SAN JOSE, Calif., July 24, 2014 /PRNewswire/ -- Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported net revenue of $642 million for its fourth quarter of fiscal 2014 ended June 28, 2014, a 6% increase from the $606 million revenue recorded in the prior quarter.

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Tunc Doluca, President and Chief Executive Officer, commented, "While we experienced softness in our mobility business, our revenue performance in the quarter reflected the overall strength of Maxim's balanced portfolio, with growth in every one of our other major businesses." Mr. Doluca continued, "Although our near-term outlook for mobility remains cautious, we are executing on our strategy to bring new integrated designs to the Industrial, Automotive, Communications and Data Center markets, and to diversify our customer base in mobility."

Fiscal Year 2014 Fourth Quarter Results
Based on Generally Accepted Accounting Principles (GAAP), diluted earnings per share in the June quarter was $0.29. The results were affected by special items which primarily consisted of $24 million in pre-tax charges related to acquisitions and $23 million in pre-tax charges related to restructuring and other items. GAAP earnings per share, excluding special items was $0.43. An analysis of GAAP versus GAAP excluding special items is provided in the last table of this press release.

Cash Flow Items
At the end of the fourth quarter of fiscal 2014, total cash, cash equivalents and short term investments was $1.37 billion, an increase of $141 million from the prior quarter. Notable items included:


    --  Cash flow from operations: $234 million
    --  Net capital expenditures: $22 million
    --  Dividends: $74 million ($0.26 per share)
    --  Stock repurchases: $41 million

Business Outlook
The Company's 90-day backlog at the beginning of the first fiscal quarter of 2015 was $377 million. Based on :the beginning backlog and expected turns, results for the September 2014 quarter are expected to be as follows:


    --  Revenue $580 million to $620 million
    --  Gross Margin: 56% to 59% GAAP (59% to 62% excluding special items)
    --  EPS: $0.27 to $0.33 GAAP ($0.34 to $0.40 excluding special items)

Maxim Integrated's business outlook does not include the potential impact of any restructuring activity or mergers, acquisitions, or other business combinations that may be completed during the quarter.

Dividend
A cash dividend of $0.28 per share will be paid on September 4, 2014, to stockholders of record on August 21, 2014. This represents an 8% increase in the dividend compared to the prior quarter.

Conference Call
Maxim Integrated has scheduled a conference call on July 24, 2014, at 2:00 p.m. Pacific Time to discuss its financial results for the fourth quarter of fiscal 2014 and its business outlook. To listen via telephone, dial (866) 804-3547 (toll free) or (703) 639-1328. This call will be webcast by Shareholder.com and can be accessed at the Company's website at www.maximintegrated.com/company/investor.



                                                                                                        CONSOLIDATED STATEMENTS OF INCOME

                                                                                                                   (Unaudited)

                                                     Three Months Ended                                             Year Ended
                                                     ------------------                                             ----------

                                                   June 28,                                   March 29,                                   June 29,             June 28,                June 29,

                                                                 2014                                        2014                                         2013                    2014                  2013
                                                                 ----                                        ----                                         ----                    ----                  ----

                                                        (in thousands, except per share data)

    Net revenues                                             $642,467                                    $605,681                                     $608,194              $2,453,663            $2,441,459

    Cost of goods sold                                        273,507                                     265,744                                      236,795               1,068,898               944,892

            Gross margin                                      368,960                                     339,937                                      371,399               1,384,765             1,496,567
                                                              -------                                     -------                                      -------               ---------             ---------

    Operating expenses:

        Research and
         development                                          143,802                                     141,493                                      132,009                 558,168               534,819

        Selling, general and
         administrative                                        83,153                                      80,680                                       82,083                 324,734               324,282

        Intangible asset
         amortization                                           4,423                                       4,863                                        3,670                  17,690                15,525

        Impairment of long-
         lived assets (1)                                       6,447                                           -                                           -                 11,644                24,929

