With Texas Instruments
First-quarter revenues increased 5.1% to $310.2 million, driving net income 19.4% higher to $87.4 million. But more importantly, the future is getting brighter as first-quarter bookings jumped 12% to $349 million.
Unlike digital players, notably Intel
As the economy picks up steam, things will only get better for Maxim.
Also like Linear Technology, Maxim continues to enjoy the excellent margins afforded analog companies. In the first quarter, gross margins remained steady at 70% and net margins clocked in at a neat 28%. But Maxim also generated an astonishing $149.2 million in free cash on that $310.2 million in revenues.
With that cash, the company was able to repurchase another 379,000 shares for $15.5 million. It also doubled its quarterly dividend to $0.08 per share last quarter and will maintain it this quarter.
On the strength of proprietary products with high switching costs, those numbers represent the kind of economics we've come to expect from an industry Rule Maker. None of which has gone unnoticed: Both Maxim and Linear Technology sell at over 40 times this year's earnings.
Jeff Hwang can be reached at JHwang@fool.com.