SAN JOSE, Calif., April 30, 2019 /PRNewswire/ -- Maxim
Integrated Products, Inc. (NASDAQ:MXIM) reported net revenue of
$542 million for its third quarter of
fiscal 2019 ended March 30, 2019, a
6% decrease from the $577 million
revenue recorded in the prior quarter, and a 16% decrease from the
same quarter of last year.
Tunc Doluca, President and Chief
Executive Officer, commented, "Our March quarter results met our
expectations and end market demand appears to have
stabilized. Looking ahead to the June quarter, we expect a
return to seasonality in Industrial and Automotive, with both end
markets trending up sequentially from the soft March quarter. Our
profitability remains at industry-leading levels in this cycle due
to our flexible manufacturing structure and overall business
model."
Fiscal Year 2019 Third Quarter Results
Based on
Generally Accepted Accounting Principles (GAAP), diluted earnings
per share in the March quarter was $0.47. The results were affected by $7 million in pre-tax special items which
primarily consisted of charges related to acquisitions. GAAP
earnings per share, excluding special items was $0.52. An analysis of GAAP versus GAAP excluding
special items is provided in this press release.
Cash Flow Items
At the end of the third quarter of
fiscal 2019, total cash, cash equivalents and short-term
investments were $1.90 billion, a
decrease of $62 million from the
prior quarter.
Notable items included:
- Cash flow from operations: $207
million
- Capital expenditures: $21
million
- Dividends paid: $126 million
($0.46 per share)
- Stock repurchases: $117
million
Adjusted trailing twelve months free cash flow was $899 million, which excludes a one-time tax
payment of $178 million in the fourth
quarter of fiscal 2018. Free cash flow is a non-GAAP measure and is
defined by cash flow from operations less capital expenditures.
Business Outlook
The Company's 90-day backlog at the
beginning of the June 2019 quarter
was $399 million. Based on the
beginning backlog and expected turns, our results for the
June 2019 quarter are forecasted to
be as follows:
- Revenue: $540 to $580 million
- Gross Margin: 63% to 66% GAAP (64% to 67% excluding special
items)
- EPS: $0.53 to $0.59 GAAP ($0.54
to $0.60 excluding special
items)
Maxim Integrated's business outlook does not include the
potential impact of any special items related to restructuring
activity, acquisitions, or other business combinations that may be
completed during the quarter.
Dividend
A cash dividend of $0.46 per share will be paid on June 14, 2019, to stockholders of record on
May 30, 2019.
Conference Call
Maxim Integrated has scheduled a
conference call on April 30 at
2:00 p.m. Pacific Time to discuss its
financial results for the third quarter of fiscal 2019 and its
business outlook. This call will be webcast by Shareholder.com and
can be accessed at the Company's website at
investor.maximintegrated.com.
A presentation summarizing financial information to be discussed
