- 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.
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.
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CONSOLIDATED STATEMENTS OF INCOME | ||||||||||
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(Unaudited) | ||||||||||
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Three Months Ended |
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Year Ended |
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June 30, |
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March 31, |
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June 24, |
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June 30, |
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June 24, |
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2018 |
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2018 |
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2017 |
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2018 |
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2017 |
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(in thousands, except per share data) |
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Net revenues |
$ 633,154 |
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$ 648,599 |
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$ 602,005 |
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$ 2,480,066 |
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$ 2,295,615 |
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Cost of goods sold (1) |
214,486 |
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224,653 |
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208,339 |
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853,945 |
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849,135 |
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Gross margin |
418,668 |
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423,946 |
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393,666 |
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1,626,121 |
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1,446,480 |
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Operating expenses: |
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Research and development |
112,056 |
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114,390 |
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114,011 |
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450,943 |
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453,977 |
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Selling, general and administrative |
82,611 |
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81,304 |
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75,129 |
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322,918 |
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291,511 |
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Intangible asset amortization |
844 |
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876 |
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2,050 |
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4,467 |
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9,189 |
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Impairment of long-lived assets (2) |
— |
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— |
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— |
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892 |
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7,517 |
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Severance and restructuring expenses |
833 |
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2,272 |
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1,175 |
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15,060 |
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12,453 |
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Other operating expenses (income), net (3) |
(71) |
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266 |
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1,923 |
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(1,607) |
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(22,944) |
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Total operating expenses (income), net |
196,273 |
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199,108 |
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194,288 |
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792,673 |
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751,703 |
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Operating income (loss) |
222,395 |
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224,838 |
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199,378 |
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833,448 |
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694,777 |
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Interest and other income (expense), net (4) |
1,305 |
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(2,534) |
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(3,798) |
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(8,563) |
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(15,188) |
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Income (loss) before provision for income taxes |
223,700 |
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222,304 |
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195,580 |
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824,885 |
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679,589 |
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Income tax provision (benefit) (5) |
29,528 |
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28,677 |
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32,271 |
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357,567 |
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107,976 |
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Net income (loss) |
$ 194,172 |
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$ 193,627 |
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$ 163,309 |
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$ 467,318 |
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$ 571,613 |
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Earnings (loss) per share: |
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Basic |
$0.70 |
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$0.69 |
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$0.58 |
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$1.66 |
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$2.02 |
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Diluted |
$0.68 |
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$0.68 |
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$0.57 |
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$1.64 |
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$1.98 |
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Shares used in the calculation of earnings (loss) per share: |
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Basic |
279,304 |
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280,850 |
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282,747 |
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280,979 |
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283,147 |
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Diluted |
283,934 |
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285,881 |
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287,494 |
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285,674 |
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287,974 |
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Dividends paid per share |
$0.42 |
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$0.42 |
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$0.33 |
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$1.56 |
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$1.32 |
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SCHEDULE OF SPECIAL ITEMS |
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(Unaudited) | ||||||||||
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Three Months Ended |
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Year Ended |
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June 30, |
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March 31, |
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June 24, |
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June 30, |
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June 24, |
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2018 |
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2018 |
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2017 |
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2018 |
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2017 |
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(in thousands) |
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Cost of goods sold: |
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Intangible asset amortization |
$ 11,759 |
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$ 12,101 |
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$ 11,064 |
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$ 46,064 |
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$ 46,485 |
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Accelerated depreciation (1) |
— |
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— |
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— |
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— |
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3,459 |
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Total |
$ 11,759 |
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$ 12,101 |
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$ 11,064 |
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$ 46,064 |
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$ 49,944 |
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Operating expenses: |
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Intangible asset amortization |
$ 844 |
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$ 876 |
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$ 2,050 |
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$ 4,467 |
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$ 9,189 |
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Impairment of long-lived assets (2) |
— |
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— |
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— |
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892 |
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7,517 |
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Severance and restructuring |
833 |
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2,272 |
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1,175 |
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15,060 |
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12,453 |
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Other operating expenses (income), net (3) |
(71) |
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266 |
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1,923 |
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(1,607) |
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(22,944) |
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Total |
$ 1,606 |
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$ 3,414 |
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$ 5,148 |
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$ 18,812 |
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$ 6,215 |
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Interest and other expense (income), net (4) |
$ (941) |
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$ (97) |
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$ (90) |
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$ (1,243) |
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$ (5,661) |
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Total |
$ (941) |
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$ (97) |
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$ (90) |
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$ (1,243) |
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$ (5,661) |
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Provision (benefit) for income taxes: |
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Impact of U.S. tax legislation (5) |
$ — |
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$ — |
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$ — |
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$ 243,550 |
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$ — |
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Total |
$ — |
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$ — |
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$ — |
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$ 243,550 |
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$ — |
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(1) Includes building and equipment accelerated depreciation related to the Dallas manufacturing facility during fiscal year 2017. |
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(2) Includes impairment of investments in privately-held companies and other equipment impairment charges. |
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(3) Includes gain on sale of the micro-electromechanical systems (MEMS) business line during fiscal year 2017. |
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(4) Includes gain on sale of shares received for the sale of the wafer manufacturing facility in San Antonio, Texas during fiscal year 2017. |
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(5) Includes effect of U.S. tax legislation enacted on December 22, 2017. |
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