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 21, 2016 announcing the Company's preliminary financial results for the second quarter of fiscal year 2016. |
Maxim Integrated Products, Inc. | |
By:/s/ Bruce E. Kiddoo | |
Bruce E. Kiddoo Senior Vice President and Chief Financial Officer |
Exhibit | Description | |
99.1 | Press release, dated January 21, 2016 announcing the Company's preliminary financial results for the second quarter of fiscal year 2016. Also provided in PDF format as a courtesy. |
• | Revenue: $511 million |
• | Gross Margin: 57.2% GAAP (60.5% excluding special items) |
• | EPS: $0.23 GAAP profit ($0.32 profit excluding special items) |
• | Cash, cash equivalents, and short term investments: $1.77 billion |
• | Fiscal third quarter revenue outlook: $535 million to $575 million |
• | Cash flow from operations: $182 million |
• | Capital expenditures: $14 million |
• | Proceeds from asset sales: $50 million |
• | Dividends: $86 million ($0.30 per share) |
• | Stock repurchases: $23 million |
• | Revenue: $535 million to $575 million |
• | Gross Margin: 57% to 60% GAAP (60% to 63% excluding special items) |
• | EPS: $0.35 to $0.41 GAAP ($0.38 to $0.44 excluding special items) |
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
December 26, 2015 | September 26, 2015 | December 27, 2014 | |||||||||||
(in thousands, except per share data) | |||||||||||||
Net revenues | $ | 510,831 | $ | 562,510 | $ | 566,809 | |||||||
Cost of goods sold (1) | 218,662 | 276,159 | 252,732 | ||||||||||
Gross margin | 292,169 | 286,351 | 314,077 | ||||||||||
Operating expenses: | |||||||||||||
Research and development | 113,100 | 121,392 | 135,945 | ||||||||||
Selling, general and administrative | 73,643 | 71,995 | 79,778 | ||||||||||
Intangible asset amortization | 3,538 | 3,591 | 4,155 | ||||||||||
Impairment of long-lived assets (2) | 1,950 | 157,697 | 50,745 | ||||||||||
Impairment of goodwill and intangible assets (3) | — | — | 93,010 | ||||||||||
Severance and restructuring expenses (4) | 10,652 | 7,126 | 13,635 | ||||||||||
Other operating expenses (income), net | (247 | ) | 315 | 885 | |||||||||
Total operating expenses (income), net | 202,636 | 362,116 | 378,153 | ||||||||||
Operating income (loss) | 89,533 | (75,765 | ) | (64,076 | ) | ||||||||
Interest and other income (expense), net | (9,593 | ) | (6,402 | ) | (7,599 | ) | |||||||
Income (loss) before provision for income taxes | 79,940 | (82,167 | ) | (71,675 | ) | ||||||||
Income tax provision (benefit) | 12,471 | (10,024 | ) | 359 | |||||||||
Net income (loss) | $ | 67,469 | $ | (72,143 | ) | $ | (72,034 | ) | |||||
Earnings (loss) per share: | |||||||||||||
Basic | $ | 0.24 | $ | (0.25 | ) | $ | (0.25 | ) | |||||
Diluted | $ | 0.23 | $ | (0.25 | ) | $ | (0.25 | ) | |||||
Shares used in the calculation of earnings (loss) per share: | |||||||||||||
Basic | 285,526 | 284,588 | 282,992 | ||||||||||
Diluted | 290,521 | 284,588 | 282,992 | ||||||||||
Dividends paid per share | $ | 0.30 | $ | 0.30 | $ | 0.28 | |||||||
SCHEDULE OF SPECIAL ITEMS | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
December 26, 2015 | September 26, 2015 | December 27, 2014 | |||||||||||
(in thousands) | |||||||||||||
Cost of goods sold: | |||||||||||||
Intangible asset amortization | $ | 14,734 | $ | 16,638 | $ | 18,750 | |||||||
Accelerated depreciation (1) | 2,032 | 43,631 | 8,895 | ||||||||||
Total | $ | 16,766 | $ | 60,269 | $ | 27,645 | |||||||
Operating expenses: | |||||||||||||
Intangible asset amortization | $ | 3,538 | $ | 3,591 | $ | 4,155 | |||||||
Impairment of long-lived assets (2) | 1,950 | 157,697 | 50,745 | ||||||||||
