* REVENUE: $339.7 MILLION * GAAP loss per share: $0.09 (including $0.10 special expense items) * Cash flow from operations: $106.0 million * Inventory declined by $11.8 million * Dividend per share: $0.20 * Fourth quarter revenue outlook: $350 - $380 million
SUNNYVALE, Calif., April 30, 2009 (GLOBE NEWSWIRE) -- Maxim Integrated Products, Inc. (Nasdaq:MXIM) reported net revenue of $339.7 million for its fiscal 2009 third quarter ended March 28, 2009, a 17% decline from the $410.7 million revenue recorded in the previous quarter.
Based on Generally Accepted Accounting Principles (GAAP), diluted loss per share was $0.09. The results include certain special expense items which primarily consist of the following pre-tax and tax related expenses:
* $12.4 million pre-tax for accelerated depreciation related to the closure of the Dallas wafer fabrication facility * $11.0 million pre-tax for severance and restructuring * $4.0 million pre-tax primarily for stock option related litigation * $9.2 million tax provision impact due to international restructuring
Balance Sheet Items
Total cash, cash equivalents and short term investments was $898.3 million as of March 28, 2009, a decrease of $27.2 million during the third quarter. Cash flow from operations of $106.0 million was offset primarily by:
* $31.9 million for the acquisitions of Innova Card and two product lines from Zilog * $61.0 million for cash dividends * $36.0 million in payments for property and equipment
Business Outlook
Maxim's fiscal third quarter net realizable bookings increased by 13% compared to the second quarter of fiscal 2009 and the Company's 90 day backlog increased by 15% to $238 million. Results for the June quarter are expected to be:
* Revenue: $350 million - $380 million * Gross Margin: 47% - 50% including 3.4% special expense items * Operating expenses: $170 - $175 million including $4 - $5 million special expense items * Tax provision: includes $10 - $12 million special expense items
Tunc Doluca, President and Chief Executive Officer, commented, "We are pleased to have exceeded our Q3 revenue expectation. A key driver to this upside was our recent design wins in cell phones that began to ship in volume. Inventory restocking by some of our larger customers also contributed to sales exceeding expectations. However, visibility continues to be limited and the economic environment remains highly uncertain. Consequently, we continue to manage costs closely."
Dividend
A cash dividend for the third quarter of fiscal 2009 of $0.20 per share will be paid on June 5, 2009, to stockholders of record on May 22, 2009.
Conference Call
Maxim has scheduled a conference call on April 30, 2009, at 2:00 p.m. Pacific Time to discuss its financial results for the third 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
(in thousands, except per share data)
Three Months Ended
-------------------------------------
March 28, Dec. 27, March 29,
2009 2008 2008
----------- ----------- -----------
Net revenues $ 339,665 $ 410,675 $ 487,410
Cost of goods sold (1) 171,960 211,590 198,024
----------- ----------- -----------
Gross profit 167,705 199,085 289,386
Operating expenses:
Research and development (1) 120,974 144,283 138,736
Selling, general and
administrative (1) 48,760 64,124 39,084
In-process research
and development -- 3,900 --
Impairment of long-lived
assets -- 43,769 --
Severance and restructuring 10,956 13,597 8,145
Other operating expenses, net 3,969 10,252 22,363
----------- ----------- -----------
Total operating expenses 184,659 279,925 208,328
----------- ----------- -----------
Operating (loss) income (16,954) (80,840) 81,058
Interest income and other
(expense) income, net (228) 7,385 11,615
----------- ----------- -----------
(Loss) income before (benefit)
provision for income taxes (17,182) (73,455) 92,673
Provision (benefit) for
income taxes 9,244 (34,671) 31,641
----------- ----------- -----------
