Net income and revenue increased more than 50% for Maxim Integrated Products Inc., Sunnyvale, Calif., in the company's second fiscal quarter.
Net income increased 53.4% to $99.1 million in the quarter ending Dec. 30, 2000, compared to $64.6 million last year. Diluted earnings per share were 31 cents for the second quarter, a 55% increase over the 20 cents reported for the same period a year ago.
Revenue of $305.1 million was recorded in the quarter, a 51.3% increase over the $201.7 million reported in the same quarter last year.
During the quarter, cash and short-term investments increased by $44.6 million after paying $103.1 million for 1.7 million shares of the company's common stock and $60.2 million for property and equipment.
Accounts receivable decreased by $17.1 million to $127.4 million. Although revenue increased, inventories decreased to $63.5 million during the quarter.
Gross margin for the second quarter was 70.6%, compared to 70.5% in the first quarter of fiscal 2001. Research and development expense was $51.3 million or 16.8% of revenue in the second quarter, compared to $46.7 million or 16.4% of revenue in the first quarter.
During the quarter, Maxim increased inventory reserves by $14.3 million and recorded a writedown of property and equipment of $11.6 million to cost of goods sold and $3.6 million to research and development expense. Additionally, the company recorded a $4 million charge to selling, general, and administrative expense primarily related to technology licensing matters.
End market bookings in the second quarter of fiscal 2001 were $332 million, down 5% from first quarter end market bookings of $348 million.
U.S. distributor bookings on Maxim were 28% below bookings received from their customers. This was, in part, due to Maxim encouraging its customers to manage inventory at their locations, according to the company. As a result, second quarter bookings on Maxim were $308 million, compared to $339 million for the first quarter of the fiscal year.
"Quarterly bookings continue to moderate as customers and distributors, primarily in the U.S. and Pacific Rim, adjust their ordering patterns," Jack Gifford, chairman, president, and chief executive, said in a press release. "While this trend may continue through the third quarter, we believe that the end market consumption for our products continues to support our revenue and earnings outlook for the fiscal year."