Linear Tech Reports Increased Revenues & Net Income Over Prior Quarter
Linear Technology Corp. reported financial results for the quarter ended June 28, 2009. Revenue of $208.0 million for the fourth quarter of fiscal year 2009 increased 4% compared to the previous quarter’s revenue of $200.9 million and decreased 32% or $99.1 million from $307.1 million reported in the fourth quarter of fiscal year 2008.
Diluted earnings per share ("EPS") of $0.25 was flat compared to the third quarter of fiscal year 2009, which benefited from a lower tax rate of 19.5% compared to the current quarter’s tax rate of 23.0%. In addition, the current quarter had a restructuring charge of $2.3 million compared to no charge for the prior quarter. EPS decreased $0.21 per share or 46% from the fourth quarter of fiscal year 2008. Net income of $56.2 million increased $1.8 million or 3% over the third quarter of fiscal year 2009 and decreased $46.9 million or 45% from the fourth quarter of fiscal year 2008.
Revenue for the year ended June 28, 2009 was $968.5 million, a decrease of 18% or $206.7 million from revenue of $1.175 billion for the previous fiscal year. Diluted EPS for the year ended June 28, 2009 was $1.41, a decrease of 18% or $0.30 per share from fiscal year 2008 diluted EPS of $1.71. Net income for fiscal year 2009 decreased $74.1 million or 19% from $387.6 million reported in the previous fiscal year.
During the June quarter the company’s cash and short-term investments balance decreased by $51.3 million to $868.7 million, net of spending approximately $62.8 million to purchase $64.4 million face value of its 3.125% Convertible Senior Notes. A cash dividend of $0.22 per share will be paid on August 26, 2009 to stockholders of record on August 14, 2009.
According to Lothar Maier, CEO, "Revenues improved over the previous quarter as we grew sales 4%; however, we are still in a global recession. We continue to control our variable expenses where possible to reduce the impact on profits due to lower year-over-year revenues. Because of these cost saving measures, operating margin was 38% for the fourth quarter which was an improvement over 36.4% reported in the prior quarter.
"It was a difficult year in which the company saw record quarterly revenues of $310.4 million in the first quarter and then the subsequent three quarters had substantial year-over-year revenue declines. The actions taken by the company and the sacrifices made by its employees enabled the company to maintain its industry leading profitability margins despite one of the worst recessions since the Great Depression."
