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 20, 2017 announcing the Company's preliminary financial results for the third 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 April 20, 2017 announcing the Company's preliminary financial results for the third quarter of fiscal year 2017 |
• | Revenue: $581 million |
• | Gross Margin: 63.1% GAAP (65.2% excluding special items) |
• | EPS: $0.49 GAAP profit ($0.56 profit excluding special items) |
• | Cash, cash equivalents, and short term investments: $2.16 billion |
• | Fiscal fourth quarter revenue outlook: $590 million to $630 million (see Business Outlook section) |
• | Cash flow from operations: $221 million |
• | Gross capital expenditures: $8 million |
• | Dividends: $93 million ($0.33 per share) |
• | Stock repurchases: $57 million |
• | Revenue: $590 million to $630 million |
• | Gross Margin: 63% to 65% GAAP (65% to 67% excluding special items) |
• | EPS: $0.54 to $0.60 GAAP ($0.59 to $0.65 excluding special items) |
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
March 25, 2017 | December 24, 2016 | March 26, 2016 | |||||||||||
(in thousands, except per share data) | |||||||||||||
Net revenues | $ | 581,216 | $ | 550,998 | $ | 555,252 | |||||||
Cost of goods sold (1) | 214,312 | 210,820 | 236,411 | ||||||||||
Gross margin | 366,904 | 340,178 | 318,841 | ||||||||||
Operating expenses: | |||||||||||||
Research and development | 113,163 | 114,057 | 119,178 | ||||||||||
Selling, general and administrative | 73,987 | 71,543 | 71,778 | ||||||||||
Intangible asset amortization | 2,348 | 2,348 | 2,538 | ||||||||||
Impairment of long-lived assets (2) | 1,000 | 383 | 506 | ||||||||||
Severance and restructuring expenses | 450 | 864 | 2,552 | ||||||||||
Other operating expenses (income), net (3) | 1,704 | 1,909 | (55,419 | ) | |||||||||
Total operating expenses (income), net | 192,652 | 191,104 | 141,133 | ||||||||||
Operating income (loss) | 174,252 | 149,074 | 177,708 | ||||||||||
Interest and other income (expense), net | (3,884 | ) | (636 | ) | (6,373 | ) | |||||||
Income (loss) before provision for income taxes | 170,368 | 148,438 | 171,335 | ||||||||||
Income tax provision (benefit) | 30,155 | 17,961 | 31,525 | ||||||||||
Net income (loss) | $ | 140,213 | $ | 130,477 | $ | 139,810 | |||||||
Earnings (loss) per share: | |||||||||||||
Basic | $ | 0.50 | $ | 0.46 | $ | 0.49 | |||||||
Diluted | $ | 0.49 | $ | 0.45 | $ | 0.48 | |||||||
Shares used in the calculation of earnings (loss) per share: | |||||||||||||
Basic | 282,903 | 283,294 | 285,854 | ||||||||||
Diluted | 287,882 | 288,106 | 289,783 | ||||||||||
Dividends paid per share | $ | 0.33 | $ | 0.33 | $ | 0.30 | |||||||
SCHEDULE OF SPECIAL ITEMS | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
March 25, 2017 | December 24, 2016 | March 26, 2016 | |||||||||||
(in thousands) | |||||||||||||
Cost of goods sold: | |||||||||||||
Intangible asset amortization | 11,064 | 11,755 | 11,829 | ||||||||||
Accelerated depreciation (1) | 1,103 | 1,178 | 4,066 | ||||||||||
Other cost of goods sold (2) | — | — | 6,123 | ||||||||||
Total | $ | 12,167 | $ | 12,933 | $ | 22,018 | |||||||
Operating expenses: | |||||||||||||
Intangible asset amortization | $ | 2,348 | $ | 2,348 | $ | 2,538 | |||||||
Impairment of long-lived assets (3) | 1,000 | 383 | 506 | ||||||||||
