Last10K.com

Maxim Integrated Products Inc (MXIM) SEC Filing 8-K Material Event for the period ending Tuesday, July 27, 2021

Maxim Integrated Products Inc

CIK: 743316 Ticker: MXIM

image0a27.jpg

Press Release

Contact
Kathy Ta
Vice President, Investor Relations
(408) 601-5697

MAXIM INTEGRATED REPORTS RESULTS FOR THE FOURTH QUARTER OF FISCAL 2021

Revenue: $720 million
Gross Margin: 67.2% GAAP (67.7% excluding special items)
EPS: $0.93 GAAP ($0.91 excluding special items)

SAN JOSE, CA – July 27, 2021 – Maxim Integrated Products, Inc. (NASDAQ:MXIM) reported net revenue of $720 million for its fourth quarter of fiscal 2021 ended June 26, 2021, an 8% increase from the $665 million revenue recorded in the prior quarter, and a 32% increase from the same quarter of last year.

“Maxim delivered record revenue in the June quarter, with sequential growth in all end markets, led by Industrial, Automotive, and Comms & Data Center. On the merger front, we are seeking final regulatory clearance for our combination with Analog Devices,” said Tunc Doluca, President and Chief Executive Officer.






1


Fiscal Year 2021 Fourth Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the June quarter was $0.93, which benefited from a $13 million tax reserve release. The results were affected by $6 million in pre-tax special items which primarily consisted of $4 million of expenses related to prior acquisitions and $2 million in charges related to our upcoming combination with Analog Devices. GAAP earnings per share, excluding special items was $0.91. An analysis of GAAP versus GAAP excluding special items is provided in this press release.

Cash Flow Items
At the end of the fourth quarter of fiscal 2021, total cash, cash equivalents and short-term investments were $2.3 billion, up $257 million from the prior quarter.
Notable items included:
Cash flow from operations: $280 million
Capital expenditures: $20 million

Trailing twelve months free cash flow was $859 million. Free cash flow is a non-GAAP measure and is defined by cash flow from operations less capital expenditures.

Dividend and Stock Repurchase
Per the terms of the Merger Agreement between the Company and Analog Devices, we will not declare a dividend that would have been paid in September 2021 and our stock repurchase program remains suspended.
2


Due to the pending merger with Analog Devices, Maxim Integrated will not be hosting a quarterly earnings conference call and has suspended the practice of providing forward-looking guidance. Investors are requested to review our Investor Relations website for the quarterly financial highlights and SEC filings for the latest updates on the pending transaction with Analog Devices.





















3


CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months EndedYear Ended
June 26,
2021
March 27,
2021
June 27,
2020
June 26,
2021
June 27,
2020
(in thousands, except per share data)
Net revenues$719,855 $665,029 $545,369 $2,632,529 $2,191,395 
Cost of goods sold
235,830 222,144 183,001 872,183 758,743 
Gross margin484,025 442,885 362,368 1,760,346 1,432,652 
Operating expenses:
Research and development114,834 109,228 110,173 454,330 440,166 
Selling, general and administrative81,071 76,544 72,893 320,722 296,722 
Intangible asset amortization846 846 810 3,554 3,078 
Severance and restructuring expenses 1,139 155 678 13,434 5,363 
Other operating expenses (income), net 2,798 8,848 (173)22,606 929 
Total operating expenses 200,688 195,621 184,381 814,646 746,258 
Operating income 283,337 247,264 177,987 945,700 686,394 
Interest and other income (expense), net (5,723)(2)(8,488)(15,964)(8,298)
Income before taxes 277,614 247,262 169,499 929,736 678,096 
Provision for (benefit from) income taxes (1)(2)
23,875 27,199 (37,799)102,475 23,402 
Net income $253,739 $220,063 $207,298 $827,261 $654,694 
Earnings per share:
Basic$0.95 $0.82 $0.78 $3.09 $2.43 
Diluted$0.93 $0.81 $0.77 $3.05 $2.41 
Shares used in the calculation of earnings per share:
Basic268,160 267,892 266,639 267,546 269,341 
Diluted271,445 271,396 268,777 270,872 272,028 
  
Dividends paid per share$— $— $0.48 $0.48 $1.92 
SCHEDULE OF SPECIAL ITEMS
(Unaudited)
Three Months EndedYear Ended
June 26,
2021
March 27,
2021
June 27,
2020
June 26,
2021
June 27,
2020
(in thousands)
Cost of goods sold:
Intangible asset amortization $3,047 $4,430 $3,528 $17,408 $12,860 
Merger-related expenses(3)
— — 2,394 — 
Cost of COVID-19 response programs609 638 1,591 2,750 3,616 
 Total$3,656 $5,068 $5,119 $22,552 $16,476 
Operating expenses:
Merger-related expenses(3)
$2,058 $2,546 $— 26,617 $— 
Intangible asset amortization846 846 810 3,553 3,078 
Severance and restructuring1,139 155 678 13,434 5,363 
Other operating expenses (income), net831 6,302 
(3)
(173)7,436 928 
 Total$4,874 $9,849 $1,315 $51,040 $9,369 
Interest and other expense (income), net $(2,878)$(7,359)$1,484 $(15,903)$(541)
Total$(2,878)$(7,359)$1,484 $(15,903)$(541)
Provision for (benefit from) for income taxes:
Impact of U.S. tax legislation (1)
$— $— $6,486 $— $6,486 
Impact of income tax audit settlements (2)
— — (51,197)— (51,197)
 Total$— $— $(44,711)$— $(44,711)
(1) Includes effect of U.S. tax legislation enacted on December 22, 2017.
(2) Includes effect of income tax audit settlements.
(3) Includes ADI merger related expenses such as accelerated stock-based compensation expense resulting from the acceleration of certain RSAs and RSUs, and other legal and professional services.

4


CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 26,
2021
March 27,
2021
June 27,
2020
(in thousands)
ASSETS
Current assets:
Cash and cash equivalents$2,291,399 $2,033,973 $1,578,670 
Short-term investments— — 35,536 
Total cash, cash equivalents and short-term investments2,291,399 2,033,973 1,614,206 
Accounts receivable, net658,829 571,042 404,778 
Inventories237,414 242,343 259,626 
Other current assets30,643 27,440 39,219 
Total current assets3,218,285 2,874,798 2,317,829 
Property, plant and equipment, net554,339 543,848 550,406 
Intangible assets, net66,998 70,891 87,959 
Goodwill562,540 562,541 562,540 
Other assets120,937 120,149 110,569 
TOTAL ASSETS$4,523,099 $4,172,227 $3,629,303 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable$129,710 $102,263 $91,982 
Price adjustment and other revenue reserves259,411 214,366 148,916 
Income taxes payable49,568 53,694 43,457 
Accrued salary and related expenses150,656 128,553 126,751 
Accrued expenses47,967 35,627 42,228 
Total current liabilities637,312 534,503 453,334 
Long-term debt995,460 995,100 994,022 
Income taxes payable343,964 351,738 385,072 
Other liabilities130,423 141,721 139,418 
Total liabilities2,107,159 2,023,062 1,971,846 
Stockholders' equity:
Common stock and capital in excess of par value269 268 266 
Additional paid-in capital58,055 47,801 — 
Retained earnings2,370,900 2,117,161 1,671,786 
Accumulated other comprehensive loss(13,284)(16,065)(14,595)
Total stockholders' equity2,415,940 2,149,165 1,657,457 
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY$4,523,099 $4,172,227 $3,629,303 


