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

May 05, 2010 | About:
10qk

10qk

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Maxim Integrated Products Inc. (MXIM) filed Quarterly Report for the period ended 2010-03-27.

Maxim Integrated Products Inc. has a market cap of $5.8 billion; its shares were traded at around $19.02 with a P/E ratio of 27.2 and P/S ratio of 3.5. The dividend yield of Maxim Integrated Products Inc. stocks is 4.3%.MXIM is in the portfolios of Dodge & Cox, First Pacific Advisors of First Pacific Advisors, LLC, HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, Steven Cohen of SAC Capital Advisors, Manning & Napier Advisors, Inc, Chuck Royce of Royce& Associates, Chuck Royce of Royce& Associates.

Highlight of Business Operations:

Research and development expenses were $117.1 million and $121.0 million for the three months ended March 27, 2010 and March 28, 2009, respectively, which represented 23.0% and 35.6% of net revenues, respectively. The decrease in research and development expenses was primarily attributable to a reduction in stock-based compensation of approximately $16.5 million as described below, which was offset by an increase of $7.9 million for salaries and benefits, primarily due to anticipated higher bonuses levels in connection with increased profitability for fiscal year 2010. Additionally, the increase in salaries and benefits includes a $2.8 million decrease attributable to the transition of our field applications engineers and our business managers from research and development to selling, general and administrative functions.

Research and development expenses were $352.2 million and $404.2 million for the nine months ended March 27, 2010 and March 28, 2009, respectively, which represented 24.6% and 32.3% of net revenues, respectively. The decrease in research and development expenses primarily due to a reduction in stock-based compensation of approximately $38.0 million as described below, decreased salaries and benefits of $16.2 million, comprised of a $19.3 million decrease attributable to the transition of our field applications engineers and our business managers from research and development to selling, general and administrative functions, offset by an increase of $3.1 million for salaries and benefits, primarily due to anticipated higher bonuses levels in connection with increased profitability for fiscal year 2010.

Selling, general and administrative expenses were $179.2 million and $153.1 million for the nine months ended March 27, 2010 and March 28, 2009, respectively, which represented 12.5% and 12.2% of net revenues, respectively. The increase in selling, general and administrative expenses is attributable to an increase in salaries and benefits of $26.0 million, comprised of a $19.3 million increase attributable to the transition of our field applications engineers and our business managers from research and development to selling, general and administrative functions and an increase in salaries and benefits of $6.7 million, primarily due to anticipated higher bonuses levels in connection with increased profitability for fiscal year 2010. These were partially offset by reduced stock-based compensation expenses of approximately $16.0 million as described below.

Cash from operations for the nine months ended March 27, 2010 decreased by approximately $1.5 million compared with nine months ended March 28, 2009. Increases in net income of $64.3 million and increases in other working capital changes of $156.1 million for the nine months ended March 27, 2010 compared with the nine months ended March 28, 2009 were offset by a decrease in non-cash adjustments of approximately $222.0 million.

The decrease in cash used in investing activities is primarily due to an increase in net maturities on short-term investments of $97.3 million as the Company shifted its investment portfolio maturing during the nine months ended March 27, 2010 to money market funds. Cash used in investing activities included $80.2 million and $103.5 million in capital expenditures, and $4.0 million and $61.0 million of cash used for acquisitions, during the nine months ended March 27, 2010 and the nine months ended March 28, 2009, respectively.

Net cash used in financing activities decreased by approximately $194.2 million for the nine months ended March 27, 2010 compared with the nine months ended March 28, 2009. This decrease was primarily due to a decrease in repurchases of common stock of $121.5 million under our repurchase program which commenced in October 2008 and reduced payments of $35.6 million and $12.7 million associated with completion of the RSU loan program and settlement of tendered options and expiring options under the goodwill programs, respectively. In addition, we received proceeds associated with shares issued under the ESPP during the nine months ended March 27, 2010 totaling $10.7 million.

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