Severance and restructuring | 450 | 864 | 2,552 | ||||||||||
Other operating expenses (income), net | 1,704 | 1,909 | (55,419 | ) | |||||||||
Total | $ | 5,502 | $ | 5,504 | $ | (49,823 | ) | ||||||
Interest and other expense (income), net (4) | $ | (48 | ) | $ | (5,052 | ) | $ | (45 | ) | ||||
Total | $ | (48 | ) | $ | (5,052 | ) | $ | (45 | ) | ||||
(1) Includes building and equipment accelerated depreciation related to the Dallas manufacturing facility. | |||||||||||||
(2) Includes expense related to patent license settlement. | |||||||||||||
(3) Includes impairment of investments in privately-held companies and other equipment impairment charges. | |||||||||||||
(4) Includes gain on sale of shares received for the sale of the wafer manufacturing facility in San Antonio, Texas. | |||||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||||
(Unaudited) | |||||||||||||
March 25, 2017 | December 24, 2016 | March 26, 2016 | |||||||||||
(in thousands) | |||||||||||||
ASSETS | |||||||||||||
Current assets: | |||||||||||||
Cash and cash equivalents | $ | 1,656,727 | $ | 1,687,435 | $ | 1,710,340 | |||||||
Short-term investments | 499,154 | 399,461 | 150,076 | ||||||||||
Total cash, cash equivalents and short-term investments | 2,155,881 | 2,086,896 | 1,860,416 | ||||||||||
Accounts receivable, net | 257,592 | 224,342 | 278,502 | ||||||||||
Inventories | 241,439 | 236,040 | 234,603 | ||||||||||
Other current assets | 60,195 | 75,284 | 88,389 | ||||||||||
Total current assets | 2,715,107 | 2,622,562 | 2,461,910 | ||||||||||
Property, plant and equipment, net | 636,835 | 660,660 | 748,781 | ||||||||||
Intangible assets, net | 103,981 | 117,393 | 188,510 | ||||||||||
Goodwill | 491,015 | 491,015 | 490,648 | ||||||||||
Other assets | 69,689 | 55,188 | 77,886 | ||||||||||
Assets held for sale | 1,156 | 1,156 | 13,733 | ||||||||||
TOTAL ASSETS | $ | 4,017,783 | $ | 3,947,974 | $ | 3,981,468 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||
Current liabilities: | |||||||||||||
Accounts payable | $ | 82,938 | $ | 70,505 | $ | 82,696 | |||||||
Income taxes payable | 4,538 | 3,138 | 30,907 | ||||||||||
Accrued salary and related expenses | 135,702 | 109,475 | 151,411 | ||||||||||
Accrued expenses | 35,208 | 41,418 | 42,562 | ||||||||||
Deferred revenue on shipments to distributors | 35,724 | 36,137 | 34,457 | ||||||||||
Total current liabilities | 294,110 | 260,673 | 342,033 | ||||||||||
Long-term debt | 991,877 | 991,281 | 1,000,000 | ||||||||||
Income taxes payable | 534,028 | 514,498 | 451,099 | ||||||||||
Other liabilities | 37,459 | 37,331 | 49,573 | ||||||||||
Total liabilities | 1,857,474 | 1,803,783 | 1,842,705 | ||||||||||
Stockholders' equity: | |||||||||||||
Common stock and capital in excess of par value | 284 | 284 | 280 | ||||||||||
Retained earnings | 2,169,760 | 2,155,698 | 2,154,767 | ||||||||||
Accumulated other comprehensive loss | (9,735 | ) | (11,791 | ) | (16,284 | ) | |||||||
Total stockholders' equity | 2,160,309 | 2,144,191 | 2,138,763 | ||||||||||
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ | 4,017,783 | $ | 3,947,974 | $ | 3,981,468 | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
March 25, 2017 | December 24, 2016 | March 26, 2016 | |||||||||||
(in thousands) | |||||||||||||
Cash flows from operating activities: | |||||||||||||
