<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(MARK ONE)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED DECEMBER 26, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _________ TO
_________
COMMISSION FILE NO. 0-16538
MAXIM INTEGRATED PRODUCTS, INC.
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C>
DELAWARE 94-2896096
(State or Other Jurisdiction of (I.R.S. Employer I.D. No.)
Incorporation or Organization)
120 SAN GABRIEL DRIVE,
SUNNYVALE, CA 94086
(Address of Principal Executives Offices) (Zip Code)
</TABLE>
Registrant's Telephone Number, Including Area Code:
(408) 737-7600
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months, and (2) has been subject to such filing
requirements for the past 90 days:
YES [X] NO [ ]
<TABLE>
<S> <C>
CLASS: COMMON STOCK, OUTSTANDING AT JANUARY 25, 1999
$.001 PAR VALUE 133,328,033 SHARES
</TABLE>
<PAGE> 2
MAXIM INTEGRATED PRODUCTS, INC.
INDEX
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION PAGE
----
<S> <C>
ITEM 1. Financial Statements
Consolidated Balance Sheets 3
as of December 26, 1998 and June 27, 1998.
Consolidated Statements of Income 4
for the three months and six months ended
December 26, 1998 and December 27, 1997
Consolidated Statements of Cash Flows 5
for the six months ended December 26,
1998 and December 27, 1997
Notes to Consolidated Financial Statements 6-8
ITEM 2. Management's Discussion and Analysis of 9-12
Financial Condition and Results of Operations
ITEM 3. Quantitative and Qualitative Disclosures About 13
Market Risk
PART II. OTHER INFORMATION
ITEM 4. Submission of Matters to a Vote of Security 13
Holders
ITEM 6. Exhibits and Reports on Form 8-K 13
SIGNATURES 14
</TABLE>
2
<PAGE> 3
CONSOLIDATED BALANCE SHEETS
MAXIM INTEGRATED PRODUCTS, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
December 26, June 27,
(Amounts in thousands) 1998 1998
(unaudited)
====================================================================================
ASSETS
- ------------------------------------------------------------------------------------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 53,666 $ 16,739
Short-term investments 338,787 306,209
- ------------------------------------------------------------------------------------
Total cash, cash equivalents and short-term
investments 392,453 322,948
- ------------------------------------------------------------------------------------
Accounts receivable, net 87,403 101,921
Inventories 43,309 44,707
Deferred income taxes and other current assets 43,944 38,439
- ------------------------------------------------------------------------------------
Total current assets 567,109 508,015
- ------------------------------------------------------------------------------------
Property, plant and equipment, at cost, less
accumulated depreciation 269,980 255,453
Other assets 7,766 6,024
- ------------------------------------------------------------------------------------
TOTAL ASSETS $ 844,855 $ 769,492
====================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 28,189 $ 35,169
Income taxes payable 1,064 27,412
Accrued salaries 21,431 21,421
Accrued expenses 28,506 22,604
Deferred income on shipments to distributors 23,946 23,686
- ------------------------------------------------------------------------------------
Total current liabilities 103,136 130,292
- ------------------------------------------------------------------------------------
Other liabilities 4,000 4,000
Deferred income taxes 4,200 4,200
- ------------------------------------------------------------------------------------
Stockholders' equity:
Common stock 131 131
Additional paid-in capital 87,056 81,118
Retained earnings 647,801 551,914
Translation adjustment (1,469) (2,163)
- ------------------------------------------------------------------------------------
Total stockholders' equity 733,519 631,000
- ------------------------------------------------------------------------------------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 844,855 $ 769,492
====================================================================================
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
3
<PAGE> 4
CONSOLIDATED STATEMENTS OF INCOME
MAXIM INTEGRATED PRODUCTS, INC.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
(Amounts in thousands, except per
share data) Three months ended Six months ended
- -----------------------------------------------------------------------------------------------
December 26, December 27, December 26, December 27,
(Unaudited) 1998 1997 1998 1997
===============================================================================================
<S> <C> <C> <C> <C>
Net revenues $ 145,012 $ 135,000 $ 300,293 $ 260,000
Cost of goods sold 45,409 44,550 95,862 86,050
- -----------------------------------------------------------------------------------------------
Gross margin 99,603 90,450 204,431 173,950
- -----------------------------------------------------------------------------------------------
