<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 27, 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 number 1-10464
-------
DALLAS SEMICONDUCTOR CORPORATION
----------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 75-1935715
-------- ----------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
4401 SOUTH BELTWOOD PARKWAY, DALLAS, TEXAS 75244-3292
-----------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (972) 371-4000
--------------
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 (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
------- -------
Number of shares outstanding of the registrant's Common Stock as of
November 1, 1998: 28,210,493.
-----------
<PAGE> 2
DALLAS SEMICONDUCTOR CORPORATION
INDEX TO FORM 10-Q
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS PAGE NO.
Condensed Consolidated Statements of Income (Unaudited)
Three months and nine months ended September 27, 1998
and September 28, 1997 ............................................. 3
Condensed Consolidated Balance Sheets
September 27, 1998 (Unaudited) and December 28, 1997 ............... 4
Condensed Consolidated Statements of Cash Flows (Unaudited)
Nine months ended September 27, 1998 and September 28, 1997 ........ 5
Notes to Condensed Consolidated Financial Statements ................. 6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.................................... 7 - 9
PART II. OTHER INFORMATION
ITEMS 1. THROUGH 4. .................................................. 10
ITEM 5. OTHER INFORMATION ........................................... 10 - 12
ITEM 6. .............................................................. 12
SIGNATURE ............................................................ 13
INDEX TO EXHIBIT 27.1 ................................................ 14
2
<PAGE> 3
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
DALLAS SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
(Unaudited)
Three months Nine months
ended ended
------------------------- -------------------------
(In thousands, except Sept. 27, Sept. 28, Sept. 27, Sept. 28,
per share amounts) 1998 1997 1998 1997
- ---------------------------------------------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net sales $ 83,099 $ 93,069 $ 257,576 $ 272,813
Operating costs and expenses:
Cost of sales 39,433 44,710 122,269 134,104
Research and development 11,442 11,517 35,800 33,890
Selling, general and administrative 13,671 13,531 42,906 39,715
---------- ---------- ---------- ----------
Total costs and expenses 64,546 69,758 200,975 207,709
---------- ---------- ---------- ----------
Operating income 18,553 23,311 56,601 65,104
Interest income, net 1,129 1,287 3,563 3,326
---------- ---------- ---------- ----------
Income before income taxes 19,682 24,598 60,164 68,430
Provision for income taxes 6,298 7,687 19,253 21,823
---------- ---------- ---------- ----------
Net income $ 13,384 $ 16,911 $ 40,911 $ 46,607
========== ========== ========== ==========
Net income per share, basic $ 0.48 $ 0.62 $ 1.46 $ 1.72
Net income per share, diluted $ 0.45 $ 0.57 $ 1.37 $ 1.59
---------- ---------- ---------- ----------
Shares used to calculate
net income per share:
Basic 27,998 27,325 27,930 27,113
Diluted 29,756 29,659 29,868 29,300
---------- ---------- ---------- ----------
Dividends declared per share $ 0.04 $ 0.035 $ 0.12 $ 0.105
---------- ---------- ---------- ----------
</TABLE>
See accompanying notes.
3
<PAGE> 4
DALLAS SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
Sept. 27, Dec. 28,
(In thousands, except per share amounts) 1998 1997
- ---------------------------------------- --------- ---------
(Unaudited)
<S> <C> <C>
Assets
Current assets:
Cash and short-term investments $ 122,677 $ 114,608
Accounts receivable, net 48,133 62,337
Inventories 69,810 59,131
Deferred tax assets 9,473 9,689
Other current assets 7,406 4,475
--------- ---------
Total current assets 257,499 250,240
Property, plant and equipment, at cost:
Land 8,768 8,757
Building and improvements 70,014 52,067
Machinery and equipment 306,960 269,767
--------- ---------
385,742 330,591
Less accumulated depreciation (194,547) (168,836)
--------- ---------
Property, plant and equipment, net 191,195 161,755
Other assets 5,531 5,147
--------- ---------
$ 454,225 $ 417,142
========= =========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 20,950 $ 29,711
Accrued salaries and benefits 11,019 19,979
Accrued taxes other than income 3,300 3,678
Other accrued liabilities 13,871 10,345
Income taxes payable 6,116 2,372
--------- ---------
Total current liabilities 55,256 66,085
Stockholders' equity:
Preferred stock, $0.10 par value;
5,000,000 shares authorized; no shares
issued and outstanding -- --
Common stock, $0.02 par value; 40,000,000
shares authorized; issued:
28,121,165 shares at September 27, 1998, and
27,639,784 shares at December 28, 1997 562 553
Additional paid-in capital 116,506 106,161
Retained earnings 283,519 245,961
Treasury stock, shares at cost:
91,525 shares at September 27, 1998
and December 28, 1997 (1,618) (1,618)
--------- ---------
Total stockholders' equity 398,969 351,057
--------- ---------
$ 454,225 $ 417,142
========= =========
</TABLE>
See accompanying notes.
