Maxim Integrated Reports Results For The Second Quarter Of Fiscal 2019

SAN JOSE, Calif., Jan. 29, 2019

Tunc Doluca, President and Chief Executive Officer, commented, "Our December quarter results came in below expectations, due to the soft environment.  However, we are encouraged to see bookings return to normal levels in recent weeks. We believe our business model enables us to be successful in any environment, and we continue to generate strong free cash flow despite current conditions."

Fiscal Year 2019 Second Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the December quarter was $0.47. The results were affected by $22 million in charges due to the impact of U.S. tax legislation and $9 million in pre-tax special items which primarily consisted of charges related to acquisitions. GAAP earnings per share, excluding special items was $0.60. An analysis of GAAP versus GAAP excluding special items is provided in this press release.

Cash Flow Items
At the end of the second quarter of fiscal 2019, total cash, cash equivalents and short-term investments were $1.96 billion, a decrease of $603 million from the prior quarter.
Notable items included:

• Cash flow from operations: $224 million
• Capital expenditures: $13 million
• Bond payment: $500 million
• Dividends paid: $127 million ($0.46 per share)
• Stock repurchases: $208 million

Adjusted trailing twelve months free cash flow was $919 million, which excludes a one-time tax payment of $178 million in the fourth quarter of fiscal 2018. Free cash flow is a non-GAAP measure and is defined by cash flow from operations less capital expenditures.

Business Outlook
The Company's 90-day backlog at the beginning of the March 2019 quarter was $372 million. Based on the beginning backlog and expected turns, our results for the March 2019 quarter are forecasted to be as follows: