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, 2012 announcing the Company's preliminary financial results for the second quarter of fiscal year 2012. |
Maxim Integrated Products, Inc. | |
By:/s/ Bruce Kiddoo | |
Bruce Kiddoo Senior Vice President and Chief Financial Officer |
Exhibit | Description | |
99.1 | Press release, dated January 26, 2012 announcing the Company's preliminary financial results for the second quarter of fiscal year 2012. Also provided in PDF format as a courtesy. |
• | Revenue: $591 million |
• | Gross Margin: 58.8% GAAP (60.5% excluding special expense items) |
• | EPS: $0.29 GAAP ($0.34 excluding special items) |
• | Cash, cash equivalents, and short term investments: $817 million |
• | Fiscal third quarter revenue outlook: $555 million to $585 million |
• | $14.2 million for acquisition related items |
• | $6.0 million for restructuring and severance |
• | Cash flow from operations: $249 million (42% of revenue) |
• | Capital expenditures: $67 million |
• | Dividends: $64 million ($0.22 per share) |
• | Stock repurchases: $72 million |
• | Revenue: $555 million to $585 million |
• | Gross Margin: 55% to 58% GAAP (57% to 60% excluding special expense items) |
• | EPS: $0.22 to $0.26 GAAP ($0.25 to $0.29 excluding special expense items) |
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
December 31, 2011 | September 24, 2011 | December 25, 2010 | |||||||||||
(in thousands, except per share data) | |||||||||||||
Net revenues | $ | 591,359 | $ | 636,002 | $ | 612,936 | |||||||
Cost of goods sold (1, 2, 3) | 243,399 | 240,529 | 232,661 | ||||||||||
Gross profit | 347,960 | 395,473 | 380,275 | ||||||||||
Operating expenses: | |||||||||||||
Research and development (1) | 142,084 | 140,213 | 130,001 | ||||||||||
Selling, general and administrative (1) | 80,826 | 82,456 | 72,240 | ||||||||||
Intangible asset amortization (2) | 4,338 | 4,321 | 4,447 | ||||||||||
Severance and restructuring | 6,047 | 492 | 488 | ||||||||||
Other operating expenses (income), net (4) | 155 | (4,389 | ) | 21,100 | |||||||||
Total operating expenses | 233,450 | 223,093 | 228,276 | ||||||||||
Operating income | 114,510 | 172,380 | 151,999 | ||||||||||
Interest and other income (expense), net (5) | 2,374 | (4,100 | ) | (4,100 | ) | ||||||||
Income before provision for income taxes | 116,884 | 168,280 | 147,899 | ||||||||||
Provision for income taxes (6) | 28,754 | 34,834 | 38,309 | ||||||||||
Net income | $ | 88,130 | $ | 133,446 | $ | 109,590 | |||||||
Earnings per share: | |||||||||||||
Basic | $ | 0.30 | $ | 0.45 | $ | 0.37 | |||||||
Diluted | $ | 0.29 | $ | 0.44 | $ | 0.36 | |||||||
Shares used in the calculation of earnings per share: | |||||||||||||
Basic | 291,824 | 294,475 | 296,550 | ||||||||||
Diluted | 299,290 | 301,076 | 303,260 | ||||||||||
Dividends paid per share | $ | 0.22 | $ | 0.22 | $ | 0.21 | |||||||
SCHEDULE OF STOCK BASED COMPENSATION EXPENSES | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
December 31, 2011 | September 24, 2011 | December 25, 2010 | |||||||||||
(in thousands) | |||||||||||||
Cost of goods sold | $ | 3,692 | $ | 3,257 | $ | 3,748 | |||||||
Research and development | 12,909 | 13,261 | 13,916 | ||||||||||
Selling, general and administrative | 6,873 | 6,947 | 6,858 | ||||||||||
Total | $ | 23,474 | $ | 23,465 | $ | 24,522 | |||||||
SCHEDULE OF SPECIAL EXPENSE ITEMS | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
December 31, 2011 | September 24, 2011 | December 25, 2010 | |||||||||||
(in thousands) | |||||||||||||
Cost of goods sold: | |||||||||||||
Intangible asset amortization (2) | $ | 8,080 | $ | 9,434 | $ | 7,919 | |||||||
