SUNNYVALE, Calif., April 21, 2011 (GLOBE NEWSWIRE) -- Maxim Integrated Products, Inc. (Nasdaq:MXIM) reported net revenue of $606.8 million for its fiscal 2011 third quarter ended March 26, 2011, a 1% decrease from the $612.9 million revenue recorded in the prior quarter.
Tunc Doluca, President and Chief Executive Officer, commented, "Through all the recent events affecting our industry, we have remained focused on our strategy of innovation, integration and a balanced business model. In fact, the percentage of Maxim revenue from highly integrated products increased yet again, exceeding 31% in the March quarter."
Mr. Doluca added, "Lead times that we are able to quote to our customers are almost back to historical levels. We are pleased that we worked through our prior supply constraints with little impact to revenue."
Third Quarter, Fiscal Year 2011 Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the March quarter was $0.45. The results were affected by certain pre-tax and tax related special items which primarily consisted of:
- $22.3 million net benefit for release of tax reserves offset by tax provision impact due to international restructuring
- $12.0 million pre-tax expense for acquisition related items
GAAP earnings per share excluding special items was $0.40.
Cash Flow Items
At the end of our fiscal 2011 third quarter total cash, cash equivalents and short term investments was $918.8 million, an increase of $120.5 million from the prior quarter. Notable items include:
- Cash flow from operations: $256.7 million (42% of revenue)
- Dividend paid: $62.3 million ($0.21 per share)
- Stock repurchase: $46.7 million
Business Outlook
The Company's 90 day backlog at the beginning of the fourth fiscal quarter was $462 million. Based on our beginning backlog and expected turns, results for the June 2011 quarter are expected to be:
- Revenue: $610 million to $640 million
- Gross Margin: 59.5% to 62.5% GAAP (61% to 64% excluding special expense items)
- EPS: $0.37 to $0.41 GAAP ($0.40 to $0.44 excluding special expense items)
Dividend
A cash dividend of $0.21 per share will be paid on June 7, 2011, to stockholders of record on May 24, 2011.
Conference Call
Maxim has scheduled a conference call on April 21, 2011, at 2:00 p.m. Pacific Time to discuss its financial results for the third quarter of fiscal year 2011 and its business outlook. To listen via telephone, dial (866) 814-1917 (toll free) or (703) 639-1361. 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 intangible asset amortization; acquisition related inventory write up to fair value; severance and restructuring; loss on sale of land and buildings; stock option related settlement and litigation; certain payroll taxes, interest and penalties; reversal of tax reserves related to audit completion and expiration of statute of limitations; and the tax provision impacts due to implementation of international restructuring. 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; severance and restructuring; loss on sale of land and buildings; stock option related settlement and litigation; and certain payroll taxes, interest and penalties. 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 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 's core businesses and trends across different reporting periods on a consistent basis, independent of special items including intangible asset amortization; acquisition related inventory write up to fair value; severance and restructuring; loss on sale of land and buildings; stock option related settlement and litigation; and certain payroll taxes, interest and penalties; reversal of tax reserves related to audit completion and expiration of the statute of limitations; and the tax provision impacts due to implementation of 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 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 fourth quarter of fiscal 2011 ending in June 2011, 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 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 6,500 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 .
The Maxim Integrated Products, Inc. logo is available at
CONTACT: Paresh Maniar Executive Director, Investor Relations (408) 470-5348
