* REVENUE: $394.5 MILLION
* GAAP earnings per share: $0.03 (after $0.08 special expense items)
* Cash flow from operations: $110.4 million
* Inventory: $217.8 million, a decline of $22.1 million
* Dividend per share: $0.20
* First quarter revenue outlook: $415 -- $445 million
SUNNYVALE, Calif., Aug. 6, 2009 (GLOBE NEWSWIRE) -- Maxim Integrated Products, Inc. (Nasdaq:MXIM) reported net revenue of $394.5 million for its fiscal 2009 fourth quarter ended June 27, 2009, a 16% increase over the $339.7 million revenue recorded in the previous quarter.
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share was $0.03. The results include special expense items which primarily consist of the following pre-tax and tax related expenses:
* $18.9 million pre-tax for accelerated depreciation related to
the closure of the Dallas wafer fabrication facility. This
includes $6.5 million above the forecasted $12.4 million due
to lower estimated salvage value of the Dallas equipment.
* $15.5 million tax provision impact due to international
restructuring.
Special expense items reduced earnings per share by $0.08.
Balance Sheet Items
Total cash, cash equivalents and short term investments was $913.4 million as of June 27, 2009, an increase of $15.1 million during the fourth quarter. Cash flow from operations of $110.4 million was offset primarily by:
* $61.1 million for cash dividends
* $31.9 million in payments for property and equipment
Business Outlook
Maxim's fiscal fourth quarter bookings increased by 22% compared to the third quarter of fiscal 2009 and the Company's 90 day backlog increased by 18% to $278 million. Results for the September quarter are expected to be:
* Revenue: $415 million -- $445 million
* Gross Margin: 53% -- 56%
* Operating expenses: $170 -- $172 million.
Tunc Doluca, President and Chief Executive Officer, commented, "We are pleased with the Company's execution during the economic downturn. Due to market share gains, our revenue performance versus the same quarter last year is better than our peers. We remain convinced that our balanced business model of serving all four major markets, and our continued strategy of driving innovation and integration uniquely position us for profitable growth in the analog and mixed signal market."
"The last several quarters have been a difficult period for our industry. We experienced a very rapid decline in our business brought on by the economic crisis. During this period of uncertainty, Maxim employees made significant sacrifices and we thank them for their dedication."
Dividend
A cash dividend for the fourth quarter of fiscal 2009 of $0.20 per share will be paid on September 4, 2009, to stockholders of record on August 21, 2009.
Conference Call
Maxim has scheduled a conference call on August 6, 2009, at 2:00 p.m. Pacific Time to discuss its financial results for the fourth quarter of fiscal year 2009 and its business outlook. To listen via telephone, dial (866) 802-4321 (toll free) or (703) 639-1318. This call will be webcast by Shareholder.com and can be accessed at Maxim's website at www.maxim-ic.com/Investor.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
--------------------------------
June 27, March 28, June 28,
2009 2009 2008
--------- --------- ---------
(in thousands, except
per share data)
Net revenues $ 394,471 $ 339,665 $ 501,267
Cost of goods sold(1) 203,934 171,960 197,234
--------- --------- ---------
Gross profit 190,537 167,705 304,033
Operating expenses:
Research and development(1) 117,456 120,974 143,802
Selling, general and
administrative(1) 50,643 48,760 40,907
Severance and restructuring (535) 10,956 4,059
Other operating expenses, net 1,386 3,969 20,387
--------- --------- ---------
Total operating expenses 168,950 184,659 209,155
--------- --------- ---------
Operating income (loss) 21,587 (16,954) 94,878
Interest income and other
(expense) income, net 983 (228) 5,832
--------- --------- ---------
Income (loss) before provision
for income taxes 22,570 (17,182) 100,710
Provision for income taxes 14,472 9,244 34,664
--------- --------- ---------
Net income (loss) $ 8,098 $ (26,426) $ 66,046
========= ========= =========
Earnings (loss) per share:
Basic $ 0.03 $ (0.09) $ 0.21
========= ========= =========
Diluted $ 0.03 $ (0.09) $ 0.20
========= ========= =========
Shares used in the calculation of
earnings (loss) per share:
Basic 305,347 304,415 320,553
========= ========= =========
Diluted 308,442 304,415 323,843
========= ========= =========
Dividends declared per share $ 0.200 $ 0.200 $ 0.188
========= ========= =========
(1) Includes stock-based compensation charges as follows:
Three Months Ended
----------------------------
June 27, March 28, June 28,
2009 2009 2008
-------- -------- --------
(in thousands)
Cost of goods sold $ 6,772 $ 7,574 $ 8,125
Research and development 22,783 25,194 24,138
Selling, general and
administrative 5,442 6,845 7,399
-------- -------- --------
Total $ 34,997 $ 39,613 $ 39,662
======== ======== ========
SCHEDULE OF SPECIAL EXPENSE ITEMS
Three Months Ended
----------------------------
June 27, March 28, June 28,
2009 2009 2008
-------- -------- --------
(in thousands)
Cost of goods sold:
Accelerated depreciation(2) $ 18,932 $ 12,372 $ 11,329
======== ======== ========
Operating expenses:
Severance and
restructuring(3) (535) 10,956 4,059
Other operating expenses, net(4) 1,386 3,969 20,387
-------- -------- --------
Total $ 851 $ 14,925 $ 24,446
======== ======== ========
Provision for income taxes(5) $ 15,500 $ 9,200 $ --
======== ======== ========
(2) Accelerated depreciation primarily related to long-lived assets
resulting from the anticipated closure of the Dallas fab
facility.
(3) Severance and benefit expenses primarily related to Business
Unit; Selling, General & Administrative; and Manufacturing
organizations.
