CONSOLIDATED STATEMENTS OF INCOME | ||||||||||
(Unaudited) | ||||||||||
Three Months Ended | Year Ended | |||||||||
June 26, 2021 |
March 27, 2021 |
June 27, 2020 |
June 26, 2021 |
June 27, 2020 | ||||||
(in thousands, except per share data) | ||||||||||
Net revenues | $ | 719,855 | $ | 665,029 | $ | 545,369 | $ | 2,632,529 | $ | 2,191,395 |
Cost of goods sold
| 235,830 | 222,144 | 183,001 | 872,183 | 758,743 | |||||
Gross margin | 484,025 | 442,885 | 362,368 | 1,760,346 | 1,432,652 | |||||
Operating expenses: | ||||||||||
Research and development | 114,834 | 109,228 | 110,173 | 454,330 | 440,166 | |||||
Selling, general and administrative | 81,071 | 76,544 | 72,893 | 320,722 | 296,722 | |||||
Intangible asset amortization | 846 | 846 | 810 | 3,554 | 3,078 | |||||
Severance and restructuring expenses | 1,139 | 155 | 678 | 13,434 | 5,363 | |||||
Other operating expenses (income), net | 2,798 | 8,848 | (173) | 22,606 | 929 | |||||
Total operating expenses | 200,688 | 195,621 | 184,381 | 814,646 | 746,258 | |||||
Operating income | 283,337 | 247,264 | 177,987 | 945,700 | 686,394 | |||||
Interest and other income (expense), net | (5,723) | (2) | (8,488) | (15,964) | (8,298) | |||||
Income before taxes | 277,614 | 247,262 | 169,499 | 929,736 | 678,096 | |||||
Provision for (benefit from) income taxes (1)(2)
| 23,875 | 27,199 | (37,799) | 102,475 | 23,402 | |||||
Net income | $ | 253,739 | $ | 220,063 | $ | 207,298 | $ | 827,261 | $ | 654,694 |
Earnings per share: | ||||||||||
Basic | $ | 0.95 | $ | 0.82 | $ | 0.78 | $ | 3.09 | $ | 2.43 |
Diluted | $ | 0.93 | $ | 0.81 | $ | 0.77 | $ | 3.05 | $ | 2.41 |
Shares used in the calculation of earnings per share: | ||||||||||
Basic | 268,160 | 267,892 | 266,639 | 267,546 | 269,341 | |||||
Diluted | 271,445 | 271,396 | 268,777 | 270,872 | 272,028 | |||||
Dividends paid per share | $ | - | $ | - | $ | 0.48 | $ | 0.48 | $ | 1.92 |
SCHEDULE OF SPECIAL ITEMS | ||||||||||
(Unaudited) | ||||||||||
Three Months Ended | Year Ended | |||||||||
June 26, 2021 |
March 27, 2021 |
June 27, 2020 |
June 26, 2021 |
June 27, 2020 | ||||||
(in thousands) | ||||||||||
Cost of goods sold: | ||||||||||
Intangible asset amortization | $ | 3,047 | $ | 4,430 | $ | 3,528 | $ | 17,408 | $ | 12,860 |
Merger-related expenses(3)
| - | - | 2,394 | - | ||||||
Cost of COVID-19 response programs | 609 | 638 | 1,591 | 2,750 | 3,616 | |||||
Total | $ | 3,656 | $ | 5,068 | $ | 5,119 | $ | 22,552 | $ | 16,476 |
Operating expenses: | ||||||||||
Merger-related expenses(3)
| $ | 2,058 | $ | 2,546 | $ | - | 26,617 | $ | - | |
Intangible asset amortization | 846 | 846 | 810 | 3,553 | 3,078 | |||||
Severance and restructuring | 1,139 | 155 | 678 | 13,434 | 5,363 | |||||
Other operating expenses (income), net | 831 | 6,302 |
(3)
| (173) | 7,436 | 928 | ||||
Total | $ | 4,874 | $ | 9,849 | $ | 1,315 | $ | 51,040 | $ | 9,369 |
Interest and other expense (income), net | $ | (2,878) | $ | (7,359) | $ | 1,484 | $ | (15,903) | $ | (541) |
Total | $ | (2,878) | $ | (7,359) | $ | 1,484 | $ | (15,903) | $ | (541) |
Provision for (benefit from) for income taxes: | ||||||||||
Impact of U.S. tax legislation (1)
| $ | - | $ | - | $ | 6,486 | $ | - | $ | 6,486 |
Impact of income tax audit settlements (2)
| - | - | (51,197) | - | (51,197) | |||||
Total | $ | - | $ | - | $ | (44,711) | $ | - | $ | (44,711) |
(1) Includes effect of U.S. tax legislation enacted on December 22, 2017. | ||||||||||
(2) Includes effect of income tax audit settlements. | ||||||||||
