SAN JOSE, Calif., Oct. 20, 2016 /PRNewswire/ -- Maxim
Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of
$561 million for its first quarter of
fiscal 2017 ended September 24, 2016,
a 1% decrease from the $566 million
revenue recorded in the prior quarter, and flat from the same
quarter of last year.
Tunc Doluca, President and Chief
Executive Officer, commented, "In the September quarter, our
businesses performed in line with our improved profitability and
revenue growth objectives. Despite the Note 7 smartphone
cancellation, we are diverse in our revenue across a broad base of
customers, end markets and applications, which is helping to lower
variability in our revenue."
Fiscal Year 2017 First Quarter Results
Based on Generally Accepted Accounting Principles (GAAP),
diluted earnings per share in the September quarter was
$0.48. The results were affected by
pre-tax special items which primarily consisted of a $27 million gain on the sale of a business,
$15 million in charges related to
acquisitions, and $12 million in
charges related to restructuring activities. GAAP earnings per
share, excluding special items was $0.48. 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 first quarter of fiscal 2017, total cash, cash
equivalents and short term investments were $2.27 billion, an increase of $37 million from the prior quarter.
Notable items included:
- Cash flow from operations: $123
million
- Capital expenditures: $14
million
- Proceeds related to the sale of a manufacturing facility:
$24.5 million
- Dividends: $94 million
($0.33 per share)
- Stock repurchases: $58
million
Business Outlook
The Company's 90-day backlog at the beginning of the
December 2016 quarter was
$371 million. Based on the beginning
backlog and expected turns, results for the December 2016 quarter are expected to be as
follows:
- Revenue: $520 million to $560
million
- Gross Margin: 61% to 63% GAAP (63% to 65% excluding special
items)
- EPS: $0.37 to $0.43 GAAP
($0.40 to $0.46 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 $0.33 per share
will be paid on December 15, 2016, to
stockholders of record on December 1,
2016.
Conference Call
Maxim Integrated has scheduled a conference call on October 20 at 2:00 p.m.
Pacific Time to discuss its financial results for the first
quarter of fiscal 2017 and its business outlook. To listen via
telephone, dial (866) 802-4305 (toll free) or (703) 639-1317. 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.
Contact
Kathy Ta
Managing Director, Investor Relations
(408) 601-5697
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
|
September
24,
|
|
June
25,
|
|
September
26,
|
|
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
(in thousands, except
per share data)
|
|
|
Net
revenues
|
$
561,396
|
|
$
566,126
|
|
$
562,510
|
|
|
Cost of goods sold
(1)
|
215,664
|
|
219,099
|
|
276,159
|
|
|
Gross
margin
|
345,732
|
|
347,027
|
|
286,351
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
112,746
|
|
113,491
|
|
121,392
|
|
|
Selling, general and
administrative
|
70,852
|
|
71,483
|
|
71,995
|
|
|
Intangible asset
amortization
|
2,443
|
|
2,538
|
|
3,591
|
|
|
Impairment of
long-lived assets (2)
|
6,134
|
|
429
|
|
157,697
|
|
|
Impairment of
goodwill and intangible assets
|
-
|
|
27,602
|
|
-
|
|
|
Severance and
restructuring expenses
|
9,965
|
|
4,149
|
|
7,126
|
|
|
Other operating
expenses (income), net (3)
|
(28,481)
|
|
4,962
|
|
315
|
|
|
Total operating
expenses (income), net
|
173,659
|
|
224,654
|
|
362,116
|
|
|
Operating income
(loss)
|
172,073
|
|
122,373
|
|
(75,765)
|
|
|
Interest and other
income (expense), net
|
(6,870)
|
|
(6,427)
|
|
(6,402)
|
|
|
Income (loss) before
provision for income taxes
