Thursday, Maxim Integrated Products Inc. (MXIM), a semiconductor product company, reported a fall in fourth quarter profit hurt by one-time items and a decrease in revenues. Looking ahead, the company provided revenue guidance for the first quarter, with revenues expected to exceed Street estimates.
The Sunnyvale, California-based Maxim's fourth quarter net income plummeted to $8.1 million or $0.03 per share from $66.05 million or $0.20 per share in the prior-year period.
Net income for the quarter included an $18.9 million pre-tax for accelerated depreciation related to the closure of the Dallas wafer fabrication facility and a $15.5 million tax provision impact due to international restructuring.
On average, 16 analysts polled by Thomson Reuters expected the company to earn $0.01 per share for the quarter. Analysts' estimates typically exclude special items.
For the third quarter, Maxim posted a net loss of $26.43 million or $0.09 per share,hurt by one-time items and a double-digit drop in sales.
Quarterly revenues declined to $394.5 million from $501.27 million in the prior year period. Sequentially, revenues rose 16% over $339.7 million recorded in the prior quarter. Analysts had forecast revenues of $367.75 million for the quarter.
Tunc Doluca, president and chief executive officer said, " Due to market share gains, our revenue performance versus the same quarter last year is better than our peers. We remain convinced that our balanced business model of serving all four major markets, and our continued strategy of driving innovation and integration uniquely position us for profitable growth in the analog and mixed signal market."
Operating income for the quarter was $21.59 million, compared to $94.88 million in the year ago period.
Maxim's fourth quarter bookings increased 22%, compared to the third quarter of fiscal 2009 and the its 90 day backlog increased 18% to $278 million.
The company announced a cash dividend for the fourth quarter of $0.20 per share, which will be paid on September 4, 2009, to stockholders of record on August 21, 2009.
For the first quarter, the company expects revenues in the range of $415 million - $445 million, with a gross margin of 53% - 56%. Wall Street currently expects revenues of $387.56 million.
Amongst others in the industry, chip maker National Semiconductor Corp. (NSM) reported a fourth quarter loss from profit a year ago, hurt by lower sales, as well as, severance and restructuring costs. Santa Clara, California-based National Semiconductor reported a net loss for the fourth quarter of $63.7 million or $0.28 per share, compared to net income of $83.2 million or $0.34 per share for the year-ago quarter. Net sales for the fourth quarter fell 39% to $280.8 million from $462.0 million in the same quarter last year.
MXIM closed Thursday's trading at $17.26, down $0.36 or 2.04%, on a volume of about 4.87 million shares. In the after hours, the stock gained $0.36 or 2.09% and traded at $17.62. In the 52-week period, the stock moved between $10.72 - 22.70 on a 3-month average volume of 6.12 million shares.
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