Operating expenses:
Research and development 21,385 17,013 42,436 32,493
Selling, general and
administrative 12,643 11,811 26,130 22,745
- -----------------------------------------------------------------------------------------------
Total operating expenses 34,028 28,824 68,566 55,238
- -----------------------------------------------------------------------------------------------
Operating income 65,575 61,626 135,865 118,712
Interest income, net 4,867 3,266 9,418 6,732
- -----------------------------------------------------------------------------------------------
Income before provision for
income taxes 70,442 64,892 145,283 125,444
Provision for income taxes 23,950 22,063 49,396 42,651
- -----------------------------------------------------------------------------------------------
Net income $46,492 $42,829 $95,887 $82,793
===============================================================================================
Earnings per share:
Basic $ 0.35 $ 0.33 $ 0.73 $ 0.64
Diluted $ 0.31 $ 0.29 $ 0.64 $ 0.55
===============================================================================================
Shares used in the calculation
of earnings per share:
Basic 131,309 128,733 130,945 128,648
Diluted 149,972 149,749 149,316 150,279
===============================================================================================
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
4
<PAGE> 5
CONSOLIDATED STATEMENTS OF CASH FLOWS
MAXIM INTEGRATED PRODUCTS, INC.
<TABLE>
<CAPTION>
===============================================================================================
For the six months ended
(Amounts in thousands)(Unaudited) December 26, December 27,
Increase (decrease) in cash and cash equivalents 1998 1997
===============================================================================================
<S> <C> <C>
Cash flows from operating activities:
Net income $ 95,887 $ 82,793
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, amortization and translation adjustment 8,998 7,050
Reduction of equipment value - 4,842
Changes in assets and liabilities:
Accounts receivable 14,518 (8,793)
Inventories 1,398 (1,701)
Deferred income taxes and other current assets (5,505) (2,765)
Accounts payable (6,980) 5,884
Income taxes payable 10,533 35,880
Deferred income on shipments to distributors 260 (1,371)
All other accrued liabilities 5,912 3,507
- -----------------------------------------------------------------------------------------------
Net cash provided by operating activities 125,021 125,326
- -----------------------------------------------------------------------------------------------
Cash flows from investing activities:
Additions to property, plant and equipment (22,831) (71,951)
Other assets (1,742) (1,671)
Purchases of available-for-sale securities (144,090) (95,329)
Proceeds from sales/maturities of available-for-sale
securities 111,512 86,602
- -----------------------------------------------------------------------------------------------
Net cash provided by (used in) investing activities (57,151) (82,349)
- -----------------------------------------------------------------------------------------------
Cash flows from financing activities:
Issuance of common stock 21,463 16,779
Repurchase of common stock (52,406) (65,639)
- -----------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities (30,943) (48,860)
- -----------------------------------------------------------------------------------------------
Net increase (decrease) in cash and cash equivalents 36,927 (5,883)
Cash and cash equivalents:
Beginning of year 16,739 18,562
- -----------------------------------------------------------------------------------------------
End of period $ 53,666 $ 12,679
===============================================================================================
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
5
<PAGE> 6
MAXIM INTEGRATED PRODUCTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1: BASIS OF PRESENTATION
The unaudited consolidated financial statements included herein have been
prepared by the Company pursuant to the rules and regulations of the Securities
and Exchange Commission. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to such rules and
regulations. In the opinion of management, all adjustments (consisting of normal
recurring items) considered necessary for a fair presentation have been
included. The results of operations for the three and six months ended December
26, 1998 are not necessarily indicative of the results to be expected for the
entire year. These consolidated financial statements should be read in
conjunction with the consolidated financial statements and the notes thereto
included in the Annual Report on Form 10-K for the year ended June 27, 1998.
Effective July 1, 1997, the Company adopted a 52-53 week fiscal year that will
end on the last Saturday in June, and in which each accounting quarter will end
on the last Saturday of the last month of the quarter.
