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Maxim Appoints Ex-Agilent CEO William Sullivan to its Board

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Maxim Integrated Products, Inc.MXIM recently announced changes in its management, per which it appointed William P. Sullivan to its board of directors effective immediately.

Sullivan was the CEO of Agilent Technologies from 2005 to Mar 2015. Prior to that, he served as the company's executive vice president and COO (2002-2005) and senior vice president and general manager of its Semiconductor Products Group (1999-2002).

Alongside, he has been a director at Avnet, Inc., currently Maxim's largest client (19% of fiscal 2015 revenues). Having worked as the director at URS Corporation, Sullivan has been a board member at several technology-enabled growth companies worldwide.

Management believes that Sullivan's considerable experience and business proficiency will be instrumental in helping the company achieve its long-term goals.

Maxim recently announced mixed first-quarter fiscal 2016 results wherein adjusted earnings per share of 42 cents came ahead of the Zacks Consensus Estimate by a penny. However, revenues of $563.0 million were down 3.4% sequentially and 3.1% year over year.

Looking Ahead

Maxim issued a weak second-quarter fiscal 2016 guidance, with revenues in the range of $490 million to $520 million based on a quarter-end backlog of $329.0 million. The Zacks Consensus Estimate is pegged at $555.0 million.

Management expects non-GAAP earnings per share within 29-35 cents, much lower than the Zacks Consensus Estimate of 41 cents at the mid-point.

The soft outlook reflects a major decline in consumer revenues due to product cycle timing; normal seasonality within Automotive and Industrial; and persistent weakness in communications infrastructure.

T o Conclude

Maxim is an original equipment manufacturer (OEM) of semiconductor analog and mixed signal integrated circuits (ICs). The company remains financially strong with credible margin expansion opportunities through cost-saving initiatives and R&D focus on high-return investments.

Maxim is transforming its manufacturing footprint to enhance flexibility and profitability, while lowering capital expenditures. It is shifting to advanced node process technology development through a recent collaboration with its foundry partners. Products launched under this initiative should expand margins.

However, competition from Texas Instruments and Analog Devices coupled with a challenging technology spending environment and weakness in the communications infrastructure and consumer markets keep us on the sidelines.

Currently, Maxim has a Zacks Rank #3 (Hold). Some well-ranked stocks in the technology space are NVIDIA Corporation NVDA and Stamps.com Inc. STMP , sporting a Zacks Rank #1 (Strong Buy), and Texas Instruments Inc. TXN with a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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