-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MpR2V4Jn3EPjVf1bjGvCX/iqXlU24u6I0yjC0H4QXDzrKzdtb7VMEXlm5n/GHevk s2BI582FQ1m+63okXSx0sQ== 0000891618-03-002161.txt : 20030429 0000891618-03-002161.hdr.sgml : 20030429 20030429160612 ACCESSION NUMBER: 0000891618-03-002161 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20030429 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030429 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MAXIM INTEGRATED PRODUCTS INC CENTRAL INDEX KEY: 0000743316 STANDARD INDUSTRIAL CLASSIFICATION: SEMICONDUCTORS & RELATED DEVICES [3674] IRS NUMBER: 942896096 STATE OF INCORPORATION: DE FISCAL YEAR END: 0626 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-16538 FILM NUMBER: 03669637 BUSINESS ADDRESS: STREET 1: 120 SAN GABRIEL DR CITY: SUNNYVALE STATE: CA ZIP: 94086 BUSINESS PHONE: 4087377600 MAIL ADDRESS: STREET 1: 120 SAN GABRIEL DR CITY: SUNNYVALE STATE: CA ZIP: 94086 8-K 1 f89635e8vk.htm FORM 8-K Maxim Integrated Products, Inc.
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549


FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report: April 29, 2003
(Date of Earliest Event Reported)

MAXIM INTEGRATED PRODUCTS, INC.
(Exact Name of Registrant as Specified in Its Charter)

         
DELAWARE   0-16538   94-2896096
(State or Other Jurisdiction
of Incorporation)
  (Commission File Number)   (IRS Employer
Identification No.)
     
120 SAN GABRIEL DRIVE    
SUNNYVALE, CALIFORNIA   94086
(Address of Principal Executive Offices)   (Zip Code)

(408) 737-7600
(Registrant’s Telephone Number, Including Area Code)

 


Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
Item 9. Regulation FD Disclosure. (the following discussion is furnished under “Item 12. Results of Operations and Financial Condition.”)
SIGNATURES
Exhibit Index
EXHIBIT 99.1


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Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.

(c)   Exhibits.

The exhibit listed below is being furnished with this Form 8-K.

     
Exhibit    
Number   Description

 
99.1   Press Release dated April 29, 2003.

Item 9. Regulation FD Disclosure. (the following discussion is furnished under “Item 12. Results of Operations and Financial Condition.”)

     In accordance with SEC Release No. 33-8216, the following information, required to be furnished under “Item 12. Results of Operations and Financial Condition,” is furnished under “Item 9. Regulation FD Disclosure.”

     On April 29, 2003, Maxim Integrated Products, Inc. (the “Company”) announced via press release the Company’s preliminary results for its third quarter ended March 29, 2003. A copy of the Company’s press release is attached hereto as Exhibit 99.1. This Form 8-K and the attached exhibit are provided under Item 12 of Form 8-K and are furnished to, but not filed with, the Securities and Exchange Commission.

 


Table of Contents

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

         
    MAXIM INTEGRATED PRODUCTS, INC.
         
    By:   /s/ Carl W. Jasper
       
        Carl W. Jasper
Vice President and Chief Financial Officer

Date: April 29, 2003

 


Table of Contents

Exhibit Index

     
Exhibit    
Number   Description

 
99.1   Press Release dated April 29, 2003.
EX-99.1 3 f89635exv99w1.htm EXHIBIT 99.1 EXHIBIT 99.1
 

Exhibit 99.1

Press Information

 
FOR IMMEDIATE RELEASE
NASDAQ SYMBOL MXIM

     
Contact:   John F. Gifford, Chairman,
President and Chief Executive Officer
(408) 737-7600

MAXIM REPORTS REVENUES AND EARNINGS
FOR THE THIRD QUARTER OF FISCAL 2003
AND DOUBLES QUARTERLY DIVIDEND

     SUNNYVALE, CA–April 29, 2003–Maxim Integrated Products, Inc., (MXIM) reported net revenues of $286.2 million for its fiscal third quarter ending March 29, 2003, a 10.7% increase over the $258.5 million reported for the third quarter of fiscal 2002 and unchanged from reported revenues for the second quarter of fiscal 2003. Net income for the quarter was $77.6 million, a 16.3% increase over the $66.7 million reported last year and a 0.7% increase over the $77.1 million reported for the previous quarter. Diluted earnings per share (which measure the cost of employee stock options and include the Company's average outstanding common stock for the quarter, or 322.9 million shares, increased by 19.0 million shares using the Treasury Stock Method) were $0.23 for the third quarter, a 21.1% increase over the $0.19 reported for the same period a year ago and unchanged from reported second quarter fiscal 2003 results.

