Maxim Integrated Products, Inc. (NASDAQ:MXIM) reported net revenue of $606 million for its third quarter of fiscal 2014 ended March 29, 2014, a 2% decrease from the $620 million revenue recorded in the prior quarter.
Tunc Doluca, President and Chief Executive Officer, commented, "We achieved better-than-seasonal results for our mix of businesses, driven by growth in automotive, industrial and communications, as market requirements converge on the need for lower power, higher functionality, and more integrated designs. " Mr. Doluca continued, "Looking forward, we expect continued growth in these businesses, accompanied by strength in mobility."
Fiscal Year 2014 Third Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the March quarter was $0.42. Earnings per share included an intellectual property licensing income amount of $17 million, included in Interest and Other Income.
The results were affected by special items which primarily consisted of a $35 million pre-tax charge for items related to acquisitions and a $35 million benefit for income taxes. GAAP earnings per share, excluding special items was $0.43. 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 third quarter of fiscal 2014, total cash, cash equivalents and short term investments was $1.23 billion, an increase of $81 million from the prior quarter. Notable items included:
- Cash flow from operations: $212 million
- Net capital expenditures: $26 million
- Dividends: $73 million ($0.26 per share)
- Stock repurchases: $51 million
The Company's 90-day backlog at the beginning of the fourth fiscal quarter of 2014 was $413 million. Based on the beginning backlog and expected turns, results for the June 2014 quarter are expected to be as follows:
- Revenue: $635 million to $665 million
- Gross Margin: 58% to 60% GAAP (61% to 63% excluding special items)
- EPS: $0.38 to $0.42 GAAP ($0.45 to $0.49 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 June 5, 2014, to stockholders of record on May 22, 2014.