• Revenue: $562 million
• Gross Margin: 65.2% GAAP (66.1% excluding special items)
• EPS: $0.59 GAAP ($0.61 excluding special items)
• Fiscal fourth quarter revenue outlook: $480 to $540 million

SAN JOSE, CA.-- April 28, 2020 -- Maxim Integrated Products, Inc. (NASDAQ:MXIM) reported net revenue of $562 million for its third quarter of fiscal 2020 ended March 28, 2020, a 2% increase from the $551 million revenue recorded in the prior quarter, and a 4% increase from the same quarter of last year.

“Our test operations were impacted in the last two weeks of the March quarter as precautionary measures were implemented to protect employees against the spread of COVID-19. However, solid execution by our manufacturing resulted in March quarter financials within the range of our guidance,” said Tunc Doluca, President and Chief Executive Officer. “Looking ahead to the June quarter, we expect our manufacturing operations will run at less than full capacity as we continue to safeguard employee health and expedite product shipments for our Medical customers. We anticipate revenue declines in Automotive and Consumer products, and sequential growth in Industrial as well as Communications and Data Center.”

Fiscal Year 2020 Third Quarter Results

Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the March quarter was $0.59. The results were affected by $7 million in pre-tax special items which primarily consisted of charges related to acquisitions and expenses related to COVID-19 response programs. GAAP earnings per share, excluding special items was $0.61. An analysis of GAAP versus GAAP excluding special items is provided in this press release.

Cash Flow Items

At the end of the third quarter of fiscal 2020, total cash, cash equivalents and short-term investments were $1.7 billion, down $97 million from the prior quarter. Notable items included:

• Cash flow from operations: $210 million
• Capital expenditures: $17 million
• Dividends paid: $129 million ($0.48 per share)
• Stock repurchases: $157 million

Trailing twelve months free cash flow was $744 million. Free cash flow is a non-GAAP measure and is defined by cash flow from operations less capital expenditures.

Business Outlook

The Company’s 90-day backlog at the beginning of the June 2020 quarter was $509 million. Based on the beginning backlog, expected turns and constraints on our manufacturing operations, our results for the June 2020 quarter are forecasted to be as follows:

• Revenue: $480 to $540 million
• Gross Margin: 64.5% to 66.5% GAAP (65.5% to 67.5% excluding special items)
• EPS: $0.40 to $0.54 GAAP ($0.43 to $0.57 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 $0.48 per share will be paid on June 12, 2020, to stockholders of record on May 28, 2020.

Financial Statements

For further information and disclosures, please see Maxim's press release.