|
165,203
|
|
115,946
|
|
(82,167)
|
|
|
Income tax provision
(benefit)
|
27,589
|
|
23,607
|
|
(10,024)
|
|
|
Net income
(loss)
|
$
137,614
|
|
$
92,339
|
|
$
(72,143)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
Basic
|
$0.49
|
|
$0.32
|
|
($0.25)
|
|
|
Diluted
|
$0.48
|
|
$0.32
|
|
($0.25)
|
|
|
|
|
|
|
|
|
|
|
Shares used in the
calculation of earnings (loss) per share:
|
|
|
|
|
|
|
|
Basic
|
283,633
|
|
284,354
|
|
284,588
|
|
|
Diluted
(4)
|
288,574
|
|
288,544
|
|
284,588
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
share
|
$0.33
|
|
$0.30
|
|
$0.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCHEDULE OF
SPECIAL ITEMS
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
|
September
24,
|
|
June
25,
|
|
September
26,
|
|
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
(in
thousands)
|
|
|
Cost of goods
sold:
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
$12,602
|
|
$11,829
|
|
$
16,638
|
|
|
Accelerated
depreciation (1)
|
1,178
|
|
4,098
|
|
43,631
|
|
|
Total
|
$
13,780
|
|
$
15,927
|
|
$
60,269
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
$2,443
|
|
$2,538
|
|
$3,591
|
|
|
Impairment of
long-lived assets (2)
|
6,134
|
|
429
|
|
157,697
|
|
|
Impairment of
goodwill and intangible assets
|
-
|
|
27,602
|
|
-
|
|
|
Severance and
restructuring
|
9,965
|
|
4,149
|
|
7,126
|
|
|
Other operating
expenses (income), net (3)
|
(28,481)
|
|
4,962
|
|
315
|
|
|
Total
|
$
(9,939)
|
|
$
39,680
|
|
$
168,729
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other
expense (income), net
|
$
(471)
|
|
$
(247)
|
|
$
(109)
|
|
|
Total
|
$
(471)
|
|
$
(247)
|
|
$
(109)
|
|
|
|
(1) Includes building
and equipment accelerated depreciation related to San Jose and
Dallas manufacturing facilities.
|
|
|
(2) Includes
impairment of investments in privately-held companies and other
equipment impairment charges.
|
|
|
(3) Includes gain on
sale of micro-electromechanical systems (MEMS) business line during
the first quarter of fiscal year 2017.
|
|
|
(4) Shares used in
diluted earnings per share excluding special items differs from
GAAP loss per share due to net income on a non-GAAP basis for the
first quarter of fiscal year 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
BALANCE SHEETS
|
(Unaudited)
|
|
|
September
24,
|
|
June
25,
|
|
September
26,
|
|
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
(in
thousands)
|
|
|
ASSETS
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
2,092,073
|
|
$
2,105,229
|
|
$
1,508,347
|
|
|
Short-term
investments
|
175,441
|
|
125,439
|
|
100,285
|
|
|
Total cash, cash
equivalents and short-term investments
|
2,267,514
|
|
2,230,668
|
|
1,608,632
|
|
|
Accounts receivable,
net
|
253,518
|
|
256,531
|
|
282,471
|
|
|
Inventories
|
223,484
|
|
227,929
|
|
290,712
|
|
|
Deferred tax
assets
|
-
|
|
-
|
|
50,604
|
|
|
Other current
assets
|
89,398
|
|
91,920
|
|
46,627
|
|
|
Total current
assets
|
2,833,914
|
|
2,807,048
|
|
2,279,046
|
|
|
Property, plant and
equipment, net
|
678,447
|
|
692,551
|
|
805,580
|
|
|
Intangible assets,
net
|
131,496
|
|
146,540
|
|
241,423
|
|
|
Goodwill
|
491,015
|
|
490,648
|
|
511,647
|
|
|
Other
assets
|
54,890
|
|
84,100
|
|
36,226
|
|
|
Assets held for
sale
|
2,854
|
|
13,729
|
|
70,964
|
|
|
TOTAL
ASSETS
|
$
4,192,616
|
|
$
4,234,616
|
|
$
3,944,886
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
$
83,589
|
|
$
82,535
|
|
$
80,752
|
|
|
Income taxes
payable
|
3,138
|
|
21,153
|
|
59,479
|
|
|
Accrued salary and
related expenses
|
111,126
|
|
166,698
|
|
120,642
|
|
|
Accrued
expenses
|
48,572
|
|
50,521
|
|
49,990
|
|
|
Deferred revenue on
shipments to distributors
|
35,754
|
|
38,779
|
|
35,091
|
|
|
Short term
debt
