News Release
Contact: | Donald P. Zerio |
Vice President, Finance, Chief Financial Officer | October 18, 2016 |
(408) 432-1900 | NATIONAL DISTRIBUTION |
LINEAR TECHNOLOGY REPORTS YEAR OVER YEAR QUARTERLY INCREASES IN REVENUE, NET INCOME, AND EARNINGS PER SHARE
Milpitas, California, October 18, 2016, Linear Technology Corporation (NASDAQ:LLTC), a leading, independent manufacturer of high performance linear integrated circuits, today reported financial results for the fiscal quarter ended October 2, 2016. Quarterly revenues of $373.9 million for the first quarter of fiscal year 2017 increased $32.0 million or 9.4% over the $341.9 million reported in the first quarter of fiscal year 2016 and is generally the same as the sequential quarter's revenue of $373.8 million.
On a GAAP basis, net income of $115.1 million increased $3.1 million or 2.7% over the first quarter of fiscal year 2016 and decreased $17.3 million or 13.0% from the sequential quarter's net income of $132.4 million. Diluted earnings per share of
$0.47 per share in the first quarter of fiscal year 2017 increased $0.01 per share or 2% over the first quarter of fiscal year 2016 and decreased $0.07 per share or 13% from the fourth quarter of fiscal year 2016.
According to Lothar Maier, CEO, "Revenue for our first fiscal quarter came in as we expected at $373.9 million. This is generally the same as the prior quarter on a sequential basis but represents 9.4% revenue growth on an annual basis. Gross margin, operating margin and earnings per share on a GAAP basis were impacted by a total of $19.8 million of merger-related charges associated with our pending merger with Analog Devices, Inc. Excluding these merger-related charges, Non-GAAP gross margin, operating margin and earnings per share were 76.0%, 45.2% and $0.53, respectively.
Looking forward, the December quarter is typically a seasonally weaker quarter due to a slower European market and in particular a weaker Industrial market that historically often results in a sequential quarterly revenue decline. Given a slightly positive first quarter book-to-bill ratio and based upon our current bookings rate, we are anticipating relatively flat sequential revenue in our fiscal second quarter representing growth in the 7% to 8.5% range on a year-over-year basis."
The following table summarizes the key GAAP and non-GAAP financial results:
Non-GAAP |
Q1 FY2017 |
$ 373,895 |
$ 284,069 |
76.0% |
$ 169,095 |
45.2% |
$ 130,165 |
$ 0.53 |
GAAP | ||||
Q1 FY2017 | Q4 FY2016 | Q1 FY2016 | ||
$ 373,895 | $ 373,766 | $ 341,917 | ||
$ 282,069 | $ 285,514 | $ 256,712 | ||
75.4% | 76.4% | 75.1% | ||
$ 149,301 | $ 171,701 | $ 149,917 | ||
39.9% | 45.9% | 43.8% | ||
$ 115,122 | $ 132,375 | $ 112,047 | ||
$ 0.47 | $ 0.54 | $ 0.46 |
(In thousands,
except per share amounts)
Revenues Gross profit Gross margin
Operating income Operating margin Net income
Earnings per share - Diluted
LINEAR TECHNOLOGY CORPORATION 1630 McCarthy Blvd., Milpitas, CA 95035-7417 (408) 432-1900 FAX: (408) 434-6441
www.linear.com
Cash, cash equivalents and marketable securities increased by $72.9 million over the fourth quarter of fiscal year 2016 to $1.52 billion. A cash dividend of $0.32 per share will be paid on November 30, 2016 to stockholders of record on November 18, 2016. During the first quarter the Company generated positive cash flows from operations of $167.8 million or 45% of total revenues. During the first quarter of fiscal year 2017 the Company paid $78.6 million to shareholders in the form of dividends, representing $0.32 per share. There were no open market stock repurchases as the Analog Merger Agreement restricts the ability of the Company to repurchase shares of its common stock.
call.
