FORM 8-K |
Delaware (State or Other Jurisdiction of Incorporation or Organization) | 94-2896096 (I.R.S. Employer I. D. No.) |
Exhibit | Description | |
99.1 | Press release, dated January 24, 2013 announcing the Company's preliminary financial results for the second quarter of fiscal year 2013. |
Maxim Integrated Products, Inc. | |
By:/s/ Bruce Kiddoo | |
Bruce E. Kiddoo Senior Vice President and Chief Financial Officer |
Exhibit | Description | |
99.1 |
• | Revenue: $605 million |
• | Gross Margin: 60.0% GAAP (61.5% excluding special expense items) |
• | EPS: $0.26 GAAP ($0.42 excluding special items) |
• | Cash, cash equivalents, and short term investments: $1.03 billion |
• | Fiscal third quarter revenue outlook: $580 million to $610 million |
• | $13 million pre-tax charge for acquisition related items |
• | $22 million pre-tax charge for impairment of long-lived assets |
• | $19 million tax charge for international restructuring |
• | Cash flow from operations: $255 million |
• | Net capital expenditures: $58 million |
• | Dividends: $70 million ($0.24 per share) |
• | Stock repurchases: $50 million |
• | Revenue: $580 million to $610 million |
• | Gross Margin: 58% to 61% GAAP (60% to 63% excluding special expense items) |
• | EPS: $0.39 to $0.43 GAAP ($0.39 to $0.43 excluding special expense items) |
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
December 29, 2012 | September 29, 2012 | December 31, 2011 | |||||||||||
(in thousands, except per share data) | |||||||||||||
Net revenues | $ | 605,306 | $ | 623,075 | $ | 591,359 | |||||||
Cost of goods sold | 241,931 | 237,384 | 243,399 | ||||||||||
Gross margin | 363,375 | 385,691 | 347,960 | ||||||||||
Operating expenses: | |||||||||||||
Research and development | 135,742 | 132,930 | 142,084 | ||||||||||
Selling, general and administrative | 80,058 | 80,187 | 80,826 | ||||||||||
Intangible asset amortization | 3,903 | 4,049 | 4,338 | ||||||||||
Impairment of long-lived assets (1) | 22,222 | 2,707 | — | ||||||||||
Severance and restructuring | 2,236 | — | 6,047 | ||||||||||
Other operating expenses (income), net (2) | 1,666 | 415 | 155 | ||||||||||
Total operating expenses | 245,827 | 220,288 | 233,450 | ||||||||||
Operating income | 117,548 | 165,403 | 114,510 | ||||||||||
Interest and other income (expense), net (3) | (2,798 | ) | (5,742 | ) | 2,374 | ||||||||
Income before provision for income taxes | 114,750 | 159,661 | 116,884 | ||||||||||
Provision for income taxes (4) | 38,128 | 31,773 | 28,754 | ||||||||||
Net income | $ | 76,622 | $ | 127,888 | $ | 88,130 | |||||||
Earnings per share: | |||||||||||||
Basic | $ | 0.26 | $ | 0.44 | $ | 0.30 | |||||||
Diluted | $ | 0.26 | $ | 0.43 | $ | 0.29 | |||||||
Shares used in the calculation of earnings per share: | |||||||||||||
Basic | 292,075 | 292,213 | 291,824 | ||||||||||
Diluted | 298,759 | 298,782 | 299,290 | ||||||||||
Dividends paid per share | $ | 0.24 | $ | 0.24 | $ | 0.22 | |||||||
SCHEDULE OF SPECIAL EXPENSE ITEMS | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
December 29, 2012 | September 29, 2012 | December 31, 2011 | |||||||||||
(in thousands) | |||||||||||||
Cost of goods sold: | |||||||||||||
Intangible asset amortization | $ | 8,986 | $ | 9,454 | $ | 8,080 | |||||||
Acquisition related inventory write up | — | — | 1,801 | ||||||||||
Total | $ | 8,986 | $ | 9,454 | $ | 9,881 | |||||||
Operating expenses: | |||||||||||||
Intangible asset amortization | $ | 3,903 | $ | 4,049 | $ | 4,338 | |||||||
Impairment of long-lived assets (1) | 22,222 | 2,707 | — | ||||||||||
Severance and restructuring | 2,236 | — | 6,047 | ||||||||||
Other operating expenses (income), net (2) | 1,666 | 415 | 155 | ||||||||||
Total | $ | 30,027 | $ | 7,171 | $ | 10,540 | |||||||
