Maxim Integrated Reports Results For The Second Quarter Of Fiscal 2017

SAN JOSE, Calif., Jan. 26, 2017, Maxim Integrated Products, Inc. (NASDAQ:MXIM) reported net revenue of $551 million for its second quarter of fiscal 2017 ended December 24, 2016, a 2% decrease from the $561 million revenue recorded in the prior quarter, and an 8% increase from the same quarter of last year.

Tunc Doluca, President and Chief Executive Officer, commented, “Our December quarter marked the beginning of our return to revenue growth, as Automotive, Core Industrial and diversification in Consumer all contributed gains from the same quarter last year.” Mr. Doluca continued, “In the March quarter, we expect to build upon our growth momentum in our Automotive and Industrial businesses.”

Fiscal Year 2017 Second Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the December quarter was $0.45. The results were affected by pre-tax special items which primarily consisted of $14 million in charges related to acquisitions, a $5 million gain on the sale of available-for-sale securities, and $4 million in charges related to restructuring activities. GAAP earnings per share, excluding special items was $0.46. An analysis of GAAP versus GAAP excluding special items is provided in the last table of this press release.

Cash Flow Items
At the end of the second quarter of fiscal 2017, total cash, cash equivalents and short term investments were $2.09 billion, a decrease of $181 million from the prior quarter.

Notable items included:

  • Cash flow from operations: $193 million
  • Proceeds related to the sale of a manufacturing facility: $26.5 million
  • Repayment of short-term loan: $250 million
  • Gross capital expenditures: $16 million
  • Dividends: $94 million ($0.33 per share)
  • Stock repurchases: $61 million

Business Outlook
The Company’s 90-day backlog at the beginning of the March 2017 quarter was $388 million. Based on the beginning backlog and expected turns, results for the March 2017 quarter are expected to be as follows:

  • Revenue: $555 million to $595 million
  • Gross Margin: 61% to 63% GAAP (63% to 65% excluding special items)
  • EPS: $0.43 to $0.49 GAAP ($0.49 to $0.55 excluding special items)

Maxim Integrated’s business outlook does not include the potential impact of any special items related to restructuring activity, acquisitions, or other business combinations that may be completed during the quarter.

Dividend
A cash dividend of $0.33 per share will be paid on March 16, 2017, to stockholders of record on March 2, 2017.

Conference Call
Maxim Integrated has scheduled a conference call on January 26 at 2:00 p.m. Pacific Time to discuss its financial results for the second quarter of fiscal 2017 and its business outlook. To listen via telephone, dial (844) 512-3769 (toll free) or (478) 219-0890. This call will be webcast by Shareholder.com and can be accessed at the Company’s website at investor.maximintegrated.com.

For complete press visit: http://investor.maximintegrated.com