FORM 8-K |
Delaware (State or Other Jurisdiction of Incorporation or Organization) | 94-2896096 (I.R.S. Employer I. D. No.) |
Title of each class Common stock, $0.001 par value | Trading Symbol MXIM | Name of each exchange on which registered The NASDAQ Global Select Market |
MAXIM INTEGRATED PRODUCTS, INC. | |
By:/s/ Brian C. White | |
Brian C. White | |
Senior Vice President, Chief Financial Officer |
• | Gross Margin: 64.4% GAAP (65.0% excluding special items) |
• | EPS: $0.51 GAAP ($0.52 excluding special items) |
• | Fiscal second quarter revenue outlook: $525 to $565 million |
• | Cash flow from operations: $141 million |
• | Capital expenditures: $21 million |
• | Dividends paid: $130 million ($0.48 per share) |
• | Stock repurchases: $94 million |
• | Revenue: $525 to $565 million |
• | Gross Margin: 63.5% to 65.5% GAAP (64% to 66% excluding special items) |
• | EPS: $0.47 to $0.55 GAAP ($0.49 to $0.57 excluding special items) |
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
September 28, 2019 | June 29, 2019 | September 29, 2018 | |||||||||||
(in thousands, except per share data) | |||||||||||||
Net revenues | $ | 533,040 | $ | 556,545 | $ | 638,495 | |||||||
Cost of goods sold | 189,717 | 200,154 | 208,259 | ||||||||||
Gross margin | 343,323 | 356,391 | 430,236 | ||||||||||
Operating expenses: | |||||||||||||
Research and development | 108,989 | 105,136 | 112,708 | ||||||||||
Selling, general and administrative | 76,115 | 75,130 | 81,518 | ||||||||||
Intangible asset amortization | 756 | 756 | 773 | ||||||||||
Severance and restructuring expenses | 1,434 | 1,715 | 994 | ||||||||||
Other operating expenses (income), net | 25 | 83 | 60 | ||||||||||
Total operating expenses (income), net | 187,319 | 182,820 | 196,053 | ||||||||||
Operating income (loss) | 156,004 | 173,571 | 234,183 | ||||||||||
Interest and other income (expense), net | 1,829 | 4,079 | (546 | ) | |||||||||
Income (loss) before provision for income taxes | 157,833 | 177,650 | 233,637 | ||||||||||
Income tax provision (benefit) | 17,677 | (189,908 | ) | 36,214 | |||||||||
Net income (loss) | $ | 140,156 | $ | 367,558 | $ | 197,423 | |||||||
Earnings (loss) per share: | |||||||||||||
Basic | $ | 0.52 | $ | 1.35 | $ | 0.71 | |||||||
Diluted | $ | 0.51 | $ | 1.33 | $ | 0.70 | |||||||
Shares used in the calculation of earnings (loss) per share: | |||||||||||||
Basic | 271,388 | 272,382 | 278,045 | ||||||||||
Diluted | 274,436 | 275,834 | 282,454 | ||||||||||
Dividends paid per share | $ | 0.48 | $ | 0.46 | $ | 0.46 | |||||||
SCHEDULE OF SPECIAL ITEMS | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
September 28, 2019 | June 29, 2019 | September 29, 2018 | |||||||||||
(in thousands) | |||||||||||||
Cost of goods sold: | |||||||||||||
Intangible asset amortization | $ | 3,111 | $ | 4,038 | $ | 6,915 | |||||||
Total | $ | 3,111 | $ | 4,038 | $ | 6,915 | |||||||
Operating expenses: | |||||||||||||
Intangible asset amortization | $ | 756 | $ | 756 | $ | 773 | |||||||
Severance and restructuring | 1,434 | 1,715 | 994 | ||||||||||
Other operating expenses (income), net | 25 | 83 | 60 | ||||||||||
Total | $ | 2,215 | $ | 2,554 | $ | 1,827 | |||||||
Interest and other expense (income), net | $ | (207 | ) | $ | (2,980 | ) | $ | (378 | ) | ||||
Total | $ | (207 | ) | $ | (2,980 | ) | $ | (378 | ) | ||||
Income tax provision (benefit): | |||||||||||||
Impact of U.S. tax legislation (1) | $ | — | $ | 47,703 | $ | — | |||||||
Impact of income tax audit settlements (2) | — | (251,599 | ) | — | |||||||||
Total | $ | — | $ | (203,896 | ) | $ | — | ||||||
(1) Includes effect of U.S. tax legislation enacted on December 22, 2017. | |||||||||||||
(2) Includes effect of income tax audit settlements. | |||||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||||
(Unaudited) | |||||||||||||
September 28, 2019 | June 29, 2019 | September 29, 2018 | |||||||||||
(in thousands) | |||||||||||||
ASSETS | |||||||||||||
Current assets: | |||||||||||||
Cash and cash equivalents | $ | 1,695,191 | $ | 1,757,342 | $ | 1,598,772 | |||||||
Short-term investments | 98,176 | 140,990 | 964,643 | ||||||||||
Total cash, cash equivalents and short-term investments | 1,793,367 | 1,898,332 | 2,563,415 | ||||||||||
Accounts receivable, net | 370,316 | 360,016 | 439,407 | ||||||||||
Inventories | 235,959 | 246,512 | 275,374 | ||||||||||
Other current assets | 24,982 | 34,640 | 33,329 | ||||||||||
Total current assets | 2,424,624 | 2,539,500 | 3,311,525 | ||||||||||
Property, plant and equipment, net | 574,097 | 577,722 | 573,014 | ||||||||||
Intangible assets, net | 52,376 | 56,242 | 74,785 | ||||||||||
Goodwill | 532,251 | 532,251 | 532,251 | ||||||||||
Other assets | 97,439 | 38,267 | 56,977 | ||||||||||
TOTAL ASSETS | $ | 3,680,787 | $ | 3,743,982 | $ | 4,548,552 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||
Current liabilities: | |||||||||||||
Accounts payable | $ | 81,794 | $ | 84,335 | $ | 84,087 | |||||||
Price adjustment and other revenue reserves | 90,206 | 100,490 | 135,187 | ||||||||||
Income taxes payable | 31,704 | 33,765 | 60,877 | ||||||||||
Accrued salary and related expenses | 96,168 | 118,704 | 106,273 | ||||||||||
Accrued expenses | 42,644 | 33,873 | 42,091 | ||||||||||
Current portion of debt | — | — | 499,762 | ||||||||||
Total current liabilities | 342,516 | 371,167 | 928,277 | ||||||||||
Long-term debt | 992,944 | 992,584 | 991,506 | ||||||||||
Income taxes payable | 446,138 | 469,418 | 652,163 | ||||||||||
Other liabilities | 117,903 | 65,537 | 64,283 | ||||||||||
Total liabilities | 1,899,501 | 1,898,706 | 2,636,229 | ||||||||||
Stockholders' equity: | |||||||||||||
Common stock and capital in excess of par value | 271 | 272 | 279 | ||||||||||
Retained earnings | 1,793,012 | 1,856,358 | 1,924,764 | ||||||||||
Accumulated other comprehensive loss | (11,997 | ) | (11,354 | ) | (12,720 | ) | |||||||
Total stockholders' equity | 1,781,286 | 1,845,276 | 1,912,323 | ||||||||||
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ | 3,680,787 | $ | 3,743,982 | $ | 4,548,552 | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
September 28, 2019 | June 29, 2019 | September 29, 2018 | |||||||||||
(in thousands) | |||||||||||||
Cash flows from operating activities: | |||||||||||||
Net income (loss) | $ | 140,156 | $ | 367,558 | $ | 197,423 | |||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||
Stock-based compensation | 24,671 | 22,004 | 20,497 | ||||||||||
