-----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, DsHKFN1VCZh1LO9IaFqj2KQw983FoQV+LHX0QZq8PfsMeJ2RenvFA1fLru2olgXs YS7zBEQUBF0eu4E/sdQQgQ== 0000950149-95-000806.txt : 19951119 0000950149-95-000806.hdr.sgml : 19951119 ACCESSION NUMBER: 0000950149-95-000806 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951114 SROS: NONE 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: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-16538 FILM NUMBER: 95592478 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 10-Q 1 MAXIM INTEGRATED PRODUCTS, INC. FORM 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (MARK ONE) /X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1995 OR / / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO --------- --------- COMMISSION FILE NO. 0-16538 MAXIM INTEGRATED PRODUCTS, INC. (Exact name of registrant as specified in its charter) DELAWARE 94-2896096 (State or Other Jurisdiction of (I.R.S. Employer I.D. No.) Incorporation or Organization) 120 SAN GABRIEL DRIVE, 94086 SUNNYVALE, CA (Zip Code) (Address of Principal Executive Offices) Registrant's Telephone Number, Including Area Code: (408) 737-7600 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days: YES X NO --- --- CLASS: COMMON STOCK, OUTSTANDING AT NOVEMBER 1, 1995 $.001 PAR VALUE 29,944,682 SHARES 2 MAXIM INTEGRATED PRODUCTS, INC. INDEX
PART I. FINANCIAL INFORMATION PAGE ---- ITEM 1. Financial Statements Consolidated Balance Sheets 3 As of June 30, 1995 and September 30, 1995 Consolidated Statements of Income 4 for the three months ended September 30, 1994 and 1995 Consolidated Statements of Cash Flows 5 for the three months ended September 30, 1994 and 1995 Notes to Consolidated Financial Statements 6-7 ITEM 2. Management's Discussion and Analysis of Financial 8-9 Condition and Results of Operations PART II. OTHER INFORMATION ITEM 6. Exhibits and Reports on Form 8-K 10 SIGNATURES 11
2 3 CONSOLIDATED BALANCE SHEETS MAXIM INTEGRATED PRODUCTS, INC.
- --------------------------------------------------------------------------------------------- June 30, September 30, (Amounts in thousands) 1995 1995 ============================================================================================= (Audited) (Unaudited) ASSETS - --------------------------------------------------------------------------------------------- Current assets: Cash and cash equivalents $ 54,966 $ 47,898 Short-term investments 37,329 53,939 - ------------------------------------------------------------------------------------------- Total cash, cash equivalents and short-term investments 92,295 101,837 Accounts receivable, net 27,714 53,685 Inventories 19,105 14,488 Prepaid taxes and other current assets 22,708 22,860 - ------------------------------------------------------------------------------------------- Total current assets 161,822 192,870 - ------------------------------------------------------------------------------------------- Property, plant and equipment, at cost, less accumulated depreciation and amortization 87,925 91,813 Deposits and other assets 6,386 1,830 - ------------------------------------------------------------------------------------------- $ 256,133 $ 286,513 =========================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY - ------------------------------------------------------------------------------------------- Current liabilities: Current portion of capital lease obligations $ 40 $ 11 Accounts payable 24,785 22,977 Income taxes payable 1,805 382 Accrued salaries 9,795 11,840 Accrued expenses 16,358 15,421 Payable related to building acquisitions 5,550 4,553 Deferred income on shipments to distributors 7,511 14,681 - ------------------------------------------------------------------------------------------- Total current liabilities 65,844 69,865 - ------------------------------------------------------------------------------------------- Other liabilities 6,000 6,000 Deferred income taxes 5,579 1,129 Commitments and Contingencies - ------------------------------------------------------------------------------------------- Stockholders' equity: Common stock 30 30 Additional paid-in capital 64,926 73,637 Retained earnings 113,451 136,036 Translation adjustment 303 (184) - ------------------------------------------------------------------------------------------- Total stockholders' equity 178,710 209,519 - ------------------------------------------------------------------------------------------- $ 256,133 $ 286,513 ===========================================================================================
See accompanying notes. 3 4 CONSOLIDATED STATEMENTS OF INCOME MAXIM INTEGRATED PRODUCTS, INC.
For the three months ended September 30, 1994 1995 (Amounts in thousands, except per share data) (unaudited) (unaudited) ============================================================================ Net revenues $52,004 $96,443 Cost of goods sold 21,633 38,597 - ---------------------------------------------------------------------------- Gross margin 30,371 57,846 - ---------------------------------------------------------------------------- Operating expenses: Research and development 8,311 12,200 Selling, general and administrative 9,723 10,869 - ---------------------------------------------------------------------------- 18,034 23,069 - ---------------------------------------------------------------------------- Operating income 12,337 34,777 Interest income, net 438 1,072 - ---------------------------------------------------------------------------- Income before provision for income taxes 12,775 35,849 Provision for income taxes 4,471 13,264 - ---------------------------------------------------------------------------- Net income $ 8,304 $22,585 - ---------------------------------------------------------------------------- Income per share $ 0.26 $ 0.64 - ---------------------------------------------------------------------------- Common and common equivalent shares 32,545 35,275 ============================================================================
See accompanying notes. 4 5 CONSOLIDATED STATEMENTS OF CASH FLOWS MAXIM INTEGRATED PRODUCTS, INC.
- ------------------------------------------------------------------------------------------ For the three months ended September 30, Increase (decrease) in cash and cash equivalents 1994 1995 (Amounts in thousands) (unaudited) (unaudited) ========================================================================================== Cash flows provided by operating activities: Net income $ 8,304 $ 22,585 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 2,455 2,558 Reduction of equipment value 286 816 Changes in assets and liabilities: Accounts receivable (3,496) (25,971) Inventories, prepaid taxes and other current assets 2,925 4,465 Accounts payable (2,139) (1,808) Income taxes payable 4,476 12,977 Deferred income taxes -- (4.450) Deferred income on shipments to distributors 2,331 7,170 All other accrued liabilities 4,149 1,108 - ----------------------------------------------------------------------------------------- Net cash provided by operating activities 19,291 19,450 - ----------------------------------------------------------------------------------------- Cash flows from investing activities: Additions to property, plant and equipment (2,803) (8,746) Deposits and other noncurrent assets (1,782) 4,556 Held-to-maturity securities 4,386 (16,610) - ----------------------------------------------------------------------------------------- Net cash used in investing activities (199) (20,800) - ----------------------------------------------------------------------------------------- Cash flows from financing activities: Issuance of common stock 1,748 6,083 Principal payments on capital lease obligations (32) (29) Repurchase of Common Stock (3,683) (11,772) - ----------------------------------------------------------------------------------------- Net cash used in financing activities (1,967) (5,718) - ----------------------------------------------------------------------------------------- Net increase (decrease) in cash and cash equivalents 17,125 (7,068) Cash and cash equivalents: Beginning of year 28,033 54,966 - ----------------------------------------------------------------------------------------- End of period $ 45,158 $ 47,898 =========================================================================================
See accompanying notes. 5 6 MAXIM INTEGRATED PRODUCTS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1: BASIS OF PRESENTATION The unaudited consolidated financial statements included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary for a fair presentation have been included. The results of operations for the three months ended September 30, 1995 are not necessarily indicative of the results to be expected for the entire year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Annual Report on Form 10-K for the year ended June 30, 1995. NOTE 2: INVENTORIES
Inventories consist of (in thousands): June 30, September 30, -------- ------------- 1995 1995 ---- ---- (audited) (unaudited) Raw materials $ 1,925 $ 2,152 Work in process 9,444 9,388 Finished goods 7,736 2,948 ------- ------- $19,105 $14,488 ======= =======
NOTE 3: INCOME PER SHARE Net income per share is calculated based on the weighted average number of common and dilutive common equivalent shares outstanding during each respective period. The number of common equivalent shares which became issuable pursuant to the grant of stock options has been calculated using the treasury stock method. Fully diluted income per share is substantially the same as reported income per share. 6 7 MAXIM INTEGRATED PRODUCTS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D) NOTE 4: INVESTMENT SECURITIES At September 30, 1995, all debt securities which consist of U.S. Treasury securities and various municipal bonds all maturing within one year are designated as held-to-maturity and carried at amortized cost which approximates market value. The amortized cost of debt securities in this category is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization is included in investment income. Realized gains and losses and declines in value judged to be other-than-temporary on held-to-maturity securities are included in investment income. The cost of securities sold is based on the specific identification method. Interest on securities classified as held-to-maturity is included in investment income. The held-to-maturity securities at September 30, 1995 is as follows:
(Amounts in thousands) Cost ---------------------- ---- U.S. Treasury securities $34,723 Municipal bonds 20,720 ------- $55,443 ======= Amounts included in short-term investments $53,939 Amounts included in cash and cash equivalents 1,504 ------- $55,443 =======
There were no gross realized gains or losses for the three months ended September 30, 1995. 7 8 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS Net revenues increased 85.5% in the three months ended September 30, 1995 compared to the same period a year ago. The increase related primarily to higher unit shipments as a result of continued introduction of new proprietary products and increased market acceptance of the Company's proprietary and second source products. During the quarter 56% of net revenues were derived from customers outside of the United States. While the majority of these sales are denominated in US dollars, the Company does place foreign currency contracts to mitigate its risks on its backlog denominated in foreign currencies, and as a result, the impact due to changes in foreign currency on the Company's operating results for the quarter was minimal. Gross margin increased to 60.0% in the three months ended September 30, 1995, compared to 58.4% for the three months ended September 30, 1994. The improvement was principally due to continued economies of scale and improved yields, as well as an increasing proportion of proprietary products in the mix of products sold, which generally yield a somewhat higher gross margin than second source products. Gross margin in the September 30, 1995 quarter was reduced by $3.5 million in costs related to the Company's continued expansion of its Beaverton, Oregon manufacturing facility. Research and development expenses were 12.6% of net revenues in the three months ended September 30, 1995, compared to 16.0% in the three months ended September 30, 1994. The percentage decrease from the three months ended September 30, 1994 to September 30, 1995 resulted from the growth in net revenues, reflecting economies of scale. Research and development expenses increased in absolute dollars. Selling, general and administrative expenses increased in absolute dollars but decreased as a percentage of net revenues to 11.3% in the three months ended September 30, 1995, compared to 18.7% in the three months ended September 30, 1994. The decrease in percentage resulted from the growth in net revenues, reflecting economies of scale. The Company's operating income increased 12.4 percentage points to 36.1% of net revenues in the three months ended September 30, 1995, compared to the three months ended September 30, 1994 as a result of the factors cited above. The increase in the effective rate to 37% in the three months ended September 30, 1995, compared to 35% in the three months ended September 30, 1994, was primarily attributable to reduce tax savings on general business credits, municipal interest and Foreign Sales Corporation. 8 9 LIQUIDITY AND CAPITAL RESOURCES The Company's primary sources of funds for the first three months of fiscal year 1996 have been the net cash generated from operating activities of $19,450,000 and the issuance of common stock of $6,083,000. The principal uses of funds have been the repurchase of common stock of $11,772,000, and the purchase of $8,746,000 in property, plant and equipment. The Company believes it possesses sufficient liquidity and capital resources to fund its operations. 9 10 PART II: OTHER INFORMATION ITEM 6: EXHIBITS AND REPORTS ON FORM 8-K (a) The following exhibit has been filed with this report: 11.1 Computation of Income per Share (b) No Reports on Form 8-K were filed during the quarter ended September 30, 1995 ITEMS 1, 2, 3, 4, AND 5 HAVE BEEN OMITTED AS THEY ARE NOT APPLICABLE. 10 11 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. NOVEMBER 13, 1995 MAXIM INTEGRATED PRODUCTS, INC. - ----------------- ----------------------------------------- (Date) (Registrant) /s/ Michael J. Byrd ----------------------------------------- Michael J. Byrd Vice President and Chief Financial Officer (For the Registrant and Principal Financial Officer) /s/ Richard E. Slater ----------------------------------------- Richard E. Slater Vice President and Chief Accounting Officer (Principal Accounting Officer) 11 12 EXHIBIT INDEX Exhibit No. Description 11 Computation of Income Per Share. 27 Financial Data Schedule. EX-11 2 EXHIBIT 11 1 Maxim Integrated Products, Inc. Exhibit 11.1 Computation of income per share (amounts in thousands, except per share amounts)
Three Months Ended September 30, ------------------------ 1994 1995 -------- -------- Weighted average shares outstanding 28,721 29,710 Add weighted average shares from assumed exercise of options and warrants when treasury shares are reacquired at average stock market price 5,850 8,748 Less weighted average shares assumed repurchased from tax benefit from the assumed exercise of non-qualified stock options (2,026) (3,183) -------- -------- Common and common equivalent shares used in computing net income per share 32,545 35,275 ======== ======== Net income applicable to computation of income per share $ 8,304 $ 22,585 ======== ======== Income per share $ 0.26 $ 0.64 ======== ========
EX-27 3 FINANCIAL DATA SCHEDULE`
5 1,000 3-MOS JUN-30-1996 JUL-01-1995 SEP-30-1995 101,837 0 54,869 (1,184) 14,488 192,870 134,371 (42,558) 286,513 69,865 0 73,667 0 0 0 286,513 0 96,443 0 38,597 23,069 0 5 35,849 13,264 0 0 0 0 22,585 0.64 0.64
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