UPDATE 1-Maxim Integrated profit rises 15 percent
Tue May 3, 2005 04:49 PM ET
(Adds CEO comment, stock movement, expectations)
SAN FRANCISCO, May 3 (Reuters) - Maxim Integrated Products Inc. (MXIM.O: Quote, Profile, Research) , a maker of analog microchips, on Tuesday reported 15 percent rise in quarterly net income as the company saw increased design activity for its products.
Earnings in the fiscal third quarter reached $125.5 million, or 37 cents a share, compared with a year-earlier profit of $109.2 million, or 31 cents a share. Sales in the quarter, which ended on March 26, jumped to $400.2 million from $370.0 million in the same period last year.
The results were in line with a forecast the company gave on March 1 calling for earnings of about 38 cents a share and sales of about $400 million. Shares of Maxim, whose chief competitor is Linear Technology Corp. (LLTC.O: Quote, Profile, Research) , lost a penny to $36.88 in after-hours trading on Inet.
In a statement, Chief Executive Jack Gifford said Maxim saw an increase in turns orders, or orders that are booked and shipped in the same quarter, "leading us to believe that inventory levels have come further in line with consumption levels."
He added that the company expects full-year profit and cash flow to grow from 2004. Wall Street, on average, expects the company to post a fiscal year profit of $1.61 a share, compared with $1.20 in the same period last year, according to a poll of analysts by Reuters Estimates.
Maxim plans to pay employee bonuses for the remainder of the calendar year "since our stock price appreciation during the last four years has not recognized our company's performance," Gifford said in a statement. |
