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 October 20, 2016 announcing the Company's preliminary financial results for the first quarter of fiscal year 2017. |
Maxim Integrated Products, Inc. | |
By:/s/ Bruce E. Kiddoo | |
Bruce E. Kiddoo Senior Vice President, Chief Financial Officer and Chief Accounting Officer |
Exhibit | Description | |
99.1 | Press release, dated October 20, 2016 announcing the Company's preliminary financial results for the first quarter of fiscal year 2017 |
• | Revenue: $561 million |
• | Gross Margin: 61.6% GAAP (64.0% excluding special items) |
• | EPS: $0.48 GAAP profit ($0.48 profit excluding special items) |
• | Cash, cash equivalents, and short term investments: $2.27 billion |
• | Fiscal second quarter revenue outlook: $520 million to $560 million |
• | Cash flow from operations: $123 million |
• | Capital expenditures: $14 million |
• | Proceeds related to the sale of a manufacturing facility: $24.5 million |
• | Dividends: $94 million ($0.33 per share) |
• | Stock repurchases: $58 million |
• | Revenue: $520 million to $560 million |
• | Gross Margin: 61% to 63% GAAP (63% to 65% excluding special items) |
• | EPS: $0.37 to $0.43 GAAP ($0.40 to $0.46 excluding special items) |
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
September 24, 2016 | June 25, 2016 | September 26, 2015 | |||||||||||
(in thousands, except per share data) | |||||||||||||
Net revenues | $ | 561,396 | $ | 566,126 | $ | 562,510 | |||||||
Cost of goods sold (1) | 215,664 | 219,099 | 276,159 | ||||||||||
Gross margin | 345,732 | 347,027 | 286,351 | ||||||||||
Operating expenses: | |||||||||||||
Research and development | 112,746 | 113,491 | 121,392 | ||||||||||
Selling, general and administrative | 70,852 | 71,483 | 71,995 | ||||||||||
Intangible asset amortization | 2,443 | 2,538 | 3,591 | ||||||||||
Impairment of long-lived assets (2) | 6,134 | 429 | 157,697 | ||||||||||
Impairment of goodwill and intangible assets | — | 27,602 | — | ||||||||||
Severance and restructuring expenses | 9,965 | 4,149 | 7,126 | ||||||||||
Other operating expenses (income), net (3) | (28,481 | ) | 4,962 | 315 | |||||||||
Total operating expenses (income), net | 173,659 | 224,654 | 362,116 | ||||||||||
Operating income (loss) | 172,073 | 122,373 | (75,765 | ) | |||||||||
Interest and other income (expense), net | (6,870 | ) | (6,427 | ) | (6,402 | ) | |||||||
Income (loss) before provision for income taxes | 165,203 | 115,946 | (82,167 | ) | |||||||||
Income tax provision (benefit) | 27,589 | 23,607 | (10,024 | ) | |||||||||
Net income (loss) | $ | 137,614 | $ | 92,339 | $ | (72,143 | ) | ||||||
Earnings (loss) per share: | |||||||||||||
Basic | $ | 0.49 | $ | 0.32 | $ | (0.25 | ) | ||||||
Diluted | $ | 0.48 | $ | 0.32 | $ | (0.25 | ) | ||||||
Shares used in the calculation of earnings (loss) per share: | |||||||||||||
Basic | 283,633 | 284,354 | 284,588 | ||||||||||
Diluted (4) | 288,574 | 288,544 | 284,588 | ||||||||||
Dividends paid per share | $ | 0.33 | $ | 0.30 | $ | 0.30 | |||||||
SCHEDULE OF SPECIAL ITEMS | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
September 24, 2016 | June 25, 2016 | September 26, 2015 | |||||||||||
(in thousands) | |||||||||||||
Cost of goods sold: | |||||||||||||
Intangible asset amortization | $ | 12,602 | $ | 11,829 | 16,638 | ||||||||
Accelerated depreciation (1) | 1,178 | 4,098 | 43,631 | ||||||||||
Total | $ | 13,780 | $ | 15,927 | $ | 60,269 | |||||||
Operating expenses: | |||||||||||||
Intangible asset amortization | $ | 2,443 | $ | 2,538 | $ | 3,591 | |||||||