        Severance and
         restructuring
         expenses                                               5,790                                       3,338                                          442                  24,902                 2,829

       Acquisition-related
        costs                                                       -                                       (88)                                           -                  6,983                     -

        Other operating
         expenses (income),
         net (2)                                                8,795                                       2,913                                        2,105                  18,353                 5,864

           Total operating
            expenses                                          252,410                                     233,199                                      220,309                 962,474               908,248
                                                              -------                                     -------                                      -------                 -------               -------

              Operating income                                116,550                                     106,738                                      151,090                 422,291               588,319

    Interest and other
     income (expense), net
     (3)                                                     (8,943)                                      5,174                                      (6,830)               (13,065)             (18,040)
                                                               ------                                       -----                                       ------                 -------               -------

    Income before
     provision for income
     taxes                                                    107,607                                     111,912                                      144,260                 409,226               570,279

    Provision (benefit)
     for income taxes (4)                                      22,814                                    (10,632)                                      25,246                  54,416               117,970
                                                               ------                                     -------                                       ------                  ------               -------

           Income from continuing
            operations                                         84,793                                     122,544                                      119,014                 354,810               452,309

           Income from
            discontinued
            operations, net of
            tax (5)                                                 -                                          -                                           -                      -                2,603

          Net income                                          $84,793                                    $122,544                                     $119,014                $354,810              $454,912
                                                              =======                                    ========                                     ========                ========              ========


    Earnings per share: Basic

        From continuing
         operations                                             $0.30                                       $0.43                                        $0.41                   $1.25                 $1.55

        From discontinued
         operations, net of
         tax                                                        -                                          -                                           -                      -                 0.01

        Basic                                                   $0.30                                       $0.43                                        $0.41                   $1.25                 $1.56
                                                                =====                                       =====                                        =====                   =====                 =====


    Earnings per share: Diluted

        From continuing
         operations                                             $0.29                                       $0.42                                        $0.40                   $1.23                 $1.51

        From discontinued
         operations, net of
         tax                                                        -                                          -                                           -                      -                 0.01

        Diluted                                                 $0.29                                       $0.42                                        $0.40                   $1.23                 $1.52
                                                                =====                                       =====                                        =====                   =====                 =====


    Shares used in the calculation of earnings per
     share:

        Basic                                                 283,431                                     282,627                                      290,146                 283,344               291,835
                                                              =======                                     =======                                      =======                 =======               =======

        Diluted                                               289,487                                     288,575                                      296,756                 289,108               298,596
                                                              =======                                     =======                                      =======                 =======               =======


    Dividends paid per
     share                                                      $0.26                                       $0.26                                        $0.24                   $1.04                 $0.96
                                                                =====                                       =====                                        =====                   =====                 =====



                                                                                                       SCHEDULE OF SPECIAL ITEMS

                                                                                                              (Unaudited)

                                                   Three Months Ended                                            Year Ended
                                                   ------------------                                            ----------

                                                   June 28,                                   March 29,                                   June 29,             June 28,                June 29,

                                                                 2014                                        2014                                         2013                    2014                  2013
                                                                 ----                                        ----                                         ----                    ----                  ----

                                                                    (in thousands)

    Cost of goods sold:

          Intangible asset
           amortization                                       $18,750                                     $18,542                                       $7,777                 $64,483               $33,994

          Acquisition-related
           inventory write-up                                     371                                       5,518                                            -                 18,955                     -

     Total                                                    $19,121                                     $24,060                                       $7,777                 $83,438               $33,994
                                                              =======                                     =======                                       ======                 =======               =======


     Operating expenses:

          Intangible asset
           amortization                                        $4,423                                      $4,863                                       $3,670                 $17,690               $15,525

          Impairment of long-
           lived assets (1)                                     6,447                                           -                                           -                 11,644                24,929

         Severance and
          restructuring                                         5,790                                       3,338                                          442                  24,902                 2,829

         Acquisition-related
          costs                                                     -                                       (88)                                           -                  6,983                     -

