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 April 23, 2015 announcing the Company's preliminary financial results for the third quarter of fiscal year 2015. |
Maxim Integrated Products, Inc. | |
By:/s/ Bruce Kiddoo | |
Bruce E. Kiddoo Senior Vice President and Chief Financial Officer |
Exhibit | Description | |
99.1 | Press release, dated April 23, 2015 announcing the Company's preliminary financial results for the third quarter of fiscal year 2015. Also provided in PDF format as a courtesy. |
• | Revenue: $577 million |
• | Gross Margin: 54.6% GAAP (59.6% excluding special items) |
• | EPS: $0.28 GAAP ($0.40 excluding special items) |
• | Cash, cash equivalents, and short term investments: $1.47 billion |
• | Fiscal fourth quarter revenue outlook: $570 million to $610 million |
• | Cash flow from operations: $182 million |
• | Net capital additions: $9 million |
• | Dividends: $79 million ($0.28 per share) |
• | Stock repurchases: $37 million |
• | Revenue: $570 million to $610 million |
• | Gross Margin: 53% to 56% GAAP (58% to 61% excluding special items) |
• | EPS: $0.24 to $0.30 GAAP ($0.35 to $0.41 excluding special items) |
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
March 28, 2015 | December 27, 2014 | March 29, 2014 | |||||||||||
(in thousands, except per share data) | |||||||||||||
Net revenues | $ | 577,263 | $ | 566,809 | $ | 605,681 | |||||||
Cost of goods sold (1) | 261,995 | 252,732 | 265,744 | ||||||||||
Gross margin | 315,268 | 314,077 | 339,937 | ||||||||||
Operating expenses: | |||||||||||||
Research and development | 123,913 | 135,945 | 141,493 | ||||||||||
Selling, general and administrative | 75,766 | 79,778 | 80,680 | ||||||||||
Intangible asset amortization | 3,977 | 4,155 | 4,863 | ||||||||||
Impairment of long-lived assets (2) | 5,522 | 50,745 | — | ||||||||||
Impairment of goodwill and intangible assets (3) | — | 93,010 | 2,580 | ||||||||||
Severance and restructuring expenses (4) | 2,824 | 13,635 | 3,338 | ||||||||||
Acquisition-related costs | — | — | (88 | ) | |||||||||
Other operating expenses (income), net | (2,184 | ) | 885 | 333 | |||||||||
Total operating expenses | 209,818 | 378,153 | 233,199 | ||||||||||
Operating income (loss) | 105,450 | (64,076 | ) | 106,738 | |||||||||
Interest and other income (expense), net (5) | (5,534 | ) | (7,599 | ) | 5,174 | ||||||||
Income (loss) before provision for income taxes | 99,916 | (71,675 | ) | 111,912 | |||||||||
Provision (benefit) for income taxes (6) | 20,483 | 359 | (10,632 | ) | |||||||||
Net income (loss) | $ | 79,433 | $ | (72,034 | ) | $ | 122,544 | ||||||
Earnings (loss) per share: | |||||||||||||
Basic | $ | 0.28 | $ | (0.25 | ) | $ | 0.43 | ||||||
Diluted | $ | 0.28 | $ | (0.25 | ) | $ | 0.42 | ||||||
Shares used in the calculation of earnings (loss) per share: | |||||||||||||
Basic | 283,418 | 282,992 | 282,627 | ||||||||||
Diluted | 288,840 | 282,992 | 288,575 | ||||||||||
Dividends paid per share | $ | 0.28 | $ | 0.28 | $ | 0.26 | |||||||
SCHEDULE OF SPECIAL ITEMS | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
March 28, 2015 | December 27, 2014 | March 29, 2014 | |||||||||||
(in thousands) | |||||||||||||
Cost of goods sold: | |||||||||||||
Intangible asset amortization | $ | 18,750 | $ | 18,750 | $ | 18,542 | |||||||
Accelerated depreciation (1) | 9,834 | 8,895 | — | ||||||||||
Acquisition-related inventory write-up | — | — | 5,518 | ||||||||||
Total | $ | 28,584 | $ | 27,645 | $ | 24,060 | |||||||
Operating expenses: | |||||||||||||
Intangible asset amortization | $ | 3,977 | $ | 4,155 | $ | 4,863 | |||||||
Impairment of long-lived assets (2) | 5,522 | 50,745 | — | ||||||||||
Impairment of goodwill and intangible assets (3) | — | 93,010 | 2,580 | ||||||||||
Severance and restructuring (4) | 2,824 | 13,635 | 3,338 | ||||||||||