NOTE 2: INVENTORIES
Inventories consist of (in thousands):
<TABLE>
<CAPTION>
December 26, June 27,
------------ ---------
1998 1998
---- ----
(unaudited)
<S> <C> <C>
Raw materials $ 3,688 $ 4,826
Work-in-process 24,281 29,575
Finished goods 15,340 10,306
-------- --------
$ 43,309 $ 44,707
======== ========
</TABLE>
6
<PAGE> 7
MAXIM INTEGRATED PRODUCTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)
NOTE 3: EARNINGS PER SHARE
Basic earnings per share is calculated based only on weighted average common
shares outstanding. Diluted earnings per share is calculated based on the
weighted average number of common and dilutive common equivalent shares
outstanding during each respective period. The number of dilutive common
equivalent shares which became issuable pursuant to the grant of stock options
has been calculated using the treasury stock method.
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
(Amounts in thousands, except per
share data) Three months ended Six months ended
- ---------------------------------------------------------------------------------------------------------
December 26, December 27, December 26, December 27,
(Unaudited) 1998 1997 1998 1997
=========================================================================================================
<S> <C> <C> <C> <C>
Numerator for basic earnings per
share and diluted earnings per
share
Net income 46,492 $42,829 $95,887 $82,793
========================================================================================================
Denominator for basic earnings per share 131,309 128,733 130,945 128,648
Effect of dilutive securities:
Stock options and warrants 18,663 21,016 18,371 21,631
========================================================================================================
Denominator for diluted earnings per share 149,972 149,749 149,316 150,279
========================================================================================================
Earnings per share:
Basic $ 0.35 $ 0.33 $ 0.73 $ 0.64
Diluted $ 0.31 $ 0.29 $ 0.64 $ 0.55
========================================================================================================
</TABLE>
7
<PAGE> 8
MAXIM INTEGRATED PRODUCTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)
NOTE 4: SHORT-TERM INVESTMENTS
All short-term investments at December 26, 1998 are classified as
available-for-sale and consist of U.S. Treasury and Federal Agency debt
securities maturing within one year. Unrealized gains and losses, net of tax, on
securities in this category are reportable as a separate component of
stockholders' equity. Because of the short term to maturity and relative price
insensitivity to changes in market interest rates, amortized cost approximates
fair market value and no unrealized gains or losses have been recorded at
December 26, 1998. The cost of securities sold is based on the specific
identification method. Interest earned on securities is included in interest
income, net in the consolidated statements of income.
NOTE 5: COMPREHENSIVE INCOME
The Company has adopted Statement of Financial Accounting Standards No. 130
(SFAS 130) Reporting Comprehensive Income, as of the first quarter of fiscal
1999. SFAS 130 establishes standards for the reporting and disclosure of
comprehensive income and its components, however it has no impact on the
Company's consolidated results of operations, financial position or cash flows.
The difference between net income and comprehensive income is from foreign
currency translation adjustments.
The components of comprehensive income for the three and six months ended
December 26, 1998 and December 27, 1997 are as follows (in thousands):
<TABLE>
<CAPTION>
Three months ended Six months ended
- ------------------------------------------------------------------------------------------------
December 26, December 27, December 26, December 27,
1998 1997 1998 1997
================================================================================================
<S> <C> <C> <C> <C>
Net income $ 46,492 $ 42,829 $ 95,887 $ 82,793
Cumulative Translation
adjustment (10) (299) 694 (942)
- ------------------------------------------------------------------------------------------------
Comprehensive Income $ 46,482 $ 42,530 $ 96,581 $ 81,851
================================================================================================
</TABLE>
NOTE 6: RECENT PRONOUNCEMENT
Statement of Financial Accounting Standards No. 133 (SFAS 133) Accounting for
Derivative Instruments and Hedging Activities was issued by the Financial
Accounting Standards Board in June 1998. The Standard will require the Company
to recognize all derivatives on the balance sheet at fair value. Derivatives
that are not hedges must be adjusted to fair value through income. If the
derivative is a hedge, depending on the nature of the hedge, changes in the fair
value of derivatives will either offset against the change in fair value of the
hedged assets, liabilities, or firm commitments through earnings, or recognized
in other comprehensive income until the hedged item is recognized in earnings.