Acquisition related inventory write up (3) | 1,801 | — | 1,320 | ||||||||||
Total | $ | 9,881 | $ | 9,434 | $ | 9,239 | |||||||
Operating expenses: | |||||||||||||
Intangible asset amortization (2) | $ | 4,338 | $ | 4,321 | $ | 4,447 | |||||||
Severance and restructuring | 6,047 | 492 | 488 | ||||||||||
Other operating expenses (income), net (4) | 155 | (4,389 | ) | 21,100 | |||||||||
Total | $ | 10,540 | $ | 424 | $ | 26,035 | |||||||
Interest and other (income), net (5) | $ | (1,776 | ) | $ | — | $ | — | ||||||
Total | $ | (1,776 | ) | $ | — | $ | — | ||||||
Provision for income taxes: | |||||||||||||
International restructuring (6) | $ | — | $ | (2,655 | ) | $ | — | ||||||
Total | $ | — | $ | (2,655 | ) | $ | — | ||||||
(1) Includes stock-based compensation charges as shown in the Schedule of Stock Based Compensation Expenses. | |||||||||||||
(2) Includes intangible asset amortization related to acquisitions. | |||||||||||||
(3) Includes expense related to fair value write up of inventory acquired as part of acquisitions. | |||||||||||||
(4) Other operating expenses, net are primarily for stock option related litigation, certain payroll taxes, interest and penalties and loss on sale of land and buildings. | |||||||||||||
(5) Includes gain on sale of equity investment. | |||||||||||||
(6) Includes impact due to implementation of international restructuring. | |||||||||||||
STOCK-BASED COMPENSATION BY TYPE OF AWARD (in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended December 31, 2011 | Stock Options | Restricted Stock Units | Employee Stock Purchase Plan | Total | ||||||||||||
Cost of goods sold | $ | 565 | $ | 2,657 | $ | 470 | $ | 3,692 | ||||||||
Research and development expense | 2,440 | 9,207 | 1,262 | 12,909 | ||||||||||||
Selling, general and administrative expense | 1,704 | 4,778 | 391 | 6,873 | ||||||||||||
Total | $ | 4,709 | $ | 16,642 | $ | 2,123 | $ | 23,474 | ||||||||
Three Months Ended September 24, 2011 | ||||||||||||||||
Cost of goods sold | $ | 517 | $ | 2,307 | $ | 433 | $ | 3,257 | ||||||||
Research and development expense | 2,055 | 9,958 | 1,248 | 13,261 | ||||||||||||
Selling, general and administrative expense | 1,428 | 5,125 | 394 | 6,947 | ||||||||||||
Total | $ | 4,000 | $ | 17,390 | $ | 2,075 | $ | 23,465 | ||||||||
Three Months Ended December 25, 2010 | ||||||||||||||||
Cost of goods sold | $ | 729 | $ | 2,637 | $ | 382 | $ | 3,748 | ||||||||
Research and development expense | 2,710 | 9,914 | 1,292 | 13,916 | ||||||||||||
Selling, general and administrative expense | 1,659 | 4,847 | 352 | 6,858 | ||||||||||||
Total | $ | 5,098 | $ | 17,398 | $ | 2,026 | $ | 24,522 | ||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||
(Unaudited) | |||||||||
December 31, 2011 | June 25, 2011 | ||||||||
(in thousands) | |||||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 741,160 | $ | 962,541 | |||||
Short-term investments | 75,375 | 50,346 | |||||||
Total cash, cash equivalents and short-term investments | 816,535 | 1,012,887 | |||||||
Accounts receivable, net | 246,229 | 297,632 | |||||||
Inventories | 233,404 | 237,928 | |||||||
Income tax refund receivable | 1,236 | 483 | |||||||
Deferred tax assets | 87,636 | 113,427 | |||||||
Other current assets | 80,160 | 65,495 | |||||||
Total current assets | 1,465,200 | 1,727,852 | |||||||
Property, plant and equipment, net | 1,365,815 | 1,308,850 | |||||||
Intangible assets, net | 237,776 | 204,263 | |||||||
Goodwill | 432,809 | 265,125 | |||||||
Other assets | 19,055 | 21,653 | |||||||
TOTAL ASSETS | $ | 3,520,655 | $ | 3,527,743 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 118,427 | $ | 110,153 | |||||
