Maxim Integrated Reports Results For The Fourth Quarter Of Fiscal 2018, Increases Dividend By 10%

- Revenue: $633 million

SAN JOSE, Calif., July 26, 2018 — (PRNewswire) —  Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $633 million for its fourth quarter of fiscal 2018 ended June 30, 2018, a 2% decrease from the $649 million revenue recorded in the prior quarter, and a 5% increase from the same quarter of last year.

Logo for Maxim Integrated Products Inc. (PRNewsfoto/Maxim Integrated)

Tunc Doluca, President and Chief Executive Officer, commented, "We are pleased with our June quarter results.  Our power management franchise in Automotive and Industrial is producing sustainable and profitable growth." Mr. Doluca continued, "This execution against our strategy is resulting in strong and predictable cash flows, which support our industry-leading dividend and stock repurchase plans. Today, we are announcing a 10% increase in our dividend, reflecting our continued commitment to return cash to shareholders and confidence in our long-term outlook."

Fiscal Year 2018 Fourth Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the June quarter was $0.68. The results were affected by $12 million in pre-tax special items which primarily consisted of charges related to acquisitions. GAAP earnings per share, excluding special items was $0.73. An analysis of GAAP versus GAAP excluding special items is provided in the last table of this press release.

Cash Flow Items
At the end of the fourth quarter of fiscal 2018, total cash, cash equivalents and short-term investments were $2.63 billion, a decrease of $98 million from the prior quarter.

Notable items included:

  • Cash flow from operations: $147 million
  • Capital expenditures: $12 million
  • Dividends paid: $117 million ($0.42 per share)
  • Stock repurchases: $128 million

Adjusted trailing twelve months free cash flow was $932 million, which excludes a one-time tax payment of $178 million in the fourth quarter of fiscal 2018. Free cash flow is a non-GAAP measure and is defined by cash flow from operations less capital expenditures.

Business Outlook
The Company's 90-day backlog at the beginning of the September 2018 quarter was $441 million. Based on the beginning backlog and expected turns, our results for the September 2018 quarter are forecasted to be as follows:

  • Revenue: $615 to $655 million
  • Gross Margin: 65% to 67% GAAP (66.5% to 68.5% excluding special items)
  • EPS: $0.67 to $0.73 GAAP ($0.72 to $0.78 excluding special items)

Maxim Integrated's business outlook does not include the potential impact of any special items related to restructuring activity, acquisitions, or other business combinations that may be completed during the quarter.

Dividend
Our Board of Directors approved a 10% increase in the quarterly dividend. A cash dividend of $0.46 per share will be paid on September 13, 2018, to stockholders of record on August 30, 2018. 

Conference Call
Maxim Integrated has scheduled a conference call on July 26 at 1:15 p.m. Pacific Time to discuss its financial results for the fourth quarter of fiscal 2018 and its business outlook. This call will be webcast by Shareholder.com and can be accessed at the Company's website at investor.maximintegrated.com.

A presentation summarizing financial information to be discussed on the conference call is posted at investor.maximintegrated.com.














CONSOLIDATED STATEMENTS OF INCOME


(Unaudited)



Three Months Ended


Year Ended




June 30,


March 31, 


June 24,


June 30,


June 24,




2018


2018


2017


2018


2017




(in thousands, except per share data)



Net revenues

$                    633,154


$                    648,599


$                    602,005


$     2,480,066


$                 2,295,615



Cost of goods sold (1)

214,486


224,653


208,339


853,945


849,135



Gross margin

418,668


423,946


393,666


1,626,121


1,446,480



Operating expenses:












Research and development

112,056


114,390


114,011


450,943


453,977



Selling, general and administrative

82,611


81,304


75,129


322,918


291,511



Intangible asset amortization

844


876


2,050


4,467


9,189



Impairment of long-lived assets (2)




892


7,517



Severance and restructuring expenses

833


2,272


1,175


15,060


12,453



Other operating expenses (income), net (3)

(71)


266


1,923


(1,607)


(22,944)



Total operating expenses (income), net

196,273


199,108


194,288


792,673


751,703



Operating income (loss)

222,395


224,838


199,378


833,448


694,777



Interest and other income (expense), net (4)

1,305


(2,534)


(3,798)


(8,563)


(15,188)



Income (loss) before provision for income taxes

223,700


222,304


195,580


824,885


679,589



Income tax provision (benefit) (5)

29,528


28,677


32,271


357,567


107,976



Net income (loss)

$                    194,172


$                    193,627


$                    163,309


$        467,318


$                    571,613



























Earnings (loss) per share:












Basic

$0.70


$0.69


$0.58


$1.66


$2.02



Diluted

$0.68


$0.68


$0.57


$1.64


$1.98















Shares used in the calculation of earnings (loss) per share:












Basic

279,304


280,850


282,747


280,979


283,147



Diluted

283,934


285,881


287,494


285,674


287,974















Dividends paid per share

$0.42


$0.42


$0.33


$1.56


$1.32



























SCHEDULE OF SPECIAL ITEMS



(Unaudited)



Three Months Ended


Year Ended




June 30,


March 31, 


June 24,


June 30,


June 24,




2018


2018


2017


2018


2017




(in thousands)



Cost of goods sold:












Intangible asset amortization

$                      11,759


$                      12,101


$                      11,064


$          46,064


$                      46,485



Accelerated depreciation (1)





3,459



 Total 

$                      11,759


$                      12,101


$                      11,064


$          46,064


$                      49,944















 Operating expenses: 












Intangible asset amortization

$                           844


$                           876


$                        2,050


$            4,467


$                        9,189



Impairment of long-lived assets (2)




892


7,517



Severance and restructuring

833


2,272


1,175


15,060


12,453



Other operating expenses (income), net (3)

(71)


266


1,923


(1,607)


(22,944)



 Total 

$                        1,606


$                        3,414


$                        5,148


$          18,812


$                        6,215















Interest and other expense (income), net (4)

$                         (941)


$                           (97)


$                           (90)


$          (1,243)


$                      (5,661)



 Total 

$                         (941)


$                           (97)


$                           (90)


$          (1,243)


$                      (5,661)















 Provision (benefit) for income taxes: 












Impact of U.S. tax legislation (5)

$                             —


$                            —


$                            —


$        243,550


$                            —



 Total 

$                             —


$                            —


$                            —


$        243,550


$                            —















(1) Includes building and equipment accelerated depreciation related to the Dallas manufacturing facility during fiscal year 2017.



(2) Includes impairment of investments in privately-held companies and other equipment impairment charges.



(3) Includes gain on sale of the micro-electromechanical systems (MEMS) business line during fiscal year 2017.



(4) Includes gain on sale of shares received for the sale of the wafer manufacturing facility in San Antonio, Texas during fiscal year 2017.



(5) Includes effect of U.S. tax legislation enacted on December 22, 2017.















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