The change in a derivative's fair value related to the ineffective portion of a
hedge, if any will be immediately recognized in earnings. The Company expects to
adopt this Standard as of the beginning of its fiscal year 2000. The effect of
adopting the Standard is currently being evaluated, but is not expected to have
a material effect on the Company's financial position or results of operations.
8
<PAGE> 9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
RESULTS OF OPERATIONS
Net revenues increased by 7.4% and 15.5% for the three and six months ended
December 26, 1998 compared to the three and six months ended December 27, 1997.
The increase is primarily attributable to higher unit shipments resulting from
continued introduction of new proprietary products and increased market
acceptance of the Company's proprietary and second-source products.
During the quarter, 57% of net revenues were derived from customers outside of
the United States. While the majority of these sales are denominated in US
dollars, the Company enters into foreign currency forward contracts to mitigate
its risks on firm commitments and net monetary assets denominated in foreign
currencies; as a result, the impact of changes in foreign exchange rates on
revenue and the Company's results of operations for the quarter was minimal.
Gross margin was 68.7% and 68.1% in the three and six months ended December 26,
1998, compared to 67.0% and 66.9% for the three and six months ended December
27, 1997. The increase in gross margin for the three and six months ended
December 26, 1998 was due to production efficiencies obtained through economies
of scale offset to some extent by a $2.5 million increase in inventory reserves.
In addition, the Company expensed approximately $2.8 million of negative
manufacturing variances.
Research and development expenses were 14.7% and 14.1% of net revenues in the
three and six months ended December 26, 1998, compared to 12.6% and 12.5% in the
three and six months ended December 27, 1997. The increase is attributable
primarily to increased investments in product development efforts.
Selling, general and administrative expenses were 8.7% of net revenues for both
the three and six months ended December 26, 1998 and for the three and six
months ended December 27, 1997. Selling, general and administrative expenses
increased in absolute dollars primarily as a result of increased headcount and
related employee expenses to support the Company's higher revenues.
The Company's operating income decreased slightly to 45.2% of net revenues for
both the three and six months ended December 26, 1998 as a result of the items
described above compared to 45.6% and 45.7% in the three and six months ended
December 27, 1997.
Net interest income increased to $4.9 million in the three months and $9.4
million in the six months ended December 26, 1998, compared to $3.3 million and
$6.7 million for the three and six months ended December 27, 1997, as a result
of higher levels of invested cash, cash equivalents and short-term investments.
The effective income tax rate for both the three and six months ended December
26, 1998 was 34%. This rate differs from the federal statutory rate primarily
due to state income taxes, federal research and development tax credit and tax
exempt earnings of the Company's Foreign Sales Corporation.
9
<PAGE> 10
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS (CONT'D)
OUTLOOK
Net bookings were $141.0 million in the second quarter of fiscal 1999, an 11%
increase over the first quarter of fiscal 1999 of $127.0 million. During the
quarter, customers continued their trend of ordering for near-term delivery.
Turns orders received in the quarter were $52.0 million, a 24% increase over the
first quarter of 1999 (turns orders are customer orders that are for delivery
within the same quarter and may result in revenue within the same quarter if the
Company has available inventory that matches those orders). Order cancellations
during the quarter were approximately $15 million, the lowest level in the last
several quarters.
Second quarter of fiscal 1999 ending backlog shippable within the next 12 months
was approximately $135 million, including $109 million requested for shipment by
the end of the third quarter of fiscal 1999. Since shipments in the second
quarter of fiscal 1999 slightly exceeded the Company's net bookings, the opening
backlog for the third quarter of fiscal 1999 was below that for the previous
quarter. Accordingly, the Company's ability to ship in the third quarter at or
above the level of the second quarter of fiscal 1999 will depend on third
quarter turns orders being at or above second quarter levels.
During the second quarter of fiscal 1999, bookings grew in Europe and the
Pacific Rim. Market conditions in Japan continue to be difficult, and business
in that country declined during the quarter. While some of the strength in the
Pacific Rim is due to the transfer of contract manufacturing to lower cost
manufacturing areas, the Company also saw an increase in its OEM business in
Korea.