Acquisition-related costs | — | — | (88 | ) | |||||||||
Other operating expenses (income), net | (2,184 | ) | 885 | 333 | |||||||||
Total | $ | 10,139 | $ | 162,430 | $ | 11,026 | |||||||
Interest and other expense (income), net (5) | $ | — | $ | (217 | ) | $ | 3,723 | ||||||
Total | $ | — | $ | (217 | ) | $ | 3,723 | ||||||
Provision (benefit) for income taxes: | |||||||||||||
Fixed asset tax basis adjustment (6) | $ | — | $ | — | $ | (34,562 | ) | ||||||
Fiscal year 2014 research & development tax credits | — | (2,863 | ) | — | |||||||||
Total | $ | — | $ | (2,863 | ) | $ | (34,562 | ) | |||||
(1) Accelerated depreciation related to San Jose wafer manufacturing building and equipment. | |||||||||||||
(2) Includes impairment charges related to MEMS and non-MEMS wafer manufacturing equipment and end of line test equipment. | |||||||||||||
(3) Includes impairment of goodwill and write-off of in-process research and development related to MEMS and other business units. | |||||||||||||
(4) Include severance charges associated with the reorganization of various business units and manufacturing operations. | |||||||||||||
(5) Includes impairment of investments in privately-held companies. | |||||||||||||
(6) Includes one-time fixed asset tax basis adjustments relating to prior year depreciation expense. | |||||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||||
(Unaudited) | |||||||||||||
March 28, 2015 | December 27, 2014 | March 29, 2014 | |||||||||||
(in thousands) | |||||||||||||
ASSETS | |||||||||||||
Current assets: | |||||||||||||
Cash and cash equivalents | $ | 1,392,197 | $ | 1,305,870 | $ | 1,231,248 | |||||||
Short-term investments | 75,142 | 75,012 | — | ||||||||||
Total cash, cash equivalents and short-term investments | 1,467,339 | 1,380,882 | 1,231,248 | ||||||||||
Accounts receivable, net | 278,427 | 258,506 | 304,128 | ||||||||||
Inventories | 297,270 | 306,564 | 290,518 | ||||||||||
Deferred tax assets | 71,354 | 59,794 | 74,038 | ||||||||||
Other current assets | 66,298 | 67,244 | 79,346 | ||||||||||
Total current assets | 2,180,688 | 2,072,990 | 1,979,278 | ||||||||||
Property, plant and equipment, net | 1,155,589 | 1,195,323 | 1,355,268 | ||||||||||
Intangible assets, net | 283,385 | 306,111 | 384,167 | ||||||||||
Goodwill | 511,824 | 511,838 | 597,676 | ||||||||||
Other assets | 36,231 | 38,265 | 38,176 | ||||||||||
TOTAL ASSETS | $ | 4,167,717 | $ | 4,124,527 | $ | 4,354,565 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||
Current liabilities: | |||||||||||||
Accounts payable | $ | 85,361 | $ | 82,526 | $ | 94,315 | |||||||
Income taxes payable | 20,102 | 20,102 | 20,720 | ||||||||||
Accrued salary and related expenses | 163,354 | 150,405 | 168,336 | ||||||||||
Accrued expenses | 55,967 | 54,103 | 83,758 | ||||||||||
Deferred revenue on shipments to distributors | 30,550 | 27,103 | 24,259 | ||||||||||
Total current liabilities | 355,334 | 334,239 | 391,388 | ||||||||||
Long-term debt | 1,000,000 | 1,000,000 | 1,000,871 | ||||||||||
Income taxes payable | 385,838 | 363,251 | 352,294 | ||||||||||
Deferred tax liabilities | 116,284 | 120,308 | 171,431 | ||||||||||
Other liabilities | 56,412 | 64,988 | 37,977 | ||||||||||
Total liabilities | 1,913,868 | 1,882,786 | 1,953,961 | ||||||||||
Stockholders' equity: | |||||||||||||
Common stock and capital in excess of par value | 12,359 | 283 | 283 | ||||||||||
Retained earnings | 2,260,011 | 2,259,997 | 2,412,627 | ||||||||||
Accumulated other comprehensive loss | (18,521 | ) | (18,539 | ) | (12,306 | ) | |||||||
Total stockholders' equity | 2,253,849 | 2,241,741 | 2,400,604 | ||||||||||
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ | 4,167,717 | $ | 4,124,527 | $ | 4,354,565 | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