Impairment of goodwill and intangible assets (3) | — | — | 93,010 | ||||||||||
Severance and restructuring (4) | 10,652 | 7,126 | 13,635 | ||||||||||
Other operating expenses (income), net | (247 | ) | 315 | 885 | |||||||||
Total | $ | 15,893 | $ | 168,729 | $ | 162,430 | |||||||
Interest and other expense (income), net | $ | 595 | $ | (109 | ) | $ | (217 | ) | |||||
Total | $ | 595 | $ | (109 | ) | $ | (217 | ) | |||||
Income tax provision (benefit): | |||||||||||||
Fiscal year 2015 & 2014 research & development tax credits | $ | (2,475 | ) | $ | — | $ | (2,863 | ) | |||||
Total | $ | (2,475 | ) | $ | — | $ | (2,863 | ) | |||||
(1) Building and equipment accelerated depreciation related to San Jose and Dallas manufacturing facilities. | |||||||||||||
(2) Includes impairment charges related to the San Antonio wafer manufacturing facility, MEMS wafer manufacturing equipment, end of line test equipment and certain research and development equipment. | |||||||||||||
(3) Includes impairment of goodwill and write-off of in-process research and development related to MEMS business unit. | |||||||||||||
(4) Includes severance charges associated with several reorganizations, primarily various business units and manufacturing operations. | |||||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||||
(Unaudited) | |||||||||||||
December 26, 2015 | September 26, 2015 | December 27, 2014 | |||||||||||
(in thousands) | |||||||||||||
ASSETS | |||||||||||||
Current assets: | |||||||||||||
Cash and cash equivalents | $ | 1,648,518 | $ | 1,508,347 | $ | 1,305,870 | |||||||
Short-term investments | 124,955 | 100,285 | 75,012 | ||||||||||
Total cash, cash equivalents and short-term investments | 1,773,473 | 1,608,632 | 1,380,882 | ||||||||||
Accounts receivable, net | 231,180 | 282,471 | 258,506 | ||||||||||
Inventories | 274,741 | 290,712 | 306,564 | ||||||||||
Deferred tax assets | — | 50,604 | 59,794 | ||||||||||
Other current assets | 47,235 | 46,627 | 67,244 | ||||||||||
Total current assets | 2,326,629 | 2,279,046 | 2,072,990 | ||||||||||
Property, plant and equipment, net | 770,548 | 805,580 | 1,195,323 | ||||||||||
Intangible assets, net | 202,877 | 241,423 | 306,111 | ||||||||||
Goodwill | 490,648 | 511,647 | 511,838 | ||||||||||
Other assets | 64,105 | 36,056 | 36,997 | ||||||||||
Assets held for sale | 82,674 | 71,134 | 1,268 | ||||||||||
TOTAL ASSETS | $ | 3,937,481 | $ | 3,944,886 | $ | 4,124,527 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||
Current liabilities: | |||||||||||||
Accounts payable | $ | 74,145 | $ | 80,752 | $ | 82,526 | |||||||
Income taxes payable | 32,528 | 59,479 | 20,102 | ||||||||||
Accrued salary and related expenses | 129,208 | 120,642 | 150,405 | ||||||||||
Accrued expenses | 47,303 | 49,990 | 54,103 | ||||||||||
Deferred revenue on shipments to distributors | 32,067 | 35,091 | 27,103 | ||||||||||
Total current liabilities | 315,251 | 345,954 | 334,239 | ||||||||||
Long-term debt | 1,000,000 | 1,000,000 | 1,000,000 | ||||||||||
Income taxes payable | 419,881 | 419,805 | 363,251 | ||||||||||
Deferred tax liabilities | 651 | 10,602 | 120,308 | ||||||||||
Other liabilities | 52,874 | 53,724 | 64,988 | ||||||||||
Total liabilities | 1,788,657 | 1,830,085 | 1,882,786 | ||||||||||
Stockholders' equity: | |||||||||||||
Common stock and capital in excess of par value | 63,014 | 10,819 | 283 | ||||||||||
Retained earnings | 2,103,339 | 2,121,582 | 2,259,997 | ||||||||||
Accumulated other comprehensive loss | (17,529 | ) | (17,600 | ) | (18,539 | ) | |||||||
Total stockholders' equity | 2,148,824 | 2,114,801 | 2,241,741 | ||||||||||
