Maxim Integrated Products, Inc. reported unaudited consolidated earnings results for the second quarter ended December 28, 2013. For the quarter, the company announced net revenues of $620.274 million against $605.306 million for the same period a year ago. Operating income was $76.395 million against $117.548 million for the same period a year ago. Income before provision for income taxes was $70.562 million against $114.750 million for the same period a year ago. Net income was $49.322 million or $0.17 per basic and diluted share against $76.622 million or $0.26 per basic and diluted share for the same period a year ago. Net cash provided by operating activities was $234.432 million against $255.097 million for the same period a year ago. Purchase of property, plant and equipment were $46.133 million against $62.102 million for the same period a year ago. GAAP net income excluding special items was $102.459 million or $0.36 per basic and diluted share against $124.806 million or $0.42 per diluted share for the same period a year ago. The growth in revenue was due to the addition of Volterra, as organic business was flat in line with guidance. GAAP operating income, excluding special items and warranty expense, was $152 million or 25% of revenue.

For the third quarter of fiscal 2014, the company expects revenue in the range of $590 million to $620 million. Gross Margin in the range of 56% to 58% GAAP (60% to 62% excluding special items). EPS in the range of $0.28 to $0.32 GAAP ($0.37 to $0.41 excluding special items). Operating expenses, excluding special items, are expected to be down approximately 2% due to continued tight spending controls. Net capital expenditures are expected to be down slightly from second quarter as they continue to lower CapEx as a percent of revenue. So cash flow from operations is over 30% of revenue. CapEx is 5% to 7% of revenue. So free cash flow is 25% of revenue and increasing.

The company reported $5 million pre-tax charge for impairment of long-lived assets in the second quarter of fiscal 2014.