SAN JOSE, Calif., July 20, 2017 /PRNewswire/ -- Maxim Integrated
Products, Inc. (NASDAQ:MXIM) reported net revenue of $602 million for its fourth quarter of fiscal
2017 ended June 24, 2017, a 4%
increase from the $581 million
revenue recorded in the prior quarter, and a 6% increase from the
same quarter of last year.
Tunc Doluca, President and Chief
Executive Officer, commented, "The June quarter marked the third
consecutive quarter in our return to year-over-year growth, led by
double-digit increases in Industrial and Automotive. Through solid
execution in our manufacturing strategy, we exceeded our
profitability targets and demonstrated strong earnings power and
cash flow growth." Mr. Doluca continued, "Today, we are announcing
a 9% increase in our dividend, reflecting our continued commitment
to return cash to shareholders and confidence in our long-term
outlook."
Fiscal Year 2017 Fourth Quarter Results
Based on
Generally Accepted Accounting Principles (GAAP), diluted earnings
per share in the June quarter was $0.57. 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 $0.63. 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 fourth quarter of
fiscal 2017, total cash, cash equivalents and short term
investments were $2.74 billion, an
increase of $589 million from the
prior quarter.
Notable items included:
- Cash flow from operations: $237
million
- Gross capital expenditures: $13
million
- Bond offering: $496 million
- Dividends: $93 million
($0.33 per share)
- Stock repurchases: $76
million
Business Outlook
The Company's 90-day backlog at the
beginning of the September 2017
quarter was $389 million. Based on
the beginning backlog and expected turns, our results for the
September 2017 quarter are forecasted
to be as follows:
- Revenue: $555 to $595
million
- Gross Margin: 63% to 66% GAAP (65% to 68% excluding special
items)
- EPS: $0.48 to $0.54 GAAP
($0.52 to $0.58 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 and Share Repurchase
Our Board of Directors
approved a 9% increase in the quarterly dividend and a new share
repurchase authorization of $1
billion. A cash dividend of $0.36 per share will be paid on September 14, 2017, to stockholders of record on
August 31, 2017.
Conference Call
Maxim Integrated has scheduled a
conference call on July 20 at
2:00 p.m. Pacific Time to discuss its
financial results for the fourth 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.
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|
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CONSOLIDATED
STATEMENTS OF INCOME
|
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
|
June
24,
|
|
March
25,
|
|
June
25,
|
|
June
24,
|
|
June
25,
|
|
|
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
(in thousands, except
per share data)
|
|
|
Net
revenues
|
$
602,005
|
|
$
581,216
|
|
$
566,126
|
|
$
2,295,615
|
|
$
2,194,719
|
|
|
Cost of goods sold
(1) (2)
|
208,339
|
|
214,312
|
|
219,099
|
|
849,135
|
|
950,331
|
|
|
Gross
margin
|
393,666
|
|
366,904
|
|
347,027
|
|
1,446,480
|
|
1,244,388
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
114,011
|
|
113,163
|
|
113,491
|
|
453,977
|
|
467,161
|
|
|
Selling, general and
administrative
|
75,129
|
|
73,987
|
|
71,483
|
|
291,511
|
|
288,899
|
|
|
Intangible asset
amortization
|
2,050
|
|
2,348
|
|
2,538
|
|
9,189
|
|
12,205
|
|
|
Impairment of
long-lived assets (3)
|
—
|
|
1,000
|
|
429
|
|
7,517
|
|
160,582
|
|
|
Impairment of
goodwill and intangible assets
|
—
|
|
—
|
|
27,602
|
|
—
|
|
27,602
|
|
|
Severance and
restructuring expenses
|
1,175
|
|
450
|
|
4,149
|
|
12,453
|
|
24,479
|
|
|
Other operating
expenses (income), net (4)
|
1,923
|
|
1,704
|
|
4,962
|
|
(22,944)
|
|
