Maxim sees acquisitions paying off
Maxim Integrated Products has reported a 6% increase in net revenues of $620m for the second quarter of its fiscal year 2014.
These revenues included $35m from acqusition Volterra. Excluding Volterra, revenue was flat compared to the prior quarter.
“We achieved good revenue performance in a soft quarter for our industry,” said Tunc Doluca, president and CEO, Maxim Integrated.
Maxim continues its strategy of investing in new businesses to address new markets like mobile, cloud servers and security systems. The results were negatively affected by the following pre-tax charges – $40m for Volterra acquisition-related items, $13m for items related to prior acquisitions, $5m for impairment of long-lived assets and $18m for warranty expense.
According to Doluca, he is happy the way the addition of the Volterra business is “broadening of our mobility business.”
Volterra designs high-current power management ICs for the server, storage, cloud computing, communications, and networking markets.
GAAP earnings per share, excluding special items was $0.36, after a $0.05 reduction due to the warranty expense.
Gross margin was 2.9% lower for the quarter.
At the end of the second quarter of fiscal 2014, total cash, cash equivalents and short term investments was $1.15 billion, an increase of $115 million from the prior quarter. Notable items included:
Maxim’s is expecting revenues for the March 2014 quarter in the range of $590m to $620m. The company said this does not “include the potential impact of any restructuring activity or mergers, acquisitions, or other business combinations that may be completed during the quarter”.