         Other operating
          expenses (income),
          net (2)                                               8,795                                       2,913                                        2,105                  18,353                 5,864

     Total                                                    $25,455                                     $11,026                                       $6,217                 $79,572               $49,147
                                                              =======                                     =======                                       ======                 =======               =======


          Interest and other
           expense (income), net
           (3)                                                $2,432                                      $3,723                                         $700                  $6,155                  $700

     Total                                                     $2,432                                      $3,723                                         $700                  $6,155                  $700
                                                               ======                                      ======                                         ====                  ======                  ====


    Provision (benefit) for income taxes:

         Fixed assets tax basis
          adjustment (4)                                     $(1,041)                                  $(34,562)                               $           -              $(35,603)        $           -

         International
          restructuring
          implementation                                            -                                          -                                           -                      -               18,726

         Fiscal year 2012
          research &
          development tax
          credits                                                   -                                          -                                           -                      -              (3,899)

     Total                                                   $(1,041)                                  $(34,562)                               $           -              $(35,603)              $14,827
                                                              =======                                    ========                                =============               ========               =======


     Discontinued operations:

         Income from
          discontinued
          operations, net of
          tax (5)                                       $           -                              $           -                               $           -       $              -             $(2,603)

    Total                                               $           -                              $           -                               $           -       $              -             $(2,603)
                                                        =============                              =============                               =============       ================              =======


    (1) Includes impairment charges relating to
     EDA software, wafer fab tools, land and
     buildings held-for-sale, and end of line
     manufacturing equipment.

    (2) Other operating expenses (income), net
     are primarily for legal settlement, legal
     expenses related to Volterra acquisition,
     reserve for uncollectible note related to a
     divestiture, contingent consideration
     adjustments related to certain
     acquisitions, in-process research and
     development abandoned, loss (gain) relating
     to sale of land and buildings,expected loss
     on lease abandonment,and certain payroll
     taxes.

    (3) Includes impairment of investment in
     privately-held companies.

    (4) Includes one-time fixed asset tax basis
     adjustments relating to prior year
     depreciation expense.

    (5) Includes gain on sale, net of tax
     relating to certain business divested.



                                        STOCK-BASED COMPENSATION BY TYPE OF AWARD (in thousands)

                                                               (Unaudited)


    Three Months Ended
     June 28, 2014      Stock Options                           Restricted                        Employee Stock        Total
                                                                Stock Units                      Purchase Plan
                                                                -----------                      -------------

    Cost of goods sold               $412                                      $2,045                              $530        $2,987

    Research and
     development
     expense                        2,100                                       8,463                             1,354        11,917

    Selling, general
     and administrative
     expense                        1,355                                       5,025                               504         6,884

           Total                   $3,867                                     $15,533                            $2,388       $21,788
                                   ======                                     =======                            ======       =======


    Three Months Ended
     March 29, 2014

    Cost of goods sold               $451                                      $2,108                              $594        $3,153

    Research and
     development
     expense                        2,124                                       7,917                             1,623        11,664

    Selling, general
     and administrative
     expense                        1,391                                       5,186                               663         7,240

           Total                   $3,966                                     $15,211                            $2,880       $22,057
                                   ======                                     =======                            ======       =======


    Three Months Ended
     June 29, 2013

    Cost of goods sold               $320                                      $1,999                              $559        $2,878

    Research and
     development
     expense                        1,673                                       6,748                             1,226         9,647

    Selling, general
     and administrative
     expense                        1,333                                       4,488                               507         6,328

           Total                   $3,326                                     $13,235                            $2,292       $18,853
                                   ======                                     =======                            ======       =======


    Year Ended June 28,
     2014

    Cost of goods sold             $1,650                                      $8,466                            $2,132       $12,248

    Research and
     development
     expense                        8,676                                      31,548                             5,452        45,676

    Selling, general
     and administrative
     expense                        5,486                                      19,734                             2,308        27,528

