SAN JOSE, Calif., April 20, 2017 /PRNewswire/ -- Maxim Integrated
Products, Inc. (NASDAQ:MXIM) reported net revenue of $581 million for its third quarter of fiscal 2017
ended March 25, 2017, a 5% increase
from the $551 million revenue
recorded in the prior quarter, and a 5% increase from the same
quarter of last year.
Tunc Doluca, President and Chief
Executive Officer, commented, "Our strong growth in the March
quarter enabled us to exceed our revenue and profitability
targets. This momentum was led by Automotive and Industrial
growth relative to the March quarter of last year." Mr. Doluca
continued, "Our return to growth and strong profitability confirms
that our R&D investment strategy and manufacturing
transformation are on track and delivering great results."
Fiscal Year 2017 Third Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted
earnings per share in the March quarter was $0.49. The results were affected by pre-tax
special items which primarily consisted of $13 million in charges related to acquisitions
and $3 million in charges related to
restructuring activities. GAAP earnings per share, excluding
special items was $0.56. 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 2017, total cash, cash
equivalents and short term investments were $2.16 billion, an increase of $69 million from the prior quarter.
Notable items included:
- Cash flow from operations: $221
million
- Gross capital expenditures: $8
million
- Dividends: $93 million
($0.33 per share)
- Stock repurchases: $57
million
Business Outlook
The Company's 90-day backlog at the beginning of the June 2017 quarter was $382
million. Based on the beginning backlog, expected turns, and
the start of the transition to sell-in revenue accounting for
distribution, our results for the June
2017 quarter are expected to be as follows:
- Revenue: $590 to $630 million
(including $15 to $20 million for
sell-in transition)
- Gross Margin: 63% to 65% GAAP (65% to 67% excluding special
items)
- EPS: $0.54 to $0.60 GAAP
($0.59 to $0.65 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 June 15, 2017, to
stockholders of record on June 1,
2017.
Conference Call
Maxim Integrated has scheduled a conference call on April 20 at 2:00 p.m.
Pacific Time to discuss its financial results for the third
quarter of fiscal 2017 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.
Contact
Kathy Ta
Managing Director, Investor Relations
(408) 601-5697
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CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
|
March
25,
|
|
December
24,
|
|
March
26,
|
|
|
|
2017
|
|
2016
|
|
2016
|
|
|
|
(in thousands, except
per share data)
|
|
|
Net
revenues
|
$
581,216
|
|
$
550,998
|
|
$
555,252
|
|
|
Cost of goods sold
(1) (2)
|
214,312
|
|
210,820
|
|
236,411
|
|
|
Gross
margin
|
366,904
|
|
340,178
|
|
318,841
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
113,163
|
|
114,057
|
|
119,178
|
|
|
Selling, general and
administrative
|
73,987
|
|
71,543
|
|
71,778
|
|
|
Intangible asset
amortization
|
2,348
|
|
2,348
|
|
2,538
|
|
|
Impairment of
long-lived assets (3)
|
1,000
|
|
383
|
|
506
|
|
|
Severance and
restructuring expenses
|
450
|
|
864
|
|
2,552
|
|
|
Other operating
expenses (income), net
|
1,704
|
|
1,909
|
|
(55,419)
|
|
|
Total operating
expenses (income), net
|
192,652
|
|
191,104
|
|
141,133
|
|
|
Operating income
(loss)
|
174,252
|
|
149,074
|
|
177,708
|
|
|
Interest and other
income (expense), net (4)
|
(3,884)
|
|
(636)
|
|
(6,373)
|
|
|
Income (loss) before
provision for income taxes
|
170,368
|
|
148,438
|
|
171,335
|
|
|
Income tax provision
(benefit)
|
30,155
|
|
17,961
|
|
31,525
|
|
|
Net income
(loss)
|
$
140,213
|
|
$
130,477
|
|
$
139,810
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
Basic
|
$
0.50
|
|
$
0.46
|
|
$
0.49
|
|
|
Diluted
|
$
0.49
|
|
$
0.45
|
|
$
0.48
|
|
|
|
|
|
|
|
|
|
|
Shares used in the
calculation of earnings (loss) per share:
|
|
|
|
|
|
|
|
Basic
|
282,903
|
|
283,294
|
|
285,854
|
|
|
Diluted
|
287,882
|
|
288,106
|
|
289,783
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
share
|
$
0.33
|
|
$
0.33
|
|
$
0.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCHEDULE OF
SPECIAL ITEMS
|
|
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
|
March
25,
|
|
December
24,
|
|
March
26,
|
|
|
|
2017
|
|
2016
|
|
2016
|
|
|
|
(in
thousands)
|
|
|
Cost of goods
sold:
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
$
11,064
|
|
$11,755
|
|
$
11,829
|
|
|
Accelerated
depreciation (1)
|
1,103
|
|
1,178
|
|
4,066
|
|
|
Other cost of goods
sold (2)
|
|
|
|
|
6,123
|
|
|
Total
|
$
12,167
|
|
$
12,933
|
|
$
22,018
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
$2,348
|
|
$2,348
|
|
$2,538
|
|
|
Impairment of
long-lived assets (3)
|
1,000
|
|
383
|
|
506
|
|
|
Severance and
restructuring
|
450
|
|
864
|
|
2,552
|
|
|
Other operating
expenses (income), net
|
1,704
|
|
1,909
|
|
(55,419)
|
|
|
Total
|
$
5,502
|
|
$
5,504
|
|
$
(49,823)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other
expense (income), net (4)
|
$
(48)
|
|
$
(5,052)
|
|
$
(45)
|
|
|
Total
|
$
(48)
|
|
$
(5,052)
|
|
$
(45)
|
|
|
|
|
|
|
|
|
|
|
(1) Includes building
and equipment accelerated depreciation related to the Dallas
manufacturing facility.
