The results include $125.9 million in special expense items which primarily consist of the following pre-tax expenses:

$42.3 million for stock based compensation related to tendered and expiring options.

$43.8 million for the impairment of end of line manufacturing assets.

$13.6 million for severance and restructuring.

$12.0 million for the accelerated depreciation related to the closure of Dallas wafer fabrication facilities.

Balance Sheet Items

Cash flow from operations was $71.5 million after $28.1 million in payments for tendered and expiring options. Total cash, cash equivalents, and short-term investments decreased by $331.0 million during the second quarter to $925.5 million due to:

$235.1 million to repurchase of 18.1 million shares of Maxim stock.

$62.3 million for cash dividends.

$42.6 million for tax payments for restricted stock units that vested during the restatement period and the second quarter of 2009.

$33.0 million for the acquisition of Mobilygen.

$28.6 million in payments for property and equipment.

Business Outlook

Maxim’s fiscal second quarter net realizable bookings decreased by 34% compared to the first quarter of fiscal 2009 and the Company’s 90 day backlog declined by 30% to $206 million.

Tunc Doluca, president and chief executive officer, commented, We finished our December quarter with a very cautious view of the global economy. Revenue as well as customer orders were weak across the board. While our recent review of our markets and customers indicates that bookings pace should improve this quarter, we nevertheless continue to manage expenses prudently. We are on schedule to complete our wafer fab consolidation project. This will improve our manufacturing efficiencies next fiscal year. Additionally, we took several measures to reduce our operating expenses.

We have been investing in new technology, in our core product lines, and in new product lines both internally and through strategic acquisitions. We believe these investments will pay off in the long term. We expect to weather this storm with our cash flow from operations and strong balance sheet. This combination of cost controls and strategic investments will allow us to emerge from this slowdown stronger than we entered it.