Linear Technology Corp. (LTC, Milpitas, CA) reported that its fiscal third-quarter revenue rose well above expectations on a $40 million royalty settlement. The company announced total revenue for the quarter of $290.7 million compared to the last sequential quarter’s $250.1 million. Last quarter, LTC said it expected revenue for the third quarter to be flat with the second quarter. Revenue for the third quarter represented an increase of 39% over the same period last year.
The boost for the company came from $40 million in past royalties receivable under the terms of a settlement and license agreement. The company stated that it expects to earn further royalties quarterly from July 2005 through June of 2013, but it will not be significant enough to be material to each quarter’s total revenue.
Net income of $121.6 million, or $0.39 per diluted share, in the third quarter represented a 42% increase year-over-year in spite of additional expenses related to the royalties revenue.
"The license agreement confirms the strength of our intellectual property," stated CEO Lothar Maier. "We continue to lead the market with high-performance analog technology and innovative products. Additional royalty revenue under the license agreement does not commence until the September quarter. However, we expect sequential product revenues in the June quarter to increase 2% to 3% over the quarter just ended. Consequently, we expect total revenue in the range of $255 million to $258 million."