(50,389)
|
|
|
Total operating
expenses (income), net
|
194,288
|
|
192,652
|
|
224,654
|
|
751,703
|
|
930,539
|
|
|
Operating income
(loss)
|
199,378
|
|
174,252
|
|
122,373
|
|
694,777
|
|
313,849
|
|
|
Interest and other
income (expense), net (5)
|
(3,798)
|
|
(3,884)
|
|
(6,427)
|
|
(15,188)
|
|
(28,795)
|
|
|
Income (loss) before
provision for income taxes
|
195,580
|
|
170,368
|
|
115,946
|
|
679,589
|
|
285,054
|
|
|
Income tax provision
(benefit)
|
32,271
|
|
30,155
|
|
23,607
|
|
107,976
|
|
57,579
|
|
|
Net income
(loss)
|
$
163,309
|
|
$
140,213
|
|
$
92,339
|
|
$
571,613
|
|
$
227,475
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.58
|
|
$
0.50
|
|
$
0.32
|
|
$
2.02
|
|
$
0.80
|
|
|
Diluted
|
$
0.57
|
|
$
0.49
|
|
$
0.32
|
|
$
1.98
|
|
$
0.79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in the
calculation of earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
282,747
|
|
282,903
|
|
285,354
|
|
283,147
|
|
285,081
|
|
|
Diluted
|
287,494
|
|
287,882
|
|
288,544
|
|
287,974
|
|
289,479
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
share
|
$
0.33
|
|
$
0.33
|
|
$
0.30
|
|
$
1.32
|
|
$
1.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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SCHEDULE OF
SPECIAL ITEMS
|
|
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
|
June
24,
|
|
March
25,
|
|
June
25,
|
|
June
24,
|
|
June
25,
|
|
|
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
(in
thousands)
|
|
|
Cost of goods
sold:
|
|
|
|
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
$
11,064
|
|
$
11,064
|
|
$
11,829
|
|
$
46,485
|
|
$
55,030
|
|
|
Accelerated
depreciation (1)
|
—
|
|
1,103
|
|
4,098
|
|
3,459
|
|
53,827
|
|
|
Other cost of goods
sold (2)
|
—
|
|
—
|
|
—
|
|
—
|
|
6,123
|
|
|
Total
|
$
11,064
|
|
$
12,167
|
|
$
15,927
|
|
$
49,944
|
|
$
114,980
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
$
2,050
|
|
$
2,348
|
|
$
2,538
|
|
$
9,189
|
|
$12,205
|
|
|
Impairment of
long-lived assets (3)
|
—
|
|
1,000
|
|
429
|
|
7,517
|
|
160,582
|
|
|
Impairment of
goodwill and intangible assets
|
—
|
|
—
|
|
27,602
|
|
—
|
|
27,602
|
|
|
Severance and
restructuring
|
1,175
|
|
450
|
|
4,149
|
|
12,453
|
|
24,479
|
|
|
Other operating
expenses (income), net (4)
|
1,923
|
|
1,704
|
|
4,962
|
|
(22,944)
|
|
(50,389)
|
|
|
Total
|
$
5,148
|
|
$
5,502
|
|
$
39,680
|
|
$
6,215
|
|
$
174,479
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other
expense (income), net (5)
|
$
(90)
|
|
$
(48)
|
|
$
(247)
|
|
$
(5,661)
|
|
$
194
|
|
|
Total
|
$
(90)
|
|
$
(48)
|
|
$
(247)
|
|
$
(5,661)
|
|
$
194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
provision (benefit)
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal year 2015
& 2014 research & development tax credits
|
—
|
|
—
|
|
—
|
|
—
|
|
(2,475)
|
|
|
Total
|
$
-
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$
(2,475)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes building
and equipment accelerated depreciation related to the San Jose and
Dallas manufacturing facilities.
|
|
(2) Includes expense
related to a patent license settlement.
|
|
|
|
|
(3) Includes
impairment of investments in privately-held companies and other
equipment impairment charges relating to the San Antonio wafer
manufacturing facility.
|
|
(4) Includes gain on
sale of micro-electromechanical systems (MEMS) business line during
the first quarter of fiscal year 2017, gain on sale of energy
metering business during the third quarter of fiscal year 2016,
loss (gain) relating to sale of assets, and expected loss on lease
abandonment.
|
|
(5) Includes gain on
sale of shares received for the sale of the wafer manufacturing
facility in San Antonio, Texas.
