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 26, 2017 announcing the Company's preliminary financial results for the second 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 January 26, 2017 announcing the Company's preliminary financial results for the second quarter of fiscal year 2017 |
• | Revenue: $551 million |
• | Gross Margin: 61.7% GAAP (64.1% excluding special items) |
• | EPS: $0.45 GAAP profit ($0.46 profit excluding special items) |
• | Cash, cash equivalents, and short term investments: $2.09 billion |
• | Fiscal third quarter revenue outlook: $555 million to $595 million |
• | Cash flow from operations: $193 million |
• | Proceeds related to the sale of a manufacturing facility: $26.5 million |
• | Repayment of short-term loan: $250 million |
• | Gross capital expenditures: $16 million |
• | Dividends: $94 million ($0.33 per share) |
• | Stock repurchases: $61 million |
• | Revenue: $555 million to $595 million |
• | Gross Margin: 61% to 63% GAAP (63% to 65% excluding special items) |
• | EPS: $0.43 to $0.49 GAAP ($0.49 to $0.55 excluding special items) |
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
December 24, 2016 | September 24, 2016 | December 26, 2015 | |||||||||||
(in thousands, except per share data) | |||||||||||||
Net revenues | $ | 550,998 | $ | 561,396 | $ | 510,831 | |||||||
Cost of goods sold (1) | 210,820 | 215,664 | 218,662 | ||||||||||
Gross margin | 340,178 | 345,732 | 292,169 | ||||||||||
Operating expenses: | |||||||||||||
Research and development | 114,057 | 112,746 | 113,100 | ||||||||||
Selling, general and administrative | 71,543 | 70,852 | 73,643 | ||||||||||
Intangible asset amortization | 2,348 | 2,443 | 3,538 | ||||||||||
Impairment of long-lived assets (2) | 383 | 6,134 | 1,950 | ||||||||||
Severance and restructuring expenses | 864 | 9,965 | 10,652 | ||||||||||
Other operating expenses (income), net (3) | 1,909 | (28,481 | ) | (247 | ) | ||||||||
Total operating expenses (income), net | 191,104 | 173,659 | 202,636 | ||||||||||
Operating income (loss) | 149,074 | 172,073 | 89,533 | ||||||||||
Interest and other income (expense), net | (636 | ) | (6,870 | ) | (9,593 | ) | |||||||
Income (loss) before provision for income taxes | 148,438 | 165,203 | 79,940 | ||||||||||
Income tax provision (benefit) | 17,961 | 27,589 | 12,471 | ||||||||||
Net income (loss) | $ | 130,477 | $ | 137,614 | $ | 67,469 | |||||||
Earnings (loss) per share: | |||||||||||||
Basic | $ | 0.46 | $ | 0.49 | $ | 0.24 | |||||||
Diluted | $ | 0.45 | $ | 0.48 | $ | 0.23 | |||||||
Shares used in the calculation of earnings (loss) per share: | |||||||||||||
Basic | 283,294 | 283,633 | 285,526 | ||||||||||
Diluted | 288,106 | 288,574 | 290,521 | ||||||||||
Dividends paid per share | $ | 0.33 | $ | 0.33 | $ | 0.30 | |||||||
SCHEDULE OF SPECIAL ITEMS | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
December 24, 2016 | September 24, 2016 | December 26, 2015 | |||||||||||
(in thousands) | |||||||||||||
Cost of goods sold: | |||||||||||||
Intangible asset amortization | $ | 11,755 | $ | 12,602 | 14,734 | ||||||||
Accelerated depreciation (1) | 1,178 | 1,178 | 2,032 | ||||||||||
Total | $ | 12,933 | $ | 13,780 | $ | 16,766 | |||||||
Operating expenses: | |||||||||||||
Intangible asset amortization | $ | 2,348 | $ | 2,443 | $ | 3,538 | |||||||