|
249,788
|
|
249,717
|
|
-
|
|
|
Total current
liabilities
|
531,967
|
|
609,403
|
|
345,954
|
|
|
Long-term
debt
|
990,685
|
|
990,090
|
|
1,000,000
|
|
|
Income taxes
payable
|
497,360
|
|
480,645
|
|
419,805
|
|
|
Other
liabilities
|
37,368
|
|
46,664
|
|
64,326
|
|
|
Total
liabilities
|
2,057,380
|
|
2,126,802
|
|
1,830,085
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
Common stock and
capital in excess of par value
|
284
|
|
284
|
|
10,819
|
|
|
Retained
earnings
|
2,141,326
|
|
2,121,749
|
|
2,121,582
|
|
|
Accumulated other
comprehensive loss
|
(6,374)
|
|
(14,219)
|
|
(17,600)
|
|
|
Total stockholders'
equity
|
2,135,236
|
|
2,107,814
|
|
2,114,801
|
|
|
TOTAL
LIABILITIES & STOCKHOLDERS' EQUITY
|
$
4,192,616
|
|
$
4,234,616
|
|
$
3,944,886
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
|
September
24,
|
|
June
25,
|
|
September
26,
|
|
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
(in
thousands)
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
137,614
|
|
$
92,339
|
|
$
(72,143)
|
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Stock-based
compensation
|
17,120
|
|
16,444
|
|
16,963
|
|
|
Depreciation and
amortization
|
43,485
|
|
46,414
|
|
102,053
|
|
|
Deferred
taxes
|
14,895
|
|
(13,510)
|
|
(53,111)
|
|
|
In-process research
and development written-off
|
-
|
|
27,602
|
|
-
|
|
|
Loss (gain) from sale
of property, plant and equipment
|
652
|
|
5,048
|
|
(1,346)
|
|
|
Loss (gain) on sale
of business
|
(26,620)
|
|
-
|
|
-
|
|
|
Tax benefit
(shortfall) related to stock-based compensation
|
-
|
|
3,657
|
|
1,193
|
|
|
Impairment of
long-lived assets
|
6,134
|
|
-
|
|
157,697
|
|
|
Excess tax benefit
from stock-based compensation
|
-
|
|
(1,890)
|
|
(2,249)
|
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
3,013
|
|
21,971
|
|
(3,627)
|
|
|
Inventories
|
2,517
|
|
7,657
|
|
(2,167)
|
|
|
Other current
assets
|
(12,099)
|
|
8,012
|
|
4,796
|
|
|
Accounts
payable
|
(858)
|
|
5,076
|
|
(9,776)
|
|
|
Income taxes
payable
|
110
|
|
19,792
|
|
34,127
|
|
|
Deferred revenue on
shipments to distributors
|
(3,025)
|
|
4,322
|
|
4,764
|
|
|
Accrued salary and
related expenses
|
(55,572)
|
|
15,287
|
|
(60,718)
|
|
|
All other accrued
liabilities
|
(3,964)
|
|
(4,150)
|
|
883
|
|
|
Net cash provided by
(used in) operating activities
|
123,402
|
|
254,071
|
|
117,339
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Purchase of property,
plant and equipment
|
(14,310)
|
|
(22,488)
|
|
(15,821)
|
|
|
Proceeds from sales
of property, plant and equipment
|
205
|
|
34,691
|
|
606
|
|
|
Proceeds from sale of
available-for-sale securities
|
24,540
|
|
-
|
|
-
|
|
|
Proceeds from
maturity of available-for-sale securities
|
25,000
|
|
50,000
|
|
-
|
|
|
Proceeds from sale of
business
|
42,199
|
|
-
|
|
-
|
|
|
Purchases of
available-for-sale securities
|
(75,224)
|
|
(25,000)
|
|
(25,055)
|
|
|
Purchases of
privately-held companies' securities
|
(2,337)
|
|
(1,554)
|
|
(1,000)
|
|
|
Net cash provided by
(used in) investing activities
|
73
|
|
35,649
|
|
(41,270)
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Excess tax benefit
from stock-based compensation
|
-
|
|
1,890
|
|
2,249
|
|
|
Issuance of
debt
|
-
|
|
249,717
|
|
-
|
|
|
Net issuance of
restricted stock units
|
(5,206)
|
|
(2,687)
|
|
(4,822)
|
|
|
Proceeds from stock
options exercised
|
19,911
|
|
12,272
|
|
8,970
|
|
|
Issuance of common
stock under employee stock purchase program
|
-
|
|
19,625
|
|
-
|
|
|
Repurchase of common
stock
|
(57,709)
|
|
(90,438)
|
|
(39,697)
|
|
|
Dividends
paid
|
(93,627)
|
|
(85,210)
|
|
(85,387)
|
|
|
Net cash provided by
(used in) financing activities
|
(136,631)
|
|
105,169
|
|
(118,687)