4
<PAGE> 5
DALLAS SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
(Unaudited)
Nine Months Ended
------------------------
Sept. 27, Sept. 28,
(In thousands) 1998 1997
- -------------------------------------------------- --------- ---------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 40,911 $ 46,607
Adjustments to reconcile net income to net
cash provided by operating activities
Depreciation 32,457 26,104
Net change in working capital accounts (5,128) (8,705)
--------- ---------
Net cash provided by operating activities 68,240 64,006
--------- ---------
Cash flows from investing activities:
Additions to property, plant and equipment (62,147) (28,189)
Proceeds from disposition of assets 250 --
Increase in other assets (384) (236)
--------- ---------
Net cash used in investing activities (62,281) (28,425)
--------- ---------
Cash flows from financing activities:
Proceeds from issuance of stock
upon exercise of stock options 5,463 7,970
Dividends paid to shareholders (3,353) (2,851)
--------- ---------
Net cash provided by financing activities 2,110 5,119
--------- ---------
Net change in cash and short-term investments 8,069 40,700
Cash and short-term investments at
beginning of period 114,608 70,274
--------- ---------
Cash and short-term investments at end of period $ 122,677 $ 110,974
========= =========
Cash payments for income taxes $ 10,401 $ 22,087
Supplementary schedule of non-cash financing activities:
Reduction of income tax payable and increase
in paid-in capital resulting from the tax
benefit of stock option exercises $ 4,891 $ 5,350
Disposition of assets $ 940 $ 696
</TABLE>
See accompanying notes.
5
<PAGE> 6
DALLAS SEMICONDUCTOR CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. INTERIM ACCOUNTING POLICY
The accompanying condensed consolidated financial statements have not been
audited by independent auditors, except for the balance sheet as of December 28,
1997. In the opinion of the Company's management, the accompanying financial
statements reflect all adjustments (consisting only of normal recurring
accruals) necessary to present fairly the Company's financial position at
September 27, 1998 and December 28, 1997, and results of operations and cash
flows for the periods presented.
Certain footnote information has been condensed or omitted from these financial
statements. Therefore, these financial statements should be read in conjunction
with the financial statements and related notes included in the Company's Annual
Report on Form 10-K for the year ended December 28, 1997. Results of operations
for the three and nine month periods ended September 27, 1998 are not
necessarily indicative of results to be expected for the full year.
In June 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards (SFAS) No. 131, "Disclosures about Segments of an
Enterprise and Related Information." SFAS 131 establishes standards for
reporting information about operating segments in interim and annual financial
statements, however SFAS 131 need not be applied to interim financial statements
in the initial year of its application. SFAS 131 is effective for fiscal years
beginning after December 15, 1997. As the Company operates predominantly in one
industry segment, management believes its existing disclosures regarding
segments comply with the standards established by SFAS 131.
2. INVENTORIES (In thousands)
<TABLE>
<CAPTION>
Sept. 27, Dec. 28,
1998 1997
--------- --------
<S> <C> <C>
Raw materials $ 7,974 $ 8,761
Work-in-process 45,683 31,187
Finished goods 16,153 19,183
--------- --------
$ 69,810 $ 59,131
========= ========
</TABLE>
Inventories are stated at the lower of standard cost, which approximates actual
cost (first-in, first-out), or market.
