Maxim Integrated Products Inc. (MXIM, Financial) filed Quarterly Report for the period ended 2009-09-26.
Maxim Integrated Products Inc. designs develops manufactures and markets a broad range of linear and mixed-signal integrated circuits commonly referred to as analog circuits. The company also provides a range of high-frequency design processes and capabilities that can be used in custom design. Maxim Integrated Products Inc. has a market cap of $5.23 billion; its shares were traded at around $17.09 with a P/E ratio of 90 and P/S ratio of 3.2. The dividend yield of Maxim Integrated Products Inc. stocks is 4.7%. Maxim Integrated Products Inc. had an annual average earning growth of 7.2% over the past 10 years.
Research and development expenses were $116.7 million and $138.9 million for the three months ended September 26, 2009 and September 27, 2008, respectively, which represented 26.0% and 27.7% of net revenues, respectively. The decrease in research and development expenses as a percentage of revenue was partially attributable to the transition of our field applications engineers and our business managers from research and development to selling, general and administrative functions subsequent to the first quarter of fiscal year 2009. The total impact of the transition was approximately $13.8 million during the three months ended September 26, 2009. In addition salaries, bonuses and benefits declined by $7.8 million due to reduced headcount attributable to the restructuring actions implemented by the Company during the second half of fiscal year 2009.
Selling, general and administrative expenses were $55.0 million and $40.2 million for the three months ended September 26, 2009 and September 27, 2008, respectively, which represented 12.2% and 8.0% of net revenues, respectively. The increase in selling, general and administrative expenses is partially attributable to the transition of our field applications engineers and our business managers from research and development to selling, general and administrative functions subsequent to the first quarter of fiscal year 2009. The total impact of the transition was approximately $13.8 million during the three months ended September 26, 2009.
Interest income and other income, net, was $1.9 million and $9.1 million for the three months ended September 26, 2009 and September 27, 2008, respectively. This decrease was primarily driven by a decline of $6.0 million in interest income due to lower average interest rates and lower invested cash, cash equivalents and short-term investments.
Cash from operations for the three months ended September 26, 2009 decreased by approximately $18.5 million compared with the three months ended September September 27, 2008 while net income declined by $25.6 million. Non-cash adjustments decreased by approximately $8.9 million for the three months ended September 26, 2009 compared with the three months ended September September 27, 2008 while working capital reductions of $16.0 million provided cash to offset the net income decline.
Net cash used in financing activities increased by approximately $3.7 million for the three months ended September 26, 2009 compared with the three months ended September September 27, 2008. This increase was primarily due an increase in repurchases of common stock of $17.6 million under a repurchase program commenced in October 2008 and an increase in withholding tax payments of $8.2 million made upon share settlements of restricted stock units during the three months ended September 26, 2009. These increased cash payments were offset by reduced payments associated with restricted stock units under the RSU loan program of $8.2 million as a result of payments associated with the final settlement occurring under the program during the second quarter of 2009. The Company also decreased cash payments by $5.0 million related to settlements of options under the goodwill and tender offer programs. In addition, we received additional proceeds of $2.5 million related to excess gains associated with the derivative settlement and $1.9 million in additional excess tax benefits attributable to increased intrinsic value associated with restricted stock units upon release.
Read the The complete ReportMXIM is in the portfolios of Dodge & Cox, HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC.
Maxim Integrated Products Inc. designs develops manufactures and markets a broad range of linear and mixed-signal integrated circuits commonly referred to as analog circuits. The company also provides a range of high-frequency design processes and capabilities that can be used in custom design. Maxim Integrated Products Inc. has a market cap of $5.23 billion; its shares were traded at around $17.09 with a P/E ratio of 90 and P/S ratio of 3.2. The dividend yield of Maxim Integrated Products Inc. stocks is 4.7%. Maxim Integrated Products Inc. had an annual average earning growth of 7.2% over the past 10 years.
Highlight of Business Operations:
Our gross margin percentage was 56.0% and 58.2% for the three months ended September 26, 2009 and September 27, 2008, respectively. The gross margin percentage for the three months ended September 26, 2009, as compared to the three months ended September 27, 2008, decreased primarily due to a decline in utilization associated with our manufacturing facilities attributable to a decline in overall demand caused by a slowdown in the global economy. These decreases in margin percentage as noted above were partially offset by an $11.3 million reduction in depreciation expense from the completion of the closure of our Dallas facility at the end of the fiscal year 2009. Inventory write-downs decreased by approximately $5.0 million, from $8.4 million during the three months ended September 27, 2008 to $3.4 million during the three months ended September 26, 2009 due to improvements in management of our inventory levels. In addition stock-based compensation expense declined by $6.5 million.Research and development expenses were $116.7 million and $138.9 million for the three months ended September 26, 2009 and September 27, 2008, respectively, which represented 26.0% and 27.7% of net revenues, respectively. The decrease in research and development expenses as a percentage of revenue was partially attributable to the transition of our field applications engineers and our business managers from research and development to selling, general and administrative functions subsequent to the first quarter of fiscal year 2009. The total impact of the transition was approximately $13.8 million during the three months ended September 26, 2009. In addition salaries, bonuses and benefits declined by $7.8 million due to reduced headcount attributable to the restructuring actions implemented by the Company during the second half of fiscal year 2009.
Selling, general and administrative expenses were $55.0 million and $40.2 million for the three months ended September 26, 2009 and September 27, 2008, respectively, which represented 12.2% and 8.0% of net revenues, respectively. The increase in selling, general and administrative expenses is partially attributable to the transition of our field applications engineers and our business managers from research and development to selling, general and administrative functions subsequent to the first quarter of fiscal year 2009. The total impact of the transition was approximately $13.8 million during the three months ended September 26, 2009.
Interest income and other income, net, was $1.9 million and $9.1 million for the three months ended September 26, 2009 and September 27, 2008, respectively. This decrease was primarily driven by a decline of $6.0 million in interest income due to lower average interest rates and lower invested cash, cash equivalents and short-term investments.
Cash from operations for the three months ended September 26, 2009 decreased by approximately $18.5 million compared with the three months ended September September 27, 2008 while net income declined by $25.6 million. Non-cash adjustments decreased by approximately $8.9 million for the three months ended September 26, 2009 compared with the three months ended September September 27, 2008 while working capital reductions of $16.0 million provided cash to offset the net income decline.
Net cash used in financing activities increased by approximately $3.7 million for the three months ended September 26, 2009 compared with the three months ended September September 27, 2008. This increase was primarily due an increase in repurchases of common stock of $17.6 million under a repurchase program commenced in October 2008 and an increase in withholding tax payments of $8.2 million made upon share settlements of restricted stock units during the three months ended September 26, 2009. These increased cash payments were offset by reduced payments associated with restricted stock units under the RSU loan program of $8.2 million as a result of payments associated with the final settlement occurring under the program during the second quarter of 2009. The Company also decreased cash payments by $5.0 million related to settlements of options under the goodwill and tender offer programs. In addition, we received additional proceeds of $2.5 million related to excess gains associated with the derivative settlement and $1.9 million in additional excess tax benefits attributable to increased intrinsic value associated with restricted stock units upon release.
Read the The complete ReportMXIM is in the portfolios of Dodge & Cox, HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC.