on the conference call is posted at
investor.maximintegrated.com.
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
|
March 30,
2019
|
|
December 29,
2018
|
|
March 31,
2018
|
|
|
|
(in thousands, except
per share data)
|
|
|
Net
revenues
|
$
|
542,383
|
|
|
$
|
576,906
|
|
|
$
|
648,599
|
|
|
|
Cost of goods
sold
|
201,552
|
|
|
203,858
|
|
|
224,653
|
|
|
|
Gross
margin
|
340,831
|
|
|
373,048
|
|
|
423,946
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
107,075
|
|
|
110,303
|
|
|
114,390
|
|
|
|
Selling, general and
administrative
|
74,116
|
|
|
77,853
|
|
|
81,304
|
|
|
|
Intangible asset
amortization
|
756
|
|
|
756
|
|
|
876
|
|
|
|
Impairment of
long-lived assets
|
—
|
|
|
753
|
|
|
—
|
|
|
|
Severance and
restructuring expenses
|
1,744
|
|
|
1,179
|
|
|
2,272
|
|
|
|
Other operating
expenses (income), net
|
—
|
|
|
—
|
|
|
266
|
|
|
|
Total operating
expenses (income), net
|
183,691
|
|
|
190,844
|
|
|
199,108
|
|
|
|
Operating income
(loss)
|
157,140
|
|
|
182,204
|
|
|
224,838
|
|
|
|
Interest and other
income (expense), net
|
3,318
|
|
|
472
|
|
|
(2,534)
|
|
|
|
Income (loss) before
provision for income taxes
|
160,458
|
|
|
182,676
|
|
|
222,304
|
|
|
|
Income tax provision
(benefit)
|
29,845
|
|
|
50,784
|
|
|
28,677
|
|
|
|
Net income
(loss)
|
$
|
130,613
|
|
|
$
|
131,892
|
|
|
$
|
193,627
|
|
|
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.48
|
|
|
$
|
0.48
|
|
|
$
|
0.69
|
|
|
|
Diluted
|
$
|
0.47
|
|
|
$
|
0.47
|
|
|
$
|
0.68
|
|
|
|
Shares used in the
calculation of earnings (loss) per share:
|
|
|
|
|
|
|
|
Basic
|
273,221
|
|
|
276,252
|
|
|
280,850
|
|
|
|
Diluted
|
276,610
|
|
|
280,008
|
|
|
285,881
|
|
|
|
Dividends paid per
share
|
$
|
0.46
|
|
|
$
|
0.46
|
|
|
$
|
0.42
|
|
|
|
|
|
|
|
|
|
|
|
SCHEDULE OF
SPECIAL ITEMS
|
|
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
|
March 30,
2019
|
|
December 29,
2018
|
|
March 31,
2018
|
|
|
|
(in
thousands)
|
|
|
Cost of goods
sold:
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
$
|
5,008
|
|
|
$
|
6,868
|
|
|
$
|
12,101
|
|
|
|
Total
|
$
|
5,008
|
|
|
$
|
6,868
|
|
|
$
|
12,101
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
756
|
|
|
$
|
756
|
|
|
$
|
876
|
|
|
|
Impairment of
long-lived assets (1)
|
—
|
|
|
753
|
|
|
—
|
|
|
|
Severance and
restructuring
|
1,744
|
|
|
1,179
|
|
|
2,272
|
|
|
|
Other operating
expenses (income), net
|
—
|
|
|
—
|
|
|
266
|
|
|
|
Total
|
$
|
2,500
|
|
|
$
|
2,688
|
|
|
$
|
3,414
|
|
|
|
Interest and other
expense (income), net
|
$
|
(857)
|
|
|
$
|
(351)
|
|
|
$
|
(97)
|
|
|
|
Total
|
$
|
(857)
|
|
|
$
|
(351)
|
|
|
$
|
(97)
|
|
|
|
Income tax provision
(benefit):
|
|
|
|
|
|
|
|
Impact of U.S. tax
legislation (2)
|
$
|
(1,056)
|
|
|
$
|
22,082
|
|
|
$
|
—
|
|
|
|
Total
|
$
|
(1,056)
|
|
|
$
|
22,082
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
impairment of investments in privately-held companies and other
equipment charges.
|
|
|
(2) Includes effect
of U.S. tax legislation enacted on December 22, 2017.
