News

Linear Tech Reports Record Quarterly & Annual Revenues & Earnings Per Share

July 22, 2008 by Jeff Shepard

Linear Technology Corp. reported financial results for the quarter and year ended June 29, 2008. Revenue for the fourth quarter of fiscal year 2008 increased 3.1% to a quarterly record of $307.1 million compared to the previous quarter’s revenue of $297.9 million and increased 14.5% or $39.0 million over $268.1 million in the fourth quarter of fiscal year 2007. Diluted earnings per share ("EPS") of $0.46 increased $0.02 per share or 4.5% over the third quarter of fiscal year 2008 and increased $0.10 per share or 28% over the fourth quarter of fiscal year 2007.

Fourth quarter GAAP net income of $103.1 million increased $3.9 million or 3.9% over $99.2 million reported in the third quarter of fiscal year 2008. Net income for the quarter was positively impacted by the increase in sales, a lower tax rate as a result of a discrete tax benefit and also by a modest gain from the sale of a strategic investment in a private company. These gains were partially offset by an increase in legal expenses. Net income increased $7.4 million or 7.8% over the fourth quarter of fiscal year 2007.

During the June quarter the company’s cash and short-term investments balance increased $58.8 million net of spending $48.3 million to purchase approximately 1.3 million shares of its common stock. A cash dividend of $0.21 per share will be paid on August 27, 2008 to stockholders of record on August 15, 2008.

Revenue for the year ended June 29, 2008 was $1.175 billion, an increase of 8.5% or $92.1 million over revenue of $1.083 billion for the previous fiscal year. Diluted EPS for the year ended June 29, 2008 was $1.71, an increase of 23.0% or $0.32 per share over fiscal year 2007 diluted EPS of $1.39. The company entered into a $3.0 billion Accelerated Stock Repurchase ("ASR") transaction at the end of fiscal year 2007 that along with the increase in sales drove the significant increase in EPS during fiscal 2008. The ASR transaction decreased shares used in the calculation of diluted EPS by 83.3 million shares or by approximately 27%. Net income in accordance with GAAP of $387.6 million for fiscal year 2008 decreased $24.1 million or 5.8% from $411.7 million reported in the previous fiscal year.

Non-GAAP diluted EPS for the fourth quarter of fiscal year 2008 was $0.51 per share, a $0.02 per share increase over the third quarter of fiscal year 2008 and a $0.09 per share increase over the fourth quarter of fiscal year 2007. Fourth quarter non-GAAP net income of $114.4 million increased $4.4 million over $110.0 million in the third quarter of fiscal year 2008 and $4.5 million over the fourth quarter of fiscal year 2007.