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    Financial Results

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    Quarterly Highlights

    • Revenue: $638 million
    • Gross Margin: 67.4% GAAP (68.5% excluding special items)
    • EPS: $0.70 GAAP ($0.75 excluding special items)
    • Fiscal second quarter revenue outlook: $570 million to $610 million
    • Increasing capital return to 125% of free cash flow in fiscal 2019 through additional share repurchases
    • Board of Directors approved new $1.5 billion share repurchase authorization

    SAN JOSE, CA.-- October 30, 2018 -- Maxim Integrated Products, Inc. (NASDAQ:MXIM) reported net revenue of $638 million for its first quarter of fiscal 2019 ended September 29, 2018, a 1% increase from the $633 million revenue recorded in the prior quarter, and an 11% increase from the same quarter of last year.

    Tunc Doluca, President and Chief Executive Officer, commented, “Our September quarter results were solid. Compared to the same quarter last year, revenue and profitability grew strongly, driven by Automotive, Consumer, Industrial and Data Center. Looking forward, we are seeing softening business conditions. However, we believe our business model enables us to be successful in any environment. Due to our strong free cash flow and positive net cash balance, we plan to return 125 percent of free cash flow to shareholders this fiscal year, by increasing the share buyback. We believe buying our shares is the best use of our cash in the current environment.”

    Fiscal Year 2019 First Quarter Results

    Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the September quarter was $0.70. The results were affected by $8 million in pre-tax special items which primarily consisted of charges related to acquisitions. GAAP earnings per share, excluding special items was $0.75. 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 first quarter of fiscal 2019, total cash, cash equivalents and short-term investments were $2.56 billion, a decrease of $63 million from the prior quarter. Notable items included:

    • Cash flow from operations: $207 million
    • Capital expenditures: $18 million
    • Dividends paid: $128 million ($0.46 per share)
    • Stock repurchases: $112 million

    Adjusted trailing twelve months free cash flow was $915 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.

    Business Outlook

    The Company’s 90-day backlog at the beginning of the December 2018 quarter was $418 million. Based on the beginning backlog and expected turns, our results for the December 2018 quarter are forecasted to be as follows:

    • Revenue: $570 million to $610 million
    • Gross Margin: 65% to 67% GAAP (66% to 68% excluding special items)
    • EPS: $0.55 to $0.61 GAAP ($0.59 to $0.65 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.

    Share Repurchases and Dividends

    Increasing capital return to 125% of free cash flow in fiscal 2019 through additional share repurchases. Our Board of Directors approved a new $1.5 billion share repurchase authorization.

    A cash dividend of $0.46 per share will be paid on December 13, 2018, to stockholders of record on November 29, 2018.

    Financial Statements



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

       

    $915 Million

    TTM Free Cash Flow at 36% of Revenue

    Analyst Coverage

    Firm Analyst
    Bank of America Merrill Lynch (US) Arya, Vivek
    Barclays Capital Inc. Curtis, Blayne P.
    Bloomberg Ho, Woo Jin
    BMO Capital Markets (Canada) Srivastava, Ambrish
    B. Riley & Co., LLC Ellis, Craig A.
    Citi Investment Research (US) Danely, Christopher
    Credit Suisse Securities (USA) LLC Pitzer, John W.
    Deutsche Bank Securities Inc. Seymore, Ross C.
    Evercore ISI Institutional Equities Muse, Christopher J.
    Goldman Sachs & Company, Inc. Hari, Toshiya
    Jefferies LLC Lipacis, Mark J.
    J.P. Morgan Securities LLC Sur, Harlan L.
    KeyBanc Capital Markets Vinh, John
    Loop Capital Markets Acree, Cody
    Macquarie Pajjuri, Srini
    MKM Partners Roy, Ruben
    Morgan Stanley & Co. LLC Hettenbach, Craig M.
    Morningstar, Inc. (Research) Colello, Brian
    Oppenheimer & Co. Inc. Schafer, Richard E.
    Raymond James Caso, Christopher
    RBC Capital Markets Wealth Management Daryanani, Amit J.
    Stifel, Nicolaus & Company, Inc. Svanberg, Tore E.
    SunTrust Robinson Humphrey, Inc. Stein, William S.
    Susquehanna Rolland, Christopher 

    Contact Investor Relations

    Kathy Ta Vice President, Investor Relations 408-601-5697 Kathy.Ta@maximintegrated.com
    Mike Chu Director, Investor Relations 408-601-3370 Michael.Chu@maximintegrated.com

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