Linear Tech Reports Quarterly & Year over Year Increases In Revenues & Earnings Per Share
Linear Technology Corp. reported financial results for the quarter ended September 28, 2008. Revenue for the first quarter of fiscal year 2009 increased 1% to a quarterly record of $310.4 million compared to the previous quarter’s revenue of $307.1 million and increased 10% or $28.9 million over $281.5 million reported in the first quarter of fiscal year 2008.
Diluted earnings per share ("EPS") of $0.48 increased $0.02 per share or 4% over the fourth quarter of fiscal year 2008 and increased $0.08 per share or 20% over the first quarter of fiscal year 2008. First quarter GAAP net income of $107.6 million increased $4.5 million or 4% over $103.1 million reported in the fourth quarter of fiscal year 2008. Net income for the quarter was positively impacted by a lower tax rate as a result of a discrete tax benefit. Net income increased $16.1 million or 18% over the first quarter of fiscal year 2008.
During the September quarter the company’s cash and short-term investments balance increased $55.2 million to $1.0 billion, net of spending $23.1 million to purchase approximately 737,000 shares of its common stock. A cash dividend of $0.21 per share will be paid on November 26, 2008 to stockholders of record on November 14, 2008.
Non-GAAP diluted EPS for the first quarter of fiscal year 2009 was $0.53 per share, a $0.02 per share increase over the fourth quarter of fiscal year 2008 and a $0.08 per share increase over the first quarter of fiscal year 2008. First quarter non-GAAP net income of $118.4 million increased $4.0 million over $114.4 million in the fourth quarter of fiscal year 2008 and $17.0 million over the first quarter of fiscal year 2008. The company’s non-GAAP measures set forth above exclude charges related to stock-based compensation. The company’s management uses non-GAAP net income and non-GAAP net income per diluted share to evaluate the company’s current operating results and financial results and to compare them against historical financial results.
According to Lothar Maier, CEO, "We met our guidance set at the beginning of the quarter by growing revenues and pretax income by 1% and 3%, respectively, over the June quarter. This marks the sixth consecutive quarter that the company has grown revenues and EPS. However, during the latter part of the September quarter and especially through early October, the company began to see a decrease in new order bookings across all of the company’s end-markets. We believe the current credit crisis and related economic uncertainty have begun to affect the semiconductor industry.
"Looking ahead to the December quarter, given the decrease in recent orders and the softness we are currently seeing in the industry, we estimate that the company’s revenues will decline sequentially in the 10% to 20% range from the September quarter. It is difficult to forecast what the decline in revenues will be given the uncertain state of the economy as a whole. Our results will be very dependent on our customers’ reaction to the global credit crisis. Nevertheless, the company is well positioned to manage through difficult times and has a proven track record that it can maintain industry leading profitability under challenging market conditions. Many of our expenses are variable and we are taking measures to adjust those downward. Accordingly, we believe we can maintain pretax profits above 40% of sales with the lower forecasted sales range. In addition, once this global economic crisis eases, we continue to be optimistic about the company’s long-term growth prospects."
