Maxim to Pay a Dividend!
This should allow the stock to be owned by more people... Maxim joins Intel in profitable chip companies that pay a dividend.
I read the CEO was not going to take a salary this year and he is a major stock holder so perhaps that explains the dividend? In any event, I like the trend.
The lower bookings and thus growth are the reason the whole sector is in the dumpster...
Amazing results biz.yahoo.com
Press Release Source: Maxim Integrated Products, Inc.
Maxim Reports Revenues and Earnings for the First Quarter of Fiscal 2003 and Declares Quarterly Dividend
Tuesday October 29, 4:01 pm ET
SUNNYVALE, Calif.--(BUSINESS WIRE)--Oct. 29, 2002--Maxim Integrated Products, Inc., (MXIM) reported net revenues of $285.9 million for its fiscal first quarter ending September 28, 2002, a 19.4% increase over the $239.4 million reported for the same quarter a year ago and a 2.1% sequential increase over the $280.1 million reported for the fourth quarter of fiscal 2002. Net income increased to $73.2 million in the first quarter, compared to $61.3 million last year, a 19.4% increase. Diluted earnings per share were $0.22 for the first quarter, a 29.4% increase over the $0.17 reported for the same period a year ago.
During the quarter, cash and short-term investments increased $22.2 million after the Company repurchased 2.0 million shares of its common stock for $69.0 million and acquired $38.7 million of capital equipment. Accounts receivable increased by $5.6 million in the first quarter to $135.4 million due primarily to the increase in net revenues, and inventories decreased $2.9 million to $136.3 million.
Gross margin for the first quarter increased to 69.5%, after increasing inventory reserves $3.0 million, compared to 68.1% reported for the fourth quarter. Research and development expense decreased from the $72.0 million reported in the fourth quarter of fiscal 2002, or 25.7% of net revenues, to $71.1 million, or 24.9% of net revenues, in the first quarter of fiscal 2003. Selling, general and administrative expenses remained relatively unchanged from the fourth quarter at $22.3 million, or 7.8% of net revenues.
First quarter bookings were approximately $270 million, a 13% decrease from the fourth quarter's level of $310 million. End market bookings for the first quarter were 11% below the fourth quarter's level. Turns orders received in the quarter were $129 million, an 8% decrease from the $140 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). Bookings decreased in all geographic locations and across most product lines.
First quarter ending backlog shippable within the next 12 months was approximately $219 million, including approximately $193 million requested for shipment in the second quarter of fiscal 2003. The Company's fourth quarter ending backlog shippable within the next 12 months was approximately $239 million, including approximately $210 million that was requested for shipment in the first quarter of fiscal 2003.
Jack Gifford, President, Chief Executive Officer, and Chairman, commented on the quarter: "Bookings during the first quarter were lower than those in the prior two quarters, indicating that third and fourth quarter bookings levels may have been in anticipation of expected growth, and not entirely reflective of demand in those quarters. 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. The level of turns orders received in the first quarter, 48% of net bookings, reflects this continued limited visibility at our customers.
"Maxim continues to be highly profitable in a challenging economic environment. As planned, gross margin improved this quarter, contributing to the improvement in operating margin to 36.9%, compared to 34.5% last quarter. We expect our operating margin to continue to improve in the second quarter as we implement a variety of cost-saving measures."
Mr. Gifford concluded: "Given the stability of the Company's financial performance, its Board of Directors has declared a quarterly cash dividend of $0.02 per share. 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. Payment will be made on November 29, 2002 to stockholders of record on November 8, 2002." |