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
(13,156)
|
|
394,889
|
|
(42,618)
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
Beginning of
period
|
2,105,229
|
|
1,710,340
|
|
1,550,965
|
|
|
End of
period
|
$
2,092,073
|
|
$
2,105,229
|
|
$
1,508,347
|
|
|
|
|
|
|
|
|
|
|
Total cash, cash
equivalents, and short-term investments
|
$
2,267,514
|
|
$
2,230,668
|
|
$
1,608,632
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ANALYSIS OF GAAP
VERSUS GAAP EXCLUDING SPECIAL ITEMS DISCLOSURES
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
|
|
September
24,
|
|
June
25,
|
|
September
26,
|
|
|
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
|
(in thousands, except
per share data)
|
|
|
Reconciliation of
GAAP gross profit to GAAP gross profit excluding special
items:
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
|
$
345,732
|
|
$
347,027
|
|
$
286,351
|
|
|
GAAP gross profit
%
|
|
61.6%
|
|
61.3%
|
|
50.9%
|
|
|
|
|
|
|
|
|
|
|
|
Special
items:
|
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
|
12,602
|
|
11,829
|
|
16,638
|
|
|
Accelerated
depreciation (1)
|
|
1,178
|
|
4,098
|
|
43,631
|
|
|
Total special
items
|
|
13,780
|
|
15,927
|
|
60,269
|
|
|
GAAP gross
profit excluding special items
|
|
$
359,512
|
|
$
362,954
|
|
$
346,620
|
|
|
GAAP gross
profit % excluding special items
|
|
64.0%
|
|
64.1%
|
|
61.6%
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP operating expenses to GAAP operating expenses excluding
special items:
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
|
$
173,659
|
|
$
224,654
|
|
$
362,116
|
|
|
|
|
|
|
|
|
|
|
|
Special
items:
|
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
|
2,443
|
|
2,538
|
|
3,591
|
|
|
Impairment of
long-lived assets (2)
|
|
6,134
|
|
429
|
|
157,697
|
|
|
Impairment of
intangible assets
|
|
-
|
|
27,602
|
|
-
|
|
|
Severance and
restructuring
|
|
9,965
|
|
4,149
|
|
7,126
|
|
|
Other operating
expenses (income), net (3)
|
|
(28,481)
|
|
4,962
|
|
315
|
|
|
Total special
items
|
|
(9,939)
|
|
39,680
|
|
168,729
|
|
|
GAAP operating
expenses excluding special items
|
|
$
183,598
|
|
$
184,974
|
|
$
193,387
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP net income (loss) to GAAP net income excluding special
items:
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
|
$
137,614
|
|
$
92,339
|
|
$
(72,143)
|
|
|
|
|
|
|
|
|
|
|
|
Special
items:
|
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
|
15,045
|
|
14,367
|
|
20,229
|
|
|
Accelerated
depreciation (1)
|
|
1,178
|
|
4,098
|
|
43,631
|
|
|
Impairment of
long-lived assets (2)
|
|
6,134
|
|
429
|
|
157,697
|
|
|
Impairment of
intangible assets
|
|
-
|
|
27,602
|
|
-
|
|
|
Severance and
restructuring
|
|
9,965
|
|
4,149
|
|
7,126
|
|
|
Other operating
expenses (income), net (3)
|
|
(28,481)
|
|
4,962
|
|
315
|
|
|
Interest and other
expense (income), net
|
|
(471)
|
|
(247)
|
|
(109)
|
|
|
Pre-tax total
special items
|
|
3,370
|
|
55,360
|
|
228,889
|
|
|
Other income tax
effects and adjustments (4)
|
|
(2,754)
|
|
(7,228)
|
|
(36,434)
|
|
|
GAAP net income
excluding special items
|
|
$
138,230
|
|
$
140,471
|
|
$
120,312
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
per share excluding special items:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.49
|
|
$
0.49
|
|
$
0.42
|
|
|
Diluted
|
|
$
0.48
|
|
$
0.49
|
|
$
0.42
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in the
calculation of earnings per share excluding special
items:
|
|
|
|
|
|
|
|
|
Basic
|
|
283,633
|
|
284,354
|
|
284,588
|
|
|
Diluted
(5)
|
|
288,574
|
|
288,544
|
|
288,897
|
|
|
|
(1) Includes building
and equipment accelerated depreciation related to San Jose and
Dallas manufacturing facilities.
