Maxim Announces 6% Increase in 4th Quarter 2005 to 1st Quarter 2006 Revenues, 15% Increase in Bookings and a 25% Increase in Dividend.SUNNYVALE Sunnyvale, city (1990 pop. 117,229), Santa Clara co., W Calif., near San Francisco; settled 1849, inc. 1912. A city in Silicon Valley, its many manufactures include semiconductors; machinery and instruments; electrical, electronic, and aerospace products; , Calif. -- Maxim Maxim (măk`sĭm), name of a family of inventors and munition makers. Sir Hiram Stevens Maxim, 1840–1916, was born near Sangerville, Maine. Integrated Products, Inc., (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :MXIM) reported bookings for its first quarter ended September September: see month. 24, 2005 of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $459 million, a 15% increase from the fourth quarter's level of $398 million. Turns orders received in the quarter were approximately $208 million, a 22% increase from the $171 million received in the prior quarter. Bookings increased in all geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. locations. First quarter ending backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. shippable within the next 12 months was approximately $330 million, including approximately $296 million requested for shipment in the second quarter of fiscal 2006. The Company's fourth quarter ending backlog shippable within the next 12 months was approximately $313 million, including approximately $273 million that was requested for shipment in the first quarter of fiscal 2006. Net revenues were $424.4 million for the first quarter, a 6.0% increase over the $400.4 million reported for the fourth quarter of fiscal 2005. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income excluding stock based compensation expense for the quarter was $133.2 million or $0.39 diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of and GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net income was $105.4 million including stock based compensation or $0.31 diluted earnings per share. This compares to $126.1 million or $0.37 diluted earnings per share reported for the fourth quarter of fiscal 2005. During the first quarter of fiscal 2006, the Company adopted FAS 123R. As a result $41.5 million of non-cash stock based compensation expense was recorded in the first quarter. Also because of the provisions of FAS 123R, the Treasury Stock Method for computing computing - computer fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. shares was modified mod·i·fy v. mod·i·fied, mod·i·fy·ing, mod·i·fies v.tr. 1. To change in form or character; alter. 2. to incorporate stock based compensation, which resulted in an increase of approximately 2.2 million shares in our fully diluted shares, as a result of adding additional Black-Scholes non-cash option expense in the Treasury Stock Method calculation. No additional options, shares or share value contributed to this 2.2 million additional shares. Pro forma gross margin (excluding stock based compensation expense) for the first quarter was 71.2% and GAAP gross margin was 68.7% including stock based compensation of $10.5 million. This is a decrease from the 72.0% reported for the fourth quarter of fiscal 2005. Pro forma research and development expense (excluding stock based compensation expense) was $90.6 million or 21.3% of net revenues in the first quarter and GAAP research and development expense was $117.1 million or 27.6% of net revenue including stock based compensation of $26.5 million. This compares to $84.9 million or 21.2% of net revenues in the fourth quarter of fiscal 2005. The increase in pro forma research and development expense in the first quarter was due to $5.7 million for hiring of additional engineers and related spending to support the Company's new product development efforts. Pro forma selling, general and administrative expense (excluding stock based compensation expense) increased from $23.4 million in the fourth quarter or 5.8% of net revenues to $24.3 million in the first quarter or 5.7% of net revenues while GAAP selling, general and administrative expense increased to $28.9 million or 6.8% of net revenue including stock based compensation of $4.5 million. During the quarter, cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments increased $110.4 million after the Company repurchased 1.9 million shares of its common stock for $81.3 million, paid dividends of $32.8 million, and acquired $18.0 million in capital equipment. Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying increased $20.6 million in the first quarter to $212.9 million due to the increase in net revenues. Pro forma inventories (excluding stock based compensation expense) increased $7.8 million compared to $8.3 million in the fourth quarter of fiscal 2005. GAAP reported inventories increased $15.5 million to $183.2 million including the effect of recording $7.7 million of inventory for stock based compensation. The following table reconciles free cash flow to net income, and it depicts the Company's free cash flow for the three months ended September 24, 2005 and September 25, 2004.
