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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