March 28, 2015 | December 27, 2014 | March 29, 2014 | |||||||||||
(in thousands) | |||||||||||||
Cash flows from operating activities: | |||||||||||||
Net income (loss) | $ | 79,433 | $ | (72,034 | ) | $ | 122,544 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Stock-based compensation | 18,586 | 20,776 | 22,057 | ||||||||||
Depreciation and amortization | 71,439 | 71,625 | 64,665 | ||||||||||
Deferred taxes | (15,658 | ) | (30,849 | ) | (36,482 | ) | |||||||
Loss (gain) from sale of property, plant and equipment | (441 | ) | 1,844 | 818 | |||||||||
Tax benefit (shortfall) related to stock-based compensation | 7,635 | (229 | ) | 3,204 | |||||||||
Impairment of long-lived assets | 5,522 | 50,745 | — | ||||||||||
Impairment of goodwill and intangible assets | — | 93,010 | 2,580 | ||||||||||
Impairment of investments in privately-held companies | — | — | 3,723 | ||||||||||
Excess tax benefit from stock-based compensation | (5,997 | ) | (1,931 | ) | (5,139 | ) | |||||||
Changes in assets and liabilities: | |||||||||||||
Accounts receivable | (19,921 | ) | 23,426 | (15,566 | ) | ||||||||
Inventories | 9,194 | (1,486 | ) | 7,717 | |||||||||
Other current assets | (156 | ) | 1,009 | 7,194 | |||||||||
Accounts payable | 477 | (12,007 | ) | (4,044 | ) | ||||||||
Income taxes payable | 22,587 | 12,835 | 14,244 | ||||||||||
Deferred revenue on shipments to distributors | 3,447 | 282 | (1,283 | ) | |||||||||
All other accrued liabilities | 5,917 | 15,839 | 25,466 | ||||||||||
Net cash provided by (used in) operating activities | 182,064 | 172,855 | 211,698 | ||||||||||
Cash flows from investing activities: | |||||||||||||
Purchase of property, plant and equipment | (10,185 | ) | (18,585 | ) | (26,407 | ) | |||||||
Proceeds from sales of property, plant and equipment | 1,615 | 24,467 | 618 | ||||||||||
Payments in connection with business acquisition, net of cash acquired | — | — | (5,750 | ) | |||||||||
Purchases of investments in privately-held companies securities | (200 | ) | — | — | |||||||||
Proceeds from maturity of debt investment in privately-held companies | 500 | — | — | ||||||||||
Net cash provided by (used in) investing activities | (8,270 | ) | 5,882 | (31,539 | ) | ||||||||
Cash flows from financing activities: | |||||||||||||
Excess tax benefit from stock-based compensation | 5,997 | 1,931 | 5,139 | ||||||||||
Contingent consideration paid | — | — | (104 | ) | |||||||||
Repayment of notes payable | — | — | (439 | ) | |||||||||
Net issuance of restricted stock units | (8,369 | ) | (6,822 | ) | (8,390 | ) | |||||||
Proceeds from stock options exercised | 31,098 | 8,323 | 29,538 | ||||||||||
Issuance of ESPP shares under employee stock purchase program | — | 18,653 | — | ||||||||||
Repurchase of common stock | (36,774 | ) | (59,666 | ) | (51,083 | ) | |||||||
Dividends paid | (79,419 | ) | (79,169 | ) | (73,481 | ) | |||||||
Net cash provided by (used in) financing activities | (87,467 | ) | (116,750 | ) | (98,820 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | 86,327 | 61,987 | 81,339 | ||||||||||
Cash and cash equivalents: | |||||||||||||
Beginning of period | 1,305,870 | 1,243,883 | 1,149,909 | ||||||||||
End of period | $ | 1,392,197 | $ | 1,305,870 | $ | 1,231,248 | |||||||
Total cash, cash equivalents, and short-term investments | $ | 1,467,339 | $ | 1,380,882 | $ | 1,231,248 | |||||||
ANALYSIS OF GAAP VERSUS GAAP EXCLUDING SPECIAL ITEMS DISCLOSURES | ||||||||||||||
(Unaudited) | ||||||||||||||
Three Months Ended | ||||||||||||||
March 28, 2015 | December 27, 2014 | March 29, 2014 | ||||||||||||
(in thousands, except per share data) | ||||||||||||||
Reconciliation of GAAP gross profit to GAAP gross profit excluding special items: | ||||||||||||||
GAAP gross profit | $ | 315,268 | $ | 314,077 | $ | 339,937 | ||||||||