3. INCOME TAXES
The provision for income taxes includes estimated federal and state income taxes
at statutory rates and a deferred tax benefit of $296,000 for the three month
period ended September 27, 1998 and a deferred tax expense of $216,000 for the
nine month period ended September 27, 1998. The Company's effective tax rate
increased to 32.0% in the third quarter and first nine months of 1998 from 31.3%
and 31.9%, respectively for the same periods in 1997. This increase was a result
of changes in anticipated differences between income for financial statement
purposes and taxable income for the periods.
6
<PAGE> 7
DALLAS SEMICONDUCTOR CORPORATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
This report contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. Actual results could differ materially from those projected in the
forward-looking statements as a result of the factors set forth elsewhere in
this report. Although the Company believes that the expectations reflected in
such forward-looking statements are based on reasonable assumptions, there can
be no assurance that such expectations will be achieved.
RESULTS OF OPERATIONS
Net sales for the third quarter of 1998 were $83,099,000, a decrease of 11% over
the third quarter of 1997. The Company's revenue by product category is shown in
the table below.
<TABLE>
<CAPTION>
NET SALES
(In millions)
- -------------------------------------------------------------------------------------
Change
Product Categories Q397 Q497 Q198 Q298 Q398 Q398-Q397
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Communications $ 20.7 $ 21.9 $ 20.5 $ 21.1 $ 23.1 12%
Timekeeping 18.0 18.4 16.9 13.2 13.2 -27%
System Extension 16.2 16.2 13.2 14.8 12.7 -22%
Automatic Information 10.5 12.7 12.4 12.0 11.7 11%
Nonvolatile RAM 10.4 10.5 9.6 11.5 8.6 -17%
Others 7.7 8.6 8.0 7.1 7.4 -4%
Microcontrollers 9.6 7.1 6.8 7.3 6.4 -33%
- -------------------------------------------------------------------------------------
Company Total $ 93.1 $ 95.4 $ 87.4 $ 87.0 $ 83.1 -11%
- -------------------------------------------------------------------------------------
</TABLE>
Gross margins increased for the first nine months of 1998 to 53% from 51% during
the same period in 1997. Gross margins increased in the third quarter of 1998 to
53% from 52% in the third quarter of 1997. The increase in gross margins for
both periods was caused primarily by increased efficiency in factory operations
and a sales-mix shift toward higher margin products.
Research and development ("R&D") expenses for the third quarter of 1998
decreased 1% from the third quarter of 1997. R&D expenses increased 6% for the
first nine months of 1998 over the same period in 1997, primarily a result of
increased personnel costs due to increased headcount. R&D expenses as a percent
of sales increased to 14% from 12% for the third quarter of 1998 and 1997,
respectively. R&D expenses as a percent of net sales increased to 14% for the
first nine months of 1998 from 12% during the same period in 1997 due to lower
sales volume and higher R&D expenditures.
Selling, general, and administrative ("SG&A") expenses increased 1% and 8% for
the third quarter of 1998 and the first nine months of 1998 over the same
periods in 1997, respectively. The increase in SG&A expenses resulted primarily
from increases in personnel costs due to increased headcount. SG&A expenses as a
percent of net sales was 17% for the three and nine month periods ended
September 27, 1998 as compared to 15% for the same periods ended September 28,
1997.
7
<PAGE> 8
DALLAS SEMICONDUCTOR CORPORATION
RESULTS OF OPERATIONS (CONTINUED)
Operating income decreased 20% and 13% for the third quarter of 1998 and the
first nine months of 1998 over the same periods in 1997, respectively. The
decrease for both periods was due primarily to higher operating expenses and
lower sales volumes. Operating income as a percent of sales decreased to 22%
from 24% for the first nine months of 1998 and 1997, respectively.
Net interest income for the third quarter of 1998 decreased by $158,000 or 12%
over the third quarter of 1997. Net interest income increased by $237,000 or 7%
for the first nine months of 1998 over the same period in 1997. Changes in net
interest income are due primarily to changes in the average cash balances for
the three and nine month periods. Any substantial change in the Company's cash
and short-term investments and changes in interest rates will continue to
effect net interest income.
