Maxim Integrated Meets

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

(MXIM) - Get 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.

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.