GAAP gross profit % | 54.6 | % | 55.4 | % | 56.1 | % | ||||||||
Special items: | ||||||||||||||
Intangible asset amortization | 18,750 | 18,750 | 18,542 | |||||||||||
Accelerated depreciation (1) | 9,834 | 8,895 | — | |||||||||||
Acquisition-related inventory write-up | — | — | 5,518 | |||||||||||
Total special items | 28,584 | 27,645 | 24,060 | |||||||||||
GAAP gross profit excluding special items | $ | 343,852 | $ | 341,722 | $ | 363,997 | ||||||||
GAAP gross profit % excluding special items | 59.6 | % | 60.3 | % | 60.1 | % | ||||||||
Reconciliation of GAAP operating expenses to GAAP operating expenses excluding special items: | ||||||||||||||
GAAP operating expenses | $ | 209,818 | $ | 378,153 | $ | 233,199 | ||||||||
Special items: | ||||||||||||||
Intangible asset amortization | 3,977 | 4,155 | 4,863 | |||||||||||
Impairment of long-lived assets (2) | 5,522 | 50,745 | — | |||||||||||
Impairment of goodwill and intangible assets (3) | — | 93,010 | 2,580 | |||||||||||
Severance and restructuring (4) | 2,824 | 13,635 | 3,338 | |||||||||||
Acquisition-related costs | — | — | (88 | ) | ||||||||||
Other operating expenses (income), net | (2,184 | ) | 885 | 333 | ||||||||||
Total special items | 10,139 | 162,430 | 11,026 | |||||||||||
GAAP operating expenses excluding special items | $ | 199,679 | $ | 215,723 | $ | 222,173 | ||||||||
Reconciliation of GAAP net income (loss) to GAAP net income excluding special items: | ||||||||||||||
GAAP net income (loss) | $ | 79,433 | $ | (72,034 | ) | $ | 122,544 | |||||||
Special items: | ||||||||||||||
Intangible asset amortization | 22,727 | 22,905 | 23,405 | |||||||||||
Accelerated depreciation (1) | 9,834 | 8,895 | — | |||||||||||
Acquisition-related inventory write-up | — | — | 5,518 | |||||||||||
Impairment of long-lived assets (2) | 5,522 | 50,745 | — | |||||||||||
Impairment of goodwill and intangible assets (3) | — | 93,010 | 2,580 | |||||||||||
Severance and restructuring (4) | 2,824 | 13,635 | 3,338 | |||||||||||
Acquisition-related costs | — | — | (88 | ) | ||||||||||
Other operating expenses (income), net | (2,184 | ) | 885 | 333 | ||||||||||
Interest and other expense (income), net (5) | — | (217 | ) | 3,723 | ||||||||||
Pre-tax total special items | 38,723 | 189,858 | 38,809 | |||||||||||
Tax effect of special items | (3,910 | ) | (21,283 | ) | (3,658 | ) | ||||||||
Fixed asset tax basis adjustment (6) | — | — | (34,562 | ) | ||||||||||
Fiscal year 2014 research & development tax credits | — | (2,863 | ) | — | ||||||||||
GAAP net income excluding special items | $ | 114,246 | $ | 93,678 | $ | 123,133 | ||||||||
GAAP net income per share excluding special items: | ||||||||||||||
Basic | $ | 0.40 | $ | 0.33 | $ | 0.44 | ||||||||
Diluted | $ | 0.40 | $ | 0.33 | $ | 0.43 | ||||||||
Shares used in the calculation of earnings per share excluding special items: | ||||||||||||||
Basic | 283,418 | 282,992 | 282,627 | |||||||||||
Diluted | 288,840 | 287,954 | 288,575 | |||||||||||
(1) Accelerated depreciation related to San Jose wafer manufacturing building and equipment. | ||||||||||||||
(2) Includes impairment charges related to MEMS and non-MEMS wafer manufacturing equipment and end of line test equipment. | ||||||||||||||
(3) Includes impairment of goodwill and write-off of in-process research and development related to MEMS and other business units. | ||||||||||||||
(4) Include severance charges associated with the reorganization of various business units and manufacturing operations. | ||||||||||||||
(5) Includes impairment of investments in privately-held companies. | ||||||||||||||
(6) Includes one-time fixed asset tax basis adjustments relating to prior year depreciation expense. | ||||||||||||||
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