           Total                  $15,812                                     $59,748                            $9,892       $85,452
                                  =======                                     =======                            ======       =======


    Year Ended June 29,
     2013

    Cost of goods sold             $1,532                                      $8,862                            $2,210       $12,604

    Research and
     development
     expense                        7,230                                      31,475                             5,441        44,146

    Selling, general
     and administrative
     expense                        5,331                                      19,523                             2,204        27,058

           Total                  $14,093                                     $59,860                            $9,855       $83,808
                                  =======                                     =======                            ======       =======



                                                   CONSOLIDATED  BALANCE SHEETS

                                                            (Unaudited)

                                         June 28,                                March 29,            June 29,

                                                        2014                                     2014                2013
                                                        ----                                     ----                ----

                                            (in thousands)

                                                           ASSETS

    Current assets:

        Cash and cash equivalents                 $1,322,472                               $1,231,248          $1,174,986

        Short-term investments                        49,953                                        -             25,060
                                                      ------                                      ---             ------

            Total cash, cash equivalents
             and short-term investments            1,372,425                                1,231,248           1,200,046

        Accounts receivable, net                     295,828                                  304,128             285,438

        Inventories                                  289,292                                  290,518             275,640

        Deferred tax assets                           74,597                                   74,038              82,173

        Other current assets                          54,560                                   79,346              96,609
                                                      ------                                   ------              ------

            Total current assets                   2,086,702                                1,979,278           1,939,906

    Property, plant and
     equipment, net                                1,331,519                                1,355,268           1,373,124

    Intangible assets, net                           360,994                                  384,167             157,146

    Goodwill                                         596,637                                  597,676             422,004

    Other assets                                      29,766                                   38,176              43,730

           TOTAL ASSETS                           $4,405,618                               $4,354,565          $3,935,910
                                                  ==========                               ==========          ==========


                                            LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities:

        Accounts payable                            $102,076                                  $94,315            $105,322

        Income taxes payable                          20,065                                   20,720              22,437

        Accrued salary and related
         expenses                                    186,732                                  168,336             187,970

        Accrued expenses                              63,656                                   81,232              60,592

        Current portion of long-
         term debt                                       372                                    2,526               2,015

        Deferred income on shipments
         to distributors                              25,734                                   24,259              26,557
                                                      ------                                   ------              ------

            Total current liabilities                398,635                                  391,388             404,893

    Long-term debt                                 1,001,026                                1,000,871             503,573

    Income taxes payable                             362,802                                  352,294             282,697

    Deferred tax liabilities                         159,879                                  171,431             206,855

    Other liabilities                                 53,365                                   37,977              29,894

            Total liabilities                      1,975,707                                1,953,961           1,427,912
                                                   ---------                                ---------           ---------


    Stockholders' equity:

        Common stock par value                           285                                      283                 288

       Additional paid-in capital                     23,005                                        -                  -

        Retained earnings                          2,423,794                                2,412,627           2,523,457

        Accumulated other
         comprehensive loss                         (17,173)                                (12,306)           (15,747)

            Total stockholders' equity             2,429,911                                2,400,604           2,507,998
                                                   ---------                                ---------           ---------

            TOTAL LIABILITIES &
             STOCKHOLDERS' EQUITY                 $4,405,618                               $4,354,565          $3,935,910
                                                  ==========                               ==========          ==========



                                                                             CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                                                          (Unaudited)

                                    Three Months Ended                                      Year Ended

                                   June 28,                         March 29,                                      June 29,             June 28,              June 29,

                                                  2014                               2014                                          2013                  2014                   2013
                                                  ----                               ----                                          ----                  ----                   ----

                                                     (in thousands)

    Cash flows from
     operating
     activities:

    Net income                                 $84,793                           $122,544                                      $119,014              $354,810               $454,912

    Adjustments to
     reconcile net
     income to net cash
     provided by
     operating
     activities:

          Stock-based
           compensation                         21,786                             22,057                                        18,853                85,452                 83,808