Impairment of long-lived assets (2) | 383 | 6,134 | 1,950 | ||||||||||
Severance and restructuring | 864 | 9,965 | 10,652 | ||||||||||
Other operating expenses (income), net (3) | 1,909 | (28,481 | ) | (247 | ) | ||||||||
Total | $ | 5,504 | $ | (9,939 | ) | $ | 15,893 | ||||||
Interest and other expense (income), net (4) | $ | (5,052 | ) | $ | (471 | ) | $ | 595 | |||||
Total | $ | (5,052 | ) | $ | (471 | ) | $ | 595 | |||||
(1) Includes building and equipment accelerated depreciation related to the Dallas manufacturing facility. | |||||||||||||
(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 gain on sale of shares received for the sale of the wafer manufacturing facility in San Antonio, Texas. | |||||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||||
(Unaudited) | |||||||||||||
December 24, 2016 | September 24, 2016 | December 26, 2015 | |||||||||||
(in thousands) | |||||||||||||
ASSETS | |||||||||||||
Current assets: | |||||||||||||
Cash and cash equivalents | $ | 1,687,435 | $ | 2,092,073 | $ | 1,648,518 | |||||||
Short-term investments | 399,461 | 175,441 | 124,955 | ||||||||||
Total cash, cash equivalents and short-term investments | 2,086,896 | 2,267,514 | 1,773,473 | ||||||||||
Accounts receivable, net | 224,342 | 253,518 | 231,180 | ||||||||||
Inventories | 236,040 | 223,484 | 274,741 | ||||||||||
Other current assets | 75,284 | 89,398 | 47,235 | ||||||||||
Total current assets | 2,622,562 | 2,833,914 | 2,326,629 | ||||||||||
Property, plant and equipment, net | 660,660 | 678,447 | 770,548 | ||||||||||
Intangible assets, net | 117,393 | 131,496 | 202,877 | ||||||||||
Goodwill | 491,015 | 491,015 | 490,648 | ||||||||||
Other assets | 55,188 | 54,890 | 64,105 | ||||||||||
Assets held for sale | 1,156 | 2,854 | 82,674 | ||||||||||
TOTAL ASSETS | $ | 3,947,974 | $ | 4,192,616 | $ | 3,937,481 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||
Current liabilities: | |||||||||||||
Accounts payable | $ | 70,505 | $ | 83,589 | $ | 74,145 | |||||||
Income taxes payable | 3,138 | 3,138 | 32,528 | ||||||||||
Accrued salary and related expenses | 109,475 | 111,126 | 129,208 | ||||||||||
Accrued expenses | 41,418 | 48,572 | 47,303 | ||||||||||
Deferred revenue on shipments to distributors | 36,137 | 35,754 | 32,067 | ||||||||||
Current portion of debt | — | 249,788 | — | ||||||||||
Total current liabilities | 260,673 | 531,967 | 315,251 | ||||||||||
Long-term debt | 991,281 | 990,685 | 1,000,000 | ||||||||||
Income taxes payable | 514,498 | 497,360 | 419,881 | ||||||||||
Other liabilities | 37,331 | 37,368 | 53,525 | ||||||||||
Total liabilities | 1,803,783 | 2,057,380 | 1,788,657 | ||||||||||
Stockholders' equity: | |||||||||||||
Common stock and capital in excess of par value | 284 | 284 | 63,014 | ||||||||||
Retained earnings | 2,155,698 | 2,141,326 | 2,103,339 | ||||||||||
Accumulated other comprehensive loss | (11,791 | ) | (6,374 | ) | (17,529 | ) | |||||||
Total stockholders' equity | 2,144,191 | 2,135,236 | 2,148,824 | ||||||||||
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ | 3,947,974 | $ | 4,192,616 | $ | 3,937,481 | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
December 24, 2016 | September 24, 2016 | December 26, 2015 | |||||||||||
(in thousands) | |||||||||||||
Cash flows from operating activities: | |||||||||||||
