Maxim Reports $339.7 Million Revenue for the Third Quarter of Fiscal 2009

• Press Release
• Source: Maxim Integrated Products, Inc.
• On 4:00 pm EDT, Thursday April 30, 2009

 * REVENUE: $339.7 MILLION
 * GAAP loss per share: $0.09 (including $0.10 special expense items)
 * Cash flow from operations: $106.0 million
 * Inventory declined by $11.8 million
 * Dividend per share: $0.20
 * Fourth quarter revenue outlook: $350 - $380 million

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Symbol	Price	Change
MXIM	17.79	-0.14

{"s" : "mxim","k" : "c10,l10,p20,t10","o" : "","j" : ""}

SUNNYVALE, Calif., April 30, 2009 (GLOBE NEWSWIRE) -- Maxim Integrated Products, Inc. (Nasdaq:MXIM - News) reported net revenue of $339.7 million for its fiscal 2009 third quarter ended March 28, 2009, a 17% decline from the $410.7 million revenue recorded in the previous quarter.

Based on Generally Accepted Accounting Principles (GAAP), diluted loss per share was $0.09. The results include certain special expense items which primarily consist of the following pre-tax and tax related expenses:

 * $12.4 million pre-tax for accelerated depreciation related to
   the closure of the Dallas wafer fabrication facility
 * $11.0 million pre-tax for severance and restructuring
 * $4.0 million pre-tax primarily for stock option related litigation
 * $9.2 million tax provision impact due to international restructuring

Balance Sheet Items

Total cash, cash equivalents and short term investments was $898.3 million as of March 28, 2009, a decrease of $27.2 million during the third quarter. Cash flow from operations of $106.0 million was offset primarily by:

 * $31.9 million for the acquisitions of Innova Card and two 
   product lines from Zilog  
 * $61.0 million for cash dividends  
 * $36.0 million in payments for property and equipment 

Business Outlook

Maxim's fiscal third quarter net realizable bookings increased by 13% compared to the second quarter of fiscal 2009 and the Company's 90 day backlog increased by 15% to $238 million. Results for the June quarter are expected to be:

 * Revenue: $350 million - $380 million  
 * Gross Margin: 47% - 50% including 3.4% special expense items  
 * Operating expenses: $170 - $175 million including $4 - $5 million
   special expense items  
 * Tax provision: includes $10 - $12 million special expense items 

Tunc Doluca, President and Chief Executive Officer, commented, "We are pleased to have exceeded our Q3 revenue expectation. A key driver to this upside was our recent design wins in cell phones that began to ship in volume. Inventory restocking by some of our larger customers also contributed to sales exceeding expectations. However, visibility continues to be limited and the economic environment remains highly uncertain. Consequently, we continue to manage costs closely."

Dividend

A cash dividend for the third quarter of fiscal 2009 of $0.20 per share will be paid on June 5, 2009, to stockholders of record on May 22, 2009.

Conference Call

Maxim has scheduled a conference call on April 30, 2009, at 2:00 p.m. Pacific Time to discuss its financial results for the third quarter of fiscal year 2009 and its business outlook. To listen via telephone, dial (866) 802-4321 (toll free) or (703) 639-1318. This call will be webcast by Shareholder.com and can be accessed at Maxim's website at www.maxim-ic.com/Investor.

                 CONSOLIDATED STATEMENTS OF OPERATIONS

                                 (in thousands, except per share data)
                                          Three Months Ended
                                 -------------------------------------
                                  March 28,    Dec. 27,     March 29,
                                    2009         2008         2008
                                 -----------  -----------  -----------
 Net revenues                    $  339,665   $  410,675   $  487,410
 Cost of goods sold (1)             171,960      211,590      198,024
                                 -----------  -----------  -----------
   Gross profit                     167,705      199,085      289,386
 Operating expenses:
   Research and development (1)     120,974      144,283      138,736
   Selling, general and
    administrative (1)               48,760       64,124       39,084
   In-process research
    and development                      --        3,900           --
   Impairment of long-lived
   assets                                --       43,769           --
   Severance and restructuring       10,956       13,597        8,145
   Other operating expenses, net      3,969       10,252       22,363
                                 -----------  -----------  -----------
     Total operating expenses       184,659      279,925      208,328
                                 -----------  -----------  -----------
       Operating (loss) income      (16,954)     (80,840)      81,058
 Interest income and other
  (expense) income, net                (228)       7,385       11,615
                                 -----------  -----------  -----------
 (Loss) income before (benefit)
  provision for income taxes        (17,182)     (73,455)      92,673
 Provision (benefit) for
  income taxes                        9,244      (34,671)      31,641
                                 -----------  -----------  -----------
   Net (loss) income             $  (26,426)  $  (38,784)  $   61,032
                                 ===========  ===========  ===========

 (Loss) earnings per share:
   Basic                         $    (0.09)  $    (0.12)  $     0.19
                                 ===========  ===========  ===========
   Diluted                       $    (0.09)  $    (0.12)  $     0.19
                                 ===========  ===========  ===========