Net income (loss) | $ | 140,213 | $ | 130,477 | $ | 139,810 | |||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||
Stock-based compensation | 18,300 | 18,073 | 17,875 | ||||||||||
Depreciation and amortization | 40,473 | 42,140 | 47,088 | ||||||||||
Deferred taxes | (16,967 | ) | (7,520 | ) | (333 | ) | |||||||
Loss (gain) from sale of property, plant and equipment | 4,809 | 3,898 | 3,098 | ||||||||||
Loss (gain) on sale of business | — | — | (58,944 | ) | |||||||||
Tax benefit (shortfall) related to stock-based compensation | — | — | 545 | ||||||||||
Impairment of long-lived assets | — | 383 | 506 | ||||||||||
Impairment of investments in privately-held companies | 1,000 | — | — | ||||||||||
Excess tax benefit from stock-based compensation | — | — | (1,491 | ) | |||||||||
Changes in assets and liabilities: | |||||||||||||
Accounts receivable | (33,249 | ) | 29,176 | (47,322 | ) | ||||||||
Inventories | (5,505 | ) | (12,512 | ) | 22,785 | ||||||||
Other current assets | 16,862 | (7,583 | ) | (8,947 | ) | ||||||||
Accounts payable | 11,887 | (11,999 | ) | 8,683 | |||||||||
Income taxes payable | 20,931 | 17,138 | 29,597 | ||||||||||
Deferred revenue on shipments to distributors | (412 | ) | 383 | 2,390 | |||||||||
Accrued salary and related expenses | 26,227 | (1,651 | ) | 22,078 | |||||||||
All other accrued liabilities | (3,872 | ) | (7,773 | ) | (9,432 | ) | |||||||
Net cash provided by (used in) operating activities | 220,697 | 192,630 | 167,986 | ||||||||||
Cash flows from investing activities: | |||||||||||||
Purchase of property, plant and equipment | (8,286 | ) | (15,775 | ) | (17,530 | ) | |||||||
Proceeds from sales of property, plant and equipment | 787 | 2,224 | 136 | ||||||||||
Proceeds from sale of available-for-sale securities | — | 26,454 | — | ||||||||||
Proceeds from sale of business | — | — | 105,000 | ||||||||||
Purchases of available-for-sale securities | (99,398 | ) | (225,622 | ) | (24,861 | ) | |||||||
Purchases of privately-held companies' securities | (162 | ) | (326 | ) | (1,921 | ) | |||||||
Net cash provided by (used in) investing activities | (107,059 | ) | (213,045 | ) | 60,824 | ||||||||
Cash flows from financing activities: | |||||||||||||
Excess tax benefit from stock-based compensation | — | — | 1,491 | ||||||||||
Repayment of notes payable | — | (250,000 | ) | — | |||||||||
Net issuance of restricted stock units | (8,268 | ) | (4,239 | ) | (8,853 | ) | |||||||
Proceeds from stock options exercised | 17,502 | 7,155 | 9,889 | ||||||||||
Issuance of common stock under employee stock purchase program | (3,194 | ) | 17,658 | — | |||||||||
Repurchase of common stock | (56,999 | ) | (61,235 | ) | (83,801 | ) | |||||||
Dividends paid | (93,387 | ) | (93,562 | ) | (85,714 | ) | |||||||
Net cash provided by (used in) financing activities | (144,346 | ) | (384,223 | ) | (166,988 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | (30,708 | ) | (404,638 | ) | 61,822 | ||||||||
Cash and cash equivalents: | |||||||||||||
Beginning of period | 1,687,435 | 2,092,073 | 1,648,518 | ||||||||||
End of period | $ | 1,656,727 | $ | 1,687,435 | $ | 1,710,340 | |||||||
Total cash, cash equivalents, and short-term investments | $ | 2,155,881 | $ | 2,086,896 | $ | 1,860,416 | |||||||
ANALYSIS OF GAAP VERSUS GAAP EXCLUDING SPECIAL ITEMS DISCLOSURES | ||||||||||||||
