MXIM ($28.50-$30-?) PE=40... meets goals for first quarter
Chipmaker declares quarterly dividend of 2 cents a share
By Chris Kraeuter, CBS.MarketWatch.com
Last Update: 7:04 PM ET Oct. 29, 2002
SUNNYVALE, Calif. (CBS.MW) -- Maxim Integrated Products met Wall Street's expectations for the fiscal first quarter, but said orders declined in all geographic regions and across most product lines.
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During the current quarter, Maxim said its revenue should be flat while earnings and orders should increase slightly, on a sequential basis.
Maxim (MXIM: news, chart, profile) shares rose 2.8 percent to $30.25 on Island ECN after ending the regular session down 3.5 percent at $29.43.
"Although design-in activities at our customers remain vigorous, customers do not yet have improved visibility of the demand for their products and thus continue to place orders for the near term," said Chief Executive Jack Gifford in a statement.
Orders placed during the first six months of this year were due more to anticipated growth than actual demand, said Gifford, according to the statement.
Maxim declared a quarterly dividend - its first -- of 2 cents a share for shareholders of record on Nov. 8 to be paid on Nov. 29. "The company is fortunate that its earnings and strong cash position permit the payment of a dividend without impairing our cash reserves or continued growth," Gifford said.
For the quarter ended in September, Maxim reported net income of $73.2 million, or 22 cents a share, on revenue of $285.9 million. During the same quarter last year, Maxim earned $61.3 million, or 17 cents a share, on revenue of $239.4 million.
Analysts surveyed by Thomson First Call expected earnings of 22 cents a share on revenue of $287 million, on average.
Gross margin increased to 69.5 percent from 68.1 percent during the previous quarter while operating margin rose to 36.9 percent from 34.5 percent.
Orders fell 11 percent to $270 million from $310 million previously and orders placed during the quarter for delivery during the quarter, called turns orders, fell 8 percent.
Maxim did not provide specific financial targets for its second quarter during a conference call but CEO Gifford said, "Revenue would be about equal to last quarter's revenue and earnings would be slightly above last quarter." Bookings are expected to increase.
Analysts had expected second quarter earnings of 23 cents a share on revenue of $299 million.
"We don't like to disappoint people," Gifford said.
Operating margin is expected to improve during the current quarter due to cost cuts. |