          Depreciation and
           amortization                         64,391                             64,665                                        51,191               244,593                207,136

          Deferred taxes                       (9,501)                          (36,482)                                      (2,813)             (32,159)                25,372

          Loss (gain) from
           sale of property,
           plant and equipment                   1,068                                818                                         1,380                 2,187                (1,156)

          Tax benefit
           (shortfall) related
           to stock-based
           compensation                            942                              3,204                                           358                  (68)                 8,197

          Impairment of long-
           lived assets                          6,447                                  -                                            -               11,644                 24,929

          Impairment of
           investments in
           privately-held
           companies                             6,537                              3,723                                           700                10,260                    700

          In-process research
           and development
           written-off                               -                             2,580                                             -                2,580                  2,800

          Loss (gain) on sale
           of discontinued
           operations                                -                                 -                                            -                    -               (3,285)

          Excess tax benefit
           from stock-based
           compensation                        (4,897)                           (5,139)                                      (2,792)             (14,192)              (18,923)

          Changes in assets
           and liabilities:

              Accounts receivable                8,300                           (15,566)                                       14,608                13,340                 32,023

              Inventories                        1,226                              7,717                                       (7,657)               20,672               (35,245)

              Other current assets              26,579                              7,194                                       (2,832)               45,557               (21,233)

              Accounts payable                   5,203                            (4,044)                                      (6,961)             (11,255)              (32,510)

              Income taxes payable               9,853                             14,244                                        13,118                54,492                 70,156

              Deferred revenue on
               shipments to
               distributors                      1,475                            (1,283)                                          706                 (823)                   277

              All other accrued
               liabilities                       9,882                             25,466                                        17,527              (10,983)                19,977

    Net cash provided by
     (used in) operating
     activities                                234,084                            211,698                                       214,400               776,107                817,935
                                               -------                            -------                                       -------               -------                -------


    Cash flows from
     investing
     activities:

              Purchase of
               property, plant and
               equipment                      (23,654)                          (26,407)                                     (48,922)            (132,523)             (216,672)

              Proceeds from sales
               of property, plant
               and equipment                     1,627                                618                                         4,538                 5,293                 19,196

              Proceeds from sales
               of property, plant
               and equipment
               through note
               receivable                            -                                 -                                       10,786                     -                10,786

              Proceeds from
               maturity of
               available-for-
               sale securities                       -                                 -                                            -               27,000                 50,000

              Purchases of
               available-for-
               sale securities                (49,953)                                 -                                            -             (49,953)                     -

              Purchases of
               privately-held
               companies
               securities                            -                                 -                                        (500)                    -                 (500)

              Payments in
               connection to
               acquisitions                          -                           (5,750)                                      (2,767)            (459,256)               (2,767)

              Proceeds from sale
               of investments in
               privately-held
               companies                             -                                 -                                          585                     -                   585

    Net cash provided by
     (used in) investing
     activities                               (71,980)                          (31,539)                                     (36,280)            (609,439)             (139,372)
                                               -------                            -------                                       -------              --------               --------


    Cash flows from
     financing
     activities:

             Excess tax benefit
              from stock-based
              compensation                       4,897                              5,139                                         2,792                14,192                 18,923

             Contingent
              consideration paid                     -                             (104)                                      (6,305)              (4,705)              (13,781)

             Dividends paid                   (73,626)                          (73,481)                                     (69,532)            (294,175)             (280,215)

             Repayment of notes
              payable                          (2,430)                             (439)                                    (302,299)              (4,708)             (303,500)

             Issuance of debt                        -                                 -                                            -              497,895                494,395

             Debt issuance cost                      -                                 -                                        (671)              (3,431)               (3,921)

             Repurchase of common
              stock                           (40,744)                          (51,083)                                    (193,221)            (305,314)             (375,135)

             Issuance of ESPP
              shares under
              employee stock
              purchase program                  23,713                                  -                                       19,529                42,809                 36,297