(3) Includes ADI merger related expenses such as accelerated stock-based compensation expense resulting from the acceleration of certain RSAs and RSUs, and other legal and professional services. | ||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||
(Unaudited) | ||||||
June 26, 2021 |
March 27, 2021 |
June 27, 2020 | ||||
(in thousands) | ||||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 2,291,399 | $ | 2,033,973 | $ | 1,578,670 |
Short-term investments | - | - | 35,536 | |||
Total cash, cash equivalents and short-term investments | 2,291,399 | 2,033,973 | 1,614,206 | |||
Accounts receivable, net | 658,829 | 571,042 | 404,778 | |||
Inventories | 237,414 | 242,343 | 259,626 | |||
Other current assets | 30,643 | 27,440 | 39,219 | |||
Total current assets | 3,218,285 | 2,874,798 | 2,317,829 | |||
Property, plant and equipment, net | 554,339 | 543,848 | 550,406 | |||
Intangible assets, net | 66,998 | 70,891 | 87,959 | |||
Goodwill | 562,540 | 562,541 | 562,540 | |||
Other assets | 120,937 | 120,149 | 110,569 | |||
TOTAL ASSETS | $ | 4,523,099 | $ | 4,172,227 | $ | 3,629,303 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 129,710 | $ | 102,263 | $ | 91,982 |
Price adjustment and other revenue reserves | 259,411 | 214,366 | 148,916 | |||
Income taxes payable | 49,568 | 53,694 | 43,457 | |||
Accrued salary and related expenses | 150,656 | 128,553 | 126,751 | |||
Accrued expenses | 47,967 | 35,627 | 42,228 | |||
Total current liabilities | 637,312 | 534,503 | 453,334 | |||
Long-term debt | 995,460 | 995,100 | 994,022 | |||
Income taxes payable | 343,964 | 351,738 | 385,072 | |||
Other liabilities | 130,423 | 141,721 | 139,418 | |||
Total liabilities | 2,107,159 | 2,023,062 | 1,971,846 | |||
Stockholders' equity: | ||||||
Common stock and capital in excess of par value | 269 | 268 | 266 | |||
Additional paid-in capital | 58,055 | 47,801 | - | |||
Retained earnings | 2,370,900 | 2,117,161 | 1,671,786 | |||
Accumulated other comprehensive loss | (13,284) | (16,065) | (14,595) | |||
Total stockholders' equity | 2,415,940 | 2,149,165 | 1,657,457 | |||
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ | 4,523,099 | $ | 4,172,227 | $ | 3,629,303 |
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
(Unaudited) | ||||||||||
Three months ended | Year Ended | |||||||||
June 26, 2021 |
March 27, 2021 |
June 27, 2020 |
June 26, 2021 |
June 27, 2020 | ||||||
(in thousands, except per share data) | ||||||||||
Cash flows from operating activities: | ||||||||||
Net income | $ | 253,739 | $ | 220,063 | $ | 207,298 | $ | 827,261 | $ | 654,694 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
Stock-based compensation | 20,176 | 20,878 | 23,290 | 107,993 | 95,431 | |||||
Depreciation and amortization | 23,564 | 24,552 | 36,384 | 96,456 | 108,533 | |||||
Deferred taxes | (4,047) | 1,601 | 14,386 | (5,331) | 8,994 | |||||
In Process Research and Development written-off | - | - | - | 1,220 | - | |||||
Loss from sale of property, plant and equipment | (611) | 124 | 557 | (260) | 1,191 | |||||
Fair value contingent consideration | - | 5,835 | - | 5,835 | - | |||||
Other Adjustments | (95) | 2,413 | 2,127 | 1,745 | 11,353 | |||||
Changes in assets and liabilities: | ||||||||||
Accounts receivable | (87,794) | (85,236) | (24,078) | (254,229) | (42,335) | |||||
Inventories | 4,890 | 18,950 | (34,562) | 21,896 | (8,671) | |||||
Other assets | (6,759) | (4,875) | (25,769) | (17,343) | (86,299) | |||||