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
(Unaudited)
|
|
|
|
June
24,
|
|
March
25,
|
|
June
25,
|
|
|
|
2017
|
|
2017
|
|
2016
|
|
|
|
(in
thousands)
|
|
|
ASSETS
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$2,246,121
|
|
$1,656,727
|
|
$2,105,229
|
|
|
Short-term
investments
|
498,718
|
|
499,154
|
|
125,439
|
|
|
Total cash, cash
equivalents and short-term investments
|
2,744,839
|
|
2,155,881
|
|
2,230,668
|
|
|
Accounts receivable,
net
|
256,454
|
|
257,592
|
|
256,531
|
|
|
Inventories
|
247,242
|
|
241,439
|
|
227,929
|
|
|
Other current
assets
|
57,059
|
|
60,195
|
|
91,920
|
|
|
Total current
assets
|
3,305,594
|
|
2,715,107
|
|
2,807,048
|
|
|
Property, plant and
equipment, net
|
606,581
|
|
636,835
|
|
692,551
|
|
|
Intangible assets,
net
|
90,867
|
|
103,981
|
|
146,540
|
|
|
Goodwill
|
491,015
|
|
491,015
|
|
490,648
|
|
|
Other
assets
|
72,974
|
|
69,689
|
|
84,100
|
|
|
Assets held for
sale
|
3,202
|
|
1,156
|
|
13,729
|
|
|
TOTAL
ASSETS
|
$4,570,233
|
|
$4,017,783
|
|
$4,234,616
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
$
77,373
|
|
$
82,938
|
|
$
82,535
|
|
|
Income taxes
payable
|
3,688
|
|
4,538
|
|
21,153
|
|
|
Accrued salary and
related expenses
|
145,299
|
|
135,702
|
|
166,698
|
|
|
Accrued
expenses
|
37,663
|
|
35,208
|
|
50,521
|
|
|
Deferred revenue on
shipments to distributors
|
14,974
|
|
35,724
|
|
38,779
|
|
|
Short term
debt
|
—
|
|
—
|
|
249,717
|
|
|
Total current
liabilities
|
278,997
|
|
294,110
|
|
609,403
|
|
|
Long-term
debt
|
1,487,678
|
|
991,877
|
|
990,090
|
|
|
Income taxes
payable
|
557,498
|
|
534,028
|
|
480,645
|
|
|
Other
liabilities
|
43,366
|
|
37,459
|
|
46,664
|
|
|
Total
liabilities
|
2,367,539
|
|
1,857,474
|
|
2,126,802
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
Common stock and
capital in excess of par value
|
283
|
|
284
|
|
284
|
|
|
Retained
earnings
|
2,212,301
|
|
2,169,760
|
|
2,121,749
|
|
|
Accumulated other
comprehensive loss
|
(9,890)
|
|
(9,735)
|
|
(14,219)
|
|
|
Total stockholders'
equity
|
2,202,694
|
|
2,160,309
|
|
2,107,814
|
|
|
TOTAL
LIABILITIES & STOCKHOLDERS' EQUITY
|
$4,570,233
|
|
$4,017,783
|
|
$4,234,616
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
|
June
24,
|
|
March
25,
|
|
June
25,
|
|
June
24,
|
|
June
25,
|
|
|
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
(in
thousands)
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
163,309
|
|
$
140,213
|
|
$
92,339
|
|
$
571,613
|
|
$
227,475
|
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
17,624
|
|
18,300
|
|
16,444
|
|
71,117
|
|
69,701
|
|
|
Depreciation and
amortization
|
38,194
|
|
40,473
|
|
46,414
|
|
164,292
|
|
244,637
|
|
|
Deferred
taxes
|
1,697
|
|
(16,967)
|
|
(13,510)
|
|
(7,895)
|
|
(48,138)
|
|
|
In Process Research
& Development written-off
|
—
|
|
—
|
|
27,602
|
|
—
|
|
27,602
|
|
|
Loss (gain) from sale
of property, plant and equipment
|
7,006
|
|
4,809
|
|
5,048
|
|
16,365
|
|
2,283
|
|
|
Loss (gain) on sale
of business
|
—
|
|
—
|
|
—
|
|
(26,620)
|
|
(58,944)
|
|
|
Tax benefit
(shortfall) related to stock-based compensation
|
—
|
|
—
|
|
3,657
|
|
—
|
|
7,375
|
|
|
Impairment of
long-lived assets
|
665