|
|
|
(2) Includes
impairment of investments in privately-held companies and other
equipment impairment charges.
|
|
|
(3) Includes gain on
sale of micro-electromechanical systems (MEMS) business line during
the first quarter of fiscal year 2017.
|
|
|
(4) Includes tax
effect of pre-tax special items and miscellaneous tax
adjustments.
|
|
|
(5) Shares used in
diluted earnings per share excluding special items differs from
GAAP loss per share due to net income on a non-GAAP basis for the
first quarter of fiscal year 2016.
|
|
|
|
|
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; accelerated
depreciation; impairment of long-lived assets; impairment of
intangible assets; severance and restructuring; and other operating
expenses (income), net, and other income tax effects and
adjustments. 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 accelerated depreciation. 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; impairment of intangible assets; severance and
restructuring, and other operating expenses (income), net. 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 Provision for Income Taxes Excluding Special
Items
The use of a GAAP provision for income taxes excluding special
items allows management to evaluate the provision for income taxes
across different reporting periods on a consistent basis,
independent of special items including the tax provision impact of
pre-tax special items. In fiscal year 2016, we began using a
long-term tax rate to compute the GAAP provision for income taxes
excluding special items. This long-term tax rate considers the
income tax impact of pre-tax special items; assumes the Federal
research tax credit remains in effect throughout the entire year,
and eliminates the effects of significant non-recurring and period
specific tax items which vary in size and frequency. We are using a
long-term tax rate of 18%, which is the weighted average of our
normalized fiscal year GAAP tax rate excluding special items over a
four year period that includes the past three fiscal years plus the
current fiscal year. We will review the long-term tax rate on an
annual basis and whenever events occur that may materially affect
the long-term tax rate such as tax law changes; significant changes
in our geographic earnings mix; or changes in our corporate
structure.
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; accelerated
depreciation; impairment of long-lived assets; impairment of
intangible assets; severance and restructuring; and other operating
expenses (income), net, and other income tax effects and
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 second quarter of fiscal 2017
ending in December 2016, which
includes revenue, gross margin and earnings per share, as well as
the Company's belief in its ability to continue improving
profitability, drive free cash flow growth, and maintain leadership
in the return of cash to shareholders. These statements involve
risk and uncertainty. Actual results could differ materially from
those forecasted, based upon, among other things, general market
and economic conditions, 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 or more 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 25, 2016 (the "Form 10-K"). The
Form 10-K may be found at
https://www.sec.gov/Archives/edgar/data/743316/000074331616000081/maxim10-kfy2016.htm.
All forward-looking statements included in this news release are
made as of the date hereof and based on the information available
to the Company as of the date hereof. The Company assumes no
obligation to update any forward-looking statement except as
required by law.
About Maxim Integrated
Maxim develops innovative analog ICs for the automotive,
industrial, healthcare, mobile consumer, and cloud data center
markets. We make technology smaller, smarter, more secure and
energy efficient, so that our customers can meet the demands of an
integrated world. Learn more at http://www.maximintegrated.com.
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SOURCE Maxim Integrated Investor Relations