(4) Expenses, net, primarily for stock option related litigation and
certain payroll taxes, interest and penalties.
(5) Tax provision impact due to international restructuring. Without
this impact, the tax provision for the fourth quarter of fiscal
year 2009 would have been negative due to favorable adjustments
of tax accruals in the quarter.
CONSOLIDATED BALANCE SHEETS
June 27, June 28,
2009 2008
----------- -----------
(in thousands)
ASSETS
Current assets:
Cash and cash equivalents $ 709,348 $ 1,013,119
Short-term investments 204,055 205,079
----------- -----------
Total cash, cash equivalents and
short-term investments 913,403 1,218,198
----------- -----------
Accounts receivable, net 207,807 272,029
Inventories 217,847 272,421
Income tax refund receivable 13,072 14,411
Deferred tax assets 211,879 253,490
Other current assets 20,943 16,012
----------- -----------
Total current assets 1,584,951 2,046,561
Property, plant and equipment, net 1,366,052 1,485,200
Other assets 130,772 176,629
----------- -----------
TOTAL ASSETS $ 3,081,775 $ 3,708,390
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 70,087 $ 79,673
Income taxes payable 2,140 825
Accrued salary and related expenses 141,334 249,079
Accrued expenses 38,455 68,131
Deferred income on shipments
to distributors 16,760 21,447
----------- -----------
Total current liabilities 268,776 419,155
Other liabilities 26,398 30,791
Income taxes payable 124,863 110,633
Deferred tax liabilities 67,273 --
----------- -----------
Total liabilities 487,310 560,579
----------- -----------
Stockholders' equity:
Common stock 21,511 251,799
Retained earnings 2,580,610 2,901,139
Accumulated other comprehensive loss (7,656) (5,127)
----------- -----------
Total stockholders' equity 2,594,465 3,147,811
----------- -----------
TOTAL LIABILITIES &
STOCKHOLDERS' EQUITY $ 3,081,775 $ 3,708,390
=========== ===========
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended
--------------------------------------
June 27, March 28, June 28,
2009 2009 2008
---------- ---------- ----------
(in thousands)
Cash flows from operating
activities:
Net income (loss) $ 8,098 $ (26,426) $ 66,047
Adjustments to reconcile net
(loss) income to net cash
provided by operating
activities:
Stock-based compensation 34,997 39,613 39,662
Depreciation and
amortization 56,513 51,236 50,731
Deferred taxes (7,277) 41,055 (20,973)
Tax benefit related to
stock-based compensation (12,493) (55,260) (90)
Other 194 405 170
Changes in assets and
liabilities:
Accounts receivable (11,463) 17,815 (2,737)
Inventories 21,624 13,291 (5,552)
Other current assets 28,728 35,224 931
Accounts payable 2,042 (7,906) 1,293
Income taxes payable 11,872 1,192 5,511
Deferred income on
shipments to
distributors (1,250) (2,587) 1,656
Accrued liabilities -
goodwill and tender
offer payments above
fair value (2,346) (1,294) (11,291)
All other accrued
liabilities (18,888) (393) (2,796)
---------- ---------- ----------
Net cash provided by
operating activities 110,351 105,965 122,562
---------- ---------- ----------
Cash flows from investing
activities:
Payments for property,
plant and equipment (31,897) (35,997) (36,247)
Acquisition -- (30,700) --
Purchases of
available-for-sale
securities (1,392) (1,392) (204,335)
Proceeds from
sales/maturities of
available-for-sale
securities 1,313 2,438 --
Other -- 2,119 14,354
---------- ---------- ----------
Net cash used in
investing activities (31,976) (63,532) (226,228)
---------- ---------- ----------
Cash flows from
financing activities:
Dividends paid (61,126) (60,961) (60,104)
Repayment of notes payable -- (1,154) --
Issuance of common stock (637) (4,777) --
Equity settlements
and payouts -- (985) (12,231)
Other (89) 69 69
---------- ---------- ----------
Net cash used in
financing activities (61,852) (67,808) (72,266)
---------- ---------- ----------
Net increase (decrease) in
cash and cash equivalents 16,523 (25,375) (175,932)
Cash and cash equivalents:
Beginning of period 692,825 718,200 1,189,051
---------- ---------- ----------
End of period $ 709,348 $ 692,825 $1,013,119
========== ========== ==========
Total cash, cash equivalents,
and short-term investments $ 913,403 $ 898,299 $1,218,198
========== ========== ==========
"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 financial projections for its first quarter of fiscal 2010 ending in September 2009, which includes revenue, gross margin, operating expense and tax provision projections, as well as the Company's belief that its balanced business model of serving all four major markets and its continued strategy of driving innovation and integration uniquely position it for profitable growth in the analog and mixed signal market. These statements involve risk and uncertainty. Actual results could differ materially from those forecasted based upon, among other things, general market and economic conditions and market developments that could adversely affect the growth of the mixed-signal analog market, product mix shifts, 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 28, 2008.
All forward-looking statements included in this news release are made as of the date hereof, based on the information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement.
About Maxim
Maxim Integrated Products is a publicly traded company that designs, manufactures, and sells high-performance semiconductor products. The Company was founded over 25 years ago with the mission to deliver innovative analog and mixed-signal engineering solutions that add value to its customers' products. To date, it has developed over 6000 products serving the industrial, communications, consumer, and computing markets.
Maxim reported revenue in excess of $1.6 billion for fiscal 2009. A Fortune 1000 company, Maxim is included in the Nasdaq 100, the Russell 1000, and the MSCI USA indices. For more information, go to www.maxim-ic.com.
The Maxim Integrated Products, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5753
CONTACT: Maxim Integrated Products, Inc.
Paresh Maniar, Executive Director, Investor Relations
(408) 470-5348