|
|
|
(2) Includes expense
related to patent license settlement.
|
|
|
|
|
|
|
|
(3) Includes
impairment of investments in privately-held companies and other
equipment impairment charges.
|
|
|
(4) Includes gain on
sale of shares received for the sale of the wafer manufacturing
facility in San Antonio, Texas.
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|
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|
|
|
|
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|
|
|
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|
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CONSOLIDATED
BALANCE SHEETS
|
|
|
(Unaudited)
|
|
|
|
March
25,
|
|
December
24,
|
|
March
26,
|
|
|
|
2017
|
|
2016
|
|
2016
|
|
|
|
(in
thousands)
|
|
|
ASSETS
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
1,656,727
|
|
$
1,687,435
|
|
$
1,710,340
|
|
|
Short-term
investments
|
499,154
|
|
399,461
|
|
150,076
|
|
|
Total cash, cash
equivalents and short-term investments
|
2,155,881
|
|
2,086,896
|
|
1,860,416
|
|
|
Accounts receivable,
net
|
257,592
|
|
224,342
|
|
278,502
|
|
|
Inventories
|
241,439
|
|
236,040
|
|
234,603
|
|
|
Other current
assets
|
60,195
|
|
75,284
|
|
88,389
|
|
|
Total current
assets
|
2,715,107
|
|
2,622,562
|
|
2,461,910
|
|
|
Property, plant and
equipment, net
|
636,835
|
|
660,660
|
|
748,781
|
|
|
Intangible assets,
net
|
103,981
|
|
117,393
|
|
188,510
|
|
|
Goodwill
|
491,015
|
|
491,015
|
|
490,648
|
|
|
Other
assets
|
69,689
|
|
55,188
|
|
77,886
|
|
|
Assets held for
sale
|
1,156
|
|
1,156
|
|
13,733
|
|
|
TOTAL
ASSETS
|
$
4,017,783
|
|
$
3,947,974
|
|
$
3,981,468
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
$
82,938
|
|
$
70,505
|
|
$
82,696
|
|
|
Income taxes
payable
|
4,538
|
|
3,138
|
|
30,907
|
|
|
Accrued salary and
related expenses
|
135,702
|
|
109,475
|
|
151,411
|
|
|
Accrued
expenses
|
35,208
|
|
41,418
|
|
42,562
|
|
|
Deferred revenue on
shipments to distributors
|
35,724
|
|
36,137
|
|
34,457
|
|
|
Total current
liabilities
|
294,110
|
|
260,673
|
|
342,033
|
|
|
Long-term
debt
|
991,877
|
|
991,281
|
|
1,000,000
|
|
|
Income taxes
payable
|
534,028
|
|
514,498
|
|
451,099
|
|
|
Other
liabilities
|
37,459
|
|
37,331
|
|
49,573
|
|
|
Total
liabilities
|
1,857,474
|
|
1,803,783
|
|
1,842,705
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
Common stock and
capital in excess of par value
|
284
|
|
284
|
|
280
|
|
|
Retained
earnings
|
2,169,760
|
|
2,155,698
|
|
2,154,767
|
|
|
Accumulated other
comprehensive loss
|
(9,735)
|
|
(11,791)
|
|
(16,284)
|
|
|
Total stockholders'
equity
|
2,160,309
|
|
2,144,191
|
|
2,138,763
|
|
|
TOTAL
LIABILITIES & STOCKHOLDERS' EQUITY
|
$
4,017,783
|
|
$
3,947,974
|
|
$
3,981,468
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
|
March
25,
|
|
December
24,
|
|
March
26,
|
|
|
|
2017
|
|
2016
|
|
2016
|
|
|
|
(in
thousands)
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
140,213
|
|
$
130,477
|
|
$
139,810
|
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Stock-based
compensation
|
18,300
|
|
18,073
|
|
17,875
|
|
|
Depreciation and
amortization
|
40,473
|
|
42,140
|
|
47,088
|
|
|
Deferred
taxes
|
(16,967)
|
|
(7,520)
|
|
(333)
|
|
|
Loss (gain) from sale
of property, plant and equipment
|
4,809
|
|
3,898
|
|
3,098
|
|
|
Loss (gain) on sale
of business
|
—
|
|
—
|
|
(58,944)
|
|
|
Tax benefit
(shortfall) related to stock-based compensation
|
—
|
|
—
|
|
545
|
|
|
Impairment of
long-lived assets
|
—
|
|
383
|
|
506
|
|
|
Impairment of
investments in privately-held companies
|
1,000
|
|
—
|
|
—
|
|
|
Excess tax benefit
from stock-based compensation
|
—
|
|
—
|
|
(1,491)
|
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
(33,249)
|
|
29,176
|
|
(47,322)
|
|
|
Inventories
|
(5,505)
|
|
(12,512)
|
|
22,785
|
|
|
Other current
assets
|
16,862
|
|
(7,583)
|
|
(8,947)
|
|
|
Accounts
payable
|
11,887
|
|
(11,999)
|
|
8,683
|
|
|
Income taxes
payable
|