Income taxes payable | 7,866 | 3,912 | |||||||
Accrued salary and related expenses | 159,651 | 215,627 | |||||||
Accrued expenses | 62,579 | 47,767 | |||||||
Deferred income on shipments to distributors | 31,136 | 36,881 | |||||||
Total current liabilities | 379,659 | 414,340 | |||||||
Long term debt | 308,700 | 300,000 | |||||||
Income taxes payable | 108,462 | 96,099 | |||||||
Deferred tax liabilities | 197,839 | 183,715 | |||||||
Other liabilities | 21,529 | 22,771 | |||||||
Total liabilities | 1,016,189 | 1,016,925 | |||||||
Stockholders' equity: | |||||||||
Common stock | 292 | 296 | |||||||
Retained earnings | 2,517,166 | 2,524,790 | |||||||
Accumulated other comprehensive loss | (12,992 | ) | (14,268 | ) | |||||
Total stockholders' equity | 2,504,466 | 2,510,818 | |||||||
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ | 3,520,655 | $ | 3,527,743 | |||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
December 31, 2011 | September 24, 2011 | December 25, 2010 | |||||||||||
(in thousands) | |||||||||||||
Cash flows from operating activities: | |||||||||||||
Net income | $ | 88,130 | $ | 133,446 | $ | 109,590 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Stock-based compensation | 23,474 | 23,465 | 24,522 | ||||||||||
Depreciation and amortization | 51,995 | 52,071 | 52,228 | ||||||||||
Deferred taxes | (368 | ) | 39,845 | 11,232 | |||||||||
Loss from sale of property, plant and equipment | 124 | 127 | 14,257 | ||||||||||
Gain from sale of equity investments | (1,811 | ) | — | — | |||||||||
Tax (shortfall) benefit related to stock-based compensation | (2,581 | ) | 1,428 | (1,425 | ) | ||||||||
Excess tax benefit related to stock-based compensation | (4,242 | ) | (2,821 | ) | (2,810 | ) | |||||||
Changes in assets and liabilities: | |||||||||||||
Accounts receivable | 82,760 | (30,790 | ) | 38,083 | |||||||||
Inventories | 19,045 | (9,799 | ) | (13,605 | ) | ||||||||
Other current assets | (1,615 | ) | (11,840 | ) | (40,912 | ) | |||||||
Accounts payable | (18,397 | ) | 4,882 | (18,667 | ) | ||||||||
Income taxes payable | 12,619 | 3,698 | 22,181 | ||||||||||
Deferred income on shipments to distributors | (3,444 | ) | (2,301 | ) | 1,979 | ||||||||
All other accrued liabilities | 3,631 | (80,602 | ) | 3,331 | |||||||||
Net cash provided by operating activities | 249,320 | 120,809 | 199,984 | ||||||||||
Cash flows from investing activities: | |||||||||||||
Payments for property, plant and equipment | (68,361 | ) | (49,324 | ) | (59,068 | ) | |||||||
Acquisitions | (12,018 | ) | (154,269 | ) | — | ||||||||
Proceeds from sales of property, plant and equipment | 1,709 | — | 24,714 | ||||||||||
Purchases of available-for-sale securities | (25,108 | ) | — | — | |||||||||
Proceeds from sales of equity securities | 3,225 | — | — | ||||||||||
Net cash used in investing activities | (100,553 | ) | (203,593 | ) | (34,354 | ) | |||||||
Cash flows from financing activities: | |||||||||||||
Dividends paid | (64,158 | ) | (64,781 | ) | (62,278 | ) | |||||||
Repayment of notes payable | (4,189 | ) | (16,217 | ) | — | ||||||||
Repurchase of common stock | (72,486 | ) | (88,674 | ) | (40,832 | ) | |||||||
Issuance of common stock | 18,898 | (2,879 | ) | 14,555 | |||||||||
Other | 4,287 | 2,835 | 2,989 | ||||||||||
Net cash used in financing activities | (117,648 | ) | (169,716 | ) | (85,566 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | 31,119 | (252,500 | ) | 80,064 | |||||||||
Cash and cash equivalents: | |||||||||||||
Beginning of period | 710,041 | 962,541 | 718,280 | ||||||||||
