Maxim Integrated Reports Results For The Fourth Quarter Of Fiscal 2014; Increases Dividend By 8%

- Revenue: $642 million

- Gross Margin: 57.4% GAAP (60.4% excluding special items)

- EPS: $0.29 GAAP ($0.43 excluding special items)

- Cash, cash equivalents, and short term investments: $1.37 billion

- Fiscal first quarter revenue outlook: $580 million to $620 million

- Quarterly dividend increased 8% to $0.28 per share

Jul 24, 2014, 16:01 ET from Maxim Integrated Products, Inc.

SAN JOSE, Calif., July 24, 2014 /PRNewswire/ -- Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $642 million for its fourth quarter of fiscal 2014 ended June 28, 2014, a 6% increase from the $606 million revenue recorded in the prior quarter.

Tunc Doluca, President and Chief Executive Officer, commented, "While we experienced softness in our mobility business, our revenue performance in the quarter reflected the overall strength of Maxim's balanced portfolio, with growth in every one of our other major businesses." Mr. Doluca continued, "Although our near-term outlook for mobility remains cautious, we are executing on our strategy to bring new integrated designs to the Industrial, Automotive, Communications and Data Center markets, and to diversify our customer base in mobility." 

Fiscal Year 2014 Fourth Quarter Results Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the June quarter was $0.29. The results were affected by special items which primarily consisted of $24 million in pre-tax charges related to acquisitions and $23 million in pre-tax charges related to restructuring and other items.  GAAP earnings per share, excluding special items was $0.43. An analysis of GAAP versus GAAP excluding special items is provided in the last table of this press release.  

Cash Flow Items At the end of the fourth quarter of fiscal 2014, total cash, cash equivalents and short term investments was $1.37 billion, an increase of $141 million from the prior quarter. Notable items included:

  • Cash flow from operations: $234 million
  • Net capital expenditures: $22 million
  • Dividends: $74 million ($0.26 per share)
  • Stock repurchases: $41 million

Business Outlook The Company's 90-day backlog at the beginning of the first fiscal quarter of 2015 was $377 million. Based on :the beginning backlog and expected turns, results for the September 2014 quarter are expected to be as follows:

  • Revenue $580 million to $620 million
  • Gross Margin: 56% to 59% GAAP (59% to 62% excluding special items)
  • EPS: $0.27 to $0.33 GAAP ($0.34 to $0.40 excluding special items)

Maxim Integrated's business outlook does not include the potential impact of any restructuring activity or mergers, acquisitions, or other business combinations that may be completed during the quarter.

Dividend A cash dividend of $0.28 per share will be paid on September 4, 2014, to stockholders of record on August 21, 2014.   This represents an 8% increase in the dividend compared to the prior quarter.

Conference Call Maxim Integrated has scheduled a conference call on July 24, 2014, at 2:00 p.m. Pacific Time to discuss its financial results for the fourth quarter of fiscal 2014 and its business outlook. To listen via telephone, dial (866) 804-3547 (toll free) or (703) 639-1328.  This call will be webcast by Shareholder.com and can be accessed at the Company's website at www.maximintegrated.com/company/investor.

 

 

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

Three Months Ended

Year Ended

June 28,

March 29,

June 29,

June 28,

June 29,

2014

2014

2013

2014

2013

(in thousands, except per share data)

Net revenues

$ 642,467

$ 605,681

$ 608,194

$ 2,453,663

$ 2,441,459

Cost of goods sold 

273,507

265,744

236,795

1,068,898

944,892

        Gross margin

368,960

339,937

371,399

1,384,765

1,496,567

Operating expenses:

    Research and development 

143,802

141,493

132,009

558,168

534,819

    Selling, general and administrative 

83,153

80,680

82,083

324,734

324,282

    Intangible asset amortization 

4,423

4,863

3,670

17,690

15,525

    Impairment of long-lived assets (1)

6,447

-

-

11,644

24,929

    Severance and restructuring expenses

5,790

3,338

442

24,902

2,829

   Acquisition-related costs

-

(88)

-

6,983

-

    Other operating expenses (income), net (2)

8,795

2,913

2,105

18,353

5,864

       Total operating expenses 

252,410

233,199

220,309

962,474

908,248

          Operating income

116,550

106,738

151,090

422,291

588,319

Interest and other income (expense), net (3)

(8,943)

5,174

(6,830)

(13,065)

(18,040)

Income before provision for income taxes

107,607

111,912

144,260

409,226

570,279

Provision (benefit) for income taxes (4)

22,814

(10,632)