Interest and other expense (income), net (3) | $ | — | $ | — | $ | (1,776 | ) | ||||||
Total | $ | — | $ | — | $ | (1,776 | ) | ||||||
Provision for income taxes: | |||||||||||||
International restructuring implementation (4) | $ | 18,726 | $ | — | $ | — | |||||||
Total | $ | 18,726 | $ | — | $ | — | |||||||
(1) Includes impairment charges relating to land and buildings held for sale, wafer fab and end of line manufacturing equipment. | |||||||||||||
(2) Other operating expenses (income), net are primarily for contingent consideration adjustments related to certain acquisitions, certain payroll taxes, interest and penalties and loss relating to sale of land and building. | |||||||||||||
(3) Includes gain on sale of privately-held companies. | |||||||||||||
(4) Includes impact due to international restructuring. | |||||||||||||
STOCK-BASED COMPENSATION BY TYPE OF AWARD (in thousands) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Three Months Ended December 29, 2012 | Stock Options | Restricted Stock Units | Employee Stock Purchase Plan | Total | |||||||||||||
Cost of goods sold | $ | 477 | $ | 2,572 | $ | 634 | $ | 3,683 | |||||||||
Research and development expense | 2,288 | 8,401 | 1,451 | 12,140 | |||||||||||||
Selling, general and administrative expense | 1,286 | 5,152 | 584 | 7,022 | |||||||||||||
Total | $ | 4,051 | $ | 16,125 | $ | 2,669 | $ | 22,845 | |||||||||
Three Months Ended September 29, 2012 | |||||||||||||||||
Cost of goods sold | $ | 398 | $ | 2,171 | $ | 419 | $ | 2,988 | |||||||||
Research and development expense | 1,829 | 9,210 | 1,284 | 12,323 | |||||||||||||
Selling, general and administrative expense | 1,555 | 5,119 | 512 | 7,186 | |||||||||||||
Total | $ | 3,782 | $ | 16,500 | $ | 2,215 | $ | 22,497 | |||||||||
Three Months Ended December 31, 2011 | |||||||||||||||||
Cost of goods sold | $ | 565 | $ | 2,657 | $ | 470 | $ | 3,692 | |||||||||
Research and development expense | 2,440 | 9,207 | 1,262 | 12,909 | |||||||||||||
Selling, general and administrative expense | 1,704 | 4,778 | 391 | 6,873 | |||||||||||||
Total | $ | 4,709 | $ | 16,642 | $ | 2,123 | $ | 23,474 | |||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||||
(Unaudited) | |||||||||||||
December 29, 2012 | September 29, 2012 | December 31, 2011 | |||||||||||
(in thousands) | |||||||||||||
ASSETS | |||||||||||||
Current assets: | |||||||||||||
Cash and cash equivalents | $ | 955,107 | $ | 849,850 | $ | 741,160 | |||||||
Short-term investments | 75,192 | 75,283 | 75,375 | ||||||||||
Total cash, cash equivalents and short-term investments | 1,030,299 | 925,133 | 816,535 | ||||||||||
Accounts receivable, net | 264,545 | 316,538 | 246,229 | ||||||||||
Inventories | 257,690 | 258,689 | 233,404 | ||||||||||
Deferred tax assets | 80,991 | 71,561 | 87,636 | ||||||||||
Other current assets | 90,470 | 94,875 | 81,396 | ||||||||||
Total current assets | 1,723,995 | 1,666,796 | 1,465,200 | ||||||||||
Property, plant and equipment, net | 1,359,014 | 1,359,882 | 1,365,815 | ||||||||||
Intangible assets, net | 182,521 | 195,410 | 237,776 | ||||||||||
Goodwill | 422,083 | 422,083 | 432,809 | ||||||||||
Other assets | 50,940 | 60,403 | 19,055 | ||||||||||
TOTAL ASSETS | $ | 3,738,553 | $ | 3,704,574 | $ | 3,520,655 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||
Current liabilities: | |||||||||||||
Accounts payable | $ | 110,495 | $ | 127,306 | $ | 118,427 | |||||||
Income taxes payable | 22,146 | 19,437 | 7,866 | ||||||||||
Accrued salary and related expenses | 152,122 | 132,847 | 159,651 | ||||||||||
Accrued expenses | 58,900 | 72,510 | 62,579 | ||||||||||
Current portion of long term debt | 304,794 | 303,272 | — | ||||||||||
Deferred income on shipments to distributors | 25,362 | 27,025 | 31,136 | ||||||||||
Total current liabilities | 673,819 | 682,397 | 379,659 | ||||||||||