|
|
—
|
|
—
|
|
1,462
|
|
160,153
|
|
|
Impairment of
investments in privately-held companies
|
—
|
|
1,000
|
|
—
|
|
6,720
|
|
—
|
|
|
Excess tax benefit
from stock-based compensation
|
—
|
|
—
|
|
(1,890)
|
|
—
|
|
(9,550)
|
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
1,138
|
|
(33,249)
|
|
21,971
|
|
78
|
|
22,313
|
|
|
Inventories
|
(5,715)
|
|
(5,505)
|
|
7,657
|
|
(21,215)
|
|
44,086
|
|
|
Other current
assets
|
(727)
|
|
16,862
|
|
8,012
|
|
(3,547)
|
|
2,943
|
|
|
Accounts
payable
|
(5,235)
|
|
11,887
|
|
5,076
|
|
(6,205)
|
|
(3,676)
|
|
|
Income taxes
payable
|
22,619
|
|
20,931
|
|
19,792
|
|
60,798
|
|
56,641
|
|
|
Deferred revenue on
shipments to distributors
|
(20,751)
|
|
(412)
|
|
4,322
|
|
(23,805)
|
|
8,452
|
|
|
Accrued salary and
related expenses
|
9,597
|
|
26,227
|
|
—
|
|
(21,399)
|
|
—
|
|
|
All other accrued
liabilities
|
7,507
|
|
(3,872)
|
|
11,137
|
|
(8,102)
|
|
(31,468)
|
|
|
Net cash provided by
(used in) operating activities
|
236,928
|
|
220,697
|
|
254,071
|
|
773,657
|
|
721,885
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property,
plant and equipment
|
(13,050)
|
|
(8,286)
|
|
(22,488)
|
|
(51,421)
|
|
(69,369)
|
|
|
Proceeds from sales
of property, plant and equipment
|
7,576
|
|
787
|
|
34,691
|
|
10,792
|
|
85,142
|
|
|
Proceeds from sale of
available-for-sale securities
|
—
|
|
—
|
|
—
|
|
50,994
|
|
—
|
|
|
Proceeds from
maturity of available-for-sale securities
|
50,000
|
|
—
|
|
50,000
|
|
75,000
|
|
50,000
|
|
|
Proceeds from sale of
business
|
—
|
|
—
|
|
—
|
|
42,199
|
|
105,000
|
|
|
Purchases of
available-for-sale securities
|
(49,891)
|
|
(99,398)
|
|
(25,000)
|
|
(450,135)
|
|
(99,948)
|
|
|
Purchases of
privately-held companies' securities
|
—
|
|
(162)
|
|
(1,554)
|
|
(2,825)
|
|
(10,483)
|
|
|
Proceeds from other
investing activities
|
—
|
|
—
|
|
—
|
|
—
|
|
2,380
|
|
|
Net cash provided by
(used in) investing activities
|
(5,365)
|
|
(107,059)
|
|
35,649
|
|
(325,396)
|
|
62,722
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Excess tax benefit
from stock-based compensation
|
—
|
|
—
|
|
1,890
|
|
—
|
|
9,550
|
|
|
Repayment of notes
payable
|
—
|
|
—
|
|
—
|
|
(250,000)
|
|
—
|
|
|
Issuance of
debt
|
500,000
|
|
—
|
|
250,000
|
|
500,000
|
|
250,000
|
|
|
Debt issuance
cost
|
(3,688)
|
|
—
|
|
(283)
|
|
(3,688)
|
|
(283)
|
|
|
Net issuance of
restricted stock units
|
(7,471)
|
|
(8,268)
|
|
(2,687)
|
|
(25,183)
|
|
(24,084)
|
|
|
Proceeds from stock
options exercised
|
18,434
|
|
17,502
|
|
12,272
|
|
63,003
|
|
79,608
|
|
|
Issuance of common
stock under employee stock purchase program
|
19,805
|
|
(3,194)
|
|
19,625
|
|
34,269
|
|
33,975
|
|
|
Repurchase of common
stock
|
(75,853)
|
|
(56,999)
|
|
(90,438)
|
|
(251,799)
|
|
(237,086)
|
|
|
Dividends
paid
|
(93,396)
|
|
(93,387)
|
|
(85,210)
|
|
(373,971)
|
|
(342,023)
|
|
|
Net cash provided by
(used in) financing activities
|
357,831
|
|
(144,346)
|
|
105,169
|
|
(307,369)
|
|
(230,343)
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
589,394
|
|
(30,708)
|
|
394,889
|
|
140,892
|
|
554,264
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of
period
|
1,656,727
|
|
1,687,435
|
|
