Maxim Integrated Products reported net revenue of $533 million for its first quarter of fiscal 2020 ended September 28, 2019, a 4% decrease from the $557 million revenue recorded in the prior quarter, and a 17% decrease from the same quarter of last year.
“Our September quarter results met our expectations, while also maintaining lean inventory levels,” said Tunc Doluca, President and Chief Executive Officer. “Looking forward to the December quarter, we expect sequential growth in Communications and Data Center, Automotive and Industrial, partially offset by smartphone-related headwinds and holiday seasonality in Consumer.”
Fiscal Year 2020 First Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the September quarter was $0.51. The results were affected by $5 million in pre-tax special items which primarily consisted of charges related to acquisitions. GAAP earnings per share, excluding special items was $0.52. An analysis of GAAP versus GAAP excluding special items is provided in this press release.
Cash Flow Items
At the end of the first quarter of fiscal 2020, total cash, cash equivalents and short-term investments were $1.8 billion, down $105 million from the prior quarter.
Notable items included:
Cash flow from operations: $141 million
Capital expenditures: $21 million
Dividends paid: $130 million ($0.48 per share)
Stock repurchases: $94 million
Trailing twelve months free cash flow was $725 million. Free cash flow is a non-GAAP measure and is defined by cash flow from operations less capital expenditures.
The Company’s 90-day backlog at the beginning of the December 2019 quarter was $402 million. Based on the beginning backlog and expected turns, our results for the December 2019 quarter are forecasted to be as follows:
Revenue: $525 to $565 million
Gross Margin: 63.5% to 65.5% GAAP (64% to 66% excluding special items)
EPS: $0.47 to $0.55 GAAP ($0.49 to $0.57 excluding special items)
Maxim Integrated’s business outlook does not include the potential impact of any special items related to restructuring activity, acquisitions, or other business combinations that may be completed during the quarter.
A cash dividend of $0.48 per share will be paid on December 13, 2019, to stockholders of record on November 27, 2019.
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