Long term debt | 3,997 | 5,592 | 308,700 | ||||||||||
Income taxes payable | 260,770 | 226,001 | 108,462 | ||||||||||
Deferred tax liabilities | 192,434 | 195,893 | 197,839 | ||||||||||
Other liabilities | 26,321 | 26,254 | 21,529 | ||||||||||
Total liabilities | 1,157,341 | 1,136,137 | 1,016,189 | ||||||||||
Stockholders' equity: | |||||||||||||
Common stock | 7,040 | 292 | 292 | ||||||||||
Retained earnings | 2,589,619 | 2,583,060 | 2,517,166 | ||||||||||
Accumulated other comprehensive loss | (15,447 | ) | (14,915 | ) | (12,992 | ) | |||||||
Total stockholders' equity | 2,581,212 | 2,568,437 | 2,504,466 | ||||||||||
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ | 3,738,553 | $ | 3,704,574 | $ | 3,520,655 | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
December 29, 2012 | September 29, 2012 | December 31, 2011 | |||||||||||
(in thousands) | |||||||||||||
Cash flows from operating activities: | |||||||||||||
Net income | $ | 76,622 | $ | 127,888 | $ | 88,130 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Stock-based compensation | 22,845 | 22,497 | 23,474 | ||||||||||
Depreciation and amortization | 51,880 | 53,674 | 51,995 | ||||||||||
Deferred taxes | (12,979 | ) | 22,772 | (368 | ) | ||||||||
Loss (gain) from sale of property, plant and equipment | (88 | ) | (51 | ) | 124 | ||||||||
Loss (gain) from sale of investments in privately-held companies | — | — | (1,811 | ) | |||||||||
Tax benefit (shortfall) related to stock-based compensation | 5,187 | 1,335 | (2,581 | ) | |||||||||
Impairment of long-lived assets | 22,222 | 2,707 | — | ||||||||||
Excess tax benefit from stock-based compensation | (6,615 | ) | (5,219 | ) | (4,242 | ) | |||||||
Changes in assets and liabilities: | |||||||||||||
Accounts receivable | 51,993 | 923 | 82,760 | ||||||||||
Inventories | 570 | (16,015 | ) | 19,045 | |||||||||
Other current assets | 4,091 | (7,839 | ) | (1,615 | ) | ||||||||
Accounts payable | (9,536 | ) | (26,466 | ) | (18,397 | ) | |||||||
Income taxes payable | 37,477 | 10,461 | 12,619 | ||||||||||
Deferred income on shipments to distributors | (1,663 | ) | 745 | (3,444 | ) | ||||||||
All other accrued liabilities | 13,091 | (50,667 | ) | 3,631 | |||||||||
Net cash provided by operating activities | 255,097 | 136,745 | 249,320 | ||||||||||
Cash flows from investing activities: | |||||||||||||
Payments for property, plant and equipment | (62,102 | ) | (50,703 | ) | (68,361 | ) | |||||||
Proceeds from sales of property, plant and equipment | 4,115 | 344 | 1,709 | ||||||||||
Acquisitions | — | — | (12,018 | ) | |||||||||
Purchases of available-for-sale securities | — | — | (25,108 | ) | |||||||||
Proceeds from sales of investments in privately-held companies | — | — | 3,225 | ||||||||||
Net cash used in investing activities | (57,987 | ) | (50,359 | ) | (100,553 | ) | |||||||
Cash flows from financing activities: | |||||||||||||
Excess tax benefit from stock-based compensation | 6,615 | 5,219 | 4,242 | ||||||||||
Dividends paid | (70,063 | ) | (70,199 | ) | (64,158 | ) | |||||||
Repayment of notes payable | (74 | ) | (224 | ) | (4,189 | ) | |||||||
Contingent consideration paid | (7,476 | ) | — | — | |||||||||
Repurchase of common stock | (50,435 | ) | (65,149 | ) | (72,486 | ) | |||||||
Issuance of ESPP | 16,768 | — | 14,906 | ||||||||||
Net issuance of restricted stock units | (6,538 | ) | (7,107 | ) | (7,976 | ) | |||||||
Proceeds from stock options exercised | 19,350 | 19,864 | 12,013 | ||||||||||
Net cash used in financing activities | (91,853 | ) | (117,596 | ) | (117,648 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | 105,257 | (31,210 | ) | 31,119 | |||||||||
Cash and cash equivalents: | |||||||||||||
Beginning of period | 849,850 | 881,060 | 710,041 | ||||||||||