Depreciation and amortization | 23,921 | 25,569 | 31,191 | ||||||||||
Deferred taxes | 453 | 26,118 | (3,032 | ) | |||||||||
Loss (gain) from disposal of property, plant and equipment | 376 | 643 | 621 | ||||||||||
Other adjustments | 27 | (268 | ) | (117 | ) | ||||||||
Changes in assets and liabilities: | |||||||||||||
Accounts receivable | (20,584 | ) | 15,615 | (23,604 | ) | ||||||||
Inventories | 10,578 | 26,383 | 7,002 | ||||||||||
Other current assets | (52,443 | ) | (11,875 | ) | (12,625 | ) | |||||||
Accounts payable | 1,242 | 699 | (5,263 | ) | |||||||||
Income taxes payable | (25,341 | ) | (229,776 | ) | 33,743 | ||||||||
Accrued salary and related expenses | (22,536 | ) | — | (45,408 | ) | ||||||||
All other accrued liabilities | 60,750 | (5,203 | ) | 6,757 | |||||||||
Net cash provided by (used in) operating activities | 141,270 | 237,467 | 207,185 | ||||||||||
Cash flows from investing activities: | |||||||||||||
Purchase of property, plant and equipment | (20,631 | ) | (30,653 | ) | (18,316 | ) | |||||||
Proceeds from sales of property, plant and equipment | 43 | 306 | 1 | ||||||||||
Proceeds from sale of available-for-sale securities | — | — | 8,438 | ||||||||||
Proceeds from maturity of available-for-sale securities | 42,921 | 103,431 | 301,834 | ||||||||||
Payment in connection with business acquisition, net of cash acquired | — | — | (2,949 | ) | |||||||||
Purchases of available-for-sale securities | — | — | (190,880 | ) | |||||||||
Purchases of private company investments | — | (1,500 | ) | (750 | ) | ||||||||
Proceeds from private company investments | 516 | — | — | ||||||||||
Other investing activities | (35 | ) | (60 | ) | — | ||||||||
Net cash provided by (used in) investing activities | 22,814 | 71,524 | 97,378 | ||||||||||
Cash flows from financing activities: | |||||||||||||
Contingent consideration paid | — | — | (8,000 | ) | |||||||||
Net issuance of restricted stock units | (9,943 | ) | (6,663 | ) | (7,528 | ) | |||||||
Proceeds from stock options exercised | 7,482 | 5,414 | 6,608 | ||||||||||
Issuance of common stock under employee stock purchase program | — | 22,486 | — | ||||||||||
Repurchase of common stock | (93,552 | ) | (102,104 | ) | (112,498 | ) | |||||||
Dividends paid | (130,222 | ) | (125,345 | ) | (127,857 | ) | |||||||
Net cash provided by (used in) financing activities | (226,235 | ) | (206,212 | ) | (249,275 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | (62,151 | ) | 102,779 | 55,288 | |||||||||
Cash and cash equivalents: | |||||||||||||
Beginning of period | $ | 1,757,342 | $ | 1,654,563 | $ | 1,543,484 | |||||||
End of period | $ | 1,695,191 | $ | 1,757,342 | $ | 1,598,772 | |||||||
Total cash, cash equivalents, and short-term investments | $ | 1,793,367 | $ | 1,898,332 | $ | 2,563,415 | |||||||
ANALYSIS OF GAAP VERSUS GAAP EXCLUDING SPECIAL ITEMS DISCLOSURES | ||||||||||||||
(Unaudited) | ||||||||||||||
Three Months Ended | ||||||||||||||
September 28, 2019 | June 29, 2019 | September 29, 2018 | ||||||||||||
(in thousands, except per share data) | ||||||||||||||
Reconciliation of GAAP gross profit to GAAP gross profit excluding special items: | ||||||||||||||
GAAP gross profit | $ | 343,323 | $ | 356,391 | $ | 430,236 | ||||||||
