Maxim Integrated Products, Inc. (NASDAQ:MXIM) http://www.maximintegrated.com reported net revenue of $620 million for its second quarter of fiscal 2014 ended December 28, 2013, a 6% increase from the $585 million revenue recorded in the prior quarter. Reported revenue included $35 million from Volterra. Excluding Volterra, revenue was flat compared to the prior quarter.
Tunc Doluca, President and Chief Executive Officer, commented, "We achieved good revenue performance in a soft quarter for our industry." Mr. Doluca continued, "We are pleased with our diversification efforts, with strength in both communication and industrial businesses, the addition of Volterra and broadening of our mobility business."
Fiscal Year 2014 Second Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the December quarter was $0.17. The results were negatively affected by the following pre-tax charges:
- $40 million for Volterra acquisition-related items
- $13 million for items related to prior acquisitions
- $5 million for impairment of long-lived assets
- $18 million for warranty expense
GAAP earnings per share, excluding special items was $0.36, after a $0.05 reduction due to the warranty expense. In addition, the warranty expense caused our GAAP gross margin, excluding special items to be 2.9 percentage points lower for the quarter. An analysis of GAAP versus GAAP excluding special items is provided in the last table of this press release. Warranty expense is not considered a special item and is not included in the analysis.
Cash Flow Items
At the end of the second quarter of fiscal 2014, total cash, cash equivalents and short term investments was $1.15 billion, an increase of $115 million from the prior quarter. Notable items included:
- Cash flow from operations: $234 million
- Net capital expenditures: $46 million
- Dividends: $73 million ($0.26 per share)
- Stock repurchases: $59 million
- Volterra acquisition: $454 million
- Proceeds from debt issuance: $494 million
The Company's 90-day backlog at the beginning of the third fiscal quarter of 2014 was $366 million. Based on the beginning backlog and expected turns, results for the March 2014 quarter are expected to be as follows:
- Revenue: $590 million to $620 million
- Gross Margin: 56% to 58% GAAP (60% to 62% excluding special items)
- EPS: $0.28 to $0.32 GAAP ($0.37 to $0.41 excluding special items)
Maxim Integrated's business outlook does not include the potential impact of any restructuring activity or mergers, acquisitions, or other business combinations that may be completed during the quarter.
A cash dividend of $0.26 per share will be paid on March 6, 2014, to stockholders of record on February 20, 2014.
The full report is available at www.maximintegrated.com.