Maxim Integrated Q2 Tops View, Outlook Strong, Shares Up

(RTTNews) - Shares of Maxim Integrated Products (MXIM) gained over five percent in after-hours on Thursday, after the analog chip maker reported second-quarter adjusted earnings and revenue that topped Wall Street estimates, and on a strong earnings forecast for the third quarter.

However, the company posted a loss in the second quarter compared to profit last year, on a GAAP basis, hurt largely by a hefty impairment charge.

San Jose, California-based Maxim Integrated Products reported a second-quarter loss of $72.03 million or $0.25 per share, compared to last year's profit of $44.35 million or $0.15 per share.

Results for the quarter were weighed down by a hefty goodwill impairment charge of $138 million related to MEMS business, restructuring charges of $28 million and acquisition charges of $23 million.

On an adjusted basis, earnings dropped to $0.33 per share for the quarter from $0.36 per share last year, but ahead of analysts' estimates polled by Thomson Reuters of $0.30 per share. Analysts estimates typically exclude special items.

Maxim's revenues for the quarter dropped 9 percent to $566.81 million from $620.27 million last year. Analysts had a consensus revenue estimate of $560.49 million for the quarter.

CEO Tunc Doluca said, "We are on track to achieve our previously announced cost reduction plans, which will enable us to reduce spending while we focus investment in our growth businesses. We also decided to stop investment in Consumer MEMS and Touch technology."

Looking forward to the third quarter, the company expects adjusted earnings of $0.32 to $0.38 per share and revenues of $565 million to $605 million. Analysts currently expect third-quarter earnings of $0.33 per share on revenues of $570.01 million for the quarter.

MXIM closed Thursday's trading at $33.01, up $0.14 or 0.43%, on the Nasdaq. The stock further gained $1.79 or 5.42%, in the after-hours trade.