(Unaudited) | ||||||||||||||
Three Months Ended | ||||||||||||||
March 25, 2017 | December 24, 2016 | March 26, 2016 | ||||||||||||
(in thousands, except per share data) | ||||||||||||||
Reconciliation of GAAP gross profit to GAAP gross profit excluding special items: | ||||||||||||||
GAAP gross profit | $ | 366,904 | $ | 340,178 | $ | 318,841 | ||||||||
GAAP gross profit % | 63.1 | % | 61.7 | % | 57.4 | % | ||||||||
Special items: | ||||||||||||||
Intangible asset amortization | 11,064 | 11,755 | 11,829 | |||||||||||
Accelerated depreciation (1) | 1,103 | 1,178 | 4,066 | |||||||||||
Other cost of goods sold (2) | — | — | 6,123 | |||||||||||
Total special items | 12,167 | 12,933 | 22,018 | |||||||||||
GAAP gross profit excluding special items | $ | 379,071 | $ | 353,111 | $ | 340,859 | ||||||||
GAAP gross profit % excluding special items | 65.2 | % | 64.1 | % | 61.4 | % | ||||||||
Reconciliation of GAAP operating expenses to GAAP operating expenses excluding special items: | ||||||||||||||
GAAP operating expenses | $ | 192,652 | $ | 191,104 | $ | 141,133 | ||||||||
Special items: | ||||||||||||||
Intangible asset amortization | 2,348 | 2,348 | 2,538 | |||||||||||
Impairment of long-lived assets (3) | 1,000 | 383 | 506 | |||||||||||
Severance and restructuring | 450 | 864 | 2,552 | |||||||||||
Other operating expenses (income), net | 1,704 | 1,909 | (55,419 | ) | ||||||||||
Total special items | 5,502 | 5,504 | (49,823 | ) | ||||||||||
GAAP operating expenses excluding special items | $ | 187,150 | $ | 185,600 | $ | 190,956 | ||||||||
Reconciliation of GAAP net income (loss) to GAAP net income excluding special items: | ||||||||||||||
GAAP net income (loss) | $ | 140,213 | $ | 130,477 | $ | 139,810 | ||||||||
Special items: | ||||||||||||||
Intangible asset amortization | 13,412 | 14,103 | 14,367 | |||||||||||
Accelerated depreciation (1) | 1,103 | 1,178 | 4,066 | |||||||||||
Other cost of goods sold (2) | — | — | 6,123 | |||||||||||
Impairment of long-lived assets (3) | 1,000 | 383 | 506 | |||||||||||
Severance and restructuring | 450 | 864 | 2,552 | |||||||||||
Other operating expenses (income), net | 1,704 | 1,909 | (55,419 | ) | ||||||||||
Interest and other expense (income), net (4) | (48 | ) | (5,052 | ) | (45 | ) | ||||||||
Pre-tax total special items | 17,621 | 13,385 | (27,850 | ) | ||||||||||
Other income tax effects and adjustments (5) | 1,957 | (11,167 | ) | 5,698 | ||||||||||
GAAP net income excluding special items | $ | 159,791 | $ | 132,695 | $ | 117,658 | ||||||||
GAAP net income per share excluding special items: | ||||||||||||||
Basic | $ | 0.56 | $ | 0.47 | $ | 0.41 | ||||||||
Diluted | $ | 0.56 | $ | 0.46 | $ | 0.41 | ||||||||
Shares used in the calculation of earnings per share excluding special items: | ||||||||||||||
Basic | 282,903 | 283,294 | 285,854 | |||||||||||
Diluted | 287,882 | 288,106 | 289,783 | |||||||||||
(1) Includes building and equipment accelerated depreciation related to the Dallas manufacturing facility. | ||||||||||||||
(2) Includes expense related to patent license settlement. | ||||||||||||||
(3) Includes impairment of investments in privately-held companies and other equipment impairment charges. | ||||||||||||||
(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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