Maxim Integrated Reports Results For The Third Quarter Of Fiscal

Maxim Integrated Reports Results For The Third Quarter Of Fiscal 2015

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
	Three Months Ended
	March 28,	December 27,	March 29,
	2015	2014	2014
	(in thousands)
Cash flows from operating activities:
Net income (loss)	$ 79,433	$ (72,034)	$ 122,544
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation	18,586	20,776	22,057
Depreciation and amortization	71,439	71,625	64,665
Deferred taxes	(15,658)	(30,849)	(36,482)
Loss (gain) from sale of property, plant and equipment	(441)	1,844	818
Tax benefit (shortfall) related to stock-based compensation	7,635	(229)	3,204
Impairment of long-lived assets	5,522	50,745	-
Impairment of goodwill and intangible assets	-	93,010	2,580
Impairment of investments in privately-held companies	-	-	3,723
Excess tax benefit from stock-based compensation	(5,997)	(1,931)	(5,139)
Changes in assets and liabilities:
Accounts receivable	(19,921)	23,426	(15,566)
Inventories	9,194	(1,486)	7,717
Other current assets	(156)	1,009	7,194
Accounts payable	477	(12,007)	(4,044)
Income taxes payable	22,587	12,835	14,244
Deferred revenue on shipments to distributors	3,447	282	(1,283)
All other accrued liabilities	5,917	15,839	25,466
Net cash provided by (used in) operating activities	182,064	172,855	211,698

Cash flows from investing activities:
Purchase of property, plant and equipment	(10,185)	(18,585)	(26,407)
Proceeds from sales of property, plant and equipment	1,615	24,467	618
Payments in connection with business acquisition, net of cash acquired	-	-	(5,750)
Purchases of investments in privately-held companies securities	(200)	-	-
Proceeds from maturity of debt investment in privately-held companies	500	-	-
Net cash provided by (used in) investing activities	(8,270)	5,882	(31,539)

Cash flows from financing activities:
Excess tax benefit from stock-based compensation	5,997	1,931	5,139
Contingent consideration paid	-	-	(104)
Repayment of notes payable	-	-	(439)
Net issuance of restricted stock units	(8,369)	(6,822)	(8,390)
Proceeds from stock options exercised	31,098	8,323	29,538
Issuance of ESPP shares under employee stock purchase program	-	18,653	-
Repurchase of common stock	(36,774)	(59,666)	(51,083)
Dividends paid	(79,419)	(79,169)	(73,481)
Net cash provided by (used in) financing activities	(87,467)	(116,750)	(98,820)
Net increase (decrease) in cash and cash equivalents	86,327	61,987	81,339
Cash and cash equivalents:
Beginning of period	1,305,870	1,243,883	1,149,909
End of period	$1,392,197	$1,305,870	$1,231,248

Total cash, cash equivalents and short-term investments	$1,467,339	$1,380,882	$1,231,248


ANALYSIS OF GAAP VERSUS GAAP EXCLUDING SPECIAL ITEMS DISCLOSURES
(Unaudited)
	Three Months Ended
	March 28,	December 27,	March 29,
	2015	2014	2014
	(in thousands, except per share data)
Reconciliation of GAAP gross profit to GAAP gross profit excluding special items:
GAAP gross profit	$ 315,268	$ 314,077	$ 339,937
GAAP gross profit %	54.6%	55.4%	56.1%

Special items:
Intangible asset amortization	18,750	18,750	18,542
Accelerated depreciation (1)	9,834	8,895	-
Acquisition-related inventory write-up	-	-	5,518
Total special items	28,584	27,645	24,060
GAAP gross profit excluding special items	$ 343,852	$ 341,722	$ 363,997
GAAP gross profit % excluding special items	59.6%	60.3%	60.1%

Reconciliation of GAAP operating expenses to GAAP operating expenses excluding special items:
GAAP operating expenses	$ 209,818	$ 378,153	$ 233,199

Special items:
Intangible asset amortization	3,977	4,155	4,863
Impairment of long-lived assets (2)	5,522	50,745	-
Impairment of goodwill and intangible assets (3)	-	93,010	2,580
Severance and restructuring (4)	2,824	13,635	3,338
Acquisition-related costs	-	-	(88)
Other operating expenses (income), net	(2,184)	885	333
Total special items	10,139	162,430	11,026
GAAP operating expenses excluding special items	$ 199,679	$ 215,723	$ 222,173

Reconciliation of GAAP net income (loss) to GAAP net income excluding special items:
GAAP net income (loss)	$ 79,433	$ (72,034)	$ 122,544

Special items:
Intangible asset amortization	22,727	22,905	23,405
Accelerated depreciation (1)	9,834	8,895	-
Acquisition-related inventory write-up	-	-	5,518
Impairment of long-lived assets (2)	5,522	50,745	-
Impairment of goodwill and intangible assets (3)	-	93,010	2,580
Severance and restructuring (4)	2,824	13,635	3,338
Acquisition-related costs	-	-	(88)
Other operating expenses (income), net	(2,184)	885	333
Interest and other expense (income), net (5)	-	(217)	3,723
Pre-tax total special items	38,723	189,858	38,809
Tax effect of special items	(3,910)	(21,283)	(3,658)
Fixed Asset Tax Basis Adjustment (6)	-	-	(34,562)
Fiscal year 2014 research & development tax credits	-	(2,863)	-
GAAP net income excluding special items	$ 114,246	$ 93,678	$ 123,133

GAAP net income per share excluding special items:
Basic	$ 0.40	$ 0.33	$ 0.44
Diluted	$ 0.40	$ 0.33	$ 0.43

Shares used in the calculation of earnings per share excluding special items:
Basic	283,418	282,992	282,627
Diluted	288,840	287,954	288,575

(1) Accelerated depreciation related to San Jose wafer manufacturing building and equipment.
(2) Includes impairment charges related to MEMS and non-MEMS wafer manufacturing equipment and end of line test equipment.
(3) Includes impairment of goodwill and write-off of in-process research and development related to MEMS and other business units.
(4) Include severance charges associated with the reorganization of various business units and manufacturing operations.
(5) Includes impairment of investments in privately-held companies.
(6) Includes one-time fixed asset tax basis adjustments relating to prior year depreciation expense.

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