News Release

Contact:

Donald P. Zerio

Vice President, Finance, Chief Financial Officer

January 17, 2017

(408) 432-1900

NATIONAL DISTRIBUTION

LINEAR TECHNOLOGY REPORTS SEQUENTIAL INCREASES IN REVENUE, NET INCOME, AND EARNINGS PER SHARE. THE COMPANY INCREASES THE QUARTERLY DIVIDEND $0.01 TO $0.33 PER SHARE

Milpitas, California, January 17, 2017, Linear Technology Corporation (NASDAQ:LLTC), a leading, independent manufacturer of high performance linear integrated circuits, today reported financial results for the fiscal quarter ended January 1, 2017. Quarterly revenues of $375.8 million for the second quarter of fiscal year 2017 increased $1.9 million or 0.5% over the previous quarter's revenue of $373.9 million and increased $28.7 million or 8.3% over the $347.1 million reported in the second quarter of fiscal year 2016.

On a GAAP basis, net income of $124.0 million increased $8.9 million or 7.7% over the previous quarter's net income of $115.1 million and increased $2.5 million or 2.0% over the second quarter of fiscal year 2016. Diluted earnings per share of

$0.50 per share in the second quarter of fiscal year 2017 increased $0.03 per share or 6% over the previous quarter and was unchanged from the second quarter of fiscal year 2016.

According to Lothar Maier, CEO, "Revenue for our second fiscal quarter of $375.8 million was slightly higher than we guided and is up 8.3% over the second quarter of fiscal year 2016. This is a good result in what historically has been a weaker seasonal quarter for us. On a non-GAAP basis excluding merger-related charges totaling $10.8 million, non-GAAP gross margin, operating margin and earnings per share were 76.3%, 45.5% and $0.54, respectively, all increases over the prior quarter. The increase in revenue was aided by an increase in our Communication and Industrial markets while gross margin was up slightly primarily due to a richer product mix.

Due to the pending merger with Analog Devices, Inc., we expect that this will be our final earnings release as an independent company. We would like to thank our long-term investors who trusted our long-term market and operational strategies. Finally, we would like to thank the employees of Linear Technology who together over the course of 35 years helped to create a truly special company."

The following table summarizes the key GAAP and non-GAAP financial results:

Non-GAAP

Q2 FY2017

Q1 FY2017

$ 375,817

$ 373,895

$ 286,827

$ 284,069

76.3%

76.0%

$ 171,073

$ 169,095

45.5%

45.2%

$ 132,242

$ 130,165

$ 0.54

$ 0.53

GAAP

Q2 FY2017

Q1 FY2017

Q2 FY2016

$ 375,817

$ 373,895

$ 347,128

$ 284,827

$ 282,069

$ 262,744

75.8%

75.4%

75.7%

$ 160,245

$ 149,301

$ 149,457

42.6%

39.9%

43.1%

$ 123,986

$ 115,122

$ 121,532

$ 0.50

$ 0.47

$ 0.50

(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 $88.7 million over the first quarter of fiscal year 2017 to

$1.61 billion. The Company's Board of Directors approved an increase in the Company's quarterly dividend from $0.32 per share to $0.33 per share. This marked the 25th consecutive year the Company has increased its dividend. A cash dividend of $0.33 per share will be paid on March 7, 2017 to stockholders of record on February 24, 2017. During the second quarter the Company generated positive cash flows from operations of $179.5 million or 48% of total revenues. During the second quarter of fiscal year 2017 the Company paid $78.7 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 second 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 Six Months Ended

January 1,

2017

October 2,

2016

January 3,

2016

January 1,

2017

January 3,

2016

Revenues

$ 375,817

$ 373,895

$ 347,128

$ 749,712

$ 689,045

Cost of sales (1)(2)

90,990

91,826

84,384

182,816

169,589

Gross profit

284,827

282,069

262,744

566,896

519,456

Expenses:

Research and development (1)(2)

77,030

76,359

69,884

153,389

136,486

Selling, general and administrative (1)(2)

47,552

56,409

43,403

103,961

83,596

Total operating expenses

124,582

132,768

113,287

257,350

220,082

Operating income

160,245

149,301

149,457

309,546

299,374

Interest income and other income

2,361

2,173

1,521

4,534

2,508

Income before income taxes

162,606

151,474

150,978

314,080

301,882

Provision for income taxes

38,620

36,352

29,446

74,972

68,303

Net income

$ 123,986

$ 115,122

$ 121,532

$ 239,108

$ 233,579

Earnings per share:

Basic

$ 0.50

$ 0.47

$ 0.50

$ 0.97

$ 0.95

Diluted

$ 0.50

$ 0.47

$ 0.50

$ 0.97

$ 0.95

Shares used in determining earnings per share:

Basic

245,804

245,271

244,591

245,561

244,831

Diluted

246,280

245,709

244,880

246,026

245,178

Includes the following non-cash charges:

(1) Stock-based compensation

Cost of sales

$ 2,496

$ 2,547

$ 2,557

$ 5,043

$ 4,899

Research and development

13,572

11,868

11,731

25,440

22,653

Selling, general and administrative

6,990

6,129

5,968

13,119

11,606

Includes the following pre-tax impact of

items:

(2) Merger-related charges

Cost of sales

$ 2,000

$ 2,000

$ - $ 4,000

$ -

Research and development

5,000

5,000

- 10,000

-

Selling, general and administrative

3,828

12,794

- 16,622

-

LINEAR TECHNOLOGY CORPORATION CONSOLIDATED CONDENSED BALANCE SHEETS

(in thousands)

U.S. GAAP (unaudited)

As of

January 1,

2017

July 3,

2016

Assets

Cash, cash equivalents and marketable securities

$ 1,609,825

$ 1,448,275

Accounts receivable, net of allowances ($1,649 as of January 1, 2017) and

($1,649 as of July 3, 2016)

145,135

157,460

Inventories

98,548

97,251

Prepaid expenses and other current assets

48,539

51,744

Total current assets

1,902,047

1,754,730

Property, plant & equipment, net

281,149

285,866

Other noncurrent assets

8,285

9,385

Total assets

$ 2,191,481

$ 2,049,981

Liabilities

Accounts payable

$ 17,197

$ 17,465

Accrued income taxes, payroll & other accrued liabilities

132,931

113,800

Deferred income on shipments to distributors

49,489

48,701

Total current liabilities

199,617

179,966

Common stock and additional paid-in capital

2,192,469

2,137,150

Accumulated deficit

(314,459)

(379,210)

Accumulated other comprehensive (loss) income, net of tax

(198)

1,235

Total stockholders' equity

1,877,812

1,759,175

Total liabilities and stockholders' equity

$ 2,191,481

$ 2,049,981

Deferred tax and other noncurrent liabilities 114,052 110,840 Stockholders' equity

Linear Technology Corporation published this content on 17 January 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 17 January 2017 22:16:00 UTC.

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