     During the quarter, cash and short-term investments increased $111.0 million after the Company repurchased 650,000 shares of its common stock for $20.0 million, paid dividends of $6.5 million, and acquired a total of $8.6 million of capital equipment. Inventories decreased $4.2 million during the quarter to $123.8 million.

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     Gross margin for the third quarter increased to 69.9%, after increasing inventory reserves $3.1 million, compared to 69.7% reported for the second quarter. Third quarter operating expenses of $87.9 million decreased from the second quarter’s level of $88.4 million.

     Third quarter bookings were approximately $308 million, a 14% increase over the second quarter’s level of $271 million. Turns orders received during the third quarter were $165 million, a 19% increase over the $139 million received in the prior quarter (turns orders are customer orders that are for delivery within the same quarter and may result in revenue within the same quarter if the Company has available inventory that matches those orders). This is the highest level of turns orders that the Company has received since the first quarter of its 2001 fiscal year. Order cancellations were $4.6 million, a decrease of 41% from the prior quarter. Bookings increased over the second quarter’s level in all major geographic regions except Japan, where bookings were down 5% sequentially. Twelve of the Company’s 14 business units had improved bookings in the third quarter. Eleven of those 14 business units had a bookings increase of at least 10% over the previous quarter.

     Third quarter ending backlog shippable within the next 12 months was approximately $219 million, including $196 million requested for shipment in the fourth quarter of fiscal 2003. Second quarter ending backlog shippable within the next 12 months was approximately $201 million, including $177 million requested for shipment in the third quarter of fiscal 2003.

     Jack Gifford, Chairman, President, and Chief Executive Officer, commented on the quarter: “We were encouraged to see the increase in orders this quarter, particularly the improvement in bookings by Dallas Semiconductor. Orders improved not only for our power management and communications products, but also for our standard products that have very broad-based markets and applications. The continued increase in turns orders in the third quarter may indicate that our customers are getting increased demand for their products quarter over quarter. We see no signs of inventory build-up either at our distributors or at

– more –

 


 

our end customers and believe that the current shipping level is close to or slightly below the current consumption level for our products.”

     Mr. Gifford continued: “Based on the Company’s profitability, strong cash position, and business outlook, the Company’s Board of Directors has increased this quarter’s dividend from $0.02 per share to $0.04 per share. Payment will be made on May 30, 2003 to stockholders of record on May 12, 2003.”

     Mr. Gifford concluded: “Maxim is opposed to expensing employee stock options, as we believe that this concept is bad accounting. We believe that the Treasury Stock Method both rigorously and accurately defines the cost and resulting dilutive effect of stock options on reported earnings. We fear that requiring U.S. corporations to expense stock options could seriously damage our country’s leadership position in technology innovation and our ability to effectively compete with other countries. Our nation’s technology leadership over the past 15 years has caused some to forget the economic effect during the 1970s of our country’s losing our technology leadership to Japan. Entrepreneurial individuals and companies, given incentive by stock options, reversed this situation. This impact on the U.S. economy and its people in the 1970s has been too easily forgotten. The potential damaging long-term effect on our nation’s economy and lifestyle resulting from the forced expensing of stock options should be taken very seriously.”