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ | 3,937,481 | $ | 3,944,886 | $ | 4,124,527 | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
December 26, 2015 | September 26, 2015 | December 27, 2014 | |||||||||||
(in thousands) | |||||||||||||
Cash flows from operating activities: | |||||||||||||
Net income (loss) | $ | 67,469 | $ | (72,143 | ) | $ | (72,034 | ) | |||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||
Stock-based compensation | 18,419 | 16,963 | 20,776 | ||||||||||
Depreciation and amortization | 49,082 | 102,053 | 71,625 | ||||||||||
Deferred taxes | 18,816 | (53,111 | ) | (30,849 | ) | ||||||||
Loss (gain) from sale of property, plant and equipment | (4,517 | ) | (1,346 | ) | 1,844 | ||||||||
Tax benefit (shortfall) related to stock-based compensation | 1,980 | 1,193 | (229 | ) | |||||||||
Impairment of long-lived assets | 1,950 | 157,697 | 50,745 | ||||||||||
Impairment of goodwill and intangible assets | — | — | 93,010 | ||||||||||
Excess tax benefit from stock-based compensation | (3,920 | ) | (2,249 | ) | (1,931 | ) | |||||||
Changes in assets and liabilities: | |||||||||||||
Accounts receivable | 51,291 | (3,627 | ) | 23,426 | |||||||||
Inventories | 15,811 | (2,167 | ) | (1,486 | ) | ||||||||
Other current assets | (918 | ) | 4,796 | 1,009 | |||||||||
Accounts payable | (7,659 | ) | (9,776 | ) | (12,007 | ) | |||||||
Income taxes payable | (26,875 | ) | 34,127 | 12,835 | |||||||||
Deferred revenue on shipments to distributors | (3,024 | ) | 4,764 | 282 | |||||||||
All other accrued liabilities | 4,584 | (59,835 | ) | 15,839 | |||||||||
Net cash provided by (used in) operating activities | 182,489 | 117,339 | 172,855 | ||||||||||
Cash flows from investing activities: | |||||||||||||
Payments for property, plant and equipment | (13,530 | ) | (15,821 | ) | (18,585 | ) | |||||||
Proceeds from sales of property, plant and equipment | 49,709 | 606 | 24,467 | ||||||||||
Purchases of available-for-sale securities | (25,032 | ) | (25,055 | ) | — | ||||||||
Purchases of privately-held companies' securities | (6,008 | ) | (1,000 | ) | — | ||||||||
Other investing activities | 2,380 | — | — | ||||||||||
Net cash provided by (used in) investing activities | 7,519 | (41,270 | ) | 5,882 | |||||||||
Cash flows from financing activities: | |||||||||||||
Excess tax benefit from stock-based compensation | 3,920 | 2,249 | 1,931 | ||||||||||
Net issuance of restricted stock units | (7,722 | ) | (4,822 | ) | (6,822 | ) | |||||||
Proceeds from stock options exercised | 48,477 | 8,970 | 8,323 | ||||||||||
Issuance of common stock under employee stock purchase program | 14,350 | — | 18,653 | ||||||||||
Repurchase of common stock | (23,150 | ) | (39,697 | ) | (59,666 | ) | |||||||
Dividends paid | (85,712 | ) | (85,387 | ) | (79,169 | ) | |||||||
Net cash provided by (used in) financing activities | (49,837 | ) | (118,687 | ) | (116,750 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | 140,171 | (42,618 | ) | 61,987 | |||||||||
Cash and cash equivalents: | |||||||||||||
Beginning of period | 1,550,965 | 1,550,965 | 1,243,883 | ||||||||||
End of period | $ | 1,648,518 | $ | 1,508,347 | $ | 1,305,870 | |||||||
Total cash, cash equivalents, and short-term investments | $ | 1,773,473 | $ | 1,608,632 | $ | 1,380,882 | |||||||
ANALYSIS OF GAAP VERSUS GAAP EXCLUDING SPECIAL ITEMS DISCLOSURES | ||||||||||||||
(Unaudited) | ||||||||||||||
Three Months Ended | ||||||||||||||
December 26, 2015 | September 26, 2015 | December 27, 2014 | ||||||||||||
(in thousands, except per share data) | ||||||||||||||
Reconciliation of GAAP gross profit to GAAP gross profit excluding special items: | ||||||||||||||
GAAP gross profit | $ | 292,169 | $ | 286,351 | $ | 314,077 | ||||||||
