Linear Technology Reports Quarterly & Year over Year Decreases To Revenues & Earnings Per Share
Linear Technology Corp. reported financial results for the quarter ended March 29, 2009. Revenue of $200.9 million for the third quarter of fiscal year 2009 decreased 19% compared to the previous quarter’s revenue of $249.2 million and decreased 33% or $97.0 million from $297.9 million reported in the third quarter of fiscal year 2008.
Diluted earnings per share ("EPS") of $0.25 decreased $0.18 per share or 42% from the second quarter of fiscal year 2009, which had benefited from a $21.0 million gain, or $0.07 diluted EPS, on the early retirement of debt. EPS decreased $0.19 per share or 43% from the third quarter of fiscal year 2008. Net income of $54.5 million decreased $40.7 million or 43% from the second quarter of fiscal year 2009 and decreased $44.8 million or 45% from the third quarter of fiscal year 2008.
In summary, although revenues declined 19% this quarter and 20% last quarter, the company states that it remained strongly profitable with operating income of 36.4% of sales.
During the March quarter the company’s cash and short-term investments balance increased by $19.8 million to $920.0 million, net of spending approximately $28.3 million to purchase $30 million face value of its 3.125% Convertible Senior Notes. A cash dividend of $0.22 per share will be paid on May 27, 2009 to stockholders of record on May 15, 2009.
According to Lothar Maier, CEO, "With revenues down 19% from the previous quarter, it was another difficult quarter as the company continued to experience the fallout from the ongoing global credit crisis. Nevertheless, the company’s results were within the range of its guidance. The company continued to control its variable expenses where possible to reduce the impact on profits from the decline in revenues. As a result, the company delivered pre-tax profits of 34% and maintained positive cash flow during this turbulent period.