***

     Certain statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risk and uncertainty. They include the Company’s expectations regarding future inventory levels at the Company, at our distributors and at our end customers, demand for the Company’s products and the products of our customers, visibility at the Company’s customers as to future demand for their products, the Company’s profitability and business outlook, and that the Company’s current shipping level is close to or slightly below the current consumption level of the Company’s products, and the Company’s statements

– more –

 


 

regarding the effect of requiring U.S. corporations to expense stock options. Actual results could differ materially from those forecasted based upon, among other things, the Company’s incorrectly assessing customer end-user demand, order cancellation levels, inventory levels, consumption levels for the Company’s products and general market conditions; market developments that could adversely affect the growth of the mixed-signal analog market, such as further declines in customer forecasts or greater than expected cyclical downturns within the mixed-signal analog segment of the semiconductor market; the Company’s incorrectly assessing the effect of requiring U.S. corporations to expense stock options; and the Company’s being unable to sustain its successes in the markets its products are introduced in, as well as other risks described in the Company’s Form 10K for the fiscal year ended June 29, 2002.

     All forward-looking statements included in this news release are made as of the date hereof, based on the information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement.

     Maxim Integrated Products is a leading international supplier of quality analog and mixed-signal products for applications that require real world signal processing.

# # #

 


 

                             

Consolidated Balance Sheets                

(In thousands)           3/29/03   6/29/02
            (unaudited)   (audited)

Assets  
Current assets:
               
         
Cash and cash equivalents
  $ 235,033     $ 173,807  
         
Short-term investments
    821,687       591,694  
       

         
Total cash, cash equivalents and short-term investments
    1,056,720       765,501  
       

         
Accounts receivable, net
    123,864       129,812  
         
Inventories
    123,752       139,206  
         
Deferred tax assets and other current assets
    189,953       201,145  
       

           
Total current assets
    1,494,289       1,235,664  
       

       
Property, plant and equipment, at cost
    1,479,654       1,432,184  
       
Less accumulated depreciation
    (723,605 )     (686,023 )
       

         
Net property, plant and equipment
    756,049       746,161  
       
Other assets
    33,595       28,987  
       

           
Total assets
  $ 2,283,933     $ 2,010,812  

Liabilities and  
Current liabilities:
               
Stockholders'    
Accounts payable
  $ 37,768     $ 45,284  
Equity    
Accrued expenses
    137,472       145,927  
         
Deferred income on shipments to distributors
    21,729       27,183  
         
Income taxes payable
    18,348       10,633  
       

           
Total current liabilities
    215,317       229,027  
       

       
Deferred tax liabilities
    73,720       36,634  
       
Other liabilities
    4,000       4,000  
       

           
Total liabilities
    293,037       269,661  
       

       
Stockholders’ equity:
               
         
Common stock
    103,365       55,255  
         
Retained earnings
    1,887,758       1,686,816  
         
Accumulated other comprehensive loss
    (227 )     (920 )
       

           
Total stockholders’ equity
    1,990,896       1,741,151  
       

           
Total liabilities and stockholders’ equity
  $ 2,283,933     $ 2,010,812  
       

 


 

                                     

Consolidated Statements of Income                        

(In thousands   Three Months Ending   Nine Months Ending
except per share data)   3/29/03   3/30/02   3/29/03   3/30/02
    (unaudited)   (unaudited)   (unaudited)   (unaudited)

Net revenues
  $ 286,232     $ 258,481     $ 858,190     $ 745,015  
Cost of goods sold
    86,146       76,989       259,810       222,795  

   
Gross margin
    200,086       181,492       598,380       522,220  
 
    69.9 %     70.2 %     69.7 %     70.1 %

Operating expenses:
                               
 
Research and development
    66,805       68,974       205,112       203,515  
 
Selling, general and administrative
    21,065       21,951       64,606       69,899  

   
Operating income
    112,216       90,567       328,662       248,806  
 
    39.2 %     35.0 %     38.3 %     33.4 %
Interest income, net
    3,611       9,026       11,424       35,634  

   
Income before provision for income taxes
    115,827       99,593       340,086       284,440  
Provision for income taxes
    38,223       32,866       112,228       93,865  

   
Net income
  $ 77,604     $ 66,727     $ 227,858     $ 190,575  

Basic earnings per share
  $ 0.24     $ 0.20     $ 0.71     $ 0.58  

Shares used in the calculation of basic earnings per share
    322,905       326,228       321,201       326,945  