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
(Unaudited)
|
|
|
|
March 30,
2019
|
|
December 29,
2018
|
|
March 31,
2018
|
|
|
|
(in
thousands)
|
|
|
ASSETS
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1,654,563
|
|
|
$
|
1,406,740
|
|
|
$
|
1,629,593
|
|
|
|
Short-term
investments
|
243,864
|
|
|
553,901
|
|
|
1,094,801
|
|
|
|
Total cash, cash
equivalents and short-term investments
|
1,898,427
|
|
|
1,960,641
|
|
|
2,724,394
|
|
|
|
Accounts receivable,
net
|
381,152
|
|
|
391,419
|
|
|
320,553
|
|
|
|
Inventories
|
272,832
|
|
|
278,925
|
|
|
273,616
|
|
|
|
Other current
assets
|
24,358
|
|
|
26,933
|
|
|
22,275
|
|
|
|
Total current
assets
|
2,576,769
|
|
|
2,657,918
|
|
|
3,340,838
|
|
|
|
Property, plant and
equipment, net
|
571,955
|
|
|
571,983
|
|
|
589,177
|
|
|
|
Intangible assets,
net
|
61,036
|
|
|
67,161
|
|
|
90,848
|
|
|
|
Goodwill
|
532,251
|
|
|
532,251
|
|
|
532,904
|
|
|
|
Other
assets
|
61,843
|
|
|
59,614
|
|
|
69,428
|
|
|
|
TOTAL
ASSETS
|
$
|
3,803,854
|
|
|
$
|
3,888,927
|
|
|
$
|
4,623,195
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
86,798
|
|
|
$
|
99,577
|
|
|
$
|
84,407
|
|
|
|
Price adjustment and
other revenue reserves
|
106,011
|
|
|
130,601
|
|
|
24,339
|
|
|
|
Income taxes
payable
|
44,179
|
|
|
39,507
|
|
|
147,771
|
|
|
|
Accrued salary and
related expenses
|
128,365
|
|
|
102,427
|
|
|
48,384
|
|
|
|
Accrued
expenses
|
33,644
|
|
|
34,368
|
|
|
—
|
|
|
|
Current portion of
debt
|
—
|
|
|
—
|
|
|
499,050
|
|
|
|
Total current
liabilities
|
398,997
|
|
|
406,480
|
|
|
803,951
|
|
|
|
Long-term
debt
|
992,225
|
|
|
991,866
|
|
|
990,787
|
|
|
|
Income taxes
payable
|
688,780
|
|
|
673,051
|
|
|
817,969
|
|
|
|
Other
liabilities
|
61,105
|
|
|
62,116
|
|
|
59,497
|
|
|
|
Total
liabilities
|
2,141,107
|
|
|
2,133,513
|
|
|
2,672,204
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
Common stock and
capital in excess of par value
|
279
|
|
|
279
|
|
|
283
|
|
|
|
Retained
earnings
|
1,672,938
|
|
|
1,766,471
|
|
|
1,963,912
|
|
|
|
Accumulated other
comprehensive loss
|
(10,470)
|
|
|
(11,336)
|
|
|
(13,204)
|
|
|
|
Total stockholders'
equity
|
1,662,747
|
|
|
1,755,414
|
|
|
1,950,991
|
|
|
|
TOTAL LIABILITIES
& STOCKHOLDERS' EQUITY
|
$
|
3,803,854
|
|
|
$
|
3,888,927
|
|
|
$
|
4,623,195
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
|
March 30,
2019
|
|
December 29,
2018
|
|
March 31,
2018
|
|
|
|
(in
thousands)
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
130,613
|
|
|
$
|
131,892
|
|
|
$
|
193,627
|
|
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Stock-based
compensation
|
22,820
|
|
|
21,656
|
|
|
20,605
|
|
|
|
Depreciation and
amortization
|
27,182
|
|
|
26,803
|
|
|
37,201
|
|
|
|
Deferred
taxes
|
(3,955)
|
|
|
(5,174)
|
|
|
(2,670)
|
|
|
|
Loss (gain) from
disposal of property, plant and equipment
|
428
|
|
|
2,275
|
|
|
1,160
|
|
|
|
Impairment of
investments in privately-held companies
|
(371)
|
|
|
753
|
|
|
—
|
|
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
(14,323)
|
|
|
43,402
|
|
|
(80,953)
|
|
|
|
Inventories
|
6,123
|
|
|
(3,505)
|
|
|
(11,036)
|
|
|
|
Other current
assets
|
3,561
|
|
|
6,038
|
|
|
(1,244)
|
|
|
|
Accounts
payable
|
(13,372)
|
|
|
7,664
|
|
|
(235)
|
|
|
|
Income taxes
payable
|
20,401
|
|
|
(482)
|
|
|
30,067
|
|
|
|
Accrued salary and
related expenses
|
25,938
|
|
|
(375)
|
|
|
33,408
|
|
|
|
All other accrued
liabilities
|
1,893
|
|
|
(6,697)
|
|
|
3,295
|
|
|
|
Net cash provided by
(used in) operating activities
|
206,938
|
|
|
224,250
|
|
|
223,225
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Purchase of property,
plant and equipment
|
(21,257)
|