Impairment of long-lived assets (2) | 6,134 | 429 | 157,697 | ||||||||||
Impairment of goodwill and intangible assets | — | 27,602 | — | ||||||||||
Severance and restructuring | 9,965 | 4,149 | 7,126 | ||||||||||
Other operating expenses (income), net (3) | (28,481 | ) | 4,962 | 315 | |||||||||
Total | $ | (9,939 | ) | $ | 39,680 | $ | 168,729 | ||||||
Interest and other expense (income), net | $ | (471 | ) | $ | (247 | ) | $ | (109 | ) | ||||
Total | $ | (471 | ) | $ | (247 | ) | $ | (109 | ) | ||||
(1) Includes building and equipment accelerated depreciation related to San Jose and Dallas manufacturing facilities. | |||||||||||||
(2) Includes impairment of investments in privately-held companies and other equipment impairment charges. | |||||||||||||
(3) Includes gain on sale of micro-electromechanical systems (MEMS) business line during the first quarter of fiscal year 2017. | |||||||||||||
(4) 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 for the first quarter of fiscal year 2016. | |||||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||||
(Unaudited) | |||||||||||||
September 24, 2016 | June 25, 2016 | September 26, 2015 | |||||||||||
(in thousands) | |||||||||||||
ASSETS | |||||||||||||
Current assets: | |||||||||||||
Cash and cash equivalents | $ | 2,092,073 | $ | 2,105,229 | $ | 1,508,347 | |||||||
Short-term investments | 175,441 | 125,439 | 100,285 | ||||||||||
Total cash, cash equivalents and short-term investments | 2,267,514 | 2,230,668 | 1,608,632 | ||||||||||
Accounts receivable, net | 253,518 | 256,531 | 282,471 | ||||||||||
Inventories | 223,484 | 227,929 | 290,712 | ||||||||||
Deferred tax assets | — | — | 50,604 | ||||||||||
Other current assets | 89,398 | 91,920 | 46,627 | ||||||||||
Total current assets | 2,833,914 | 2,807,048 | 2,279,046 | ||||||||||
Property, plant and equipment, net | 678,447 | 692,551 | 805,580 | ||||||||||
Intangible assets, net | 131,496 | 146,540 | 241,423 | ||||||||||
Goodwill | 491,015 | 490,648 | 511,647 | ||||||||||
Other assets | 54,890 | 84,100 | 36,226 | ||||||||||
Assets held for sale | 2,854 | 13,729 | 70,964 | ||||||||||
TOTAL ASSETS | $ | 4,192,616 | $ | 4,234,616 | $ | 3,944,886 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||
Current liabilities: | |||||||||||||
Accounts payable | $ | 83,589 | $ | 82,535 | $ | 80,752 | |||||||
Income taxes payable | 3,138 | 21,153 | 59,479 | ||||||||||
Accrued salary and related expenses | 111,126 | 166,698 | 120,642 | ||||||||||
Accrued expenses | 48,572 | 50,521 | 49,990 | ||||||||||
Deferred revenue on shipments to distributors | 35,754 | 38,779 | 35,091 | ||||||||||
Short term debt | 249,788 | 249,717 | — | ||||||||||
Total current liabilities | 531,967 | 609,403 | 345,954 | ||||||||||
Long-term debt | 990,685 | 990,090 | 1,000,000 | ||||||||||
Income taxes payable | 497,360 | 480,645 | 419,805 | ||||||||||
Other liabilities | 37,368 | 46,664 | 64,326 | ||||||||||
Total liabilities | 2,057,380 | 2,126,802 | 1,830,085 | ||||||||||
Stockholders' equity: | |||||||||||||
Common stock and capital in excess of par value | 284 | 284 | 10,819 | ||||||||||
Retained earnings | 2,141,326 | 2,121,749 | 2,121,582 | ||||||||||
Accumulated other comprehensive loss | (6,374 | ) | (14,219 | ) | (17,600 | ) | |||||||
Total stockholders' equity | 2,135,236 | 2,107,814 | 2,114,801 | ||||||||||
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ | 4,192,616 | $ | 4,234,616 | $ | 3,944,886 | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
September 24, 2016 | June 25, 2016 | September 26, 2015 | |||||||||||
(in thousands) | |||||||||||||