GAAP gross profit % | 64.4 | % | 64.0 | % | 67.4 | % | ||||||||
Special items: | ||||||||||||||
Intangible asset amortization | 3,111 | 4,038 | 6,915 | |||||||||||
Total special items | 3,111 | 4,038 | 6,915 | |||||||||||
GAAP gross profit excluding special items | $ | 346,434 | $ | 360,429 | $ | 437,151 | ||||||||
GAAP gross profit % excluding special items | 65.0 | % | 64.8 | % | 68.5 | % | ||||||||
Reconciliation of GAAP operating expenses to GAAP operating expenses excluding special items: | ||||||||||||||
GAAP operating expenses | $ | 187,319 | $ | 182,820 | $ | 196,053 | ||||||||
Special items: | ||||||||||||||
Intangible asset amortization | 756 | 756 | 773 | |||||||||||
Severance and restructuring | 1,434 | 1,715 | 994 | |||||||||||
Other operating expenses (income), net | 25 | 83 | 60 | |||||||||||
Total special items | 2,215 | 2,554 | 1,827 | |||||||||||
GAAP operating expenses excluding special items | $ | 185,104 | $ | 180,266 | $ | 194,226 | ||||||||
Reconciliation of GAAP net income (loss) to GAAP net income excluding special items: | ||||||||||||||
GAAP net income (loss) | $ | 140,156 | $ | 367,558 | $ | 197,423 | ||||||||
Special items: | ||||||||||||||
Intangible asset amortization | 3,867 | 4,794 | 7,688 | |||||||||||
Severance and restructuring | 1,434 | 1,715 | 994 | |||||||||||
Other operating expenses (income), net | 25 | 83 | 60 | |||||||||||
Interest and other expense (income), net | (207 | ) | (2,980 | ) | (378 | ) | ||||||||
Total pre-tax special items | 5,119 | 3,612 | 8,364 | |||||||||||
Other income tax effects and adjustments (1) | (3,506 | ) | (11,271 | ) | 4,754 | |||||||||
Impact of U.S. tax legislation (2) | — | 47,703 | — | |||||||||||
Impact of income tax audit settlement (3) | — | (251,599 | ) | — | ||||||||||
GAAP net income excluding special items | $ | 141,769 | $ | 156,003 | $ | 210,541 | ||||||||
GAAP net income per share excluding special items: | ||||||||||||||
Basic | $ | 0.52 | $ | 0.57 | $ | 0.76 | ||||||||
Diluted | $ | 0.52 | $ | 0.57 | $ | 0.75 | ||||||||
Shares used in the calculation of earnings per share excluding special items: | ||||||||||||||
Basic | 271,388 | 272,382 | 278,045 | |||||||||||
Diluted | 274,436 | 275,834 | 282,454 | |||||||||||
(1) Includes tax effect of pre-tax special items and miscellaneous tax adjustments. | ||||||||||||||
(2) Includes effect of U.S. tax legislation enacted on December 22, 2017. | ||||||||||||||
(3) Includes effect of income tax audit settlements. | ||||||||||||||
'!A8VME="!B96=I;CTB[[N_(B!I9#TB5S5-,$UP0V5H:4AZ &YXS'DJ>8EYYWI&>J5[!'MC>\)\(7R!?.%]07VA?@%^8G["?R-_
MA'_E@$> J($*@6N!S8(P@I*"](-7@[J$'82 A..%1X6KA@Z&![:5A4'NO61)/DQF=!_#+AON+>%5[BB(AW$@7I^4Y^W$W>%BZ;?"J'
MOVJJ65!Z21I]0BU[UJ)'US9H]AGRXL:0L).USH9
MG-D8UX&Z,N $D9;(TECVD\RZ@YCT>TXV.W>?ALJ+)>&-"O>8XB]Q8VY<0+ %
M;"N6YF?GS2]%9S1!GP@BS2Y63D@AK7P2$^*Q,7@<>%8F;B3MEQIXF2L>$1[9
M&A[7A+(X.#@ED(2W80M^T7[=>Q./:/J>M>9\NG\OF^?".7P.7:1)EA[2X%1[
MF.W)D47!:TZ7'EN*N:Q#IJ'/W&WI^XBND><0X8R)<'H_"D$3CLW>7@Q/<-Q]
M OP&A2NJ.19W)H>7]38+E9C"0/$N&0UGF-6\B3!_F%H"XA/!424E"O%".>3R0!^X\*! ))\N/<)4DK/_(KP!1Y*![<^OIT3
M^" ISDA0'TI3W4%(*5$)7SY#OQTD$I2$%38[@E*."D$*2D%L'VSZ\#MT5$A(
M22%*Y/(;'X J0">>.YY_@>@E13R2KPY_G!X)2&PI)"B6D