25,246

54,416

117,970

       Income from continuing operations 

84,793

122,544

119,014

354,810

452,309

       Income from discontinued operations, net of tax (5)

-

-

-

-

2,603

      Net income

$   84,793

$ 122,544

$ 119,014

$    354,810

$    454,912

Earnings per share: Basic

    From continuing operations 

$       0.30

$       0.43

$       0.41

$          1.25

$          1.55

    From discontinued operations, net of tax 

-

-

-

-

0.01

    Basic

$       0.30

$       0.43

$       0.41

$          1.25

$          1.56

Earnings per share: Diluted

    From continuing operations 

$       0.29

$       0.42

$       0.40

$          1.23

$          1.51

    From discontinued operations, net of tax

-

-

-

-

0.01

    Diluted

$       0.29

$       0.42

$       0.40

$          1.23

$          1.52

Shares used in the calculation of earnings per share: 

    Basic

283,431

282,627

290,146

283,344

291,835

    Diluted 

289,487

288,575

296,756

289,108

298,596

Dividends paid per share 

$       0.26

$       0.26

$       0.24

$          1.04

$          0.96

SCHEDULE OF SPECIAL ITEMS

(Unaudited)

Three Months Ended

Year Ended

June 28,

March 29,

June 29,

June 28,

June 29,

2014

2014

2013

2014

2013

(in thousands)

Cost of goods sold:

      Intangible asset amortization 

$   18,750

$   18,542

$     7,777

$      64,483

$      33,994

      Acquisition-related inventory write-up 

371

5,518

-

18,955

-

 Total 

$   19,121

$   24,060

$     7,777

$      83,438

$      33,994

 Operating expenses: 

      Intangible asset amortization

$     4,423

$     4,863

$     3,670

$      17,690

$      15,525

      Impairment of long-lived assets (1)

6,447

-

-

11,644

24,929

     Severance and restructuring 

5,790

3,338

442

24,902

2,829

     Acquisition-related costs 

-

(88)

-

6,983

-

     Other operating expenses (income), net (2)

8,795

2,913

2,105

18,353

5,864

 Total 

$   25,455

$   11,026

$     6,217

$      79,572

$      49,147

      Interest and other expense (income), net (3) 

$     2,432

$     3,723

$        700

$        6,155

$           700

 Total 

$     2,432

$     3,723

$        700

$        6,155

$           700

Provision (benefit) for income taxes: 

     Fixed assets tax basis adjustment (4) 

$   (1,041)

$ (34,562)

$           -

$    (35,603)

$              -

     International restructuring implementation 

-

-

-

-

18,726

     Fiscal year 2012 research & development tax credits 

-

-

-

-

(3,899)

 Total 

$   (1,041)

$ (34,562)

$           -

$    (35,603)

$      14,827

 Discontinued operations: 

     Income from discontinued operations, net of tax (5)

$           -

$           -

$           -

$              -

$      (2,603)

Total

$           -

$           -

$           -

$              -

$      (2,603)

(1) Includes impairment charges relating to EDA software, wafer fab tools, land and buildings held-for-sale, and end of line manufacturing equipment.

(2) Other operating expenses (income), net are primarily for legal settlement, legal expenses related to Volterra acquisition, reserve for uncollectible note related to a divestiture, contingent consideration adjustments related to certain acquisitions, in-process research and development abandoned, loss (gain) relating to sale of land and buildings,expected loss on lease abandonment,and certain payroll taxes.

(3) Includes impairment of investment in privately-held companies.

(4) Includes one-time fixed asset tax basis adjustments relating to prior year depreciation expense.

(5) Includes gain on sale, net of tax relating to certain business divested.

 

STOCK-BASED COMPENSATION BY TYPE OF AWARD (in thousands)

(Unaudited)