|
|
(12,597)
|
|
|
(16,930)
|
|
|
|
Proceeds from sales
of property, plant and equipment
|
32
|
|
|
1
|
|
|
2,844
|
|
|
|
Proceeds from sale of
available-for-sale securities
|
2,939
|
|
|
18,815
|
|
|
60,008
|
|
|
|
Proceeds from
maturity of available-for-sale securities
|
308,529
|
|
|
416,720
|
|
|
304,289
|
|
|
|
Payment in connection
with business acquisition, net of cash acquired
|
—
|
|
|
—
|
|
|
(57,773)
|
|
|
|
Purchases of
available-for-sale securities
|
—
|
|
|
(23,707)
|
|
|
(268,821)
|
|
|
|
Purchases of
privately-held companies' securities
|
(770)
|
|
|
(156)
|
|
|
(1,250)
|
|
|
|
Other investing
activities
|
(540)
|
|
|
—
|
|
|
—
|
|
|
|
Net cash provided by
(used in) investing activities
|
288,933
|
|
|
399,076
|
|
|
22,367
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Repayment of
debt
|
—
|
|
|
(500,000)
|
|
|
—
|
|
|
|
Contingent
consideration paid
|
(1,052)
|
|
|
—
|
|
|
—
|
|
|
|
Net issuance of
restricted stock units
|
(9,582)
|
|
|
(5,916)
|
|
|
(9,642)
|
|
|
|
Proceeds from stock
options exercised
|
5,143
|
|
|
7,235
|
|
|
7,716
|
|
|
|
Issuance of common
stock under employee stock purchase program
|
—
|
|
|
17,689
|
|
|
—
|
|
|
|
Repurchase of common
stock
|
(116,991)
|
|
|
(207,558)
|
|
|
(127,700)
|
|
|
|
Dividends
paid
|
(125,566)
|
|
|
(126,808)
|
|
|
(117,883)
|
|
|
|
Net cash provided by
(used in) financing activities
|
(248,048)
|
|
|
(815,358)
|
|
|
(247,509)
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
247,823
|
|
|
(192,032)
|
|
|
(1,917)
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
Beginning of
period
|
$
|
1,406,740
|
|
|
$
|
1,598,772
|
|
|
$
|
1,631,510
|
|
|
|
End of
period
|
$
|
1,654,563
|
|
|
$
|
1,406,740
|
|
|
$
|
1,629,593
|
|
|
|
Total cash, cash
equivalents, and short-term investments
|
$
|
1,898,427
|
|
|
$
|
1,960,641
|
|
|
$
|
2,724.394
|
|
|
|
|
|
|
|
|
|
|
|
ANALYSIS OF GAAP
VERSUS GAAP EXCLUDING SPECIAL ITEMS DISCLOSURES
|
|
|
(Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
March
30, 2019
|
|
December
29, 2018
|
|
March
31, 2018
|
|
|
|
|
(in thousands, except
per share data)
|
|
|
Reconciliation of
GAAP gross profit to GAAP gross profit excluding special
items:
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
|
$
|
340,831
|
|
|
$
|
373,048
|
|
|
$
|
423,946
|
|
|
|
GAAP gross profit
%
|
|
62.8
|
%
|
|
64.7
|
%
|
|
65.4
|
%
|
|
|
Special
items:
|
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
|
5,008
|
|
|
6,868
|
|
|
12,101
|
|
|
|
Total special
items
|
|
5,008
|
|
|
6,868
|
|
|
12,101
|
|
|
|
GAAP gross
profit excluding special items
|
|
$
|
345,839
|
|
|
$
|
379,916
|
|
|
$
|
436,047
|
|
|
|
GAAP gross
profit % excluding special items
|
|
63.8
|
%
|
|
65.9
|
%
|
|
67.2
|
%
|
|
|
Reconciliation of
GAAP operating expenses to GAAP operating expenses excluding
special items:
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
|
$
|
183,691
|
|
|
$
|
190,844
|
|
|
$
|
199,108
|
|
|
|
Special
items:
|
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
|
756
|
|
|
756
|
|
|
876
|
|
|
|
Impairment of
long-lived assets
|
|
—
|
|
|
753
|
|
|
—
|
|
|
|
Severance and
restructuring
|
|
1,744
|
|
|
1,179
|
|
|
2,272
|
|
|
|
Other operating
expenses (income), net
|
|
—
|
|
|
—
|
|
|
266
|
|
|
|
Total special
items
|
|
2,500
|
|
|
2,688
|
|
|
3,414
|
|
|
|
GAAP operating
expenses excluding special items
|
|
$
|
181,191
|
|
|
$
|
188,156
|
|
|
$
|
195,694
|
|
|
|
Reconciliation of
GAAP net income (loss) to GAAP net income excluding special
items:
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
|
$
|
130,613
|
|
|
$
|
131,892
|
|
|
$
|
193,627
|
|
|
|
Special
items:
|
|
|
|
|
|
|
|
|
Intangible asset