Cash flows from operating activities: | |||||||||||||
Net income (loss) | $ | 137,614 | $ | 92,339 | $ | (72,143 | ) | ||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||
Stock-based compensation | 17,120 | 16,444 | 16,963 | ||||||||||
Depreciation and amortization | 43,485 | 46,414 | 102,053 | ||||||||||
Amortization of debt issuance costs | — | — | |||||||||||
Deferred taxes | 14,895 | (13,510 | ) | (53,111 | ) | ||||||||
In-process research and development written-off | — | 27,602 | — | ||||||||||
Loss (gain) from sale of property, plant and equipment | 652 | 5,048 | (1,346 | ) | |||||||||
Loss (gain) on sale of business | (26,620 | ) | — | — | |||||||||
Tax benefit (shortfall) related to stock-based compensation | — | 3,657 | 1,193 | ||||||||||
Impairment of long-lived assets | 6,134 | — | 157,697 | ||||||||||
Impairment of investments in privately-held companies | — | — | |||||||||||
Excess tax benefit from stock-based compensation | — | (1,890 | ) | (2,249 | ) | ||||||||
Changes in assets and liabilities: | |||||||||||||
Accounts receivable | 3,013 | 21,971 | (3,627 | ) | |||||||||
Inventories | 2,517 | 7,657 | (2,167 | ) | |||||||||
Other current assets | (12,099 | ) | 8,012 | 4,796 | |||||||||
Accounts payable | (858 | ) | 5,076 | (9,776 | ) | ||||||||
Income taxes payable | 110 | 19,792 | 34,127 | ||||||||||
Deferred revenue on shipments to distributors | (3,025 | ) | 4,322 | 4,764 | |||||||||
All other accrued liabilities | (59,536 | ) | 11,137 | (59,835 | ) | ||||||||
Net cash provided by (used in) operating activities | 123,402 | 254,071 | 117,339 | ||||||||||
Cash flows from investing activities: | |||||||||||||
Purchase of property, plant and equipment | (14,310 | ) | (22,488 | ) | (15,821 | ) | |||||||
Proceeds from sales of property, plant and equipment | 205 | 34,691 | 606 | ||||||||||
Proceeds from sale of available-for-sale securities | 24,540 | — | — | ||||||||||
Proceeds from maturity of available-for-sale securities | 25,000 | 50,000 | — | ||||||||||
Proceeds from sale of business | 42,199 | — | — | ||||||||||
Purchases of available-for-sale securities | (75,224 | ) | (25,000 | ) | (25,055 | ) | |||||||
Purchases of privately-held companies' securities | (2,337 | ) | (1,554 | ) | (1,000 | ) | |||||||
Net cash provided by (used in) investing activities | 73 | 35,649 | (41,270 | ) | |||||||||
Cash flows from financing activities: | |||||||||||||
Excess tax benefit from stock-based compensation | — | 1,890 | 2,249 | ||||||||||
Issuance of debt | — | 249,717 | — | ||||||||||
Net issuance of restricted stock units | (5,206 | ) | (2,687 | ) | (4,822 | ) | |||||||
Proceeds from stock options exercised | 19,911 | 12,272 | 8,970 | ||||||||||
Issuance of common stock under employee stock purchase program | — | 19,625 | — | ||||||||||
Repurchase of common stock | (57,709 | ) | (90,438 | ) | (39,697 | ) | |||||||
Dividends paid | (93,627 | ) | (85,210 | ) | (85,387 | ) | |||||||
Net cash provided by (used in) financing activities | (136,631 | ) | 105,169 | (118,687 | ) | ||||||||
Net increase (decrease) in cash and cash equivalents | (13,156 | ) | 394,889 | (42,618 | ) | ||||||||
Cash and cash equivalents: | |||||||||||||
Beginning of period | 2,105,229 | 1,710,340 | 1,550,965 | ||||||||||
End of period | $ | 2,092,073 | $ | 2,105,229 | $ | 1,508,347 | |||||||
Total cash, cash equivalents, and short-term investments | $ | 2,267,514 | $ | 2,230,668 | $ | 1,608,632 | |||||||
ANALYSIS OF GAAP VERSUS GAAP EXCLUDING SPECIAL ITEMS DISCLOSURES | ||||||||||||||
(Unaudited) | ||||||||||||||