Net income (loss) | $ | 130,477 | $ | 137,614 | $ | 67,469 | |||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||
Stock-based compensation | 18,073 | 17,120 | 18,419 | ||||||||||
Depreciation and amortization | 42,140 | 43,485 | 49,082 | ||||||||||
Deferred taxes | (7,520 | ) | 14,895 | 18,816 | |||||||||
Loss (gain) from sale of property, plant and equipment | 3,898 | 652 | (4,517 | ) | |||||||||
Loss (gain) on sale of business | — | (26,620 | ) | — | |||||||||
Tax benefit (shortfall) related to stock-based compensation | — | — | 1,980 | ||||||||||
Impairment of long-lived assets | 383 | 414 | 1,950 | ||||||||||
Impairment of investments in privately-held companies | — | 5,720 | — | ||||||||||
Excess tax benefit from stock-based compensation | — | — | (3,920 | ) | |||||||||
Changes in assets and liabilities: | |||||||||||||
Accounts receivable | 29,176 | 3,013 | 51,291 | ||||||||||
Inventories | (12,512 | ) | 2,517 | 15,811 | |||||||||
Other current assets | (7,583 | ) | (12,099 | ) | (918 | ) | |||||||
Accounts payable | (11,999 | ) | (858 | ) | (7,659 | ) | |||||||
Income taxes payable | 17,138 | 110 | (26,875 | ) | |||||||||
Deferred revenue on shipments to distributors | 383 | (3,025 | ) | (3,024 | ) | ||||||||
Accrued salary and related expenses | (1,651 | ) | (55,572 | ) | 8,566 | ||||||||
All other accrued liabilities | (7,773 | ) | (3,964 | ) | (3,982 | ) | |||||||
Net cash provided by (used in) operating activities | 192,630 | 123,402 | 182,489 | ||||||||||
Cash flows from investing activities: | |||||||||||||
Purchase of property, plant and equipment | (15,775 | ) | (14,310 | ) | (13,530 | ) | |||||||
Proceeds from sales of property, plant and equipment | 2,224 | 205 | 49,709 | ||||||||||
Proceeds from sale of available-for-sale securities | 26,454 | 24,540 | — | ||||||||||
Proceeds from maturity of available-for-sale securities | — | 25,000 | — | ||||||||||
Proceeds from sale of business | — | 42,199 | — | ||||||||||
Purchases of available-for-sale securities | (225,622 | ) | (75,224 | ) | (25,032 | ) | |||||||
Purchases of privately-held companies' securities | (326 | ) | (2,337 | ) | (6,008 | ) | |||||||
Other investing activities | — | — | 2,380 | ||||||||||
Net cash provided by (used in) investing activities | (213,045 | ) | 73 | 7,519 | |||||||||
Cash flows from financing activities: | |||||||||||||
Excess tax benefit from stock-based compensation | — | — | 3,920 | ||||||||||
Repayment of notes payable | (250,000 | ) | — | — | |||||||||
Net issuance of restricted stock units | (4,239 | ) | (5,206 | ) | (7,722 | ) | |||||||
Proceeds from stock options exercised | 7,155 | 19,911 | 48,477 | ||||||||||
Issuance of common stock under employee stock purchase program | 17,658 | — | 14,350 | ||||||||||
Repurchase of common stock | (61,235 | ) | (57,709 | ) | (23,150 | ) | |||||||
Dividends paid | (93,562 | ) | (93,627 | ) | (85,712 | ) | |||||||
Net cash provided by (used in) financing activities | (384,223 | ) | (136,631 | ) | (49,837 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | (404,638 | ) | (13,156 | ) | 140,171 | ||||||||
Cash and cash equivalents: | |||||||||||||
Beginning of period | 2,092,073 | 2,105,229 | 1,508,347 | ||||||||||
End of period | $ | 1,687,435 | $ | 2,092,073 | $ | 1,648,518 | |||||||
Total cash, cash equivalents, and short-term investments | $ | 2,086,896 | $ | 2,267,514 | $ | 1,773,473 | |||||||