1,710,340
|
|
2,105,229
|
|
1,550,965
|
|
|
End of
period
|
$
2,246,121
|
|
$
1,656,727
|
|
$
2,105,229
|
|
$
2,246,121
|
|
$
2,105,229
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash, cash
equivalents, and short-term investments
|
$
2,744,839
|
|
$
2,155,881
|
|
$
2,230,668
|
|
$
2,744,839
|
|
$
2,230,668
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ANALYSIS OF GAAP
VERSUS GAAP EXCLUDING SPECIAL ITEMS DISCLOSURES
|
|
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
|
June
24,
|
|
March
25,
|
|
June
25,
|
|
June
24,
|
|
June
25,
|
|
|
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
(in thousands, except
per share data)
|
|
|
Reconciliation of
GAAP gross profit to GAAP gross profit excluding special
items:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
$
393,666
|
|
$
366,904
|
|
$
347,027
|
|
$
1,446,480
|
|
$
1,244,388
|
|
|
GAAP gross profit
%
|
65.4%
|
|
63.1%
|
|
61.3%
|
|
63.0%
|
|
56.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special
items:
|
|
|
|
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
11,064
|
|
11,064
|
|
11,829
|
|
46,485
|
|
55,030
|
|
|
Accelerated
depreciation (1)
|
—
|
|
1,103
|
|
4,098
|
|
3,459
|
|
53,827
|
|
|
Other cost of goods
sold (2)
|
—
|
|
—
|
|
—
|
|
—
|
|
6,123
|
|
|
Total special
items
|
11,064
|
|
12,167
|
|
15,927
|
|
49,944
|
|
114,980
|
|
|
GAAP gross
profit excluding special items
|
$
404,730
|
|
$
379,071
|
|
$
362,954
|
|
$
1,496,424
|
|
$
1,359,368
|
|
|
GAAP gross
profit % excluding special items
|
67.2%
|
|
65.2%
|
|
64.1%
|
|
65.2%
|
|
61.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP operating expenses to GAAP operating expenses excluding
special items:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
194,288
|
|
$
192,652
|
|
$
224,654
|
|
$
751,703
|
|
$
930,539
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special
items:
|
|
|
|
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
2,050
|
|
2,348
|
|
2,538
|
|
9,189
|
|
12,205
|
|
|
Impairment of
long-lived assets (3)
|
—
|
|
1,000
|
|
429
|
|
7,517
|
|
160,582
|
|
|
Impairment of
goodwill and intangible assets
|
—
|
|
—
|
|
27,602
|
|
—
|
|
27,602
|
|
|
Severance and
restructuring
|
1,175
|
|
450
|
|
4,149
|
|
12,453
|
|
24,479
|
|
|
Other operating
expenses (income), net (4)
|
1,923
|
|
1,704
|
|
4,962
|
|
(22,944)
|
|
(50,389)
|
|
|
Total special
items
|
5,148
|
|
5,502
|
|
39,680
|
|
6,215
|
|
174,479
|
|
|
GAAP operating
expenses excluding special items
|
$
189,140
|
|
$
187,150
|
|
$
184,974
|
|
$
745,488
|
|
$
756,060
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP net income (loss) to GAAP net income excluding special
items:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
$
163,309
|
|
$
140,213
|
|
$
92,339
|
|
$
571,613
|
|
$
227,475
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special
items:
|
|
|
|
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
13,114
|
|
13,412
|
|
14,367
|
|
55,674
|
|
67,235
|
|
|
Accelerated
depreciation (1)
|
—
|
|
1,103
|
|
4,098
|
|
3,459
|
|
53,827
|
|
|
Other cost of goods
sold (2)
|
—
|
|
—
|
|
—
|
|
—
|
|
6,123
|
|
|
Impairment of
long-lived assets (3)
|
—
|
|
1,000
|
|
429
|
|
7,517
|
|