The provision for income taxes includes estimated federal and state income taxes
at statutory rates and a deferred tax benefit of $296,000 for the three period
ended September 27, 1998 and a deferred tax expense of $216,000 for the nine
month period ended September 27, 1998. The Company's effective tax rate
increased to 32.0% in the third quarter and first nine months of 1998 from 31.3%
and 31.9%, respectively for the same periods in 1997. This increase was a result
of changes in anticipated differences between income for financial statement
purposes and taxable income for the periods.
A number of uncertainties exist that may influence the Company's future
operating results, including general economic conditions, changes in conditions
affecting original equipment manufacturers, competition, alternative
technologies, the Company's success in developing new products and process
technologies, accelerated declines in the average selling price of the Company's
existing products, changes in customer order patterns, market acceptance of the
Company's new products, distributor and sales representative performance, the
ability of the Company to continue diversifying its product line, accelerated
growth of inventory leading to excess inventory and salability and/or
obsolescence write-downs, excess production capacity, manufacturing performance,
subcontractor performance, availability and price fluctuations of raw materials,
and other factors. Any of these uncertainties could cause a severe near-term
impact on the Company's order growth, net sales growth, or results of
operations.
8
<PAGE> 9
DALLAS SEMICONDUCTOR CORPORATION
FINANCIAL CONDITION
Cash and short-term investments were $122.7 million at the end of the third
quarter of 1998, compared with $114.6 million at the end of fiscal year 1997.
The increase in cash and short-term investments was primarily the result of net
cash provided by operations during the first nine months of 1998 of $68.2
million being offset by investments in property, plant and equipment of $62.1
million. The Company continues to invest in financial instruments having
maturities in excess of one year in order to obtain yields higher than those
available in the short-term market.
Capital additions were $21 million in the third quarter of 1998, compared to $10
million for the same period of 1997. Capital expenditures for the third quarter
of 1998 related primarily to wafer fabrication and test equipment. Capital
expenditures for 1998 are estimated to total approximately $80 million and will
be used primarily for wafer fabrication, manufacturing and test equipment, and
computer hardware and software.
On September 14, 1998, all claims and causes of action in the respective
lawsuits instituted by the Company and Benchmarq Microelectronics, Inc.
(Benchmarq) against the other were settled. The settlement involved a cash
payment by Benchmarq and provision for a limited cross-license agreement between
the parties.
In 1994 the board of directors authorized the purchase from time-to-time,
depending on market conditions, of up to 500,000 shares of the Company's common
stock. As of September 27, 1998, a total of 215,900 shares, totaling $3,446,000
have been purchased pursuant to this stock repurchase program.
On September 1, 1998, a $0.04 dividend was paid on each outstanding share of
common stock, to shareholders of record on August 14, 1998. On October 20, 1998,
a $0.04 dividend was declared on each outstanding share of common stock, payable
on December 1, 1998, to shareholders of record on November 13, 1998.
The Company had no long-term debt at the end of the third quarter of 1998 or at
the end of fiscal year 1997.
9
<PAGE> 10
DALLAS SEMICONDUCTOR CORPORATION
PART II. OTHER INFORMATION
ITEMS 1.- 4.
ITEM 5. OTHER INFORMATION
YEAR 2000 READINESS DISCLOSURE
In response to the "Year 2000 Information and Readiness Disclosure Act"
signed into law October 19, 1998 and the statement issued by the Securities
and Exchange Commission regarding "Disclosure of Year 2000 Issues and
Consequences by Public Companies, Investment Advisers, Investment Companies,
and Municipal Security Holders" in August 1998, the Company is making the
following Year 2000 Readiness Disclosure.