End of period | $ | 955,107 | $ | 849,850 | $ | 741,160 | |||||||
Total cash, cash equivalents, and short-term investments | $ | 1,030,299 | $ | 925,133 | $ | 816,535 | |||||||
ANALYSIS OF GAAP VERSUS GAAP EXCLUDING SPECIAL EXPENSE ITEMS DISCLOSURES | ||||||||||||||
(Unaudited) | ||||||||||||||
Three Months Ended | ||||||||||||||
December 29, 2012 | September 29, 2012 | December 31, 2011 | ||||||||||||
(in thousands, except per share data) | ||||||||||||||
Reconciliation of GAAP gross profit to GAAP gross profit excluding special expense items: | ||||||||||||||
GAAP gross profit | $ | 363,375 | $ | 385,691 | $ | 347,960 | ||||||||
GAAP gross profit % | 60.0 | % | 61.9 | % | 58.8 | % | ||||||||
Special expense items: | ||||||||||||||
Intangible asset amortization | 8,986 | 9,454 | 8,080 | |||||||||||
Acquisition related inventory write up | — | — | 1,801 | |||||||||||
Total special expense items | 8,986 | 9,454 | 9,881 | |||||||||||
GAAP gross profit excluding special expense items | $ | 372,361 | $ | 395,145 | $ | 357,841 | ||||||||
GAAP gross profit % excluding special expense items | 61.5 | % | 63.4 | % | 60.5 | % | ||||||||
Reconciliation of GAAP operating expenses to GAAP operating expenses excluding special expense items: | ||||||||||||||
GAAP operating expenses | $ | 245,827 | $ | 220,288 | $ | 233,450 | ||||||||
Special expense (income) items: | ||||||||||||||
Intangible asset amortization | 3,903 | 4,049 | 4,338 | |||||||||||
Impairment of long-lived assets (1) | 22,222 | 2,707 | — | |||||||||||
Severance and restructuring | 2,236 | — | 6,047 | |||||||||||
Other operating expenses (income), net (2) | 1,666 | 415 | 155 | |||||||||||
Total special expense items | 30,027 | 7,171 | 10,540 | |||||||||||
GAAP operating expenses excluding special expense items | $ | 215,800 | $ | 213,117 | $ | 222,910 | ||||||||
Reconciliation of GAAP net income to GAAP net income excluding special expense items: | ||||||||||||||
GAAP net income | $ | 76,622 | $ | 127,888 | $ | 88,130 | ||||||||
Special expense (income) items: | ||||||||||||||
Intangible asset amortization | 12,889 | 13,503 | 12,418 | |||||||||||
Acquisition related inventory write up | — | — | 1,801 | |||||||||||
Impairment of long-lived assets (1) | 22,222 | 2,707 | — | |||||||||||
Severance and restructuring | 2,236 | — | 6,047 | |||||||||||
Other operating expenses (income), net (2) | 1,666 | 415 | 155 | |||||||||||
Interest and other expenses (income), net (3) | — | — | (1,776 | ) | ||||||||||
Pre-tax total special expense items | 39,013 | 16,625 | 18,645 | |||||||||||
Tax effect of special items | (9,555 | ) | (5,371 | ) | (6,102 | ) | ||||||||
International restructuring implementation (4) | 18,726 | — | — | |||||||||||
GAAP net income excluding special expense items | $ | 124,806 | $ | 139,142 | $ | 100,673 | ||||||||
GAAP net income per share excluding special expense items: | ||||||||||||||
Basic | $ | 0.43 | $ | 0.48 | $ | 0.34 | ||||||||
Diluted | $ | 0.42 | $ | 0.47 | $ | 0.34 | ||||||||
Shares used in the calculation of earnings per share excluding special expense items: | ||||||||||||||
Basic | 292,075 | 292,213 | 291,824 | |||||||||||
Diluted | 298,759 | 298,782 | 299,290 | |||||||||||
(1) Includes impairment charges relating to land and buildings for sale, wafer fab and end of line manufacturing equipment. | ||||||||||||||
(2) Other operating expenses (income), net are primarily for contingent consideration adjustments related to certain acquisitions, certain payroll taxes, interest and penalties and loss relating to sale of land and building. | ||||||||||||||
(3) Includes gain on sale of privately-held companies. | ||||||||||||||
(4) Includes impact due to international restructuring. | ||||||||||||||
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