Maxim-IC 4Q07 Update
Net revenues for the quarter were $540 million up by 8.6% yoy. Sequentially it was up by 3.3%. Communications contributed around $102.6 million. Other segments that contributed include Computing 31%, Consumer 29% and industrial 21%.
The net realizable bookings across segments were at $476.4 million down by 9% due to seasonality, fire at a major customers’ factory and the macro economic concerns of certain customers.
Maxim announced a cut in the R&D budget resulting in $15 million annual benefit towards operating expenses. It reduced investments in RF Wireless and Telecom. In the RF Wireless it announced discontinuation of investing into low-margin handset RF transceivers and in the area of Telecom it has decided to defer additional R&D investments till it sees market acceptance of recently introduced products.In the Cellular segment it is witnessing increase in market share of cell phone power management as it has now gone beyond CDMA to UMTS, GSM and GPRS cell phones. It is also anticipating further growth due to emerging need of integrating power, audio, video, touch and USB interface into a single analog base-band chip for which it has solutions in store. It had two design wins in this segment. It won power management IC for Qualcomm’s base-band for UMTS. Another was an integrated IC combining power and audio for Qualcomm’s base-band for UMTS.