Bookings improved in the communications (primarily cell phone) and the computer
(primarily notebook related) end markets. In addition, the Company experienced
moderate bookings growth in the broad-based traditional standard analog products
that serve most of the Company's end markets.
LIQUIDITY AND CAPITAL RESOURCES
The Company's primary sources of funds for the first six months of fiscal 1999
have been from net cash generated from operating activities of $125.0 million,
and the issuance of common stock of $21.5 million associated with the Company's
stock option programs.
The principal uses of funds have been the repurchase of $52.4 million of common
stock, the purchase of $22.8 million in property, plant and equipment and $32.6
million of net investment activities.
The Company anticipates that it will spend up to $70 million for capital
equipment in fiscal 1999 and believes that it possesses sufficient liquidity and
capital resources to fund these purchases and its operations for the foreseeable
future. In addition, the Company intends to continue to repurchase its common
stock from time to time consistent with its policy and practice of using the
proceeds or anticipated proceeds from the exercise of stock options and the
resulting tax benefit to repurchase its common stock.
10
<PAGE> 11
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS (CONT'D)
YEAR 2000 ISSUE
As a result of certain computer programs being written using two digits rather
than four to define the applicable year, any of the Company's computer programs
that have date-sensitive software may recognize a date using "00" as the year
1900 rather than the year 2000 (the "Year 2000 Issue"). This could result in a
system failure or miscalculations causing disruptions of operations, including,
among other things, a temporary inability to process transactions, send
invoices, or engage in normal business activities.
The Company has evaluated and is continuing to evaluate the modifications
required to both new and existing software and hardware systems required to
mitigate the Year 2000 issue. Evaluations have been substantially completed on
systems determined by the Company to be critical to the Company's operations,
and remediation has begun on those systems. The Company estimates that it is
more than 50% complete in such remediation. The Company has also initiated
formal communications with its significant suppliers and large customers to
determine the extent to which the Company is vulnerable to those third parties'
failure to minimize their own Year 2000 Issue. The Company expects to have any
required modifications completed prior to December 31, 1999. However, if such
modifications are not made, or are not completed in a timely fashion, the Year
2000 Issue could have a material impact on the operations of the Company. In
addition, there can be no assurance that the systems of other companies on which
the Company's systems rely will be timely converted, or that a failure to
convert by another company, or a conversion that is incompatible with the
Company's systems, would not have a material adverse effect on the Company. The
Company currently has no contingency plan in the event it or third parties are
unable to complete system modifications to address the Year 2000 Issue. Costs
incurred to date have been minimal. While the Company has not fully completed
the evaluation of its Year 2000 Issue, it does not anticipate that the future
cost of these efforts will be material.
The date on which the Company plans to complete any necessary Year 2000
modifications and costs related to completing such modifications are based on
management's best estimates, which were derived utilizing numerous assumptions
of future events, including the continued availability of certain resources,
third party modification plans, and other factors. However, there can be no
assurance that these estimates will be achieved, and actual completion dates and
costs could differ significantly from those estimates. Specific factors that
might cause such significant differences include, but are not limited to, the
availability and cost of personnel trained in this area, the ability to locate
and correct all relevant computer codes, and similar uncertainties.
11
<PAGE> 12
FORWARD-LOOKING INFORMATION
This Report on Form 10-Q contains forward-looking statements, including
statements regarding or implicating the Company's expectations, intentions,
plans, goals and hopes regarding the future. Such statements include, among
others, statements regarding bookings, shipments, turns orders, capital
spending, the sufficiency of capital resources and liquidity, the Company's
stock repurchase policy, completion of Year 2000 related modifications and costs
of Year 2000 remediation efforts. Forward-looking statements in this report,
including this Management's Discussion and Analysis section, involve risk and
uncertainty. There are numerous factors that could cause the Company's actual
results to differ materially from results predicted or implied in this report.
Important factors affecting the Company's ability to achieve future revenue
growth include whether, and the extent to which, demand for the Company's
products increases and reflects real end-user demand; whether customer
cancellations and delays of outstanding orders increase; and whether the Company
is able to manufacture in a correct mix to respond to orders on hand and new
orders received in the future; whether the Company is able to achieve its new
product development and introduction goals, including, without limitation, goals
for recruiting, retaining, training, and motivating engineers, particularly
design engineers, and goals for conceiving and introducing timely new products
that are well received in the marketplace; and whether the Company is able to
successfully commercialize its new technologies, such as its new
second-generation high frequency technologies, that it has been investing in.
