MILPITAS, Calif. — (BUSINESS WIRE) — January 12, 2010 — Linear Technology Corporation (NASDAQ: LLTC), a leading, independent manufacturer of high performance linear integrated circuits, today reported financial results for the quarter ended December 27, 2009. Revenue of $256.4 million for the second quarter of fiscal year 2010 increased $20.2 million or 9% compared to the previous quarter’s revenue of $236.1 million and increased $7.2 million or 3% over $249.2 million reported in the second quarter of fiscal year 2009. Net income of $75.5 million increased $14.8 million or 24% over the first quarter of fiscal year 2010 and decreased $10.7 million or 12% from the second quarter of fiscal year 2009, which had a gain on the early retirement debt of $14.6 million and a lower tax rate of 20.7% compared to 24.5% this quarter.
Diluted earnings per share (“EPS”) of $0.33 increased $0.06 cents per share over the first quarter of fiscal year 2010 and decreased $0.05 cents per share from the second quarter of fiscal year 2009. Diluted EPS was calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) and included $7.3 million ($0.02 per share) of non-cash interest expense related to the amortization of the debt discount on the Company’s Convertible Senior Notes in accordance with Financial Accounting Standards Board (“FASB”) Staff Position No. APB 14-1 (“FSP APB 14-1”), which the Company adopted during the first quarter of fiscal year 2010. All adjustments were made retrospectively as of the April 24, 2007 issuance of the Convertible Senior Notes and, therefore, all prior quarters and years have been adjusted accordingly.
During the December quarter the Company’s cash, cash equivalents and marketable securities balance increased by $33.0 million to $942.5 million. The Company is increasing its quarterly dividend from $0.22 per share to $0.23 per share. This marks the 18th consecutive year the Company has increased its dividend. The cash dividend of $0.23 per share will be paid on February 24, 2010 to stockholders of record on February 12, 2010.
According to Lothar Maier, CEO, “The Company began to recover from the global recession in the first quarter, but we continued to be relatively cautious as we entered the second quarter given the economic climate and level of uncertainty among our customers. However, the recovery continued throughout the second quarter and we experienced stronger than expected bookings with particular strength in the industrial, communications and computer end-markets. This allowed us to beat the high end of our second quarter revenue guidance as we grew revenues $20.2 million or 9% sequentially. In addition, higher gross margins and tight operating expense controls resulted in a 16% increase in our operating income, thereby increasing our operating margin to 45.1% of sales, up from 42.2% last quarter.
“Our factories continue to execute well, enabling us to maintain low lead times which allows our customers to place orders on us close to their demand requirements. Strong second quarter bookings and a related positive book-to-bill ratio that was higher than we have experienced in the past several quarters, leads us to be optimistic as we enter our third quarter. As a result, we are forecasting revenue growth for our third fiscal quarter in the range of 7% to 10% over our second fiscal quarter.”
Except for historical information contained herein, the matters set forth in this press release are forward-looking statements. In particular, the statements regarding the demand for our products, our customers’ ordering patterns and the anticipated trends in our sales and profits are forward-looking statements. The forward-looking statements are dependent on certain risks and uncertainties, including such factors, among others, as the timing, volume and pricing of new orders received and shipped, the timely introduction of new processes and products, general conditions in the world economy and financial markets and other factors described in our 10-K for the fiscal year ended June 28, 2009.
Company officials will be discussing these results in greater detail in a conference call tomorrow, Wednesday, January 13, 2010 at 8:30 a.m. Pacific Coast Time. Those investors wishing to listen in may call (719) 325-4865, or toll free (877) 340-7912 before 8:15 a.m. to be included in the audience. There will be a live webcast of this conference call that can be accessed through www.linear.com or www.streetevents.com. A replay of the conference call will be available from January 13, 2010 through January 19, 2010.
You may access the archive by calling (719) 457-0820 or toll free (888) 203-1112 and entering reservation #6316441. An archive of the webcast will also be available at www.linear.com and www.streetevents.com as of January 13, 2010 until the second quarter earnings release next year.
Linear Technology Corporation, a manufacturer of high performance linear integrated circuits, was founded in 1981, became a public company in 1986 and joined the S&P 500 index of major public companies in 2000. Linear Technology products include high performance amplifiers, comparators, voltage references, monolithic filters, linear regulators, DC-DC converters, battery chargers and battery management systems, data converters, communications interface circuits, RF signal conditioning circuits, uModule® products, and many other analog functions. Applications for Linear Technology’s high performance circuits include telecommunications, cellular telephones, networking products such as optical switches, notebook and desktop computers, computer peripherals, video/multimedia, industrial instrumentation, security monitoring devices, high-end consumer products such as digital cameras and MP3 players, complex medical devices, automotive electronics, factory automation, process control, and military and space systems. For more information, visit