Welcome!

News Feed Item

Linear Technology Reports Quarterly and Fiscal Year Increases in Revenues and Net Income

Linear Technology Corporation (NASDAQ:LLTC), a leading, independent manufacturer of high performance linear integrated circuits, today reported financial results for the fiscal quarter and fiscal year ended June 29, 2014. Quarterly revenues of $365.4 million for the fourth quarter of fiscal year 2014 increased $17.4 million or 5.0% over the previous quarter's revenue of $348.0 million and increased $38.2 million or 11.7% over $327.3 million reported in the fourth quarter of fiscal year 2013. Net income of $129.7 million increased $12.1 million or 10.3% over the third quarter of fiscal year 2014 and increased $27.8 million or 27.3% over the fourth quarter of fiscal year 2013. Diluted earnings per share of $0.53 per share in the fourth quarter of fiscal year 2014 increased $0.05 per share or 10.4% over the third quarter of fiscal year 2014 and increased $0.10 per share or 23.3% over the fourth quarter of fiscal year 2013.

Revenue for fiscal year 2014 was $1,388.4 million, an increase of 8.3% or $106.2 million over revenue of $1,282.2 million in the prior fiscal year. Net income of $460.0 million for fiscal year 2014 increased $53.0 million or 13.0% over $406.9 million reported in the previous fiscal year. The results for fiscal year 2014 benefited from lower interest expense as a result of the bond redemption in May 2014 offset by a slightly higher effective tax rate of 23.5% compared to 23.0% in fiscal year 2013. Diluted earnings per share for fiscal year 2014 was $1.91, an increase of $0.19 per share or 11.1% over the prior fiscal year.

During the fourth quarter the Company's cash, cash equivalents and marketable securities balance decreased $749.9 million from the third quarter of fiscal year 2014 to $1,012.8 million net of spending $845.1 million to redeem all of its outstanding 3.00% Convertible Senior Notes. As a result of the redemption, the Company paid $845.1 million in cash for the outstanding principal and issued 2.9 million shares of the Company’s common stock related to the conversion premium. There was no gain or loss recognized as a result of the redemption. In addition, the Company spent $29.0 million to purchase 650,000 shares of its common stock in the open market. A cash dividend of $0.27 per share will be paid on August 27, 2014 to stockholders of record on August 15, 2014.

According to Lothar Maier, CEO, “We completed our fiscal year with a good fourth quarter as revenues were at the high end of our guidance, up 5% sequentially. Each of our end-markets grew over the preceding quarter led by a particularly strong industrial market. We continued to improve our industry leading gross margin and operating margin, which increased to 76% and 47%, respectively. Effective May 1, 2014, we redeemed with internally generated funds our outstanding 3.00% Convertible Senior Notes with a principal value of $845.1 million, which led to lower interest expense for the period.

For the fiscal year, we grew revenues 8% to $1.39 billion. We believe we have good momentum heading into the new fiscal year as our book to bill ratio for the quarter was positive and improved over the previous quarter. We are excited about our position and growth prospects heading into the new fiscal year. We believe we are in the right end-markets with the right innovative products to take advantage of our positioning. Historically, the first fiscal quarter is a seasonally weaker period for us, but given our current bookings level and backlog we are currently forecasting revenue growth in our first quarter of fiscal 2015 of 1% to 3% sequentially over the prior quarter which would be 8% to 11% on an annual basis over the same quarter in the prior year.”

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 and country specific conditions in the world economy and financial markets and other factors described in our 10-Q for the quarter ended March 30, 2014.

Company officials will be discussing these results in greater detail in a conference call tomorrow, Wednesday, July 23, 2014 at 8:30 a.m. Pacific Coast Time. Those investors wishing to listen in may call 719-325-2453, or toll free 888-339-3504 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 July 23, 2014 through July 30, 2014. You may access the archive by calling (719) 457-0820 or toll free (888) 203-1112 and entering reservation #7532972. An archive of the webcast will also be available at www.linear.com and www.streetevents.com as of July 23, 2014 until the fourth quarter earnings release next year.