             Net issuance of
              restricted stock
              units                            (8,922)                           (8,390)                                      (7,456)             (31,384)              (29,042)

             Proceeds from stock
              options exercised                 26,232                             29,538                                         6,049                69,639                 71,342

    Net cash provided by
     (used in) financing
     activities                               (70,880)                          (98,820)                                    (551,114)             (19,182)             (384,637)
                                               -------                            -------                                      --------               -------               --------


    Net increase
     (decrease) in cash
     and cash
     equivalents                                91,224                             81,339                                     (372,994)              147,486                293,926

    Cash and cash
     equivalents:

              Beginning of period            1,231,248                          1,149,909                                     1,547,980             1,174,986                881,060

              End of period                 $1,322,472                         $1,231,248                                    $1,174,986            $1,322,472             $1,174,986
                                            ==========                         ==========                                    ==========            ==========             ==========


    Total cash, cash
     equivalents and
     short-term
     investments                            $1,372,425                         $1,231,248                                    $1,200,046            $1,372,425             $1,200,046
                                            ==========                         ==========                                    ==========            ==========             ==========


                                                                                             ANALYSIS OF GAAP VERSUS GAAP EXCLUDING SPECIAL ITEMS DISCLOSURES

                                                                                                                       (Unaudited)

                                           Three Months Ended                                                                    Year Ended
                                           ------------------                                                                    ----------

                                        June 28,                                                  March 29,                                                   June 29,           June 28,             June 29,

                                                             2014                                                         2014                                              2013                 2014                  2013
                                                             ----                                                         ----                                              ----                 ----                  ----

                                                       (in thousands, except per share data)

    Reconciliation of GAAP
     gross profit to GAAP
     gross profit excluding
     special items:
    -----------------------

    GAAP gross profit                                    $368,960                                                     $339,937                                          $371,399           $1,384,765            $1,496,567

    GAAP gross profit %                                   57.4%                                                       56.1%                                            61.1%               56.4%                61.3%


    Special items:

          Intangible asset
           amortization                                    18,750                                                       18,542                                             7,777               64,483                33,994

          Acquisition-related
           inventory write-up                                 371                                                        5,518                                                 -              18,955                     -

     Total special items                                   19,121                                                       24,060                                             7,777               83,438                33,994
                                                           ------                                                       ------                                             -----               ------                ------

     GAAP gross profit
      excluding special
      items                                              $388,081                                                     $363,997                                          $379,176           $1,468,203            $1,530,561

     GAAP gross profit %
      excluding special
      items                                                 60.4%                                                       60.1%                                            62.3%               59.8%                62.7%


    Reconciliation of GAAP
     operating expenses to
     GAAP operating
     expenses excluding
     special items:
    ----------------------

    GAAP operating expenses                              $252,410                                                     $233,199                                          $220,309             $962,474              $908,248


    Special items:

          Intangible asset
           amortization                                     4,423                                                        4,863                                             3,670               17,690                15,525

          Impairment of long-
           lived assets (1)                                 6,447                                                            -                                                -              11,644                24,929

         Severance and
          restructuring                                     5,790                                                        3,338                                               442               24,902                 2,829

         Acquisition-related
          costs                                                 -                                                        (88)                                                -               6,983                     -

         Other operating
          expenses (income), net
          (2)                                              8,795                                                        2,913                                             2,105               18,353                 5,864

     Total special items                                   25,455                                                       11,026                                             6,217               79,572                49,147
                                                           ------                                                       ------                                             -----               ------                ------

     GAAP operating expenses
      excluding special
      items                                              $226,955                                                     $222,173                                          $214,092             $882,902              $859,101
                                                         ========                                                     ========                                          ========             ========              ========


    Reconciliation of GAAP
     net income to GAAP net
     income excluding
     special items:
    -----------------------

    GAAP net income                                       $84,793                                                     $122,544                                          $119,014             $354,810              $454,912


    Special items:

          Intangible asset
           amortization                                    23,173                                                       23,405                                            11,447               82,173                49,519

