TMCnet News
Maxim Integrated Shares Tumble As Q4 Results, Outlook Below View; Hikes Dividend(dpa-AFX International Compact Via Acquire Media NewsEdge) SUNNYVALE (dpa-AFX) - Shares of Maxim Integrated Products, Inc. (MXIM) declined 11 percent in extended trades Thursday after the company's profit for the fourth quarter declined 29 percent from last year and results missed analysts' expectations. In addition, the analog chipmaker forecast results for the first quarter below Street estimates. However, the company increased its quarterly dividend by 8 percent. San Jose, California-based Maxim offers a portfolio of products for power conversion - switching regulators, linear regulators, charge pumps, digital Point-of-Load or POL converters, and power management integrated circuits, primarily in medium-to-low current applications. The company's net income for the fourth quarter was $84.79 million or $0.29 per share, down from $119.01 million or $0.40 per share in the same period last year. The latest quarter's 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. Excluding items, adjusted earnings for the latest quarter were $123.91 million or $0.43 per share, down from $129.48 million or $0.44 per share a year ago. On average, 21 analysts polled by Thomson Reuters expected the company to report earnings of $0.48 per share for the quarter. Analysts' estimates typically exclude special items. Net revenue for the latest quarter grew 6 percent to $642.47 million from $608.19 million in the prior- year period. Analysts had a consensus revenue estimate of $650.35 million for the quarter. Tunc Doluca, President and Chief Executive Officer of Maxim Integrated, said, "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." For fiscal 2014, Maxim Integrated's net income declined to $354.81 million or $1.23 per share from $454.91 million or $1.52 per share last year. Adjusted net income for the year was $468.99 million or $1.62 per share, compared to $528.01 million or $1.77 per share in the prior year. Net revenue for the year edged up to $2.45 billion from $2.44 billion last year. Street expected the company to earn $1.68 per share for the year on revenues of $2.46 billion. Looking ahead to the first quarter, Maxim Integrated forecast net earnings of $0.27 to $0.33 per share, adjusted earnings of $0.34 to $0.40 per share, and revenues of $580 million to $620 million. Analysts expect the company to earn $0.51 per share for the quarter on revenues of $676.06 million. Doluca added, "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." The company said that 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 percent increase in the dividend compared to the prior quarter. MXIM closed Thursday's regular trading session at $32.94, down $0.04 or 0.12 percent on a volume of 3.47 million shares. In after-hours, the stock further declined $3.69 or 11.2 percent to $29.25. Copyright RTT News/dpa-AFX |