5


CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three months endedYear Ended
June 26,
2021
March 27,
2021
June 27,
2020
June 26,
2021
June 27,
2020
(in thousands, except per share data)
Cash flows from operating activities:
Net income$253,739 $220,063 $207,298 $827,261 $654,694 
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation20,176 20,878 23,290 107,993 95,431 
Depreciation and amortization23,564 24,552 36,384 96,456 108,533 
Deferred taxes(4,047)1,601 14,386 (5,331)8,994 
In Process Research and Development written-off— — — 1,220 — 
Loss from sale of property, plant and equipment(611)124 557 (260)1,191 
Fair value contingent consideration— 5,835 — 5,835 — 
Other Adjustments(95)2,413 2,127 1,745 11,353 
Changes in assets and liabilities:
Accounts receivable(87,794)(85,236)(24,078)(254,229)(42,335)
Inventories4,890 18,950 (34,562)21,896 (8,671)
Other assets(6,759)(4,875)(25,769)(17,343)(86,299)
Accounts payable17,384 (719)5,405 22,187 7,594 
Price adjustment and other revenue reserves45,052 34,118 37,681 110,673 48,426 
Income taxes payable(11,900)8,021 (45,855)(34,997)(74,814)
All other accrued liabilities26,211 25,715 15,465 41,154 76,758 
Net cash provided by operating activities279,810 271,440 212,329 924,260 800,855 
Cash flows from investing activities:
Purchases of property, plant and equipment(19,500)(16,229)(15,680)(64,942)(67,049)
Proceeds from sales of property, plant and equipment11 16 124 94 392 
Proceeds from sales of available-for-sale securities— — 1,290 1,500 1,290 
Proceeds from maturity of available-for-sale securities— 8,876 10,734 33,901 104,286 
Payment in connection with business acquisition, net of cash acquired— — (69,270)— (69,270)
Purchases of investments in privately-held companies— (1,235)(1,840)(1,345)(1,960)
Proceeds from sale of investments in privately-held companies242 — 205 281 378 
Other investing activities— — — (116)
Net cash provided by (used in) investing activities(19,247)(8,572)(74,435)(30,511)(32,049)
Cash flows from financing activities:
Contingent consideration paid— (10,000)— (10,000)(8,000)
Net issuance of restricted stock units(9,964)(15,932)(6,741)(61,880)(35,877)
Proceeds from stock options exercised82 76 2,240 2,965 18,870 
Issuance of common stock under employee stock purchase program— — 23,725 18,498 42,260 
Repurchase of common stock— — (82,299)(9,201)(440,811)
Dividends paid— — (128,058)(128,147)(517,162)
Net cash used in financing activities(9,882)(25,856)(191,133)(187,765)(940,720)
Net increase (decrease) in cash, cash equivalents and restricted cash250,681 237,012 (53,239)705,984 (171,914)
Cash, cash equivalents and restricted cash
Beginning of period$2,040,731 $1,803,719 $1,638,667 $1,585,428 $1,757,342 
End of period$2,291,412 $2,040,731 $1,585,428 $2,291,412 1,585,428 
Total cash, cash equivalents, and short-term investments$2,291,399 $2,033,973 $1,614,206 2,291,399 1,614,206 
Cash, cash equivalents and restricted cash:
Cash and cash equivalents$2,291,399 $2,033,973 $1,578,670 2,291,399 1,578,670 
Restricted cash in Other assets13 6,758 6,758 13 6,758 
Total cash, cash equivalents and restricted cash$2,291,412 $2,040,731 $1,585,428 $2,291,412 $1,585,428 

6


ANALYSIS OF GAAP VERSUS GAAP EXCLUDING SPECIAL ITEMS DISCLOSURES
(Unaudited)
Three Months EndedYear Ended
June 26,
2021
March 27,
2021
June 27,
2020
June 26,
2021
June 27,
2020
(in thousands, except per share data)
Reconciliation of GAAP gross profit to GAAP gross profit excluding special items:
GAAP gross profit$484,025 442,885 362,368 $1,760,346 1,432,652 
GAAP gross profit %67.2 %66.6 %66.4 %66.9 %65.4 %
Special items:
Intangible asset amortization 3,047 4,430 3,528 17,408 12,860 
Merger-related expenses(1)
— — — 2,394 — 
Cost of COVID-19 response programs609 638 1,591 2,750 3,616 
Severance and restructuring— — — — — 
Total special items3,656 5,068 5,119 22,552 16,476 
 GAAP gross profit excluding special items$487,681 $447,953 $367,487 $1,782,898 $1,449,128 
 GAAP gross profit % excluding special items67.7 %67.4 %67.4 %67.7 %66.1 %
Reconciliation of GAAP operating expenses to GAAP operating expenses excluding special items:
GAAP operating expenses$200,688 195,621 184,381 $814,646 746,258 
Special items:
Merger-related expenses(1)
2,058 2,546 — 26,617 — 
Intangible asset amortization846 846 810 3,553 3,078 
Severance and restructuring 1,139 155 678 13,434 5,363 
Other operating expenses (income), net 831 6,302 (173)7,436 928 
 Total special items4,874 9,849 1,315 51,040 9,369 
 GAAP operating expenses excluding special items$195,814 $185,772 $183,066 $763,606 $736,889 
Reconciliation of GAAP net income to GAAP net income excluding special items:
GAAP net income $253,739 $220,063 $207,298 $827,261 $654,694 
Special items:
Intangible asset amortization3,893 5,276 4,338 20,961 15,938 
Merger-related expenses(1)
2,058 2,546 — 29,011 — 
Cost of COVID-19 response programs609 638 1,591 2,750 3,616 
Severance and restructuring 1,139 155 678 13,434 5,363 
Other operating expenses (income), net 831 6,302 (173)7,436 928 
Interest and other expense (income), net (2,878)(7,359)1,484 (15,903)(541)
 Pre-tax total special items5,652 7,558 7,918 57,689 25,304 
Other income tax effects and adjustments (2)
(12,950)(5,928)(14,378)(24,765)(19,668)
Impact of U.S. tax legislation (3)
— — 6,486 — 6,486 
Impact of income tax audit settlements (4)
— — (51,197)— (51,197)
 GAAP net income excluding special items$246,441 $221,693 $156,127 $860,185 $615,619 
 GAAP net income per share excluding special items:
Basic$0.92 $0.83 $0.59 $3.22 $2.29 
Diluted$0.91 $0.82 $0.58 $3.18 $2.26 
Shares used in the calculation of earnings per share excluding special items:
Basic268,160 267,892 266,639 267,546 269,341 
Diluted271,445 271,396 268,777 270,872 272,028 
(1) Includes ADI merger related expenses such as accelerated stock-based compensation expense resulting from the acceleration of certain RSAs and RSUs, and other legal professional services.
(2) Includes tax effect of pre-tax special items and miscellaneous tax adjustments.
(3) Includes effect of U.S. tax legislation enacted on December 22, 2017.
(4) Includes effect of income tax audit settlements.

7


Non-GAAP Measures
To supplement the consolidated financial results prepared under GAAP, Maxim Integrated uses non-GAAP measures which are adjusted from the most directly comparable GAAP results to exclude special items related to the cost of COVID-19 response programs; ADI merger-related expenses; intangible asset amortization; severance and restructuring; other operating expenses (income), net; interest and other expense (income), net; and other income tax effects and adjustments. We defined free cash flow as net cash provided from operations less gross capital expenditures. Management uses these non-GAAP measures internally to make strategic decisions, forecast future results and evaluate Maxim Integrated’s current performance. Many analysts covering Maxim Integrated use non-GAAP measures as well. Given management’s use of these non-GAAP measures, Maxim Integrated believes these measures are important to investors in understanding Maxim Integrated’s current and future operating results as seen through the eyes of management. In addition, management believes these non-GAAP measures are useful to investors in enabling them to better assess changes in Maxim Integrated’s core business across different time periods. These non-GAAP measures are not in accordance with or an alternative to GAAP financial data and may be different from non-GAAP measures used by other companies. Because non-GAAP financial measures are not standardized it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures, even if they have similar names. The non-GAAP measures displayed in the table above include the following:







8


GAAP Gross Profit Excluding Special Items
The use of GAAP gross profit excluding special items allows management to evaluate the gross margin of the Company’s core businesses and trends across different reporting periods on a consistent basis, independent of special items including intangible asset amortization, ADI merger-related expenses and cost of COVID-19 response programs. In addition, it is an important component of management’s internal performance measurement and reward process as it is used to assess the current and historical financial results of the business, for strategic decision making, preparing budgets and forecasting future results. Management presents GAAP gross profit excluding special items to enable investors and analysts to evaluate our revenue generation performance relative to the direct costs of revenue of Maxim Integrated’s core businesses.

GAAP Operating Expenses Excluding Special Items
The use of GAAP operating expenses excluding special items allows management to evaluate the operating expenses of the Company’s core businesses and trends across different reporting periods on a consistent basis, independent of special items including intangible asset amortization; ADI merger-related expenses severance and restructuring, and other operating expenses (income), net. In addition, it is an important component of management’s internal performance measurement and reward process as it is used to assess the current and historical financial results of the business, for strategic decision making, preparing budgets and forecasting future results. Management presents GAAP operating expenses excluding special items to enable investors and analysts to evaluate our core business and its direct operating expenses.