          Acquisition-related
           inventory write-up                                 371                                                        5,518                                                 -              18,955                     -

          Impairment of long-
           lived assets (1)                                 6,447                                                            -                                                -              11,644                24,929

         Severance and
          restructuring                                     5,790                                                        3,338                                               442               24,902                 2,829

         Acquisition-related
          costs                                                 -                                                        (88)                                                -               6,983                     -

         Other operating
          expenses (income), net
          (2)                                              8,795                                                        2,913                                             2,105               18,353                 5,864

          Interest and other
           expense, net (3)                                 2,432                                                        3,723                                               700                6,155                   700
                                                            -----                                                        -----                                               ---                -----                   ---

                  Pre-tax total special
                   items                                   47,008                                                       38,809                                            14,694              169,165                83,841

         Tax effect of special
          items                                           (6,850)                                                     (3,658)                                          (4,231)            (19,383)             (22,963)

         Fixed asset tax basis
          adjustment (4)                                  (1,041)                                                    (34,562)                                                -            (35,603)                    -

         International
          restructuring
          implementation                                        -                                                           -                                                -                   -               18,726

         Fiscal year 2012
          research & development
          tax credits                                           -                                                           -                                                -                   -              (3,899)

         Income from
          discontinued
          operations, net of tax
          (5)                                                  -                                                           -                                                -                   -              (2,603)

     GAAP net income
      excluding special
      items                                              $123,910                                                     $123,133                                          $129,477             $468,989              $528,014
                                                         ========                                                     ========                                          ========             ========              ========


     GAAP net income per
      share excluding
      special items:

        Basic                                               $0.44                                                        $0.44                                             $0.45                $1.66                 $1.81
                                                            =====                                                        =====                                             =====                =====                 =====

        Diluted                                             $0.43                                                        $0.43                                             $0.44                $1.62                 $1.77
                                                            =====                                                        =====                                             =====                =====                 =====


    Shares used in the
     calculation of
     earnings per share
     excluding special
     items:

        Basic                                             283,431                                                      282,627                                           290,146              283,344               291,835
                                                          =======                                                      =======                                           =======              =======               =======

        Diluted                                           289,487                                                      288,575                                           296,756              289,108               298,596
                                                          =======                                                      =======                                           =======              =======               =======


    (1) Includes impairment charges relating to
     EDA software, wafer fab tools, land and
     buildings held-for-sale, and end of line
     manufacturing equipment.

    (2) Other operating expenses (income), net
     are primarily for legal settlement, legal
     expenses related to Volterra acquisition,
     reserve for uncollectible note related to a
     divestiture, contingent consideration
     adjustments related to certain
     acquisitions, in-process research and
     development abandoned, loss (gain) relating
     to sale of land and buildings,expected loss
     on lease abandonment,and certain payroll
     taxes.

    (3) Includes impairment of investment in
     privately-held companies.

    (4) Includes one-time fixed asset tax basis
     adjustments relating to prior year
     depreciation expense.

    (5) Includes gain on sale, net of tax
     relating to certain business divested.

Non-GAAP Measures
To supplement the consolidated financial results prepared under GAAP, Maxim Integrated uses non-GAAP measures which are adjusted from the most directly comparable GAAP results to exclude special items related to intangible asset amortization; acquisition-related inventory write-up; impairment of long-lived assets; severance and restructuring; acquisition-related costs; contingent consideration adjustments relating to certain acquisitions; legal settlement; in-process research and development abandoned; reserve for uncollectible note related to a divestiture; legal expenses related to Volterra; impairment of investments in privately-held companies; tax provision impacts due to fixed asset tax basis adjustments; research and development tax credits; international restructuring implementation and discontinued operations, net of tax. Management uses these non-GAAP measures internally to make strategic decisions, forecast future results and evaluate Maxim Integrated's current performance. Many analysts covering Maxim Integrated use the non-GAAP measures as well. Given management's use of these non-GAAP measures, Maxim Integrated believes these measures are important to investors in understanding Maxim Integrated's current and future operating results as seen through the eyes of management. In addition, management believes these non-GAAP measures are useful to investors in enabling them to better assess changes in Maxim Integrated's core business across different time periods. These non-GAAP measures are not in accordance with or an alternative to GAAP financial data and may be different from non-GAAP measures used by other companies. Because non-GAAP financial measures are not standardized it may not be possible to compare these financial measures with other companies' non-GAAP financial measures, even if they have similar names. The non-GAAP measures displayed in the table above include the following:

GAAP Gross Profit Excluding Special Items
The use of GAAP gross profit excluding special items allows management to evaluate the gross margin of the Company's core businesses and trends across different reporting periods on a consistent basis, independent of special items including intangible asset amortization and acquisition-related inventory write-up. In addition, it is an important component of management's internal performance measurement and reward process as it is used to assess the current and historical financial results of the business, for strategic decision making, preparing budgets and forecasting future results. Management presents GAAP gross profit excluding special items to enable investors and analysts to evaluate our revenue generation performance relative to the direct costs of revenue of Maxim Integrated's core businesses.

GAAP Operating Expenses Excluding Special Items
The use of GAAP operating expenses excluding special items allows management to evaluate the operating expenses of the Company's core businesses and trends across different reporting periods on a consistent basis, independent of special items including intangible asset amortization; impairment of long-lived assets; severance and restructuring; acquisition-related costs; contingent consideration adjustments relating to certain acquisitions; in-process research and development abandoned; reserve for uncollectible note related to a divestiture; legal settlement; and legal expenses related to Volterra. In addition, it is an important component of management's internal performance measurement and reward process as it is used to assess the current and historical financial results of the business, for strategic decision making, preparing budgets and forecasting future results. Management presents GAAP operating expenses excluding special items to enable investors and analysts to evaluate our core business and its direct operating expenses.

GAAP Net Income and GAAP Net Income per Share Excluding Special Items
The use of GAAP net income and GAAP net income per share excluding special items allow management to evaluate the operating results of Maxim Integrated's core businesses and trends across different reporting periods on a consistent basis, independent of special items including intangible asset amortization; acquisition-related inventory write-up; impairment of long-lived assets; severance and restructuring; acquisition-related costs; contingent consideration adjustments relating to certain acquisitions; legal settlement; in-process research and development abandoned; reserve for uncollectible note related to a divestiture; legal expenses related to Volterra; impairment of investments in privately-held companies; research and development tax credits; discontinued operations, net of tax; and the tax provision impacts due to fixed asset tax basis adjustments; international restructuring implementation and discontinued operations, net of tax. In addition, they are important components of management's internal performance measurement and reward process as it is used to assess the current and historical financial results of the business, for strategic decision making, preparing budgets and forecasting future results. Management presents GAAP net income and GAAP net income per share excluding special items to enable investors and analysts to understand the results of operations of Maxim Integrated's core businesses and to compare our results of operations on a more consistent basis against that of other companies in our industry.

"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 business outlook and financial projections for its first quarter of fiscal 2015 ending in September 2014, which includes revenue, gross margin and earnings per share, as well as looking forward, the Company, although its near-term outlook for mobility remains cautious, plans to continue to execute on a strategy to bring new integrated designs to the Industrial, Automotive, Communications and Data Center markets, and to diversify its customer base in mobility. 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, the loss of all or a substantial portion of our sales to one of our large customers, 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 29, 2013 (the "10-K") and Quarterly Reports on Form 10-Q filed after the 10-K.

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 except as required by law.

About Maxim Integrated
Maxim is the leader in analog integration. From mobile to industrial solutions, we're making analog smaller, smarter, and more energy efficient. Learn more at www.maximintegrated.com.

Contact
Kathy Ta
Managing Director, Investor Relations
(408) 601-5697

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SOURCE Maxim Integrated Products, Inc.