Three Months Ended | ||||||||||||||
September 24, 2016 | June 25, 2016 | September 26, 2015 | ||||||||||||
(in thousands, except per share data) | ||||||||||||||
Reconciliation of GAAP gross profit to GAAP gross profit excluding special items: | ||||||||||||||
GAAP gross profit | $ | 345,732 | $ | 347,027 | $ | 286,351 | ||||||||
GAAP gross profit % | 61.6 | % | 61.3 | % | 50.9 | % | ||||||||
Special items: | ||||||||||||||
Intangible asset amortization | 12,602 | 11,829 | 16,638 | |||||||||||
Accelerated depreciation (1) | 1,178 | 4,098 | 43,631 | |||||||||||
Total special items | 13,780 | 15,927 | 60,269 | |||||||||||
GAAP gross profit excluding special items | $ | 359,512 | $ | 362,954 | $ | 346,620 | ||||||||
GAAP gross profit % excluding special items | 64.0 | % | 64.1 | % | 61.6 | % | ||||||||
Reconciliation of GAAP operating expenses to GAAP operating expenses excluding special items: | ||||||||||||||
GAAP operating expenses | $ | 173,659 | $ | 224,654 | $ | 362,116 | ||||||||
Special items: | ||||||||||||||
Intangible asset amortization | 2,443 | 2,538 | 3,591 | |||||||||||
Impairment of long-lived assets (2) | 6,134 | 429 | 157,697 | |||||||||||
Impairment of intangible assets | — | 27,602 | — | |||||||||||
Severance and restructuring | 9,965 | 4,149 | 7,126 | |||||||||||
Other operating expenses (income), net (3) | (28,481 | ) | 4,962 | 315 | ||||||||||
Total special items | (9,939 | ) | 39,680 | 168,729 | ||||||||||
GAAP operating expenses excluding special items | $ | 183,598 | $ | 184,974 | $ | 193,387 | ||||||||
Reconciliation of GAAP net income (loss) to GAAP net income excluding special items: | ||||||||||||||
GAAP net income (loss) | $ | 137,614 | $ | 92,339 | $ | (72,143 | ) | |||||||
Special items: | ||||||||||||||
Intangible asset amortization | 15,045 | 14,367 | 20,229 | |||||||||||
Accelerated depreciation (1) | 1,178 | 4,098 | 43,631 | |||||||||||
Impairment of long-lived assets (2) | 6,134 | 429 | 157,697 | |||||||||||
Impairment of intangible assets | — | 27,602 | — | |||||||||||
Severance and restructuring | 9,965 | 4,149 | 7,126 | |||||||||||
Other operating expenses (income), net (3) | (28,481 | ) | 4,962 | 315 | ||||||||||
Interest and other expense (income), net | (471 | ) | (247 | ) | (109 | ) | ||||||||
Pre-tax total special items | 3,370 | 55,360 | 228,889 | |||||||||||
Other income tax effects and adjustments (4) | (2,754 | ) | (7,228 | ) | (36,434 | ) | ||||||||
GAAP net income excluding special items | $ | 138,230 | $ | 140,471 | $ | 120,312 | ||||||||
GAAP net income per share excluding special items: | ||||||||||||||
Basic | $ | 0.49 | $ | 0.49 | $ | 0.42 | ||||||||
Diluted | $ | 0.48 | $ | 0.49 | $ | 0.42 | ||||||||
Shares used in the calculation of earnings per share excluding special items: | ||||||||||||||
Basic | 283,633 | 284,354 | 284,588 | |||||||||||
Diluted (5) | 288,574 | 288,544 | 288,897 | |||||||||||
(1) Includes building and equipment accelerated depreciation related to San Jose and Dallas manufacturing facilities. | ||||||||||||||
(2) Includes impairment of investments in privately-held companies and other equipment impairment charges. | ||||||||||||||
(3) Includes gain on sale of micro-electromechanical systems (MEMS) business line during the first quarter of fiscal year 2017. | ||||||||||||||
(4) Includes tax effect of pre-tax special items and miscellaneous tax adjustments. | ||||||||||||||
(5) 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 for the first quarter of fiscal year 2016. | ||||||||||||||
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