Diluted earnings per share
  $ 0.23     $ 0.19     $ 0.67     $ 0.53  

Shares used in the calculation of diluted earnings per share
    341,863       358,598       340,044       357,965  

Dividends declared per share
  $ 0.02     $     $ 0.04     $  

 


 

Maxim Integrated Products, Incorporated
Company Profile

                 
NASDAQ Symbol: MXIM     Founded 1983     Public since: February 29, 1988
     
OPERATIONS    
Corporate Offices:   120 San Gabriel Drive, Sunnyvale, California 94086
U.S. Sales Offices:   Sunnyvale and Costa Mesa, CA; Wheeling, IL; Roswell, GA; Chelmsford, MA; Austin and Dallas, TX; Beaverton, OR; Horsham, PA
Foreign Offices:   Munich, Germany; Tokyo, Japan; London, UK; Paris, France; Taipei, Taiwan; Seoul, South Korea; Hong Kong; Singapore; Milan, Italy; Beijing, China; Stockholm, Sweden; Zurich, Switzerland; Viborg, Denmark; Helsinki, Finland

PRODUCTS
Maxim designs, develops, manufactures and markets a broad range of linear and mixed-signal integrated circuits for use in a variety of electronic products. Maxim circuits “connect” the real world and the digital world by detecting, measuring, amplifying, and converting real world and communication signals, such as temperature, pressure, sound, voice, or light into the digital signals necessary for computer and DSP processing.

(FLOWCHART)

  Maxim serves approximately 35,000 customers worldwide.
 
  Maxim has developed more products than any other analog company in the past 18 years.
 
  Maxim is recognized as the leader in CMOS analog and bipolar high-frequency technologies.
 
  67% international sales for Q3 FY03.

 

FINANCIAL HIGHLIGHTS (In thousands, except EPS)

                                         
    FY1999   FY2000   FY2001   FY2002   Q3 FY2003
   
 
 
 
 
Net Revenues
  $ 1,002,849     $ 1,376,085     $ 1,576,613     $ 1,025,104     $ 286,232  
Net Income
  $ 265,281     $ 373,083     $ 334,939     $ 259,183     $ 77,604  
Shares
    344,360       359,548       361,620       355,821       341,863  
Diluted EPS
  $ 0.77     $ 1.04     $ 0.93     $ 0.73     $ 0.23  
Cash and Short-Term Investments
  $ 710,074     $ 896,936     $ 1,220,352     $ 765,501     $ 1,056,720  
Total Assets
  $ 1,603,122     $ 2,087,438     $ 2,430,531     $ 2,010,812     $ 2,283,933  
Stockholders’ Equity
  $ 1,369,449     $ 1,719,939     $ 2,101,154     $ 1,741,151     $ 1,990,896  
ROE
    22.1 %     24.2 %     17.5 %     13.5 %     16.0 %
Market Cap
  $ 11,026,352     $ 25,276,091     $ 14,535,766     $ 13,391,992     $ 12,956,601  

RESEARCH COVERAGE

A.G. Edwards, Brett Miller (314) 955-2620
CIBC, Richard Schafer, (720) 554-1119 and
     Daniel Gelbtuch (212) 667-8108
Credit Suisse First Boston, Michael Masdea (415) 836-7779
Deutsche Banc Alex Brown, Ross Seymore (212) 469-8463
Fulcrum Global Partners, Clark Fuhs (415) 248-2549
Investec, Bobby Burleson (212) 898-7716
JMP Securities, Krishna Shankar (415) 835-8971
Lehman Brothers, Joseph To (415) 274-5242

Merrill Lynch, Joseph Osha (415) 676-3510
Midwest Research, Woody Calleri (216) 592-1902
Morgan Stanley, Louis Gerhardy (415) 576-2391
Pacific Growth Equities, Jim Liang (415) 274-6889
Salomon Smith Barney, Clark Westmont (415) 951-1886
SoundView Financial Group, Scott Randall (203) 462-7246
U.S. Bancorp Piper Jaffray, Tore Svanberg (650) 838-1411
Wedbush Morgan Securities, David Wu (213) 688-4547
William Blair & Company LLC, Jeff Rosenberg (312) 364-8342

 

(LOGO)

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