Pretty good call Howard... margins ARE up! This is a good co. to hold. I've made more on CSCO and MXIM over the past 5 years than anything else in the portfolio. Of course I dont own Yahoo....
Tuesday April 28, 9:31 am Eastern Time
Company Press Release
Maxim Reports Record Revenues and Earnings for the Third Quarter of
Fiscal 1998
SUNNYVALE, Calif.--(BUSINESS WIRE)--April 28, 1998--Maxim Integrated Products, Inc. (MXIM) reported record net
revenues of $145 million for the third quarter of fiscal 1998 ending March 28, 1998, compared to $111 million for the same
quarter in fiscal 1997. Net income increased to $46.1 million in Q398, compared to $35.4 million for the third quarter of fiscal
1997. Diluted income per share was $0.31 per share for Q398, compared to $0.24 per share for the same period a year ago.
During the quarter, cash and short-term investments increased by $57.4 million after purchasing $15.9 million of common
stock and $15 million in capital equipment. Net inventory increased by $2.4 million during Q398. Annualized return on
average stockholders' equity for the quarter was 32%, one of the highest in the industry today.
Third quarter ending backlog shippable within the next 12 months increased to $216 million from the $208 million reported at
the end of Q298. Seventy-three percent of the ending Q398 backlog consists of orders that were requested for shipment in
Q498 or earlier.
Net bookings in the third quarter of fiscal 1998 were below the record Q298 level but consistent with our estimates of
customer consumption of our products. We believe that customers now perceive that they have sufficient backlog orders
placed on Maxim to support their current consumption rates. We also believe that the distribution sales channels overbooked
in the first half of 1998, resulting in both reduced bookings, and cancellation of approximately $15 million of orders during
Q398. Total cancellations for the quarter were $21 million, up from $19 million in Q298.
Gross margins for the third quarter increased to 67.4%, compared to 67% in Q298. Research and development expense
increased by $1.7 million, to 12.9% of net revenues. During Q398, the Company also recorded charges of $6 million related
to reducing the carrying value of certain pieces of equipment and tooling. In addition, a $5 million increase in inventory
reserves further increased cost of sales in Q398.
Jack Gifford, Chairman, President and Chief Executive Officer, commented on the quarter: ''We are very encouraged about
our new product development activities. During the first three quarters of FY98, we introduced nearly as many new products
as we did in all of fiscal 1997. We expect to meet the new product growth objectives that we set for this year.''
Mr. Gifford continued: ''We believe that the breadth and depth of our proprietary product lines, the acceptance of our new
products, and the growth of the emergent markets in which we are investing will support our continued growth through the
remainder of fiscal 1998 and beyond.'' |