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 Paul Coghlan 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 Twelve Months Ended
June 29, March 30, June 30, June 29, June 30,
2014 2014 2013 2014 2013
 
Revenues $ 365,428 $ 348,006 $ 327,265 $ 1,388,386 $ 1,282,236
Cost of sales(1)   87,579     84,479     81,314     338,580     322,516  
Gross profit   277,849     263,527     245,951     1,049,806     959,720  
Expenses:
Research and development (1) 64,785 62,129 60,560 250,434 235,184
Selling, general and administrative(1)   41,419     40,693     38,308     159,642     151,382  
Total operating expenses   106,204     102,822     98,868     410,076     386,566  
Operating income 171,645 160,705 147,083 639,730 573,154
Interest expense (2,271 ) (6,813 ) (6,812 ) (22,710 ) (27,314 )
Amortization of debt discount(2) (1,885 ) (5,603 ) (5,370 ) (18,458 ) (21,029 )
Interest income and other income   452     581     1,020     2,706     4,070  
Income before income taxes 167,941 148,870 135,921 601,268 528,881
Provision for income taxes   38,206     31,263     33,980     141,307     121,956  
Net income $ 129,735   $ 117,607   $ 101,941   $ 459,961   $ 406,925  
 
Earnings per share:
Basic $ 0.53   $ 0.49   $ 0.43   $ 1.91   $ 1.72  
Diluted $ 0.53   $ 0.48   $ 0.43   $ 1.90   $ 1.71  
 
Shares used in determining earnings per share:
Basic   243,279     240,669     237,947     240,498     236,703  
Diluted   244,935     243,992     238,925     242,551     237,753  
 
Includes the following non-cash charges:
(1) Stock-based compensation
Cost of sales $ 2,043 $ 1,961 $ 1,960 $ 8,074 $ 7,912
Research and development 9,513 9,133 9,129 37,624 36,904
Selling, general and administrative 4,913 4,718 4,714 19,430 19,049

(2) Amortization of debt discount (non-cash interest expense)

1,885 5,603 5,370 18,458 21,029
 
LINEAR TECHNOLOGY CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
U.S. GAAP (unaudited)
       
June 29, 2014 June 30, 2013
ASSETS:
Current assets:
Cash, cash equivalents and marketable securities $ 1,012,787 $ 1,524,741

Accounts receivable, net of allowance for doubtful accounts of $1,653 ($1,891 at June 30, 2013)

173,340 145,274
Inventories 91,310 87,229
Deferred tax assets and other current assets   87,276     36,646  
Total current assets   1,364,713     1,793,890  
 
Property, plant & equipment, net 277,080 288,466
Other noncurrent assets   13,785     15,985  
Total assets $ 1,655,578   $ 2,098,341  
 
LIABILITIES & STOCKHOLDERS’ EQUITY:
Current liabilities:
Accounts payable $ 28,221 $ 10,258
Accrued income taxes, payroll & other accrued liabilities 141,275 109,426
Deferred income on shipments to distributors 45,619 44,088
Convertible senior notes 826,629
Deferred tax liabilities- current portion       35,479  
Total current liabilities   215,115     1,025,880  
 
Deferred tax and other noncurrent liabilities 109,094 90,553
 
Stockholders’ equity:
Common stock 1,948,006 1,736,729
Accumulated deficit (616,992 ) (754,555 )
Accumulated other comprehensive loss   355     (266 )
Total stockholders’ equity   1,331,369     981,908  
$ 1,655,578   $ 2,098,341  
 
LINEAR TECHNOLOGY CORPORATION
RECONCILIATION OF U.S. GAAP NET INCOME TO NON-GAAP NET INCOME
(In thousands, except per share amounts)
(unaudited)
                   