20,931
|
|
17,138
|
|
29,597
|
|
|
Deferred revenue on
shipments to distributors
|
(412)
|
|
383
|
|
2,390
|
|
|
Accrued salary and
related expenses
|
26,227
|
|
(1,651)
|
|
22,078
|
|
|
All other accrued
liabilities
|
(3,872)
|
|
(7,773)
|
|
(9,432)
|
|
|
Net cash provided by
(used in) operating activities
|
220,697
|
|
192,630
|
|
167,986
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Purchase of property,
plant and equipment
|
(8,286)
|
|
(15,775)
|
|
(17,530)
|
|
|
Proceeds from sales
of property, plant and equipment
|
787
|
|
2,224
|
|
136
|
|
|
Proceeds from sale of
available-for-sale securities
|
—
|
|
26,454
|
|
—
|
|
|
Proceeds from sale of
business
|
—
|
|
—
|
|
105,000
|
|
|
Purchases of
available-for-sale securities
|
(99,398)
|
|
(225,622)
|
|
(24,861)
|
|
|
Purchases of
privately-held companies' securities
|
(162)
|
|
(326)
|
|
(1,921)
|
|
|
Net cash provided by
(used in) investing activities
|
(107,059)
|
|
(213,045)
|
|
60,824
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Excess tax benefit
from stock-based compensation
|
—
|
|
—
|
|
1,491
|
|
|
Repayment of notes
payable
|
—
|
|
(250,000)
|
|
—
|
|
|
Net issuance of
restricted stock units
|
(8,268)
|
|
(4,239)
|
|
(8,853)
|
|
|
Proceeds from stock
options exercised
|
17,502
|
|
7,155
|
|
9,889
|
|
|
Issuance of common
stock under employee stock purchase program
|
(3,194)
|
|
17,658
|
|
—
|
|
|
Repurchase of common
stock
|
(56,999)
|
|
(61,235)
|
|
(83,801)
|
|
|
Dividends
paid
|
(93,387)
|
|
(93,562)
|
|
(85,714)
|
|
|
Net cash provided by
(used in) financing activities
|
(144,346)
|
|
(384,223)
|
|
(166,988)
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
(30,708)
|
|
(404,638)
|
|
61,822
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
Beginning of
period
|
1,687,435
|
|
2,092,073
|
|
1,648,518
|
|
|
End of
period
|
$
1,656,727
|
|
$
1,687,435
|
|
$
1,710,340
|
|
|
|
|
|
|
|
|
|
|
Total cash, cash
equivalents, and short-term investments
|
$
2,155,881
|
|
$
2,086,896
|
|
$
1,860,416
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ANALYSIS OF GAAP
VERSUS GAAP EXCLUDING SPECIAL ITEMS DISCLOSURES
|
|
|
(Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
March
25,
|
|
December
24,
|
|
March
26,
|
|
|
|
|
2017
|
|
2016
|
|
2016
|
|
|
|
|
(in thousands, except
per share data)
|
|
|
Reconciliation of
GAAP gross profit to GAAP gross profit excluding special
items:
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
|
$
366,904
|
|
$
340,178
|
|
$
318,841
|
|
|
GAAP gross profit
%
|
|
63.1%
|
|
61.7%
|
|
57.4%
|
|
|
|
|
|
|
|
|
|
|
|
Special
items:
|
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
|
11,064
|
|
11,755
|
|
11,829
|
|
|
Accelerated
depreciation (1)
|
|
1,103
|
|
1,178
|
|
4,066
|
|
|
Other cost of goods
sold (2)
|
|
—
|
|
—
|
|
6,123
|
|
|
Total special
items
|
|
12,167
|
|
12,933
|
|
22,018
|
|
|
GAAP gross
profit excluding special items
|
|
$
379,071
|
|
$
353,111
|
|
$
340,859
|
|
|
GAAP gross
profit % excluding special items
|
|
65.2%
|
|
64.1%
|
|
61.4%
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP operating expenses to GAAP operating expenses excluding
special items:
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
|
$
192,652
|
|
$
191,104
|
|
$
141,133
|
|
|
|
|
|
|
|
|
|
|
|
Special
items:
|
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
|
2,348
|
|
2,348
|
|
2,538
|
|
|
Impairment of
long-lived assets (3)
|
|
1,000
|
|
383
|
|
506
|
|
|
Severance and
restructuring
|
|
450
|
|
864
|
|
2,552
|
|
|
Other operating
expenses (income), net
|
|
1,704
|
|
1,909
|
|
(55,419)
|
|
|
Total special
items
|
|
5,502
|
|
5,504
|
|
(49,823)
|
|
|
GAAP operating
expenses excluding special items
|
|
$
187,150
|
|
$
185,600
|
|
$
190,956
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP net income (loss) to GAAP net income excluding special
items:
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
|
$
140,213
|
|
$
130,477