RECONCILIATION OF FREE CASH FLOW TO NET INCOME
For the three For the three
(in millions, except per share data) months ended months ended
9/24/05 9/25/04
------------- -------------
Net income, as GAAP reported $105.4 $144.5
Add adjustments to reconcile net income to
net cash provided by operating activities:
Stock based compensation 41.5 -
Depreciation, amortization, and other 20.6 18.7
Tax benefit related to stock plans 5.6 23.8
Accounts receivable (20.6) (3.3)
Accounts payable 8.4 (3.9)
Inventories (7.8) (18.0)
Income taxes payable 19.5 25.5
Other assets and liabilities 3.5 21.0
------------- -------------
Total of adjustments 70.7 63.8
------------- -------------
Cash generated by operating activities, as
reported 176.1 208.3
Adjustments:
Capital expenditures (18.0) (66.3)
Additional tax benefit related to stock
plans 16.3 -
------------- -------------
Free cash flow $174.4 $142.0
============= =============
Fully diluted shares, as GAAP reported 345 345
Free cash flow per fully diluted share $0.51 $0.41
============= =============
Fully diluted earnings per share, as
GAAP reported $0.31 $0.42
============= =============
Fully diluted shares, as pro forma reported 343 345
Free cash flow per pro forma diluted share $0.51 $0.41
============= =============
Fully diluted pro forma earnings per share $0.39 $0.42
============= =============
Free cash flow should not be construed as a substitute for net
income or as a better measure of liquidity than cash flow from
operating activities, both of which are determined in accordance
with Generally Accepted Accounting Principles in the United States
(GAAP). Free cash flow excludes components that are significant in
understanding and assessing the Company's results of operations
and cash flows. In addition, free cash flow is not a term defined
by GAAP and as a result the Company's measure of free cash flow
might not be comparable to similarly titled measures used by other
companies.
Free cash flow is used by management to evaluate, assess, and
benchmark the Company's operating results, and the Company
believes that free cash flow is relevant and useful information
that is often widely used by analysts, investors, and other
interested parties in the semiconductor industry. Accordingly, the
Company is disclosing this information to permit a comprehensive
and objective analysis of the Company's operating performance, to
provide an additional measure of performance and liquidity, and to
provide additional information with respect to the Company's
ability to meet future share repurchases, dividend payments, and
working capital requirements.
Jack Gifford, Chairman, President, and Chief Executive Officer, commented: "Early signs that our customers' inventory accumulation Accumulation 1) In the context of individual investing, it is the process of contributing cash to invest in securities over a period of time in order to build a portfolio of desired value. Dividends and capital gains are also reinvested during this process. of fiscal 2005 had been dissipated dis·si·pat·ed adj. 1. Intemperate in the pursuit of pleasure; dissolute. 2. Wasted or squandered. 3. Irreversibly lost. Used of energy. by the end of our June June: see month. quarter were supported by our bookings in Q1. As expected, first quarter bookings were significantly above the fourth quarter's level as customers started placing orders to meet their current consumption levels." Mr. Gifford continued: "Bookings were very broad with most of our end market segments exhibiting healthy increases in orders." Mr. Gifford added: "Company GAAP to pro forma result comparisons clearly points out the confusion and distortions caused by introducing non-cash option expenses to profit and share calculations." Mr. Gifford concluded: "The Company's Board of Directors has declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a cash dividend for the second quarter of fiscal 2006 of $0.125 per share, an increase of 25%. Payment will be made on November November: see month. 29, 2005 to stockholders of record on November 14, 2005." Certain statements in this press release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements involve risk and uncertainty. They include statements regarding the Company's profitability and business outlook and the Company's belief that the early signs of the inventory accumulation of fiscal 2005 had been dissipated by the end of the Company's June quarter and were supported by the Company's bookings in the first quarter of fiscal 2006. Actual results could differ materially from those forecasted based upon, among other things, general market conditions and market developments that could adversely affect the growth of the mixed-signal analog market, such as declines in customer forecasts or greater than expected cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. downturns within the mixed-signal analog segment of the semiconductor market, as well as other risks described in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended June 25, 2005. All forward-looking statements included in this news release are made as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , 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 See DSP. .