Three Months Ended June 28, 2014

  Stock Options

Restricted Stock Units

  Employee Stock Purchase Plan

  Total

Cost of goods sold 

$             412

$   2,045

$                530

$   2,987

Research and development expense

2,100

8,463

1,354

11,917

Selling, general and administrative expense

1,355

5,025

504

6,884

       Total

$          3,867

$ 15,533

$             2,388

$ 21,788

Three Months Ended March 29, 2014

Cost of goods sold 

$             451

$   2,108

$                594

$   3,153

Research and development expense

2,124

7,917

1,623

11,664

Selling, general and administrative expense

1,391

5,186

663

7,240

       Total

$          3,966

$ 15,211

$             2,880

$ 22,057

Three Months Ended June 29, 2013

Cost of goods sold 

$             320

$   1,999

$                559

$   2,878

Research and development expense

1,673

6,748

1,226

9,647

Selling, general and administrative expense

1,333

4,488

507

6,328

       Total

$          3,326

$ 13,235

$             2,292

$ 18,853

Year Ended June 28, 2014

Cost of goods sold 

$          1,650

$   8,466

$             2,132

$ 12,248

Research and development expense

8,676

31,548

5,452

45,676

Selling, general and administrative expense

5,486

19,734

2,308

27,528

       Total

$        15,812

$ 59,748

$             9,892

$ 85,452

Year Ended June 29, 2013

Cost of goods sold 

$          1,532

$   8,862

$             2,210

$ 12,604

Research and development expense

7,230

31,475

5,441

44,146

Selling, general and administrative expense

5,331

19,523

2,204

27,058

       Total

$        14,093

$ 59,860

$             9,855

$ 83,808

 

CONSOLIDATED  BALANCE SHEETS

(Unaudited)

June 28,

March 29,

June 29,

2014

2014

2013

(in thousands) 

ASSETS

Current assets:

    Cash and cash equivalents

$1,322,472

$1,231,248

$1,174,986

    Short-term investments

49,953

-

25,060

        Total cash, cash equivalents and short-term investments

1,372,425

1,231,248

1,200,046

    Accounts receivable, net 

295,828

304,128

285,438

    Inventories

289,292

290,518

275,640

    Deferred tax assets

74,597

74,038

82,173

    Other current assets

54,560

79,346

96,609

        Total current assets

2,086,702

1,979,278

1,939,906

Property, plant and equipment, net

1,331,519

1,355,268

1,373,124

Intangible assets, net

360,994

384,167

157,146

Goodwill

596,637

597,676

422,004

Other assets

29,766

38,176

43,730

       TOTAL ASSETS

$4,405,618

$4,354,565

$3,935,910

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

    Accounts payable 

$   102,076

$     94,315

$   105,322

    Income taxes payable

20,065

20,720

22,437

    Accrued salary and related expenses

186,732

168,336

187,970

    Accrued expenses 

63,656

81,232

60,592

    Current portion of long-term debt

372

2,526

2,015

    Deferred income on shipments to distributors

25,734

24,259

26,557

        Total current liabilities

398,635

391,388

404,893

Long-term debt

1,001,026

1,000,871

503,573

Income taxes payable

362,802

352,294

282,697

Deferred tax liabilities

159,879

171,431

206,855

Other liabilities

53,365

37,977

29,894

        Total liabilities 

1,975,707

1,953,961

1,427,912

Stockholders' equity:

    Common stock par value

285

283

288

   Additional paid-in capital 

23,005

-

-

    Retained earnings 

2,423,794

2,412,627

2,523,457

    Accumulated other comprehensive loss

(17,173)

(12,306)

(15,747)

        Total stockholders' equity

2,429,911

2,400,604

2,507,998

        TOTAL LIABILITIES & STOCKHOLDERS' EQUITY 

$4,405,618

$4,354,565

$3,935,910

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three Months Ended

Year Ended

June 28,

March 29,

June 29,

June 28,

June 29,

2014

2014

2013

2014

2013

(in thousands)

Cash flows from operating activities: 

Net income

$     84,793

$   122,544

$   119,014

$   354,810

$   454,912

Adjustments to reconcile net income to net cash provided by operating activities: 

      Stock-based compensation 

21,786

22,057

18,853

85,452

83,808

      Depreciation and amortization 

64,391

64,665

51,191

244,593

207,136

      Deferred taxes 

(9,501)

(36,482)

(2,813)

(32,159)

25,372

      Loss (gain) from sale of property, plant and equipment

1,068

818

1,380

2,187

(1,156)

      Tax benefit (shortfall) related to stock-based compensation 

942

3,204

358

(68)

8,197

      Impairment of long-lived assets

6,447

-

-

11,644

24,929

      Impairment of investments in privately-held companies

6,537

3,723

700

10,260

700

      In-process research and development written-off

-

2,580

-

2,580

2,800

      Loss (gain) on sale of discontinued operations

-

-

-

-

(3,285)

      Excess tax benefit from stock-based compensation

(4,897)

(5,139)

(2,792)

(14,192)

(18,923)

      Changes in assets and liabilities: 

          Accounts receivable 

8,300

(15,566)

14,608

13,340

32,023

          Inventories 

1,226

7,717

(7,657)

20,672

(35,245)

          Other current assets 

26,579

7,194

(2,832)

45,557

(21,233)

          Accounts payable 

5,203

(4,044)

(6,961)

(11,255)

(32,510)