 Shares used in the calculation
  of (loss) earnings per share:
   Basic                            304,415      312,718      320,553
                                 ===========  ===========  ===========
   Diluted                          304,415      312,718      322,480
                                 ===========  ===========  ===========

 Dividends declared per share    $    0.200   $    0.200   $    0.188
                                 ===========  ===========  ===========

 (1) Includes stock-based compensation charges as follows:

                                          Three Months Ended
                                             (in thousands)
                                 -------------------------------------
                                  March 28,    Dec. 27,     March 29,
                                    2009         2008         2008
                                 -----------  -----------  -----------
   Cost of goods sold            $    7,574   $   30,834   $   10,535
   Research and development          25,194       33,431       19,170
   Selling, general and
    administrative                    6,845       19,672        5,984
                                 -----------  -----------  -----------
 Total                           $   39,613   $   83,937   $   35,689
                                 ===========  ===========  ===========

 Total excluding settlement
  of expiring options and
  tender offer (2)               $   39,613   $   41,622   $   35,689
                                 ===========  ===========  ===========

                   SCHEDULE OF SPECIAL EXPENSE ITEMS

                                            (in thousands)
                                          Three Months Ended
                                 -------------------------------------
                                  March 28,    Dec. 27,     March 29,
                                    2009         2008         2008
                                 -----------  -----------  -----------
 Cost of Goods Sold:
   Accelerated depreciation (3)  $   12,372   $   12,024   $   11,281
   Stock-based compensation (2)          --       15,433           --
                                 -----------  -----------  -----------
  Total                          $   12,372   $   27,457   $   11,281
                                 ===========  ===========  ===========

  Operating Expenses:
   In process research and
    development (4)              $       --   $    3,900   $       --
   Impairment of long-lived
    assets (5)                           --       43,769           --
   Severance and
    restructuring (6)                10,956       13,597        8,145
   Other operating expenses,
    net (7)                           3,969       10,252       22,363
   Stock-based compensation (2)          --       26,882           --
                                 -----------  -----------  -----------
  Total                          $   14,925   $   98,400   $   30,508
                                 ===========  ===========  ===========

  Income Taxes (8)               $    9,200   $       --   $       --
                                 ===========  ===========  ===========

 (2) Stock-based compensation related to cash settlement of options
     expiring in October 2008 and tender offer.
 (3) Accelerated depreciation primarily related to long-lived assets
     resulting from the anticipated closure of the Dallas fab
     facility.
 (4) In-process research and development related to acquisition of
     Mobilygen Corp.
 (5) Impairment of long-lived assets related to end of line test
     equipment recorded in connection with reduced demand.
 (6) Severance and benefit expenses primarily related to Business
     Unit; Selling, General & Administrative; and Manufacturing
     organizations.
 (7) Expenses, net, primarily for stock option related litigation and
     certain payroll taxes, interest and penalties.
 (8) Tax provision impact due to international restructuring.

                      CONSOLIDATED BALANCE SHEETS

                                                 (in thousands)
                                            --------------------------
                                              March 28,     June 28,
                                                2009          2008
                                            ------------  ------------
              ASSETS

 Current assets:
   Cash and cash equivalents                $   692,825   $ 1,013,119
   Short-term investments                       205,474       205,079
                                            ------------  ------------
     Total cash, cash equivalents and
      short-term investments                    898,299     1,218,198
                                            ------------  ------------

   Accounts receivable, net                     196,344       272,029
   Inventories                                  239,900       272,421
   Income tax refund receivable                  33,778        14,411
   Deferred tax assets                          217,088       253,490
   Other current assets                          22,590        16,012
                                            ------------  ------------
     Total current assets                     1,607,999     2,046,561
 Property, plant and equipment, net           1,381,474     1,485,200
 Other assets                                   140,455       176,629
                                            ------------  ------------
     TOTAL ASSETS                           $ 3,129,928   $ 3,708,390
                                            ============  ============

     LIABILITIES AND STOCKHOLDERS' EQUITY

 Current liabilities:
   Accounts payable                         $    63,395   $    79,673
   Income taxes payable                             820           825
   Accrued salary and related expenses          155,257       249,079
   Accrued expenses                              39,089        68,131
   Deferred income on shipments
    to distributors                              18,010        21,447
                                            ------------  ------------
     Total current liabilities                  276,571       419,155
 Other liabilities                               27,148        30,791
 Income taxes payable                           114,311       110,633
 Deferred tax liabilities                        79,971            --
                                            ------------  ------------
     Total liabilities                          498,001       560,579
                                            ------------  ------------

 Stockholders' equity:
   Common stock                                     304       251,799
   Retained earnings                          2,633,638     2,901,139
   Accumulated other comprehensive loss          (2,015)       (5,127)
                                            ------------  ------------
     Total stockholders' equity               2,631,927     3,147,811
                                            ------------  ------------
       TOTAL LIABILITIES &
        STOCKHOLDERS' EQUITY                $ 3,129,928   $ 3,708,390
                                            ============  ============