----------------------------------------------------------------------
Reconciliation of GAAP to Pro Forma Consolidated Balance Sheets
----------------------------------------------------------------------
9/24/2005
(unaudited)
--------------------------------------
(In thousands) GAAP Adjustments (1) Pro Forma
----------------------------------------------------------------------
Assets
Current assets:
Cash and cash equivalents $ 202,800 $ - $ 202,800
Short-term investments 1,382,313 - 1,382,313
--------------------------------------------------------------------
Total cash, cash equivalents
and short-term investments 1,585,113 - 1,585,113
--------------------------------------------------------------------
Accounts receivable, net 212,949 - 212,949
Inventories 183,243 (7,729) 175,514
Deferred tax assets and
other current assets 144,281 (13,599) 130,682
--------------------------------------------------------------------
Total current assets 2,125,586 (21,328) 2,104,258
--------------------------------------------------------------------
Property, plant and equipment,
at cost, less accumulated
depreciation 999,788 - 999,788
Other assets 28,850 - 28,850
--------------------------------------------------------------------
Total assets $3,154,224 $(21,328) $3,132,896
----------------------------------------------------------------------
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable $ 64,695 $ - $ 64,695
Accrued expenses 191,629 (314) 191,315
Deferred income on shipments
to distributors 19,247 - 19,247
Income taxes payable 52,701 - 52,701
--------------------------------------------------------------------
Total current liabilities 328,272 (314) 327,958
--------------------------------------------------------------------
Deferred tax liabilities 128,196 - 128,196
--------------------------------------------------------------------
Total liabilities 456,468 (314) 456,154
--------------------------------------------------------------------
Stockholders' equity:
Common stock 178,043 (48,874) 129,169
Retained earnings 2,528,293 27,860 2,556,153
Accumulated other
comprehensive loss (8,580) - (8,580)
--------------------------------------------------------------------
Total stockholders' equity 2,697,756 (21,014) 2,676,742
--------------------------------------------------------------------
Total liabilities and
stockholders' equity $3,154,224 $(21,328) $3,132,896
----------------------------------------------------------------------
6/25/2005
(unaudited)
--------------------------------------
(In thousands) GAAP Adjustments (2) Pro Forma
----------------------------------------------------------------------
Assets
Current assets:
Cash and cash equivalents $ 185,551 $ - $ 185,551
Short-term investments 1,289,141 - 1,289,141
--------------------------------------------------------------------
Total cash, cash equivalents
and short-term investments 1,474,692 - 1,474,692
--------------------------------------------------------------------
Accounts receivable, net 192,345 - 192,345
Inventories 167,779 - 167,779
Deferred tax assets and
other current assets 138,950 - 138,950
--------------------------------------------------------------------
Total current assets 1,973,766 - 1,973,766
--------------------------------------------------------------------
Property, plant and equipment,
at cost, less accumulated
depreciation 1,001,465 - 1,001,465
Other assets 28,840 - 28,840
--------------------------------------------------------------------
Total assets $3,004,071 $ - $3,004,071
----------------------------------------------------------------------
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable $ 56,266 $ - $ 56,266
Accrued expenses 175,539 - 175,539
Deferred income on shipments
to distributors 20,225 - 20,225
Income taxes payable 33,173 - 33,173
--------------------------------------------------------------------
Total current liabilities 285,203 - 285,203
--------------------------------------------------------------------
Deferred tax liabilities 134,686 - 134,686
--------------------------------------------------------------------
Total liabilities 419,889 - 419,889
--------------------------------------------------------------------
Stockholders' equity:
Common stock 134,998 - 134,998
Retained earnings 2,455,714 - 2,455,714
Accumulated other
comprehensive loss (6,530) - (6,530)
--------------------------------------------------------------------
Total stockholders' equity 2,584,182 - 2,584,182
--------------------------------------------------------------------
Total liabilities and
stockholders' equity $3,004,071 $ - $3,004,071
----------------------------------------------------------------------
(1) Adjustments consist of stock-based compensation and the related
tax effect under FAS 123(R).