|
|
$
139,810
|
|
|
|
|
|
|
|
|
|
|
|
Special
items:
|
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
|
13,412
|
|
14,103
|
|
14,367
|
|
|
Accelerated
depreciation (1)
|
|
1,103
|
|
1,178
|
|
4,066
|
|
|
Other cost of goods
sold (2)
|
|
—
|
|
—
|
|
6,123
|
|
|
Impairment of
long-lived assets (3)
|
|
1,000
|
|
383
|
|
506
|
|
|
Severance and
restructuring
|
|
450
|
|
864
|
|
2,552
|
|
|
Other operating
expenses (income), net
|
|
1,704
|
|
1,909
|
|
(55,419)
|
|
|
Interest and other
expense (income), net (4)
|
|
(48)
|
|
(5,052)
|
|
(45)
|
|
|
Pre-tax total
special items
|
|
17,621
|
|
13,385
|
|
(27,850)
|
|
|
Other income tax
effects and adjustments (5)
|
|
1,957
|
|
(11,167)
|
|
5,698
|
|
|
GAAP net income
excluding special items
|
|
$
159,791
|
|
$
132,695
|
|
$
117,658
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
per share excluding special items:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.56
|
|
$
0.47
|
|
$
0.41
|
|
|
Diluted
|
|
$
0.56
|
|
$
0.46
|
|
$
0.41
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in the
calculation of earnings per share excluding special
items:
|
|
|
|
|
|
|
|
|
Basic
|
|
282,903
|
|
283,294
|
|
285,854
|
|
|
Diluted
|
|
287,882
|
|
288,106
|
|
289,783
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes building
and equipment accelerated depreciation related to the Dallas
manufacturing facility.
|
|
|
(2) Includes expense
related to patent license settlement.
|
|
|
(3) Includes
impairment of investments in privately-held companies and other
equipment impairment charges.
|
|
|
(4) Includes gain on
sale of shares received for the sale of the wafer manufacturing
facility in San Antonio, Texas.
|
|
|
|
(5) Includes tax
effect of pre-tax special items and miscellaneous tax
adjustments.
|
|
|
|
|
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; other costs of goods sold; impairment of long-lived
assets; severance and restructuring; other operating expenses
(income), net; interest and other expense (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, accelerated depreciation, and other costs of
goods sold. 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, 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 and eliminates the
effects of significant non-recurring and period specific tax items
which vary in size and frequency. In the first and second quarter
of fiscal year 2017, we used a long-term tax rate of 18%, which was
our forecast of 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
projection at the beginning of fiscal year 2017. We review the
long-term tax rate on an annual basis and more frequently 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. Starting in the third
quarter of fiscal year 2017, we transitioned to a long-term tax
rate of 15%, which reflects the impact of changes in our
manufacturing structure and focused research and development
expenditures, resulting in improved projections for fiscal year
2017 and future periods.
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; other costs of goods sold; impairment of long-lived
assets; severance and restructuring; other operating expenses
(income), net; interest and other expense (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 third quarter of fiscal 2017 ending
in March 2017, which includes
revenue, gross margin and earnings per share. 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 Integrated develops innovative analog and mixed-signal
products and technologies to make systems smaller and smarter, with
enhanced security and increased energy efficiency. We are
empowering design innovation for our automotive, industrial,
healthcare, mobile consumer, and cloud data center customers to
deliver industry-leading solutions that help change the world.
Learn more at http://www.maximintegrated.com.
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SOURCE Maxim Integrated Investor Relations