As a result of the pending transaction with Analog Devices, the Company will not hold a quarterly earnings conference
In lieu of a conference call, additional supplemental financial information regarding operational performance and earnings for the fiscal first quarter of 2017, in addition to bookings by end market and revenue by geography, has been made available under the Investor Relations section of the Company's website that can be accessed through www.linear.com
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 revenue 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 and country specific conditions in the world economy and financial markets and other factors described in our 10-K for the year ended July 3, 2016.
Linear Technology Corporation, a member of the S&P 500, has been designing, manufacturing and marketing a broad line of high performance analog integrated circuits for major companies worldwide for over three decades. The Company's products provide an essential bridge between our analog world and the digital electronics in communications, networking, industrial, automotive, computer, medical, instrumentation, consumer, and military and aerospace systems. Linear Technology produces power management, data conversion, signal conditioning, RF and interface ICs, µModule® subsystems, and wireless sensor network products. For more information, visit www.linear.com
For further information contact Donald P. Zerio at Linear Technology Corporation, 1630 McCarthy Blvd., Milpitas, California 95035-7417, (408) 432-1900.
LINEAR TECHNOLOGY CORPORATION CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
U.S. GAAP (unaudited)
Three Months Ended
October 2, July 3, September 27,
2016 2016 2015
Revenues $ 373,895 $ 373,766 $ 341,917
Cost of sales (1)(2) 91,826 88,252 85,205
Gross profit 282,069 285,514 256,712 Expenses:
Research and development (1)(2) 76,359 70,331 66,602 Selling, general and administrative (1)(2) 56,409 43,482 40,193
Total operating expenses 132,768 113,813 106,795 Operating income 149,301 171,701 149,917 Interest income and other income 2,173 1,795 987 Income before income taxes 151,474 173,496 150,904
Provision for income taxes 36,352 41,121 38,857
Net income $ 115,122 $ 132,375 $ 112,047
Earnings per share:
Basic $ 0.47 $ 0.54 $ 0.46
Diluted $ 0.47 $ 0.54 $ 0.46
Basic | 245,271 | 244,608 | 244,863 |
Diluted | 245,709 | 244,933 | 245,234 |
Shares used in determining earnings per share:
Includes the following non-cash charges:
Cost of sales | $ 2,547 | $ 2,535 | $ 2,342 |
Research and development | 11,868 | 11,793 | 10,922 |
Selling, general and administrative | 6,129 | 6,096 | 5,638 |
(1) Stock-based compensation
Includes the following pre-tax impact of items:
(2) Merger-related charges
Cost of sales | $ 2,000 | $ - $ - |
Research and development | 5,000 | - - |
Selling, general and administrative | 12,794 | - - |
LINEAR TECHNOLOGY CORPORATION CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
U.S. GAAP (unaudited)
As of | October 2, 2016 | July 3, 2016 |
Assets | ||
Cash, cash equivalents and marketable securities | $ 1,521,146 | $ 1,448,275 |
Accounts receivable, net of allowances ($1,649 as of October 2, 2016) | ||
and ($1,649 as of July 3, 2016) | 162,434 | 157,460 |
Inventories | 98,073 | 97,251 |
Prepaid expenses and other current assets | 53,337 | 51,744 |
Total current assets | 1,834,990 | 1,754,730 |
Property, plant & equipment, net | 281,571 | 285,866 |
Other noncurrent assets | 8,835 | 9,385 |
Total assets | $ 2,125,396 | $ 2,049,981 |
Liabilities
Accounts payable | $ 17,019 | $ 17,465 |
Accrued income taxes, payroll & other accrued liabilities | 138,528 | 113,800 |
Deferred income on shipments to distributors | 48,759 | 48,701 |
Total current liabilities | 204,306 | 179,966 |
Common stock and additional paid-in capital | 2,159,864 | 2,137,150 |
Accumulated deficit | (351,883) | (379,210) |
Accumulated other comprehensive income, net of tax | 620 | 1,235 |
Total stockholders' equity | 1,808,601 | 1,759,175 |
Total liabilities and stockholders' equity | $ 2,125,396 | $ 2,049,981 |
Deferred tax and other noncurrent liabilities 112,489 110,840 Stockholders' equity
Linear Technology Corporation published this content on 18 October 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 18 October 2016 20:53:02 UTC.
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