                 CONSOLIDATED STATEMENTS OF CASH FLOWS

                                             (in thousands)
                                           Three Months Ended
                                 -------------------------------------
                                  March 28,    Dec. 27,     March 29,
                                    2009         2008          2008
                                 -----------  -----------  -----------
 Cash flows from operating
  activities:
 Net (loss) income               $  (26,426)  $  (38,784)  $   61,032
 Adjustments to reconcile
  net (loss)income to net
  cash provided by
  operating activities:
   Stock-based compensation          39,613       83,937       35,689
   Depreciation and amortization     51,236       49,992       46,352
   Deferred taxes                    41,055      169,498      (11,935)
   Tax benefit related to
    stock-based compensation        (55,260)    (150,144)      (1,326)
   Excess tax benefit related to
    stock-based compensation            (79)        (409)         (13)
   In-process research and
    development                          --        3,900           --
   Impairment of long-lived
    assets                               --       43,769           --
   Loss (gain) from sale of
    property, plant and equipment       484        1,187         (269)
   Gain from sale of equity
    investments                          --         (529)          --
   Changes in assets and
    liabilities:
     Accounts receivable             17,815       55,476       17,383
     Inventories                     13,291        7,780      (11,132)
     Other current assets            35,224      (71,872)       6,556
     Accounts payable                (7,906)     (15,595)      (8,724)
     Income taxes payable             1,192      (19,022)          --
     Deferred income on shipments
      to distributors                (2,587)        (712)      (2,459)
     Accrued liabilities -
      goodwill and tender offer
      payments above fair value      (1,294)     (28,093)      (3,332)
     All other accrued
      liabilities                      (393)     (18,865)      28,321
                                 -----------  -----------  -----------
 Net cash provided by operating
  activities                        105,965       71,514      156,143
                                 -----------  -----------  -----------

 Cash flows from investing
  activities:
   Payments for property, plant
    and equipment                   (35,997)     (28,639)     (45,940)
   Proceeds from sale of
    property,
    plant, and equipment                 --          625        1,476
   Restricted cash                       --           --         (151)
   Other non-current assets           2,119        1,960       (8,210)
   Acquisition                      (30,700)     (30,310)          --
   Purchases of
    available-for-sale
    securities                       (1,392)      (1,370)        (837)
   Proceeds from sales/maturities
    of available-for-sale
    securities                        2,438        2,237      148,112
                                 -----------  -----------  -----------
 Net cash (used in) provided by
  investing activities              (63,532)     (55,497)      94,450
                                 -----------  -----------  -----------

 Cash flows from financing
 activities:
   Excess tax benefit related to
    stock-based compensation             79          409           13
   Mortgage liability                   (10)         (10)         (10)
   Goodwill payments on expiring
    options and tender offer
    payments                           (985)      (6,753)      (2,241)
   Cash settlement of vested
    restricted stock units               --           --         (801)
   Payouts under the RSU
    loan program                         --      (27,376)      (5,825)
   Dividends paid                   (60,961)     (62,303)     (60,104)
   Repayment of notes payable        (1,154)      (2,673)          --
   Issuance of common stock          (4,777)     (15,174)          --
   Common stock repurchases              --     (235,131)          --
                                 -----------  -----------  -----------
 Net cash used in financing
  activities                        (67,808)    (349,011)     (68,968)
                                 -----------  -----------  -----------

 Net (decrease) increase in cash
  and cash equivalents              (25,375)    (332,994)     181,625
 Cash and cash equivalents:
   Beginning of period              718,200    1,051,194    1,007,426
                                 -----------  -----------  -----------
   End of period                 $  692,825   $  718,200   $1,189,051
                                 ===========  ===========  ===========

 Total cash, cash equivalents,
  and short-term investments     $  898,299   $  925,459   $1,189,051
                                 ===========  ===========  ===========

"Safe Harbor" Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include the Company's financial projections for its fourth quarter of fiscal 2009 ending in June, which includes revenue, gross margin, operating expense and tax provision projections. These statements involve risk and uncertainty. Actual results could differ materially from those forecasted based upon, among other things, general market and economic conditions and market developments that could adversely affect the growth of the mixed-signal analog market, product mix shifts, customer cancellations and price competition, as well as other risks described in the Company's Annual Report on Form 10-K for the fiscal year ended June 28, 2008.

All forward-looking statements included in this news release are made as of the date hereof, based on the information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement.

About Maxim

Maxim Integrated Products is a publicly traded company that designs, manufactures, and sells high-performance semiconductor products. The Company reported revenue in excess of $2 billion for fiscal 2008. Maxim was founded over 25 years ago with the mission to deliver innovative analog and mixed-signal engineering solutions that add value to its customers' products. To date, it has developed over 5900 products serving the industrial, communications, consumer, and computing markets. For more information, go to www.maxim-ic.com.

The Maxim Integrated Products, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5753

Maxim Integrated Products, Inc.
Paresh Maniar, Executive Director, Investor Relations
(408) 470-5348