amortization
|
|
5,764
|
|
|
7,624
|
|
|
12,977
|
|
|
|
Impairment of
long-lived assets (1)
|
|
—
|
|
|
753
|
|
|
—
|
|
|
|
Severance and
restructuring
|
|
1,744
|
|
|
1,179
|
|
|
2,272
|
|
|
|
Other operating
expenses (income), net
|
|
—
|
|
|
—
|
|
|
266
|
|
|
|
Interest and other
expense (income), net
|
|
(857)
|
|
|
(351)
|
|
|
(97)
|
|
|
|
Total pre-tax
special items
|
|
6,651
|
|
|
9,205
|
|
|
15,418
|
|
|
|
Other income tax
effects and adjustments (2)
|
|
7,506
|
|
|
3,758
|
|
|
151
|
|
|
|
Impact of U.S. tax
effects and adjustments (3)
|
|
(1,056)
|
|
|
22,082
|
|
|
—
|
|
|
|
GAAP net income
excluding special items
|
|
$
|
143,714
|
|
|
$
|
166,937
|
|
|
$
|
209,196
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income per
share excluding special items:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.53
|
|
|
$
|
0.60
|
|
|
$
|
0.74
|
|
|
|
Diluted
|
|
$
|
0.52
|
|
|
$
|
0.60
|
|
|
$
|
0.73
|
|
|
|
Shares used in the
calculation of earnings per share excluding special
items:
|
|
|
|
|
|
|
|
|
Basic
|
|
273,221
|
|
|
276,252
|
|
|
280,850
|
|
|
|
Diluted
|
|
276,610
|
|
|
280,008
|
|
|
285,881
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
impairment of investments in privately-held companies and other
equipment impairment charges.
|
|
|
(2) Includes tax
effect of pre-tax special items and miscellaneous tax
adjustments.
|
|
|
(3) Includes effect
of U.S. tax legislation enacted on December 22, 2017.
|
|
|
|
|
|
|
|
|
|
|
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; 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. We defined free cash flow as net cash
provided from operations less gross capital expenditures.
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. 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. Special items include
the tax impact of pre-tax special items, significant tax audit
settlements, significant prior year tax reserve adjustments, and
significant non-recurring and period specific tax items, which vary
in size and frequency, including certain tax charges resulting from
U.S. tax legislation that was enacted on December 22, 2017. We used a
long-term average tax rate to compute the GAAP tax provision
excluding special items for the second quarter of fiscal year 2018;
that long-term average tax rate was the weighted average of our
normalized fiscal year GAAP tax rate, excluding special items over
a four-year period, that included fiscal year 2018 and the three
prior fiscal years. A long-term average tax rate was not used
for the third quarter of fiscal year 2018 or for the first, second
and third quarters of fiscal year 2019 because, due to the impacts
of tax reform, a long-term average tax rate was no longer
appropriate.
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; 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 fourth quarter of fiscal 2019 ending June 2019, which includes revenue, gross margin
and earnings per share as well as the Company's expectation of a
return to seasonality in Industrial and Automotive in the June
quarter, with both end markets trending up sequentially from the
soft March quarter. 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 30, 2018 (the "Form 10-K"). The Form 10-K may be found at
https://www.sec.gov/Archives/edgar/data/743316/000074331618000031/maxim10-kfy2018.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
Vice President, Investor Relations
(408) 601-5697
View original content to download
multimedia:http://www.prnewswire.com/news-releases/maxim-integrated-reports-results-for-the-third-quarter-of-fiscal-2019-300841043.html
SOURCE Maxim Integrated Investor Relations