
GAAP operating
expenses excluding special items
|
|
$
222,173
|
|
$
226,442
|
|
$
216,092
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP net income to GAAP net income excluding special
items:
|
|
|
|
|
|
|
|
|
GAAP net
income
|
|
$
122,544
|
|
$
44,353
|
|
$
131,388
|
|
|
|
|
|
|
|
|
|
|
|
Special
items:
|
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
|
23,405
|
|
24,066
|
|
11,680
|
|
|
Acquisition-related
inventory write-up
|
|
5,518
|
|
13,066
|
|
-
|
|
|
Impairment of
long-lived assets
|
|
-
|
|
5,197
|
|
-
|
|
|
Severance and restructuring
(1)
|
|
3,338
|
|
10,227
|
|
151
|
|
|
Acquisition-related
costs
|
|
(88)
|
|
4,137
|
|
-
|
|
|
Other operating expenses
(income), net (2)
|
|
2,913
|
|
7,307
|
|
1,678
|
|
|
Interest and other expense,
net (3)
|
|
3,723
|
|
-
|
|
-
|
|
|
Pre-tax total special items
|
|
38,809
|
|
64,000
|
|
13,509
|
|
|
Tax effect of special
items
|
|
(3,658)
|
|
(5,894)
|
|
(3,806)
|
|
|
Fixed asset tax basis
adjustment (4)
|
|
(34,562)
|
|
-
|
|
-
|
|
|
Research & development
tax credits
|
|
-
|
|
-
|
|
(3,899)
|
|
|
Discontinued operations, net
of tax
|
|
-
|
|
-
|
|
(2,603)
|
|
|
GAAP net income
excluding special items
|
|
$
123,133
|
|
$
102,459
|
|
$
134,589
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
per share excluding special items:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.44
|
|
$
0.36
|
|
$
0.46
|
|
|
Diluted
|
|
$
0.43
|
|
$
0.36
|
|
$
0.45
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in the
calculation of earnings per share excluding special
items:
|
|
|
|
|
|
|
|
|
Basic
|
|
282,627
|
|
282,664
|
|
292,888
|
|
|
Diluted
|
|
288,575
|
|
288,565
|
|
300,082
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
severance, retention and lease abandonment charges related to
acquisitions, and severance charges related to the reorganization
of various business units and manufacturing operations.
|
|
|
(2) Other operating
expenses (income), net are primarily for legal settlement,
in-process research and development abandoned, contingent
consideration adjustments related to certain acquisitions and legal
expenses related to Volterra acquisition.
|
|
|
(3) Includes
impairment of investments in privately-held companies.
|
|
|
(4) Includes one-time
fixed asset tax basis adjustments relating to prior year
depreciation expense.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Measures
To supplement the consolidated financial results prepared under
GAAP, Maxim Integrated uses non-GAAP measures which are adjusted
from the most directly comparable GAAP results to exclude special
items related to intangible asset amortization; acquisition-related
inventory write-up; impairment of long-lived assets; severance and
restructuring; acquisition-related costs; contingent consideration
adjustments relating to certain acquisitions; legal settlement;
in-process research and development abandoned; legal expenses
related to Volterra; impairment of investments in privately-held
companies; tax provision impacts due to fixed asset tax basis
adjustments; research and development tax credits; and discontinued
operations, net of tax. Management uses these non-GAAP measures
internally to make strategic decisions, forecast future results and
evaluate Maxim Integrated's current performance. Many analysts
covering Maxim Integrated use the non-GAAP measures as well. Given
management's use of these non-GAAP measures, Maxim Integrated
believes these measures are important to investors in understanding
Maxim Integrated's current and future operating results as seen
through the eyes of management. In addition, management believes
these non-GAAP measures are useful to investors in enabling them to
better assess changes in Maxim Integrated's core business across
different time periods. These non-GAAP measures are not in
accordance with or an alternative to GAAP financial data and may be
different from non-GAAP measures used by other companies. Because
non-GAAP financial measures are not standardized it may not be
possible to compare these financial measures with other companies'
non-GAAP financial measures, even if they have similar names. The
non-GAAP measures displayed in the table above include the
following:
GAAP Gross Profit Excluding Special Items
The use of GAAP gross profit excluding special items allows
management to evaluate the gross margin of the Company's core
businesses and trends across different reporting periods on a
consistent basis, independent of special items including intangible
asset amortization and acquisition-related inventory write-up. In
addition, it is an important component of management's internal
performance measurement and reward process as it is used to assess
the current and historical financial results of the business, for
strategic decision making, preparing budgets and forecasting future
results. Management presents GAAP gross profit excluding special
items to enable investors and analysts to evaluate our revenue
generation performance relative to the direct costs of revenue of
Maxim Integrated's core businesses.
GAAP Operating Expenses Excluding Special Items
The use of GAAP operating expenses excluding special items
allows management to evaluate the operating expenses of the
Company's core businesses and trends across different reporting
periods on a consistent basis, independent of special items
including intangible asset amortization; impairment of long-lived
assets; severance and restructuring; acquisition-related costs;
contingent consideration adjustments relating to certain
acquisitions; in-process research and development abandoned; legal
settlement; and legal expenses related to Volterra. In addition, it
is an important component of management's internal performance
measurement and reward process as it is used to assess the current
and historical financial results of the business, for strategic
decision making, preparing budgets and forecasting future results.
Management presents GAAP operating expenses excluding special items
to enable investors and analysts to evaluate our core business and
its direct operating expenses.
GAAP Net Income and GAAP Net Income per Share Excluding
Special Items
The use of GAAP net income and GAAP net income per share
excluding special items allow management to evaluate the operating
results of Maxim Integrated's core businesses and trends across
different reporting periods on a consistent basis, independent of
special items including intangible asset amortization;
acquisition-related inventory write-up; impairment of long-lived
assets; severance and restructuring; acquisition-related costs;
contingent consideration adjustments relating to certain
acquisitions; legal settlement; in-process research and development
abandoned; legal expenses related to Volterra; impairment of
investments in privately-held companies; research and development
tax credits; discontinued operations, net of tax; and the tax
provision impacts due to fixed asset tax basis adjustments. In
addition, they are important components of management's internal
performance measurement and reward process as it is used to assess
the current and historical financial results of the business, for
strategic decision making, preparing budgets and forecasting future
results. Management presents GAAP net income and GAAP net income
per share excluding special items to enable investors and analysts
to understand the results of operations of Maxim Integrated's core
businesses and to compare our results of operations on a more
consistent basis against that of other companies in our
industry.
"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 business outlook
and financial projections for its fourth quarter of fiscal 2014
ending in June 2014, which includes
revenue, gross margin and earnings per share, as well as looking
forward, the Company's expects continued growth in its automotive,
industrial and communications businesses, accompanied by strength
in mobility." 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, the loss of all or
a substantial portion of our sales to one of our large customers,
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 29, 2013 (the
"10-K") and Quarterly Reports on Form 10-Q filed after the
10-K.
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 except as
required by law.
About Maxim Integrated
At Maxim Integrated, we put analog together in a way that sets
our customers apart. In Fiscal 2013, we reported revenues of
$2.4 billion. For more information,
go to www.maximintegrated.com.
Contact
Kathy Ta
Managing Director, Investor Relations
(408) 601-5697
Photo -
http://photos.prnewswire.com/prnh/20120912/SF71654LOGO
SOURCE Maxim Integrated Products, Inc.