          Income taxes payable 

9,853

14,244

13,118

54,492

70,156

          Deferred revenue on shipments to distributors 

1,475

(1,283)

706

(823)

277

          All other accrued liabilities 

9,882

25,466

17,527

(10,983)

19,977

Net cash provided by (used in) operating activities 

234,084

211,698

214,400

776,107

817,935

Cash flows from investing activities: 

          Purchase of property, plant and equipment

(23,654)

(26,407)

(48,922)

(132,523)

(216,672)

          Proceeds from sales of property, plant and equipment

1,627

618

4,538

5,293

19,196

          Proceeds from sales of property, plant and equipment through note receivable

-

-

10,786

-

10,786

          Proceeds from maturity of available-for-sale securities

-

-

-

27,000

50,000

          Purchases of available-for-sale securities

(49,953)

-

-

(49,953)

-

          Purchases of privately-held companies securities

-

-

(500)

-

(500)

          Payments in connection to acquisitions

-

(5,750)

(2,767)

(459,256)

(2,767)

          Proceeds from sale of investments in privately-held companies

-

-

585

-

585

Net cash provided by (used in) investing activities 

(71,980)

(31,539)

(36,280)

(609,439)

(139,372)

Cash flows from financing activities: 

         Excess tax benefit from stock-based compensation

4,897

5,139

2,792

14,192

18,923

         Contingent consideration paid

-

(104)

(6,305)

(4,705)

(13,781)

         Dividends paid

(73,626)

(73,481)

(69,532)

(294,175)

(280,215)

         Repayment of notes payable

(2,430)

(439)

(302,299)

(4,708)

(303,500)

         Issuance of debt

-

-

-

497,895

494,395

         Debt issuance cost

-

-

(671)

(3,431)

(3,921)

         Repurchase of common stock

(40,744)

(51,083)

(193,221)

(305,314)

(375,135)

         Issuance of ESPP shares under employee stock purchase program

23,713

-

19,529

42,809

36,297

         Net issuance of restricted stock units

(8,922)

(8,390)

(7,456)

(31,384)

(29,042)

         Proceeds from stock options exercised

26,232

29,538

6,049

69,639

71,342

Net cash provided by (used in) financing activities 

(70,880)

(98,820)

(551,114)

(19,182)

(384,637)

Net increase (decrease) in cash and cash equivalents 

91,224

81,339

(372,994)

147,486

293,926

Cash and cash equivalents: 

          Beginning of period

1,231,248

1,149,909

1,547,980

1,174,986

881,060

          End of period

$1,322,472

$1,231,248

$1,174,986

$1,322,472

$1,174,986

Total cash, cash equivalents and short-term investments

$1,372,425

$1,231,248

$1,200,046

$1,372,425

$1,200,046

 

 

ANALYSIS OF GAAP VERSUS GAAP EXCLUDING SPECIAL ITEMS DISCLOSURES

(Unaudited)

Three Months Ended

Year Ended

June 28,

March 29,

June 29,

June 28,

June 29,

2014

2014

2013

2014

2013

(in thousands, except per share data)

Reconciliation of GAAP gross profit to GAAP gross profit excluding special items:

GAAP gross profit

$           368,960

$              339,937

$           371,399

$    1,384,765

$    1,496,567

GAAP gross profit %

57.4%

56.1%

61.1%

56.4%

61.3%

Special items:

      Intangible asset amortization

18,750

18,542

7,777

64,483

33,994

      Acquisition-related inventory write-up

371

5,518

-

18,955

-

 Total special items 

19,121

24,060

7,777

83,438

33,994

 GAAP gross profit excluding special items 

$           388,081

$              363,997

$           379,176

$    1,468,203

$    1,530,561

 GAAP gross profit % excluding special items 

60.4%

60.1%

62.3%

59.8%

62.7%

Reconciliation of GAAP operating expenses to GAAP operating expenses excluding special items:

GAAP operating expenses

$           252,410

$              233,199

$           220,309

$       962,474

$       908,248

Special items:

      Intangible asset amortization 

4,423

4,863

3,670

17,690

15,525

      Impairment of long-lived assets (1)

6,447

-

-

11,644

24,929

     Severance and restructuring 

5,790

3,338

442

24,902

2,829

     Acquisition-related costs 

-

(88)

-

6,983

-

     Other operating expenses (income), net (2) 

8,795

2,913

2,105

18,353

5,864

 Total special items 

25,455

11,026

6,217

79,572

49,147

 GAAP operating expenses excluding special items 

$           226,955

$              222,173

$           214,092

$       882,902

$       859,101

Reconciliation of GAAP net income to GAAP net income excluding special items:

