Highlights:
- Revenue: $602 million
- Gross Margin: 65.4% GAAP (67.2% excluding special items)
- EPS: $0.57 GAAP ($0.63 excluding special items)
- Cash, cash equivalents, and short term investments: $2.74 billion
- Fiscal first quarter revenue outlook: $555 to $595 million
- Quarterly dividend increased 9% to $0.36 per share
- New share repurchase authorization: $1 billion
Maxim Integrated Products, Inc. reported net revenue of $602 million for its fourth quarter of fiscal 2017 ended June 24, 2017, a 4% increase from the $581 million revenue recorded in the prior quarter, and a 6% increase from the same quarter of last year.
Tunc Doluca, President and Chief Executive Officer, commented, “The June quarter marked the third consecutive quarter in our return to year-over-year growth, led by double-digit increases in Industrial and Automotive. Through solid execution in our manufacturing strategy, we exceeded our profitability targets and demonstrated strong earnings power and cash flow growth.” Mr. Doluca continued, “Today, we are announcing a 9% increase in our dividend, reflecting our continued commitment to return cash to shareholders and confidence in our long-term outlook.”
Fiscal Year 2017 Fourth Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the June quarter was $0.57. The results were affected by pre-tax special items which primarily consisted of $13 million in charges related to acquisitions and $3 million in charges related to restructuring activities. GAAP earnings per share, excluding special items was $0.63. 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 fourth quarter of fiscal 2017, total cash, cash equivalents and short term investments were $2.74 billion, an increase of $589 million from the prior quarter.
Notable items included:
- Cash flow from operations: $237 million
- Gross capital expenditures: $13 million
- Bond offering: $496 million
- Dividends: $93 million ($0.33 per share)
- Stock repurchases: $76 million
Business Outlook
The Company’s 90-day backlog at the beginning of the September 2017 quarter was $389 million. Based on the beginning backlog and expected turns, our results for the September 2017 quarter are forecasted to be as follows:
- Revenue: $555 to $595 million
- Gross Margin: 63% to 66% GAAP (65% to 68% excluding special items)
- EPS: $0.48 to $0.54 GAAP ($0.52 to $0.58 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 and Share Repurchase
Our Board of Directors approved a 9% increase in the quarterly dividend and a new share repurchase authorization of $1 billion. A cash dividend of $0.36 per share will be paid on September 14, 2017, to stockholders of record on August 31, 2017.
Conference Call
Maxim Integrated has scheduled a conference call on July 20 at 2:00 p.m. Pacific Time to discuss its financial results for the fourth quarter of fiscal 2017 and its business outlook. This call will be webcast by Shareholder.com and can be accessed at the Company’s website at investor.maximintegrated.com.
A presentation summarizing financial information to be discussed on the conference call is posted at investor.maximintegrated.com.
For more information visit: http://investor.maximintegrated.com/press-releases