The Company has undertaken an assessment of all mission critical systems,
including information systems as well as production and manufacturing
systems, which could be significantly affected by Year 2000 issues. The
Company has initiated various Year 2000 remediation projects and expects to
complete software reprogramming and replacement by December 31, 1998. These
projects were initiated and will be completed by the Company's employees and
will include the use of some software purchased from third parties. Some of
this third party provided software will be modified by the Company to be
compatible with its internal systems. The Company has already begun testing
and implementing these remediation projects and anticipates substantial
completion by March 31, 1999. Similarly, certain hardware, primarily used in
production and manufacturing systems, is being replaced in a systematic
manner. Replacement of this hardware was originally scheduled due to
anticipated obsolescence and is expected to be substantially complete by
June 30, 1999. As of September 27, 1998, the Company has incurred
approximately $100,000 in Year 2000 remediation costs and expects
approximately $100,000 in remaining costs to ensure functionality for Year
2000 issues. The Company has not specifically set aside funds to cover the
remaining Year 2000 costs, but has adequate resources to cover these needs
as they arise.
None of the Company's systems interface directly with its third party
vendors. Also, the Company does not currently utilize electronic data
interchange (EDI) with any date sensitivity. In addition, the Company is
formally communicating by mailing letters to all of its significant third
party vendors (both domestic and international), requesting certifications
and test results to confirm their Year 2000 compliance. Where responses are
not obtained by letter, the Company is in the process of or shall follow up
to obtain this information in an effort to limit the extent to which the
Company may be vulnerable to the failure of third parties to remediate their
own Year 2000 issues. The Company also intends to mitigate this risk by
ceasing to do business with such companies as soon as feasible after it
becomes aware of any significant problems.
10
<PAGE> 11
DALLAS SEMICONDUCTOR CORPORATION
The Company has two principal product lines containing products that are
date sensitive, Timekeeping and Microcontrollers.
Timekeeping Products (Clocks) made by the Company fall into two categories:
o Clocks that are Year 2000 compatible
o Clocks that are Year 2000 compliant.
Clocks that are Year 2000 compatible have a two-digit year counter. They
will maintain the correct time, date of the month, day of the week, month
and two-digit year with correct leap year compensation up to year 2099. The
two-digit year counter does not provide the century information; therefore
software intervention is required to determine if the century value is 19 or
20.
The following Clocks are Year 2000 compatible, requiring software
intervention to calculate the century: DS1202, DS1215, DS1216, DS1243,
DS1244, DS1248, DS1251, DS1283, DS1284, DS1285, DS1286, DS1287, DS12885,
DS12887, DS12887A, DS12B887, DS1302, DS1305, DS1306, DS1307, DS1308, DS1315,
DS1384, DS1385, DS1386, DS1387, DS1395, DS1397, DS14285, DS14287, DS1485,
DS1486, DS1488, DS1495, DS1497, DS1543, DS1544, DS1546, DS1547, DS1615,
DS1642, DS1643, DS1644, DS1646, DS1647, DS1670, and DS1673.
The Clocks that are Year 2000 compliant have a four-digit year counter. The
fully compliant clocks will maintain the correct time, date of the month,
day of the week, month and four-digit year with correct leap year
compensation up to year 2099.
The following Clocks are fully Year 2000 compliant: DS12C887, DS1501,
DS1511, DS1553, DS1554, DS1546, DS1557, DS1585, DS1587, DS1589, DS1685,
DS1687, DS1688, DS1689, DS1691, DS1693, Ds17285, DS17287, DS1742, DS1743,
DS1744, DS1746, DS1747, DS17485, DS17487, DS17885, and DS17887.
Microcontroller Products use one of three real-time clock circuits and fall
into one of two categories, compatible or compliant, as described above.
DS 1215-based Soft Microcontroller Modules: DS5000T and DS2250T.
The DS1215 is Year 2000 compatible, as it stores the year as a two-digit
value. The two-digit year counter does not provide the century
information; therefore software intervention is required to determine if
the century value is 19 or 20.
DS1283-based Soft Microcontroller Modules: DS2251T and DS22522T.
The DS1283 is Year 2000 compatible, as it stores the year as a two-digit
value. The two-digit year counter does not provide the century
information; therefore software intervention is required to determine if
the century value is 19 or 20.
