Updated from 4:26 p.m. EDT
SAN FRANCISCO --
Maxim Integrated Products
increased its revenue modestly in its fiscal first quarter, but once again left investors guessing about its bottom-line performance.
The Sunnyvale, Calif., chipmaker offered limited financial results after Thursday's market close, as the company slogs through a restatement of past earnings reports to account for stock-option backdating.
Maxim's inability to file quarterly reports on time during the restatement process
has gotten it ejected from the
exchange, with its shares now trading on the Pink Sheets.
In the three months ended Sept. 29, Maxim said sales totaled $522.7 million, in line with analysts' expectations. At this time last year, Maxim had sales of $502.7 million.
Analysts polled by Thomson Financial were expecting EPS of 33 cents, although the company was silent on that score.
CEO Tunc Doluca said the company exhibited consistent revenue growth and strong cash flow.
"During the quarter, yields and cycle times improved, and we reduced our inventory and capital expenditures," Doluca said in a statement.
The company said it saw strong growth in its computing and consumer entertainment businesses, while sales to industrial markets declined sequentially.
The increased proportion of notebook chip sales during the quarter weighed Maxim's gross margin down by 40 basis points sequentially, although the company did not specify what its gross profit margin was.
The company's operating expenses also grew faster than revenue on a sequential basis, something executives attributed to the fact that the two quarters had a different number of weeks.
"I want to emphasize that we're continuing our focus on aggressively controlling our below-the-line spending," said Finance Vice President Bruce Kiddoo in a post-earnings conference call.
While Maxim is seeing nice demand in the cell phone, computing and consumer entertainment markets in the current quarter, executives noted that customers are behaving cautiously when it comes to ordering more chips.
"The thing we have noticed is that some of our customers are concerned about developments in the macro-economic situation. We think that might influence there stance in their aggressiveness for ordering products," said CEO Doluca.
Maxim projected that sales in the current quarter will range between $530 million and $550 million, which produces a midpoint below the $545 million in revenue expected by analysts.