GAAP gross profit % | 57.2 | % | 50.9 | % | 55.4 | % | ||||||||
Special items: | ||||||||||||||
Intangible asset amortization | 14,734 | 16,638 | 18,750 | |||||||||||
Accelerated depreciation (1) | 2,032 | 43,631 | 8,895 | |||||||||||
Total special items | 16,766 | 60,269 | 27,645 | |||||||||||
GAAP gross profit excluding special items | $ | 308,935 | $ | 346,620 | $ | 341,722 | ||||||||
GAAP gross profit % excluding special items | 60.5 | % | 61.6 | % | 60.3 | % | ||||||||
Reconciliation of GAAP operating expenses to GAAP operating expenses excluding special items: | ||||||||||||||
GAAP operating expenses | $ | 202,636 | $ | 362,116 | $ | 378,153 | ||||||||
Special items: | ||||||||||||||
Intangible asset amortization | 3,538 | 3,591 | 4,155 | |||||||||||
Impairment of long-lived assets (2) | 1,950 | 157,697 | 50,745 | |||||||||||
Impairment of goodwill and intangible assets (3) | — | — | 93,010 | |||||||||||
Severance and restructuring (4) | 10,652 | 7,126 | 13,635 | |||||||||||
Other operating expenses (income), net | (247 | ) | 315 | 885 | ||||||||||
Total special items | 15,893 | 168,729 | 162,430 | |||||||||||
GAAP operating expenses excluding special items | $ | 186,743 | $ | 193,387 | $ | 215,723 | ||||||||
Reconciliation of GAAP net income (loss) to GAAP net income excluding special items: | ||||||||||||||
GAAP net income (loss) | $ | 67,469 | $ | (72,143 | ) | $ | (72,034 | ) | ||||||
Special items: | ||||||||||||||
Intangible asset amortization | 18,272 | 20,229 | 22,905 | |||||||||||
Accelerated depreciation (1) | 2,032 | 43,631 | 8,895 | |||||||||||
Impairment of long-lived assets (2) | 1,950 | 157,697 | 50,745 | |||||||||||
Impairment of goodwill and intangible assets (3) | — | — | 93,010 | |||||||||||
Severance and restructuring (4) | 10,652 | 7,126 | 13,635 | |||||||||||
Other operating expenses (income), net | (247 | ) | 315 | 885 | ||||||||||
Interest and other expense (income), net | 595 | (109 | ) | (217 | ) | |||||||||
Pre-tax total special items | 33,254 | 228,889 | 189,858 | |||||||||||
Fiscal year 2015 & 2014 research & development tax credits | (2,475 | ) | — | (2,863 | ) | |||||||||
Other income tax effects and adjustments (5) | (5,428 | ) | (36,434 | ) | (21,283 | ) | ||||||||
GAAP net income excluding special items | $ | 92,820 | $ | 120,312 | $ | 93,678 | ||||||||
GAAP net income per share excluding special items: | ||||||||||||||
Basic | $ | 0.33 | $ | 0.42 | $ | 0.33 | ||||||||
Diluted | $ | 0.32 | $ | 0.42 | $ | 0.33 | ||||||||
Shares used in the calculation of earnings per share excluding special items: | ||||||||||||||
Basic | 285,526 | 284,588 | 282,992 | |||||||||||
Diluted (6) | 290,521 | 288,897 | 287,954 | |||||||||||
(1) Building and equipment accelerated depreciation related to San Jose and Dallas manufacturing facilities. | ||||||||||||||
(2)Includes impairment charges related to the San Antonio wafer manufacturing facility, MEMS wafer manufacturing equipment, end of line test equipment and certain research and development equipment. | ||||||||||||||
(3) Includes impairment of goodwill and write-off of in-process research and development related to MEMS business unit. | ||||||||||||||
(4) Includes severance charges associated with several reorganizations, primarily various business units and manufacturing operations. | ||||||||||||||
(5) Includes tax effect of pre-tax special items and miscellaneous tax adjustments. | ||||||||||||||
(6) Shares used in diluted earnings per share excluding special items differs from GAAP loss per share due to net income on a non-GAAP basis. | ||||||||||||||
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