SUNNYVALE, Calif., Jan. 20, 2011 (GLOBE NEWSWIRE) -- Maxim Integrated Products, Inc. (Nasdaq:MXIM) reported net revenue of $612.9 million for its fiscal 2011 second quarter ended December 25, 2010, a 2% decrease from the $626.1 million revenue recorded in the prior quarter.
Tunc Doluca, President and Chief Executive Officer, commented, "Calendar 2010 proved to be a strong growth year for Maxim. We believe our integration strategy, recent design wins, robust product pipeline and enhanced manufacturing capacity position us very well for calendar 2011 and beyond."
"In addition to being a high performance component supplier, Maxim is increasingly becoming a mixed-signal solutions provider. For the first time in Maxim 's history, the contribution of highly integrated products to company revenue exceeded 30% during the December quarter."
Second Quarter, Fiscal Year 2011 Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the December quarter was $0.36. The results were reduced by certain pre-tax special expense items which primarily consisted of:
- $14.3 million pre-tax expense for loss on disposition of land and buildings
- $13.7 million pre-tax expense for acquisition related items
- $6.8 million pre-tax expense for stock option litigation
GAAP earnings per share excluding special expense items was $0.44.
Cash Flow Items
At the end of our fiscal 2011 second quarter total cash, cash equivalents and short term investments was $798.3 million, an increase of $80.1 million from the prior quarter. Notable items include:
- Cash flow from operations: $200 million (32.6% of revenue)
- Dividend paid: $62.3 million ($0.21 per share)
- Stock repurchase: $40.8 million
Business Outlook
The Company's 90 day backlog at the beginning of the third fiscal quarter was $512 million. Based on a detailed review of our backlog and expected turns, results for the March 2011 quarter are expected to be:
- Revenue: $590 million to $620 million
- Gross Margin: 59.5% to 62.5% GAAP (61% to 64% excluding special expense items)
- Operating Expenses: $207 million to $209 million GAAP ($203 million to $205 million excluding special expense items)
Dividend
A cash dividend of $0.21 per share will be paid on March 8, 2011, to stockholders of record on February 22, 2011.
Conference Call
Maxim has scheduled a conference call on January 20, 2011, at 2:00 p.m. Pacific Time to discuss its financial results for the second quarter of fiscal year 2011 and its business outlook. To listen via telephone, dial (866) 837-9782 (toll free) or (703) 639-1420. 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; the tax provision impacts due to international restructuring, and impact of investments obtained in exchange for intellectual property. 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 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; 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; the tax provision impacts due to international restructuring; and impact of investments obtained in exchange for intellectual property. 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 third quarter of fiscal 2011 ending in March 2011, which includes revenue, gross margin and operating expenses, as well as the Company's belief that it is well positioned for calendar 2011 and beyond due to its integration strategy, recent design wins, robust product pipeline and enhanced manufacturing capacity. 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 .
The Maxim Integrated Products, Inc. logo is available at
CONTACT: Paresh Maniar Executive Director, Investor Relations (408) 470-5348
