SUNNYVALE, Calif., Oct. 28, 2010 (GLOBE NEWSWIRE) -- Maxim Integrated Products, Inc. (Nasdaq:MXIM) reported record net revenue of $626.1million for its fiscal 2011 first quarter ended September 25, 2010, an 11% increase over the $566.0 million revenue recorded in the prior quarter.
Tunc Doluca, President and Chief Executive Officer, commented, "We are pleased to have achieved record revenues in fiscal Q1. We have increased revenue for six consecutive quarters and in Q1 exceeded our pre-downturn revenue by 25%. This is a testament to the significant design wins that we have achieved over the past few years.
"We also successfully executed our plans to ensure that we have the right level of flexible manufacturing capacity to meet our customers' needs. Our product development execution complemented by our acquisition strategy presents opportunities for further growth."
First Quarter, Fiscal Year 2011 Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the September quarter was $0.39. The results were reduced by $17.9 million of special expense items which primarily consist of pre-tax expense for acquisition related items. GAAP earnings per share excluding special expense items was $0.43.
Cash Flow Items
At the end of our fiscal first quarter total cash, cash equivalents and short term investments was $718.3 million, a decrease of $108.2 million from the prior quarter. Free cash flow (cash from operations less payments for property and equipment) was $120 million.
Business Outlook
The Company's 90 day backlog decreased by 2% to $601 million. Based on a detailed review of our backlog and expected turns, results for the December quarter are expected to be:
- Revenue: $595 million to $625 million
- Gross Margin: 59.5% to 62.5% GAAP (61% to 64% excluding special expense items)
- Earnings per share: $0.36 to $0.41 GAAP ($0.39 to $0.44 excluding special expense items)
Dividend
A cash dividend for the first quarter of fiscal 2011 of $0.21 per share will be paid on December 7, 2010, to stockholders of record on November 23, 2010.
Conference Call
Maxim has scheduled a conference call on October 28, 2010, at 2:00 p.m. Pacific Time to discuss its financial results for the first quarter of fiscal year 2011 and its business outlook. To listen via telephone, dial (866) 219-5264 (toll free) or (703) 639-1118. This call will be webcast by Shareholder.com and can be accessed at Maxim 's website at .
Non-GAAP Measures
To supplement the consolidated financial results prepared under GAAP, Maxim uses non-GAAP measures which are adjusted from the most directly comparable GAAP results to exclude special expense items related to accelerated depreciation, intangible asset amortization, acquisition related inventory write up to fair value, severance and restructuring, stock option related litigation and associated settlement, and the tax provision impacts due to international restructuring. Management does not consider these special expenses in evaluating the core operational activities of Maxim. Management uses these non-GAAP measures internally to make strategic decisions, forecast future results and evaluate Maxim 's current performance. Many analysts covering Maxim use the non-GAAP measures as well. Given management's use of these non-GAAP measures, Maxim believes these measures are important to investors in understanding Maxim '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 '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 expense items
The use of GAAP gross profit excluding special expense 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 expense items including intangible asset amortization and acquisition related inventory write up to fair value. 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 expense items to enable investors and analysts to evaluate our revenue generation performance relative to the direct costs of revenue of Maxim 's core businesses.
GAAP operating expenses excluding special expense items
The use of GAAP operating expenses excluding special expense 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 expense items including intangible asset amortization, impairment of long-lived assets, severance and restructuring, and stock option related litigation and associated settlement. 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 expense items to enable investors and analysts to evaluate our core business and its direct operating expenses.
GAAP net income and GAAP net income per share excluding special expense items
The use of GAAP net income and GAAP net income per share excluding special expense items allow management to evaluate the operating results of Maxim 's core businesses and trends across different reporting periods on a consistent basis, independent of special expense items including intangible asset amortization, impairment of long-lived assets, acquisition related inventory write up to fair value, severance and restructuring, stock option related litigation and associated settlement, and the tax provision impacts due to international restructuring. 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 expense items to enable investors and analysts to understand the results of operations of Maxim '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 financial projections for its second quarter of fiscal 2011 ending in December 2010, which includes revenue, gross margin and earnings per share, as well as the Company's belief that its product development execution complemented by its acquisition strategy presents opportunities for further growth. 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 26, 2010 (the "10-K") and Quarterly Reports on Form 10-Q filed after the 10-K.
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 except as required by law.
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 6,400 products serving the industrial, communications, consumer, and computing markets.
Maxim reported revenue of approximately $2.0 billion for fiscal 2010. A Fortune 1000 company, Maxim is included in the Nasdaq 100, the Russell 1000, and the MSCI USA indices. For more information, go to .
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CONTACT: Maxim Integrated Products, Inc. Paresh Maniar, Executive Director, Investor Relations (408) 470-5348