Net (loss) income $ (26,426) $ (38,784) $ 61,032
=========== =========== ===========
(Loss) earnings per share:
Basic $ (0.09) $ (0.12) $ 0.19
=========== =========== ===========
Diluted $ (0.09) $ (0.12) $ 0.19
=========== =========== ===========
Shares used in the calculation
of (loss) earnings per share:
Basic 304,415 312,718 320,553
=========== =========== ===========
Diluted 304,415 312,718 322,480
=========== =========== ===========
Dividends declared per share $ 0.200 $ 0.200 $ 0.188
=========== =========== ===========
(1) Includes stock-based compensation charges as follows:
Three Months Ended
(in thousands)
-------------------------------------
March 28, Dec. 27, March 29,
2009 2008 2008
----------- ----------- -----------
Cost of goods sold $ 7,574 $ 30,834 $ 10,535
Research and development 25,194 33,431 19,170
Selling, general and
administrative 6,845 19,672 5,984
----------- ----------- -----------
Total $ 39,613 $ 83,937 $ 35,689
=========== =========== ===========
Total excluding settlement
of expiring options and
tender offer (2) $ 39,613 $ 41,622 $ 35,689
=========== =========== ===========
SCHEDULE OF SPECIAL EXPENSE ITEMS
(in thousands)
Three Months Ended
-------------------------------------
March 28, Dec. 27, March 29,
2009 2008 2008
----------- ----------- -----------
Cost of Goods Sold:
Accelerated depreciation (3) $ 12,372 $ 12,024 $ 11,281
Stock-based compensation (2) -- 15,433 --
----------- ----------- -----------
Total $ 12,372 $ 27,457 $ 11,281
=========== =========== ===========
Operating Expenses:
In process research and
development (4) $ -- $ 3,900 $ --
Impairment of long-lived
assets (5) -- 43,769 --
Severance and
restructuring (6) 10,956 13,597 8,145
Other operating expenses,
net (7) 3,969 10,252 22,363
Stock-based compensation (2) -- 26,882 --
----------- ----------- -----------
Total $ 14,925 $ 98,400 $ 30,508
=========== =========== ===========
Income Taxes (8) $ 9,200 $ -- $ --
=========== =========== ===========
(2) Stock-based compensation related to cash settlement of options
expiring in October 2008 and tender offer.
(3) Accelerated depreciation primarily related to long-lived assets
resulting from the anticipated closure of the Dallas fab
facility.
(4) In-process research and development related to acquisition of
Mobilygen Corp.
(5) Impairment of long-lived assets related to end of line test
equipment recorded in connection with reduced demand.
(6) Severance and benefit expenses primarily related to Business
Unit; Selling, General & Administrative; and Manufacturing
organizations.
(7) Expenses, net, primarily for stock option related litigation and
certain payroll taxes, interest and penalties.
(8) Tax provision impact due to international restructuring.
CONSOLIDATED BALANCE SHEETS
(in thousands)
--------------------------
March 28, June 28,
2009 2008
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 692,825 $ 1,013,119
Short-term investments 205,474 205,079
------------ ------------
Total cash, cash equivalents and
short-term investments 898,299 1,218,198
------------ ------------
Accounts receivable, net 196,344 272,029
Inventories 239,900 272,421
Income tax refund receivable 33,778 14,411
Deferred tax assets 217,088 253,490
Other current assets 22,590 16,012
------------ ------------
Total current assets 1,607,999 2,046,561
Property, plant and equipment, net 1,381,474 1,485,200
Other assets 140,455 176,629
------------ ------------
TOTAL ASSETS $ 3,129,928 $ 3,708,390
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 63,395 $ 79,673
Income taxes payable 820 825
Accrued salary and related expenses 155,257 249,079
Accrued expenses 39,089 68,131
Deferred income on shipments
to distributors 18,010 21,447
------------ ------------
Total current liabilities 276,571 419,155
Other liabilities 27,148 30,791
Income taxes payable 114,311 110,633
Deferred tax liabilities 79,971 --
------------ ------------
Total liabilities 498,001 560,579
------------ ------------