DS87C530 High Speed Microcontroller with Real Time Clock.
The Clock in the DS87C530 incorporates a 16 bit day counter, rather than
a traditional day/month/year calendar, for maximum flexibility. As a
result, the device can be totally Year 2000 compatible via application
software.
The following are other Dallas Semiconductor products that are date
sensitive:
The DS2404, DS1994, and DS1427, members of the Company's Automatic
Identification product category, contain simple binary counters and
require software intervention to interpret this raw data to be Year 2000
compliant.
11
<PAGE> 12
DALLAS SEMICONDUCTOR CORPORATION
The DS1629, a member of the Company's System Extension product category,
incorporates a DS1307 real-time clock that has a two-digit year counter.
The two-digit year counter does not provide the century information;
therefore software intervention is required to determine if the century
value is 19 or 20.
All of the Company's products require the utilization of software programs
for the products to be of use to the end user. The Company does not
recommend or provide software for use in conjunction with any application
for the products it manufactures, including software solutions to Year 2000
issues. However, to the extent practicable, purchasers of our Year 2000
compatible products (which require software intervention) have been put on
notice, via data books and web page postings, of the need for such software
intervention prior to purchasing such products and further have been made
aware of available Year 2000 alternatives (compliant products not requiring
software intervention) manufactured by the Company. Although the Company
does not believe it has any liability related to Year 2000 compatible
products (those which require software intervention), there is a risk of
litigation associated with the manufacture and sale of these products.
Management of the Company believes it has an effective program in place to
resolve Year 2000 issues and expects all critical remediation projects will
be completed on schedule. As a result of its focus on ensuring the
remediation projects are on schedule, the Company has not developed a
contingency plan to address alternative solutions in the event the Company
is unable to successfully make its critical systems Year 2000 compliant.
However, the Company continually evaluates its status towards completion to
determine whether such a plan is necessary. At this point, the Company is on
schedule and no contingency plan is deemed necessary. Additionally, the
Company has no means of ensuring that third parties, including those based
outside of the United States, will be Year 2000 compliant and the effect of
non-compliance by third parties is not determinable. In a worst case
scenario, these unknown third party variables could have an effect on the
Company's ability to conduct business. This worst case scenario, however, is
a risk of any company engaging in world-wide business into the next
millennium. To date, the Company is not aware of any third party with a Year
2000 issue that would materially impact the Company's results of operations,
liquidity, or capital resources. In addition, the Company is not currently
aware of any claims of breach of contract or warranty, potential product
return issues or impairment of assets relating to Year 2000 noncompliance
that would materially impact the Company's results of operations, liquidity,
or capital resources.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibit 27.1 - Financial Data Schedule
(b) Reports on Form 8-K
No Reports on Form 8-K were filed during the period for which this
report is filed.
12
<PAGE> 13
DALLAS SEMICONDUCTOR CORPORATION
SIGNATURE
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.
DALLAS SEMICONDUCTOR CORPORATION
By: /s/ Alan P. Hale
----------------
Alan P. Hale
Vice President, Finance
Date: November 10, 1998
-----------------
13
<PAGE> 14
INDEX TO EXHIBITS
Exhibit
Number Exhibit
------ -------
27.1 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JAN-03-1999
<PERIOD-END> SEP-27-1998
<CASH> 122,677
<SECURITIES> 0
<RECEIVABLES> 48,133
<ALLOWANCES> 0
<INVENTORY> 69,810
<CURRENT-ASSETS> 257,499
<PP&E> 385,742
<DEPRECIATION> 194,547
<TOTAL-ASSETS> 454,225
<CURRENT-LIABILITIES> 55,256
<BONDS> 0
0
0
<COMMON> 562
<OTHER-SE> 398,969
<TOTAL-LIABILITY-AND-EQUITY> 454,225
<SALES> 83,099
<TOTAL-REVENUES> 83,099
<CGS> 39,433
<TOTAL-COSTS> 64,546
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 19,682
<INCOME-TAX> 6,298
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 13,384
<EPS-PRIMARY> .48
<EPS-DILUTED> .45
</TABLE>