Accounts payable | 17,384 | (719) | 5,405 | 22,187 | 7,594 | |||||
Price adjustment and other revenue reserves | 45,052 | 34,118 | 37,681 | 110,673 | 48,426 | |||||
Income taxes payable | (11,900) | 8,021 | (45,855) | (34,997) | (74,814) | |||||
All other accrued liabilities | 26,211 | 25,715 | 15,465 | 41,154 | 76,758 | |||||
Net cash provided by operating activities | 279,810 | 271,440 | 212,329 | 924,260 | 800,855 | |||||
Cash flows from investing activities: | ||||||||||
Purchases of property, plant and equipment | (19,500) | (16,229) | (15,680) | (64,942) | (67,049) | |||||
Proceeds from sales of property, plant and equipment | 11 | 16 | 124 | 94 | 392 | |||||
Proceeds from sales of available-for-sale securities | - | - | 1,290 | 1,500 | 1,290 | |||||
Proceeds from maturity of available-for-sale securities | - | 8,876 | 10,734 | 33,901 | 104,286 | |||||
Payment in connection with business acquisition, net of cash acquired | - | - | (69,270) | - | (69,270) | |||||
Purchases of investments in privately-held companies | - | (1,235) | (1,840) | (1,345) | (1,960) | |||||
Proceeds from sale of investments in privately-held companies | 242 | - | 205 | 281 | 378 | |||||
Other investing activities | - | - | 2 | - | (116) | |||||
Net cash provided by (used in) investing activities | (19,247) | (8,572) | (74,435) | (30,511) | (32,049) | |||||
Cash flows from financing activities: | ||||||||||
Contingent consideration paid | - | (10,000) | - | (10,000) | (8,000) | |||||
Net issuance of restricted stock units | (9,964) | (15,932) | (6,741) | (61,880) | (35,877) | |||||
Proceeds from stock options exercised | 82 | 76 | 2,240 | 2,965 | 18,870 | |||||
Issuance of common stock under employee stock purchase program | - | - | 23,725 | 18,498 | 42,260 | |||||
Repurchase of common stock | - | - | (82,299) | (9,201) | (440,811) | |||||
Dividends paid | - | - | (128,058) | (128,147) | (517,162) | |||||
Net cash used in financing activities | (9,882) | (25,856) | (191,133) | (187,765) | (940,720) | |||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 250,681 | 237,012 | (53,239) | 705,984 | (171,914) | |||||
Cash, cash equivalents and restricted cash | ||||||||||
Beginning of period | $ | 2,040,731 | $ | 1,803,719 | $ | 1,638,667 | $ | 1,585,428 | $ | 1,757,342 |
End of period | $ | 2,291,412 | $ | 2,040,731 | $ | 1,585,428 | $ | 2,291,412 | 1,585,428 | |
Total cash, cash equivalents, and short-term investments | $ | 2,291,399 | $ | 2,033,973 | $ | 1,614,206 | 2,291,399 | 1,614,206 | ||
Cash, cash equivalents and restricted cash: | ||||||||||
Cash and cash equivalents | $ | 2,291,399 | $ | 2,033,973 | $ | 1,578,670 | 2,291,399 | 1,578,670 | ||
Restricted cash in Other assets | 13 | 6,758 | 6,758 | 13 | 6,758 | |||||
Total cash, cash equivalents and restricted cash | $ | 2,291,412 | $ | 2,040,731 | $ | 1,585,428 | $ | 2,291,412 | $ | 1,585,428 |
ANALYSIS OF GAAP VERSUS GAAP EXCLUDING SPECIAL ITEMS DISCLOSURES | ||||||||||
(Unaudited) | ||||||||||
Three Months Ended | Year Ended | |||||||||
June 26, 2021 |
March 27, 2021 |
June 27, 2020 |
June 26, 2021 |
June 27, 2020 | ||||||
(in thousands, except per share data) | ||||||||||
Reconciliation of GAAP gross profit to GAAP gross profit excluding special items: | ||||||||||
GAAP gross profit | $ | 484,025 | 442,885 | 362,368 | $ | 1,760,346 | 1,432,652 | |||
GAAP gross profit % | 67.2 | % | 66.6 | % | 66.4 | % | 66.9 | % | 65.4 | % |
Special items: | ||||||||||
