Maxim Integrated Reports Results For The Fourth Quarter Of

Maxim Integrated Reports Results For The Fourth Quarter Of Fiscal 2021

- Revenue: $720 million

SAN JOSE, Calif., July 27, 2021 — (PRNewswire) — Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $720 million for its fourth quarter of fiscal 2021 ended June 26, 2021, an 8% increase from the $665 million revenue recorded in the prior quarter, and a 32% increase from the same quarter of last year.

"Maxim delivered record revenue in the June quarter, with sequential growth in all end markets, led by Industrial, Automotive, and Comms & Data Center. On the merger front, we are seeking final regulatory clearance for our combination with Analog Devices," said Tunc Doluca, President and Chief Executive Officer.

Fiscal Year 2021 Fourth Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the June quarter was $0.93, which benefited from a $13 million tax reserve release. The results were affected by $6 million in pre-tax special items which primarily consisted of $4 million of expenses related to prior acquisitions and $2 million in charges related to our upcoming combination with Analog Devices. GAAP earnings per share, excluding special items was $0.91. An analysis of GAAP versus GAAP excluding special items is provided in this press release.

Cash Flow Items
At the end of the fourth quarter of fiscal 2021, total cash, cash equivalents and short-term investments were $2.3 billion, up $257 million from the prior quarter.

Notable items included:

Cash flow from operations: $280 million
Capital expenditures: $20 million

Trailing twelve months free cash flow was $859 million. Free cash flow is a non-GAAP measure and is defined by cash flow from operations less capital expenditures.

Dividend and Stock Repurchase
Per the terms of the Merger Agreement between the Company and Analog Devices, we will not declare a dividend that would have been paid in September 2021 and our stock repurchase program remains suspended.

Due to the pending merger with Analog Devices, Maxim Integrated will not be hosting a quarterly earnings conference call and has suspended the practice of providing forward-looking guidance. Investors are requested to review our Investor Relations website for the quarterly financial highlights and SEC filings for the latest updates on the pending transaction with Analog Devices.


CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

	Three Months Ended			Year Ended
	June 26, 2021	March 27, 2021	June 27, 2020	June 26, 2021	June 27, 2020
	(in thousands, except per share data)
Net revenues	$ 719,855	$ 665,029	$ 545,369	$ 2,632,529	$ 2,191,395
Cost of goods sold	235,830	222,144	183,001	872,183	758,743
Gross margin	484,025	442,885	362,368	1,760,346	1,432,652
Operating expenses:
Research and development	114,834	109,228	110,173	454,330	440,166
Selling, general and administrative	81,071	76,544	72,893	320,722	296,722
Intangible asset amortization	846	846	810	3,554	3,078
Severance and restructuring expenses	1,139	155	678	13,434	5,363
Other operating expenses (income), net	2,798	8,848	(173)	22,606	929
Total operating expenses	200,688	195,621	184,381	814,646	746,258
Operating income	283,337	247,264	177,987	945,700	686,394
Interest and other income (expense), net	(5,723)	(2)	(8,488)	(15,964)	(8,298)
Income before taxes	277,614	247,262	169,499	929,736	678,096
Provision for (benefit from) income taxes ⁽¹⁾⁽²⁾	23,875	27,199	(37,799)	102,475	23,402
Net income	$ 253,739	$ 220,063	$ 207,298	$ 827,261	$ 654,694

Earnings per share:
Basic	$ 0.95	$ 0.82	$ 0.78	$ 3.09	$ 2.43
Diluted	$ 0.93	$ 0.81	$ 0.77	$ 3.05	$ 2.41

Shares used in the calculation of earnings per share:
Basic	268,160	267,892	266,639	267,546	269,341
Diluted	271,445	271,396	268,777	270,872	272,028

Dividends paid per share	$ -	$ -	$ 0.48	$ 0.48	$ 1.92


SCHEDULE OF SPECIAL ITEMS
(Unaudited)

	Three Months Ended			Year Ended
	June 26, 2021	March 27, 2021	June 27, 2020	June 26, 2021	June 27, 2020
	(in thousands)
Cost of goods sold:
Intangible asset amortization	$ 3,047	$ 4,430	$ 3,528	$ 17,408	$ 12,860
Merger-related expenses ⁽³⁾	-	-	-	2,394	-
Cost of COVID-19 response programs	609	638	1,591	2,750	3,616
Total	$ 3,656	$ 5,068	$ 5,119	$ 22,552	$ 16,476

Operating expenses:
Merger-related expenses ⁽³⁾	$ 2,058	$ 2,546	$ -	$ 26,617	$ -
Intangible asset amortization	846	846	810	3,553	3,078
Severance and restructuring	1,139	155	678	13,434	5,363
Other operating expenses (income), net	831	6,302	(173)	7,436	928
Total	$ 4,874	$ 9,849	$ 1,315	$ 51,040	$ 9,369

Interest and other expense (income), net	$ (2,878)	$ (7,359)	$ 1,484	$ (15,903)	$ (541)
Total	$ (2,878)	$ (7,359)	$ 1,484	$ (15,903)	$ (541)

Provision for (benefit from) for income taxes:
Impact of U.S. tax legislation ⁽¹⁾	$ -	$ -	$ 6,486	$ -	$ 6,486
Impact of income tax audit settlements ⁽²⁾	-	-	(51,197)	-	(51,197)
Total	$ -	$ -	$ (44,711)	$ -	$ (44,711)

(1) Includes effect of U.S. tax legislation enacted on December 22, 2017.
(2) Includes effect of income tax audit settlements.
(3) Includes ADI merger related expenses such as accelerated stock-based compensation expense resulting from the acceleration of certain RSAs and RSUs, and other legal and professional services.

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