Other important factors that could cause actual results to differ materially
from those predicted include overall economic conditions, such as the currency
and other economic issues affecting Asian and other countries; demand for
electronic products and semiconductors generally; demand for the end-user
products for which the Company's semiconductors are suited; timely availability
of raw materials, equipment, supplies and services; unanticipated manufacturing
problems; technological and product development risks; competitors' actions; and
other risk factors described above under the heading Year 2000 Issue and in the
Company's filings with the Securities and Exchange Commission and in particular
its report on Form 10-K for the year ended June 27, 1998.
All forward-looking statements included in this document are made as of the date
hereof, based on the information available to the Company as of the date hereof,
and the Company assumes no obligation to update any forward-looking statement.
12
<PAGE> 13
ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company's market risk disclosures set forth in Item 7A of its Annual Report
on Form 10-K for the year ended June 27, 1998 have not changed significantly.
PART II. OTHER INFORMATION
ITEM 4: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Company held an Annual Meeting of Stockholders on November 19, 1998.
The Stockholders elected the Board's nominees as directors by the votes
indicated:
<TABLE>
<CAPTION>
Nominee Votes in Favor Votes Withheld
- ------- -------------- --------------
<S> <C> <C>
James R. Bergman 117,794,440 158,088
John F. Gifford 117,783,556 158,088
Kipling Hagopian 117,785,507 158,088
A.R. Frank Wazzan 117,794,593 158,088
</TABLE>
The increase in the number of shares of common stock under the Company's 1996
Stock Incentive Plan and the 1987 Employee Stock Participation Plan was ratified
and approved with 75,303,453 votes in favor, 32,966,001 against, 80,014
abstentions and 9,599,1670 non-votes.
The selection of Ernst & Young LLP as the Company's independent auditors for
fiscal 1999 was ratified with 117,861,346 votes in favor, 15,385 votes against,
71,904 abstentions and no non-votes.
ITEM 6: EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27 Financial Data Schedule.
(b) No Reports on Form 8-K were filed during the quarter ended December
26, 1998.
ITEMS 1, 2, 3 AND 5 HAVE BEEN OMITTED AS THEY ARE NOT APPLICABLE.
13
<PAGE> 14
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
FEBRUARY 5, 1999_ MAXIM INTEGRATED PRODUCTS, INC.
(Date) ----------------------------------------
(Registrant)
/s/ Michael J. Byrd
----------------------------------------
MICHAEL J. BYRD
Vice President and Chief
Financial Officer (For the
Registrant and as Principal
Financial Officer)
/s/ Carl W. Jasper
----------------------------------------
CARL W. JASPER
Corporate Controller (Principal
Accounting Officer)
14
<PAGE> 15
EXHIBIT INDEX
27 Financial Data Schedule.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-26-1999
<PERIOD-START> JUN-28-1998
<PERIOD-END> DEC-26-1998
<CASH> 392,453
<SECURITIES> 0
<RECEIVABLES> 88,866
<ALLOWANCES> (1,463)
<INVENTORY> 43,309
<CURRENT-ASSETS> 567,109
<PP&E> 360,580
<DEPRECIATION> (90,600)
<TOTAL-ASSETS> 844,855
<CURRENT-LIABILITIES> 103,136
<BONDS> 0
0
0
<COMMON> 131
<OTHER-SE> 733,388
<TOTAL-LIABILITY-AND-EQUITY> 844,855
<SALES> 300,293
<TOTAL-REVENUES> 300,293
<CGS> 95,862
<TOTAL-COSTS> 95,862
<OTHER-EXPENSES> 68,566
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (9,418)
<INCOME-PRETAX> 145,283
<INCOME-TAX> 49,396
<INCOME-CONTINUING> 95,887
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 95,887
<EPS-PRIMARY> 0.73
<EPS-DILUTED> 0.64
</TABLE>