9


GAAP Provision for Income Taxes Excluding Special Items
The use of a GAAP provision for income taxes excluding special items allows management to evaluate the provision for income taxes across different reporting periods on a consistent basis, independent of special items. Special items include the tax impact of pre-tax special items, significant tax audit settlements, significant prior year tax reserve adjustments, significant tax legislation, and significant non-recurring and period specific tax items, which vary in size and frequency.

GAAP Net Income and GAAP Net Income per Share Excluding Special Items
The use of GAAP net income and GAAP net income per share excluding special items allow management to evaluate the operating results of Maxim Integrated’s core businesses and trends across different reporting periods on a consistent basis, independent of special items including intangible asset amortization; ADI merger-related expenses; cost of COVID-19 response programs; severance and restructuring; other operating expenses (income), net; interest and other expense (income), net; and other income tax effects and adjustments. In addition, they are important components of management’s internal performance measurement and reward process as it is used to assess the current and historical financial results of the business, for strategic decision making, preparing budgets and forecasting future results. Management presents GAAP net income and GAAP net income per share excluding special items to enable investors and analysts to understand the results of operations of Maxim Integrated’s core businesses and to compare our results of operations on a more consistent basis against that of other companies in our industry.


“Safe Harbor” Statement
Except for historical information, this press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements involve risk and uncertainty. Actual results could
10


differ materially from those forecasted, based upon, among other things, general market and economic conditions, regulatory approvals, supply constraints, market developments that could adversely affect the growth of the mixed-signal analog market, product mix shifts, the loss of all or a substantial portion of our sales to one or more of our large customers, customer cancellations and price competition, as well as other risks described in the Company’s Annual Report on Form 10-K for the fiscal year ended June 27, 2020 (the “Form 10-K”). The Form 10-K may be found at https://www.sec.gov/Archives/edgar/data/743316/000074331620000025/0000743316-20-000025-index.htm.

All forward-looking statements included in this news release are made as of the date hereof and based on the information available to the Company as of the date hereof. The Company assumes no obligation to update any forward-looking statement except as required by law.

About Maxim Integrated
Maxim Integrated, an engineer’s engineering company, exists to solve the designer’s toughest problems in order to empower design innovation. Our broad portfolio of high-performance semiconductors, combined with world-class tools and support, delivers essential analog solutions including efficient power, precision measurement, reliable connectivity and robust protection along with intelligent processing. Designers in application areas such as automotive, communications, consumer, data center, healthcare, industrial and IoT trust Maxim to help them quickly develop smaller, smarter and more secure designs. Learn more at https://www.maximintegrated.com.

Source: Maxim Integrated Investor Relations

11

View differences made from one to another to evaluate Maxim Integrated Products Inc's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Maxim Integrated Products Inc.

Continue

Assess how Maxim Integrated Products Inc's management team is paid from their Annual Proxy

Definitive Proxy Statement (Form DEF 14A)
Screenshot example of actual Proxy Statement

Maxim Integrated Products Inc's Definitive Proxy Statement (Form DEF 14A) filed after their 2021 10-K Annual Report includes:

  • Voting Procedures
  • Board Members
  • Executive Team
  • Salaries, Bonuses, Perks
  • Peers / Competitors

Continue

SEC Filing Tools

Financial Statements, Disclosures and Schedules

Inside this 8-K Corporate News

Material Contracts, Statements, Certifications & more

Maxim Integrated Products Inc provided additional information to their SEC Filing as exhibits

Ticker: MXIM
CIK: 743316
Form Type: 8-K Corporate News
Accession Number: 0000743316-21-000021
Submitted to the SEC: Tue Jul 27 2021 4:55:03 PM EST
Accepted by the SEC: Tue Jul 27 2021
Period: Tuesday, July 27, 2021
Industry: Semiconductors And Related Devices
Events:
  1. Earnings Release
  2. Financial Exhibit

External Resources:
Stock Quote
Social Media

Bookmark the Permalink:
https://last10k.com/sec-filings/mxim/0000743316-21-000021.htm