Intangible asset amortization | 3,047 | 4,430 | 3,528 | 17,408 | 12,860 | |||||
Merger-related expenses(1)
| - | - | - | 2,394 | - | |||||
Cost of COVID-19 response programs | 609 | 638 | 1,591 | 2,750 | 3,616 | |||||
Severance and restructuring | - | - | - | - | - | |||||
Total special items | 3,656 | 5,068 | 5,119 | 22,552 | 16,476 | |||||
GAAP gross profit excluding special items | $ | 487,681 | $ | 447,953 | $ | 367,487 | $ | 1,782,898 | $ | 1,449,128 |
GAAP gross profit % excluding special items | 67.7 | % | 67.4 | % | 67.4 | % | 67.7 | % | 66.1 | % |
Reconciliation of GAAP operating expenses to GAAP operating expenses excluding special items: | ||||||||||
GAAP operating expenses | $ | 200,688 | 195,621 | 184,381 | $ | 814,646 | 746,258 | |||
Special items: | ||||||||||
Merger-related expenses(1)
| 2,058 | 2,546 | - | 26,617 | - | |||||
Intangible asset amortization | 846 | 846 | 810 | 3,553 | 3,078 | |||||
Severance and restructuring | 1,139 | 155 | 678 | 13,434 | 5,363 | |||||
Other operating expenses (income), net | 831 | 6,302 | (173) | 7,436 | 928 | |||||
Total special items | 4,874 | 9,849 | 1,315 | 51,040 | 9,369 | |||||
GAAP operating expenses excluding special items | $ | 195,814 | $ | 185,772 | $ | 183,066 | $ | 763,606 | $ | 736,889 |
Reconciliation of GAAP net income to GAAP net income excluding special items: | ||||||||||
GAAP net income | $ | 253,739 | $ | 220,063 | $ | 207,298 | $ | 827,261 | $ | 654,694 |
Special items: | ||||||||||
Intangible asset amortization | 3,893 | 5,276 | 4,338 | 20,961 | 15,938 | |||||
Merger-related expenses(1)
| 2,058 | 2,546 | - | 29,011 | - | |||||
Cost of COVID-19 response programs | 609 | 638 | 1,591 | 2,750 | 3,616 | |||||
Severance and restructuring | 1,139 | 155 | 678 | 13,434 | 5,363 | |||||
Other operating expenses (income), net | 831 | 6,302 | (173) | 7,436 | 928 | |||||
Interest and other expense (income), net | (2,878) | (7,359) | 1,484 | (15,903) | (541) | |||||
Pre-tax total special items | 5,652 | 7,558 | 7,918 | 57,689 | 25,304 | |||||
Other income tax effects and adjustments (2)
| (12,950) | (5,928) | (14,378) | (24,765) | (19,668) | |||||
Impact of U.S. tax legislation (3)
| - | - | 6,486 | - | 6,486 | |||||
Impact of income tax audit settlements (4)
| - | - | (51,197) | - | (51,197) | |||||
GAAP net income excluding special items | $ | 246,441 | $ | 221,693 | $ | 156,127 | $ | 860,185 | $ | 615,619 |
GAAP net income per share excluding special items: | ||||||||||
Basic | $ | 0.92 | $ | 0.83 | $ | 0.59 | $ | 3.22 | $ | 2.29 |
Diluted | $ | 0.91 | $ | 0.82 | $ | 0.58 | $ | 3.18 | $ | 2.26 |
Shares used in the calculation of earnings per share excluding special items: | ||||||||||
Basic | 268,160 | 267,892 | 266,639 | 267,546 | 269,341 | |||||
Diluted | 271,445 | 271,396 | 268,777 | 270,872 | 272,028 | |||||
(1) Includes ADI merger related expenses such as accelerated stock-based compensation expense resulting from the acceleration of certain RSAs and RSUs, and other legal professional services. | ||||||||||
(2) Includes tax effect of pre-tax special items and miscellaneous tax adjustments. | ||||||||||
(3) Includes effect of U.S. tax legislation enacted on December 22, 2017. | ||||||||||
(4) Includes effect of income tax audit settlements. | ||||||||||
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Maxim Integrated Products Inc. published this content on 27 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2021 21:00:06 UTC.