Stockholders' equity:
Common stock 304 251,799
Retained earnings 2,633,638 2,901,139
Accumulated other comprehensive loss (2,015) (5,127)
------------ ------------
Total stockholders' equity 2,631,927 3,147,811
------------ ------------
TOTAL LIABILITIES &
STOCKHOLDERS' EQUITY $ 3,129,928 $ 3,708,390
============ ============
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three Months Ended
-------------------------------------
March 28, Dec. 27, March 29,
2009 2008 2008
----------- ----------- -----------
Cash flows from operating
activities:
Net (loss) income $ (26,426) $ (38,784) $ 61,032
Adjustments to reconcile
net (loss)income to net
cash provided by
operating activities:
Stock-based compensation 39,613 83,937 35,689
Depreciation and amortization 51,236 49,992 46,352
Deferred taxes 41,055 169,498 (11,935)
Tax benefit related to
stock-based compensation (55,260) (150,144) (1,326)
Excess tax benefit related to
stock-based compensation (79) (409) (13)
In-process research and
development -- 3,900 --
Impairment of long-lived
assets -- 43,769 --
Loss (gain) from sale of
property, plant and equipment 484 1,187 (269)
Gain from sale of equity
investments -- (529) --
Changes in assets and
liabilities:
Accounts receivable 17,815 55,476 17,383
Inventories 13,291 7,780 (11,132)
Other current assets 35,224 (71,872) 6,556
Accounts payable (7,906) (15,595) (8,724)
Income taxes payable 1,192 (19,022) --
Deferred income on shipments
to distributors (2,587) (712) (2,459)
Accrued liabilities -
goodwill and tender offer
payments above fair value (1,294) (28,093) (3,332)
All other accrued
liabilities (393) (18,865) 28,321
----------- ----------- -----------
Net cash provided by operating
activities 105,965 71,514 156,143
----------- ----------- -----------
Cash flows from investing
activities:
Payments for property, plant
and equipment (35,997) (28,639) (45,940)
Proceeds from sale of
property,
plant, and equipment -- 625 1,476
Restricted cash -- -- (151)
Other non-current assets 2,119 1,960 (8,210)
Acquisition (30,700) (30,310) --
Purchases of
available-for-sale
securities (1,392) (1,370) (837)
Proceeds from sales/maturities
of available-for-sale
securities 2,438 2,237 148,112
----------- ----------- -----------
Net cash (used in) provided by
investing activities (63,532) (55,497) 94,450
----------- ----------- -----------
Cash flows from financing
activities:
Excess tax benefit related to
stock-based compensation 79 409 13
Mortgage liability (10) (10) (10)
Goodwill payments on expiring
options and tender offer
payments (985) (6,753) (2,241)
Cash settlement of vested
restricted stock units -- -- (801)
Payouts under the RSU
loan program -- (27,376) (5,825)
Dividends paid (60,961) (62,303) (60,104)
Repayment of notes payable (1,154) (2,673) --
Issuance of common stock (4,777) (15,174) --
Common stock repurchases -- (235,131) --
----------- ----------- -----------
Net cash used in financing
activities (67,808) (349,011) (68,968)
----------- ----------- -----------
Net (decrease) increase in cash
and cash equivalents (25,375) (332,994) 181,625
Cash and cash equivalents:
Beginning of period 718,200 1,051,194 1,007,426
----------- ----------- -----------
End of period $ 692,825 $ 718,200 $1,189,051
=========== =========== ===========
Total cash, cash equivalents,
and short-term investments $ 898,299 $ 925,459 $1,189,051
=========== =========== ===========
"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 fourth quarter of fiscal 2009 ending in June, which includes revenue, gross margin, operating expense and tax provision projections. 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 reported revenue in excess of $2 billion for fiscal 2008. Maxim 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 5900 products serving the industrial, communications, consumer, and computing markets. For more information, go to www.maxim-ic.com.
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