MXIM (Maxim) reported a similar change in bookings and an upturn from the prior quarter. When multiple companies head the same direction, it has to be more than coincidence.
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Maxim Integrated profits fall but bookings rise
SUNNYVALE, Calif., April 29 (Reuters) - Maxim Integrated Products Inc. <MXIM.O on Monday posted lower quarterly profits, but executives said the analog and mixed-signal microchip maker was seeing some signs of stronger demand despite the ongoing slump in the telecommunications sector.
The Sunnyvale, California-based company said fiscal third-quarter net income fell 39 percent to $66.7 million, or 19 cents a share, compared with $109.9 million, or 31 cents a share. in the same period last year. Net income rose 6.5 percent from the fiscal second quarter's $62.6 million.
That met the expectations set by Wall Street analysts. On average, analysts polled by Thomson Financial/First Call expected the company to earn 19 cents per share.
Sales fell 35 percent to $258.5 million from $397.8 million in the same period a year ago, but rose 7 percent from $247.1 million in the second period.
Jack Gifford, the company's chairman, president, and chief executive, said that there were signs of increased business ahead. "Although our outlook for the fiber and telecommunications markets remains conservative, we have seen quarter-over-quarter bookings growth in the third quarter."
The bookings growth suggests that Maxim customers -- along with those of other chipmakers -- have depleted bloated inventories, and that customers are now ordering chips at levels consistent with demand. However, analysts have noted there is no clear consensus on whether a return of stronger demand in the second half will come to pass.
Bookings in the third quarter were about $299 million, or up 30 percent from the second quarter's $230 million. Turns orders, or those placed and scheduled for shipment in the same quarter, were $140 million, 12 percent more than those received in the second quarter.
"Based on our estimate of end market consumption of our
products, except for fiber and telecommunications equipment, we believe that our customers have worked through their inventories and are ordering for their net-term needs," Gifford said.
Maxim Integrated Products also said that "order cancellations remained low for the second consecutive quarter," noting that bookings increased on a sequential basis in all geographic regions and in all but one of the company's business units.
Shares of Maxim Integrated Products fell 5 cents to $48.14 on the Nasdaq. The stock has declined 8.5 percent year to date, compared with a 0.9 percent decline in the Philadelphia Semiconductor Index, a proxy for the sector.
04/29/02 14:28 ET
Troy
Troy
Those who shoot from the hip usually end up just shooting themselves.
Plan the grub and grub the plan.
Where is the party tonight? Who is bringng the drinks?