FAS 123(R) requires the Company to estimate the cost of all forms
of employee stock-based compensation, including employee stock
options and awards under our employee stock purchase plan, and to
record a commensurate expense (which is subjective in nature) in
the income statement. We are showing pro forma (non-GAAP)
consolidated balance sheets, which are adjusted to reflect the
GAAP results to exclude all stock-based compensation expense. This
pro forma presentation is given in part to enhance the
understanding of the Company's historical financial performance
and comparability between periods in light of a change in
accounting standards particularly since the Company has not
included stock-based compensation as an expense in its financial
statements before and most companies have not yet adopted FAS
123(R). In addition, the Company strongly believes that the pro
forma presentation to exclude stock-based compensation is relevant
and useful information that will be widely used by analysts,
investors, and other interested parties in the semiconductor
industry. Accordingly, the Company is disclosing this information
to permit additional analysis of the Company's performance.
(2) As of June 25, 2005, no stock-based compensation was recorded.
----------------------------------------------------------------------
Reconciliation of GAAP to Pro Forma Consolidated Statements of Income
----------------------------------------------------------------------
(In thousands Three Months Ended Three Months Ended
except per 9/24/2005 9/25/2004
share data) (unaudited) (unaudited)
---------------------------- ---------------------------
GAAP Adjust- Pro Forma GAAP Adjust- Pro Forma
ments ments
(1) (2)
------------------------------------------ ---------------------------
Net revenues $424,364 $ - $424,364 $435,067 $ - $435,067
Cost of goods
sold 132,615 (10,454) 122,161 120,252 - 120,252
------------------------------------------ ---------------------------
Gross
margin 291,749 10,454 302,203 314,815 - 314,815
68.7% 71.2% 72.4% 72.4%
----------------------------------------- ---------------------------
Operating
expenses:
Research and
development 117,053 (26,478) 90,575 79,097 - 79,097
Selling,
general and
adminis-
trative 28,865 (4,527) 24,338 25,062 - 25,062
------------------------------------------ ---------------------------
Operating
income 145,831 41,459 187,290 210,656 - 210,656
34.4% 44.1% 48.4% 48.4%
Interest
income, net 10,967 - 10,967 5,729 - 5,729
------------------------------------------ ---------------------------
Income
before
provision
for income
taxes 156,798 41,459 198,257 216,385 - 216,385
Provision for
income taxes 51,430 13,599 65,029 71,840 - 71,840
------------------------------------------ ---------------------------
Net income $105,368 $ 27,860 $133,228 $144,545 $ - $144,545
------------------------------------------ ---------------------------
Basic
earnings per
share $ 0.32 $ 0.08 $ 0.41 $ 0.45 $ - $ 0.45
------------------------------------------ ---------------------------
Shares used
in the
calculation
of basic
earnings per
share 327,959 - 327,959 324,668 - 324,668
------------------------------------------ ---------------------------
Diluted
earnings per
share $ 0.31 $ 0.08 $ 0.39 $ 0.42 $ - $ 0.42
------------------------------------------ ---------------------------
Shares used
in the
calculation
of diluted
earnings per
share 344,860 (2,218) 342,642 344,875 - 344,875
------------------------------------------ ---------------------------
Dividends
declared per
share $ 0.10 $ - $ 0.10 $ 0.08 $ - $ 0.08
------------------------------------------ ---------------------------
(1) Adjustments consist of stock-based compensation, related tax
effect, and the impact on the Treasury Stock Method under FAS
123(R).
FAS 123(R) requires the Company to estimate the cost of all forms
of employee stock-based compensation, including employee stock
options and awards under our employee stock purchase plan, and to
record a commensurate expense (which is subjective in nature) in
the income statement. We are showing pro forma (non-GAAP)
consolidated statements of income, which are adjusted to reflect
the GAAP results to exclude all stock-based compensation expense.
This pro forma presentation is given in part to enhance the
understanding of the Company's historical financial performance
and comparability between periods in light of a change in
accounting standards particularly since the Company has not
included stock-based compensation as an expense in its financial
statements before and most companies have not yet adopted FAS
123(R). In addition, the Company strongly believes that the pro
forma presentation to exclude stock-based compensation is relevant
and useful information that will be widely used by analysts,
investors, and other interested parties in the semiconductor
industry. Accordingly, the Company is disclosing this information
to permit additional anlaysis of the Company's performance.
(2) For the three months ended September 25, 2004, no stock-based
compensation was recorded.
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion