Good News from Maxim
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Keys:
Bookings up 30%
Growth in Gross Margins (profitability)
Growth in Fiber/Telecom bookings
Monday April 29, 8:34 am Eastern Time
Press Release
SOURCE: Maxim Integrated Products, Inc.
Maxim Reports Revenues and Earnings for the Third Quarter of Fiscal 2002
SUNNYVALE, Calif.--(BUSINESS WIRE)--April 29, 2002--Maxim Integrated Products, Inc., (Nasdaq:MXIM - news) reported net revenues of $258.5 million for its fiscal third quarter ending March 30, 2002, a decrease from the $397.8 million reported for the third quarter of fiscal 2001 but up from the $247.1 million reported for the second quarter of fiscal 2002. Net income for the quarter was $66.7 million, a decrease from the $109.9 million reported last year but an increase over the $62.6 million reported for the previous quarter. Diluted earnings per share were $0.19 for the third quarter, a decrease from the $0.31 reported for the same period a year ago but up from the $0.18 reported for the second quarter of fiscal 2002.
During the quarter, the Company repurchased approximately 2.7 million shares of its common stock for $141.9 million and acquired a total of $23.1 million of capital equipment. During the fourth quarter of fiscal 2002 to date, the Company has repurchased an additional 3.0 million shares of its common stock for $160.7 million. Accounts receivable increased $13.8 million in the third quarter to $108.6 million, primarily as a result of increased revenues, while inventories decreased $6.7 million to $147.7 million.
Gross margin for the third quarter increased slightly to 70.2%, after increasing inventory reserves $2.1 million, compared to 70.1% reported for the second quarter. Research and development expense increased from the $68.6 million reported in the second quarter or 27.7% of net revenues to $69.0 million or 26.7% of net revenues. Selling, general and administrative expenses decreased from $22.9 million in the second quarter to $22.0 million in the third quarter.
Third quarter bookings were approximately $299 million, a 30% increase over the second quarter's level of $230 million. Turns orders received during the quarter were $140 million, a 12% increase over the $125 million received in the prior quarter (turns orders are customer orders that are for delivery within the same quarter and may result in revenue within the same quarter if the Company has available inventory that matches those orders). Order cancellations remained low for the second consecutive quarter. Bookings increased in all geographic regions and in all but one of the Company's business units.
Third quarter ending backlog shippable within the next 12 months was approximately $219 million, including $195 million requested for shipment in the fourth quarter of fiscal 2002. Second quarter ending backlog shippable within the next 12 months was approximately $187 million, including $170 million requested for shipment in the third quarter of fiscal 2002.
Jack Gifford, Chairman, President, and Chief Executive Officer, commented on the quarter: "Maxim's third quarter was encouraging in many respects. Bookings were up in every geographic region and in all but one of our business units. In addition, cancellations continued to fall to 5% of net bookings in the third quarter. For the first time in six quarters, we have begun to build backlog which, if continued, should improve visibility in future quarters."
Mr. Gifford continued: "Although our outlook for the fiber and telecommunications markets remains conservative, we have seen quarter over quarter bookings growth in the third quarter."
Mr. Gifford concluded: "Based on our estimate of end market consumption of our products, except for fiber and telecommunications equipment, we believe that our customers have worked through their inventories and are ordering for their near-term needs."
Certain statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risk and uncertainty. They include the Company's expectations as to the consequences of increasing backlog, the Company's assessment of the outlook for the fiber and telecommunications markets, and the Company's assessment of its customers' current ordering activities. Results could differ materially from those forecasted based upon, among other things, the Company incorrectly assessing customer end-user demand and willingness to commit to inventories and orders, and order cancellation levels; technical difficulties in bringing new products and processes to market in a timely manner; market developments that could adversely affect the growth of the mixed-signal analog market such as further declines in customer forecasts or greater than expected cyclical downturns within the mixed-signal analog segment of the semiconductor market or possible effects of capacity constraints affecting other suppliers to equipment manufacturers; and the Company being unable to sustain its successes in recruiting and retaining high-quality personnel and its successes in the markets its products are introduced in, as well as other risks described in the Company's Form 10-K for the fiscal year ended June 30, 2001.
All forward-looking statements included in this news release are made as of the date hereof, based on the information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement.
Maxim Integrated Products is a leading international supplier of quality analog and mixed-signal products for applications that require real world signal processing. |