160,582
|
|
|
Impairment of
goodwill and intangible assets
|
—
|
|
—
|
|
27,602
|
|
—
|
|
27,602
|
|
|
Severance and
restructuring
|
1,175
|
|
450
|
|
4,149
|
|
12,453
|
|
24,479
|
|
|
Other operating
expenses (income), net (4)
|
1,923
|
|
1,704
|
|
4,962
|
|
(22,944)
|
|
(50,389)
|
|
|
Interest and other
expense (income), net (5)
|
(90)
|
|
(48)
|
|
(247)
|
|
(5,661)
|
|
194
|
|
|
Pre-tax total
special items
|
16,122
|
|
17,621
|
|
55,360
|
|
50,498
|
|
289,653
|
|
|
Fiscal year
2015 & 2014 research & development tax
credits
|
—
|
|
—
|
|
—
|
|
—
|
|
(2,475)
|
|
|
Other income tax
effects and adjustments (6)
|
499
|
|
1,957
|
|
(7,228)
|
|
(11,465)
|
|
(43,392)
|
|
|
GAAP net income
excluding special items
|
$
179,930
|
|
$
159,791
|
|
$
140,471
|
|
$
610,646
|
|
$
471,261
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
per share excluding special items:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.64
|
|
$
0.56
|
|
$
0.49
|
|
$
2.16
|
|
$
1.65
|
|
|
Diluted
|
$
0.63
|
|
$
0.56
|
|
$
0.49
|
|
$
2.12
|
|
$
1.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in the
calculation of earnings per share excluding special
items:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
282,747
|
|
282,903
|
|
285,354
|
|
283,147
|
|
285,081
|
|
|
Diluted
|
287,494
|
|
287,882
|
|
288,544
|
|
287,974
|
|
289,479
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes building
and equipment accelerated depreciation related to the San Jose and
Dallas manufacturing facilities.
|
|
(2) Includes expense
related to a patent license settlement.
|
|
|
|
|
(3) Includes
impairment of investments in privately-held companies and other
equipment impairment charges relating to the San Antonio wafer
manufacturing facility.
|
|
(4) Includes gain on
sale of micro-electromechanical systems (MEMS) business line during
the first quarter of fiscal year 2017, gain on sale of energy
metering business during the third quarter of fiscal year 2016,
loss (gain) relating to sale of assets, and expected loss on lease
abandonment.
|
|
(5) Includes gain on
sale of shares received for the sale of the wafer manufacturing
facility in San Antonio, Texas.
|
|
(6) 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; impairment of
goodwill and other intangible assets; severance and restructuring;
other operating expenses (income), net; interest and other expense
(income), net; fiscal year 2016 research and development tax
credits, 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; impairment of
goodwill and other 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 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; impairment of goodwill and other
intangible assets; severance and restructuring; other operating
expenses (income), net; interest and other expense (income), net;
fiscal year 2016 research and development tax credits, 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 first quarter of fiscal 2018 ending in September 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.
Contact
Kathy Ta
Managing Director, Investor Relations
(408) 601-5697
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SOURCE Maxim Integrated Investor Relations