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Maxim Integrated Products Inc. Reports Operating Results (10-Q)

January 24, 2011 | About:
10qk

10qk

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Maxim Integrated Products Inc. (MXIM) filed Quarterly Report for the period ended 2010-12-25.

Maxim Intg Pdts has a market cap of $7.74 billion; its shares were traded at around $26.13 with a P/E ratio of 17.78 and P/S ratio of 3.87. The dividend yield of Maxim Intg Pdts stocks is 3.21%.>Hedge Fund Gurus that owns MXIM: Steven Cohen of SAC Capital Advisors, George Soros of Soros Fund Management LLC. Mutual Fund and Other Gurus that owns MXIM: Dodge & Cox, First Pacific Advisors of First Pacific Advisors, LLC, HOTCHKIS & WILEY of Hotchkis & Wliey Capital Management LLC, Chuck Royce of Royce& Associates.

Highlight of Business Operations:

Intangible asset amortization expenses were $4.4 million and $1.8 million for the three months ended December 25, 2010 and December 26, 2009, respectively. Intangible asset amortization expenses were $10.5 million and $3.7 million for the six months ended December 25, 2010 and December 26, 2009, respectively. The increases in intangible asset amortization expenses is primarily attributable to the acquisition of Phyworks in the first quarter of fiscal year 2011 and the acquisition of Teridian in the fourth quarter of fiscal year 2010.

Interest and other (expense) income, net, was $(4.1) million and $3.6 million for the three months ended December 25, 2010 and December 26, 2009, respectively. This increase in expense, was primarily driven by increased foreign exchange losses of $2.8 million, increased interest expenses of $2.7 million related to long-term debt obligations and decreased interest income of $0.8 million due to lower average invested cash and cash equivalents and lower average interest rates.

Interest and other (expense) income, net, was $(7.8) million and $5.5 million for the six months ended December 25, 2010 and December 26, 2009, respectively. This increase in expense, was primarily driven by increased interest expenses of $5.6 million related to long-term debt obligations, increased foreign exchange losses of $4.8 million, and decreased interest income of $1.8 million due to lower average invested cash and cash equivalents and lower average interest rates .

In the three and six months ended December 25, 2010, the Company recorded an income tax provision of $38.3 million and $96.2 million respectively, compared to an income tax provision of $54.1 million and $104.2 million in the three and six months ended December 26, 2009, respectively.

Cash from operations for the six months ended December 25, 2010 increased by approximately $189.0 million compared with the six months ended December 26, 2009. This is due to increases in net income of $126.6 million, a reduction in the receivables balance over the six months ended December 25, 2010 as compared to an increase in the corresponding period and increases of $77.5 million and $28.0 million relating to deferred tax provision and depreciation and amortization expenses, respectively. These increases were offset by the payment of $173.0 million related to the litigation settlement. (For more information on contingencies, see Note 11 to the Condensed Consolidated Financial Statements in Item 1).

Cash used in investing activities increased by $189.3 million for the six months ended December 25, 2010 compared with the six months ended December 26, 2009. The increase is primarily due to maturity of short-term investments of $100.2 million during the six months ended December 26, 2009, as the Company shifted its investment portfolio to money market funds, and cash used for acquisitions, which increased to $73.1 million during the six months ended December 25, 2010 as compared with $4.0 million during the six months ended December 26, 2009. Additionally, a capital expenditures increase of $42.8 million contributed to the increase in cash used in investing activities.

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