GAAP net income

$             84,793

$              122,544

$           119,014

$       354,810

$       454,912

Special items:

      Intangible asset amortization 

23,173

23,405

11,447

82,173

49,519

      Acquisition-related inventory write-up 

371

5,518

-

18,955

-

      Impairment of long-lived assets (1)

6,447

-

-

11,644

24,929

     Severance and restructuring 

5,790

3,338

442

24,902

2,829

     Acquisition-related costs 

-

(88)

-

6,983

-

     Other operating expenses (income), net (2) 

8,795

2,913

2,105

18,353

5,864

      Interest and other expense, net (3) 

2,432

3,723

700

6,155

700

              Pre-tax total special items 

47,008

38,809

14,694

169,165

83,841

     Tax effect of special items 

(6,850)

(3,658)

(4,231)

(19,383)

(22,963)

     Fixed asset tax basis adjustment (4) 

(1,041)

(34,562)

-

(35,603)

-

     International restructuring implementation 

-

-

-

-

18,726

     Fiscal year 2012 research & development tax credits 

-

-

-

-

(3,899)

     Income from discontinued operations, net of tax (5)

-

-

-

-

(2,603)

 GAAP net income excluding special items 

$           123,910

$              123,133

$           129,477

$       468,989

$       528,014

 GAAP net income per share excluding special items: 

    Basic 

$             0.44

$                0.44

$             0.45

$         1.66

$         1.81

    Diluted 

$             0.43

$                0.43

$             0.44

$         1.62

$         1.77

Shares used in the calculation of earnings per share excluding special items: 

    Basic

283,431

282,627

290,146

283,344

291,835

    Diluted 

289,487

288,575

296,756

289,108

298,596

(1) Includes impairment charges relating to EDA software, wafer fab tools, land and buildings held-for-sale, and end of line manufacturing equipment.

(2) Other operating expenses (income), net are primarily for legal settlement, legal expenses related to Volterra acquisition, reserve for uncollectible note related to a divestiture, contingent consideration adjustments related to certain acquisitions, in-process research and development abandoned, loss (gain) relating to sale of land and buildings,expected loss on lease abandonment,and certain payroll taxes.

(3) Includes impairment of investment in privately-held companies.

(4) Includes one-time fixed asset tax basis adjustments relating to prior year depreciation expense.

(5) Includes gain on sale, net of tax relating to certain business divested.

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 intangible asset amortization; acquisition-related inventory write-up; impairment of long-lived assets; severance and restructuring; acquisition-related costs; contingent consideration adjustments relating to certain acquisitions; legal settlement; in-process research and development abandoned; reserve for uncollectible note related to a divestiture; legal expenses related to Volterra; impairment of investments in privately-held companies; tax provision impacts due to fixed asset tax basis adjustments; research and development tax credits; international restructuring implementation and discontinued operations, net of tax. 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 the 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:

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 and acquisition-related inventory write-up. 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; impairment of long-lived assets; severance and restructuring; acquisition-related costs; contingent consideration adjustments relating to certain acquisitions; in-process research and development abandoned; reserve for uncollectible note related to a divestiture; legal settlement; and legal expenses related to Volterra. 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.  

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; acquisition-related inventory write-up; impairment of long-lived assets; severance and restructuring; acquisition-related costs; contingent consideration adjustments relating to certain acquisitions; legal settlement; in-process research and development abandoned; reserve for uncollectible note related to a divestiture; legal expenses related to Volterra; impairment of investments in privately-held companies; research and development tax credits; discontinued operations, net of tax; and the tax provision impacts due to fixed asset tax basis adjustments; international restructuring implementation and discontinued operations, net of tax. 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 This press release contains 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 include the Company's business outlook and financial projections for its first quarter of fiscal 2015 ending in September 2014, which includes revenue, gross margin and earnings per share, as well as looking forward, the Company, although its near-term outlook for mobility remains cautious, plans to continue to execute on a strategy to bring new integrated designs to the Industrial, Automotive, Communications and Data Center markets, and to diversify its customer base in mobility. These statements involve risk and uncertainty. Actual results could differ materially from those forecasted based upon, among other things, general market and economic conditions and 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 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 29, 2013 (the "10-K") and Quarterly Reports on Form 10-Q filed after the 10-K.

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

About Maxim Integrated Maxim is the leader in analog integration. From mobile to industrial solutions, we're making analog smaller, smarter, and more energy efficient. Learn more at www.maximintegrated.com.

Contact Kathy Ta Managing Director, Investor Relations (408) 601-5697

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SOURCE Maxim Integrated Products, Inc.



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