• Revenue: $577 million
• Gross Margin: 64.7% GAAP (65.9% excluding special items)
• EPS: $0.47 GAAP ($0.60 excluding special items)
• Fiscal third quarter revenue outlook: $520 million to $560 million

SAN JOSE, CA.-- January 29, 2019 -- Maxim Integrated Products, Inc. (NASDAQ:MXIM) reported net revenue of $577 million for its second quarter of fiscal 2019 ended December 29, 2018, a 10% decrease from the $638 million revenue recorded in the prior quarter, and a 7% decrease from the same quarter of last year. The same quarter of last year was a 14-week quarter and included revenue from the transition to sell-in accounting.

Tunc Doluca, President and Chief Executive Officer, commented, “Our December quarter results came in below expectations, due to the soft environment. However, we are encouraged to see bookings return to normal levels in recent weeks. We believe our business model enables us to be successful in any environment, and we continue to generate strong free cash flow despite current conditions.”

Fiscal Year 2019 Second Quarter Results

Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the December quarter was $0.47. The results were affected by $22 million in charges due to the impact of U.S. tax legislation and $9 million in pre-tax special items which primarily consisted of charges related to acquisitions. GAAP earnings per share, excluding special items was $0.60. 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 second quarter of fiscal 2019, total cash, cash equivalents and short-term investments were $1.96 billion, a decrease of $603 million from the prior quarter. Notable items included:

• Cash flow from operations: $224 million
• Capital expenditures: $13 million
• Bond payment: $500 million
• Dividends paid: $127 million ($0.46 per share)
• Stock repurchases: $208 million

Adjusted trailing twelve months free cash flow was $919 million, which excludes a one-time tax payment of $178 million in the fourth quarter of fiscal 2018. Free cash flow is a non-GAAP measure and is defined by net cash flow from operations less capital expenditures.

The Company’s 90-day backlog at the beginning of the March 2019 quarter was $372 million. Based on the beginning backlog and expected turns, our results for the March 2019 quarter are forecasted to be as follows:

• Revenue: $520 million to $560 million
• Gross Margin: 63% to 65% GAAP (64% to 66% excluding special items)
• EPS: $0.44 to $0.50 GAAP ($0.49 to $0.55 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 $0.46 per share will be paid on March 14, 2019, to stockholders of record on February 28, 2019.

Financial Statements

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