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Maxim Integrated Meets

The analog circuit maker's first-quarter profit is in line with estimates.

Maxim Integrated Products

(MXIM) - Get Maxim Integrated Products, Inc. (MXIM) Report

delivered sequentially lower financial results for its fiscal first quarter Wednesday, in keeping with the company's preannouncement last month.

The Sunnyvale, Calif., chipmaker said it earned $107.5 million in net income, or 33 cents a share in the three months ended Sept. 23, on sales of $502.7 million.

Sales were down 1.5% sequentially, at the midpoint of Maxim's revised guidance, and slightly ahead of analyst dampened expectations, which called for 33 cents on $496.6 million in sales.

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Analysts had initially expected Maxim to increase its sales sequentially to $521.9 million, but in September the company said that slower-than-expected orders had caused it to negatively revise its projections for the quarter, pegging sales to be flat to down 3% sequentially.

Sales were up 18.5% compared with the year-ago period.

Gross margin fell to 63.9% in the fiscal first quarter, compared with 66.3% in the fourth quarter, due to a $5 million increase in inventory reserves and a mix change toward higher volume products. Maxim said the fourth quarter's high gross margin also benefited from a $2.5 million settlement with a vendor.

Operating expenses were up in the first quarter, with R&D and selling, general and administrative expenses each comprising a larger percentage of overall revenue.

The company said its board of directors has declared a cash dividend of the second quarter of $0.156 per share, with payment to be made on Dec. 5.

Shares of Maxim increased 1%, or 28 cents, to $29.35 in extended trading.