SUNNYVALE, Calif. (AP) — Chip maker Maxim Integrated Products Inc. reported fiscal first-quarter net income that rose 14 percent as revenue inched up and the company incurred a lower tax bill than it did a year earlier.
Maxim’s results, reported late Thursday, beat analyst expectations. The company’s outlook for the current quarter disappointed, however, as CEO Tunc Doluca said in a statement that its customers are “maintaining a cautious business outlook.”
“End customers as well as the distribution channel are reducing inventory and order lead times. This is limiting our visibility into end demand, especially in our industrial and communications markets,” he said.
For the quarter that ended Sept. 24, Maxim earned $133 million, or 44 cents per share, compared with $118 million, or 39 cents per share, in the year-ago quarter.
Excluding one-time items, the company earned 46 cents per share — 4 cents more per share than what analysts surveyed by FactSet anticipated.
Revenue increased nearly 2 percent to $636 million, higher than the $631.2 million analysts hoped for.
Looking at the current quarter, Maxim forecast net income of 26 to 30 cents per share, or 30 to 34 cents per share excluding one-time items, on $580 million to $620 million in revenue.
At the time of the company’s report, analysts expected adjusted net income of 39 cents per share on $623 million in revenue. Those estimates have since been reduced to 33 cents per share on adjusted net income of $599 million in revenue.
Maxim also said in its report that it will pay a dividend of 22 cents per share on Dec. 7 to shareholders of record as of Nov. 23.
Maxim shares rose a penny to $25.31 in after-hours trading Friday, after finishing regular trading up 33 cents at $25.30.