ANALYSIS OF GAAP VERSUS GAAP EXCLUDING SPECIAL ITEMS DISCLOSURES | ||||||||||||||
(Unaudited) | ||||||||||||||
Three Months Ended | ||||||||||||||
December 24, 2016 | September 24, 2016 | December 26, 2015 | ||||||||||||
(in thousands, except per share data) | ||||||||||||||
Reconciliation of GAAP gross profit to GAAP gross profit excluding special items: | ||||||||||||||
GAAP gross profit | $ | 340,178 | $ | 345,732 | $ | 292,169 | ||||||||
GAAP gross profit % | 61.7 | % | 61.6 | % | 57.2 | % | ||||||||
Special items: | ||||||||||||||
Intangible asset amortization | 11,755 | 12,602 | 14,734 | |||||||||||
Accelerated depreciation (1) | 1,178 | 1,178 | 2,032 | |||||||||||
Total special items | 12,933 | 13,780 | 16,766 | |||||||||||
GAAP gross profit excluding special items | $ | 353,111 | $ | 359,512 | $ | 308,935 | ||||||||
GAAP gross profit % excluding special items | 64.1 | % | 64.0 | % | 60.5 | % | ||||||||
Reconciliation of GAAP operating expenses to GAAP operating expenses excluding special items: | ||||||||||||||
GAAP operating expenses | $ | 191,104 | $ | 173,659 | $ | 202,636 | ||||||||
Special items: | ||||||||||||||
Intangible asset amortization | 2,348 | 2,443 | 3,538 | |||||||||||
Impairment of long-lived assets (2) | 383 | 6,134 | 1,950 | |||||||||||
Severance and restructuring | 864 | 9,965 | 10,652 | |||||||||||
Other operating expenses (income), net (3) | 1,909 | (28,481 | ) | (247 | ) | |||||||||
Total special items | 5,504 | (9,939 | ) | 15,893 | ||||||||||
GAAP operating expenses excluding special items | $ | 185,600 | $ | 183,598 | $ | 186,743 | ||||||||
Reconciliation of GAAP net income (loss) to GAAP net income excluding special items: | ||||||||||||||
GAAP net income (loss) | $ | 130,477 | $ | 137,614 | $ | 67,469 | ||||||||
Special items: | ||||||||||||||
Intangible asset amortization | 14,103 | 15,045 | 18,272 | |||||||||||
Accelerated depreciation (1) | 1,178 | 1,178 | 2,032 | |||||||||||
Impairment of long-lived assets (2) | 383 | 6,134 | 1,950 | |||||||||||
Severance and restructuring | 864 | 9,965 | 10,652 | |||||||||||
Other operating expenses (income), net (3) | 1,909 | (28,481 | ) | (247 | ) | |||||||||
Interest and other expense (income), net (4) | (5,052 | ) | (471 | ) | 595 | |||||||||
Pre-tax total special items | 13,385 | 3,370 | 33,254 | |||||||||||
Other income tax effects and adjustments (5) | (11,167 | ) | (2,754 | ) | (7,903 | ) | ||||||||
GAAP net income excluding special items | $ | 132,695 | $ | 138,230 | $ | 92,820 | ||||||||
GAAP net income per share excluding special items: | ||||||||||||||
Basic | $ | 0.47 | $ | 0.49 | $ | 0.33 | ||||||||
Diluted | $ | 0.46 | $ | 0.48 | $ | 0.32 | ||||||||
Shares used in the calculation of earnings per share excluding special items: | ||||||||||||||
Basic | 283,294 | 283,633 | 285,526 | |||||||||||
Diluted | 288,106 | 288,574 | 290,521 | |||||||||||
(1) Includes building and equipment accelerated depreciation related to the Dallas manufacturing facility. | ||||||||||||||
(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 gain on sale of shares received for the sale of the wafer manufacturing facility in San Antonio, Texas. | ||||||||||||||
(5) Includes tax effect of pre-tax special items and miscellaneous tax adjustments. | ||||||||||||||
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