End of period | $ | 741,160 | $ | 710,041 | $ | 798,344 | |||||||
Total cash, cash equivalents, and short-term investments | $ | 816,535 | $ | 760,340 | $ | 798,344 | |||||||
ANALYSIS OF GAAP VERSUS GAAP EXCLUDING SPECIAL EXPENSE ITEMS DISCLOSURES | ||||||||||||||
(Unaudited) | ||||||||||||||
Three Months Ended | ||||||||||||||
December 31, 2011 | September 24, 2011 | December 25, 2010 | ||||||||||||
(in thousands, except per share data) | ||||||||||||||
Reconciliation of GAAP gross profit to GAAP gross profit excluding special expense items: | ||||||||||||||
GAAP gross profit | $ | 347,960 | $ | 395,473 | $ | 380,275 | ||||||||
GAAP gross profit % | 58.8 | % | 62.2 | % | 62.0 | % | ||||||||
Special expense items: | ||||||||||||||
Intangible asset amortization (1) | 8,080 | 9,434 | 7,919 | |||||||||||
Acquisition related inventory write up (2) | 1,801 | — | 1,320 | |||||||||||
Total special expense items | 9,881 | 9,434 | 9,239 | |||||||||||
GAAP gross profit excluding special expense items | $ | 357,841 | $ | 404,907 | $ | 389,514 | ||||||||
GAAP gross profit % excluding special expense items | 60.5 | % | 63.7 | % | 63.5 | % | ||||||||
Reconciliation of GAAP operating expenses to GAAP operating expenses excluding special expense items: | ||||||||||||||
GAAP operating expenses | $ | 233,450 | $ | 223,093 | $ | 228,276 | ||||||||
Special expense (income) items: | ||||||||||||||
Intangible asset amortization (1) | 4,338 | 4,321 | 4,447 | |||||||||||
Severance and restructuring | 6,047 | 492 | 488 | |||||||||||
Other operating expenses (income), net (3) | 155 | (4,389 | ) | 21,100 | ||||||||||
Total special expense items | 10,540 | 424 | 26,035 | |||||||||||
GAAP operating expenses excluding special expense items | $ | 222,910 | $ | 222,669 | $ | 202,241 | ||||||||
Reconciliation of GAAP net income to GAAP net income excluding special items: | ||||||||||||||
GAAP net income | $ | 88,130 | $ | 133,446 | $ | 109,590 | ||||||||
Special expense (income) items: | ||||||||||||||
Intangible asset amortization (1) | 12,418 | 13,755 | 12,366 | |||||||||||
Acquisition related inventory write up (2) | 1,801 | — | 1,320 | |||||||||||
Severance and restructuring | 6,047 | 492 | 488 | |||||||||||
Other operating expenses (income), net (3) | 155 | (4,389 | ) | 21,100 | ||||||||||
Interest and other (income), net (4) | (1,776 | ) | — | — | ||||||||||
Pre-tax total special expense items | 18,645 | 9,858 | 35,274 | |||||||||||
Tax effect of special items | (6,102 | ) | (3,474 | ) | (12,480 | ) | ||||||||
International restructuring (5) | — | (2,655 | ) | — | ||||||||||
GAAP net income excluding special items | $ | 100,673 | $ | 137,175 | $ | 132,384 | ||||||||
GAAP net income per share excluding special items: | ||||||||||||||
Basic | $ | 0.34 | $ | 0.47 | $ | 0.45 | ||||||||
Diluted | $ | 0.34 | $ | 0.46 | $ | 0.44 | ||||||||
Shares used in the calculation of earnings per share excluding special items: | ||||||||||||||
Basic | 291,824 | 294,475 | 296,550 | |||||||||||
Diluted | 299,290 | 301,076 | 303,260 | |||||||||||
(1) Includes intangible asset amortization related to acquisitions. | ||||||||||||||
(2) Includes expense related to fair value write up of inventory acquired as part of acquisitions. | ||||||||||||||
(3) Other operating expenses, net are primarily for stock option related litigation, certain payroll taxes, interest and penalties and loss on sale of land and buildings. | ||||||||||||||
(4) Includes gain on sale of equity investment. | ||||||||||||||
(5) Includes impact due to implementation of international restructuring. | ||||||||||||||
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