Three Months Ended Twelve Months Ended
June 29, March 30, June 30, June 29, June 30,
2014 2013 2013 2014 2013
Reported net income $ 129,735 $ 117,607 $ 101,941 $ 459,961 $ 406,925
(GAAP basis)
 
Stock-based compensation 16,469 15,812 15,803 65,128 63,865
Amortization of debt discount(1) 1,885 5,603 5,370 18,458 21,029
Income tax effect of non-GAAP adjustments (4,175 ) (4,497 ) (5,293 ) (19,644 ) (19,576 )
                   
Non-GAAP net income $ 143,914   $ 134,525   $ 117,821   $ 523,903   $ 472,243  
 
Non-GAAP earnings per share
Basic $ 0.59   $ 0.56   $ 0.50   $ 2.18   $ 2.00  
Diluted $ 0.59   $ 0.55   $ 0.49   $ 2.16   $ 1.99  
 

(1) Amortization of debt discount is non-cash interest expense related to the Company’s Convertible Senior Notes.

 

The Company’s non-GAAP measures set forth above exclude charges related to stock-based compensation and the amortization of the Company’s debt discount which is a non-cash interest expense. The Company’s management uses non-GAAP net income and non-GAAP earnings per share to evaluate the Company’s current operating results and financial results and to compare them against historical financial results. The Company excludes stock-based compensation, non-cash interest expenses and the related tax effects primarily because they are significant special expense estimates, which management separates for consideration when evaluating and managing business operations. In addition management believes it is useful to investors because it is frequently used by securities analysts, investors and other interested parties in evaluating the Company and provides further clarity on its profitability.

In addition, the Company believes that providing investors with these non-GAAP measurements enhances their ability to compare the Company’s business against that of its many competitors who employ and disclose similar non-GAAP measures. This financial measure may be different from non-GAAP methods of accounting and reporting used by the Company’s competitors to the extent their non-GAAP measures include other items. The presentation of this additional information should not be considered a substitute for net income or net income per diluted share prepared in accordance with GAAP.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
"Storpool does only block-level storage so we do one thing extremely well. The growth in data is what drives the move to software-defined technologies in general and software-defined storage," explained Boyan Ivanov, CEO and co-founder at StorPool, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Sometimes I write a blog just to formulate and organize a point of view, and I think it’s time that I pull together the bounty of excellent information about Machine Learning. This is a topic with which business leaders must become comfortable, especially tomorrow’s business leaders (tip for my next semester University of San Francisco business students!). Machine learning is a key capability that will help organizations drive optimization and monetization opportunities, and there have been some...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, provided a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to oper...
While some developers care passionately about how data centers and clouds are architected, for most, it is only the end result that matters. To the majority of companies, technology exists to solve a business problem, and only delivers value when it is solving that problem. 2017 brings the mainstream adoption of containers for production workloads. In his session at 21st Cloud Expo, Ben McCormack, VP of Operations at Evernote, discussed how data centers of the future will be managed, how the p...
ChatOps is an emerging topic that has led to the wide availability of integrations between group chat and various other tools/platforms. Currently, HipChat is an extremely powerful collaboration platform due to the various ChatOps integrations that are available. However, DevOps automation can involve orchestration and complex workflows. In his session at @DevOpsSummit at 20th Cloud Expo, Himanshu Chhetri, CTO at Addteq, will cover practical examples and use cases such as self-provisioning infra...
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory? In her Day 2 Keynote at @DevOpsSummit at 21st Cloud Expo, Aruna Ravichandran, VP, DevOps Solutions Marketing, CA Technologies, was jo...
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, provided some practical insights on what, how and why when implementing "software-defined" in the datacent...
Blockchain. A day doesn’t seem to go by without seeing articles and discussions about the technology. According to PwC executive Seamus Cushley, approximately $1.4B has been invested in blockchain just last year. In Gartner’s recent hype cycle for emerging technologies, blockchain is approaching the peak. It is considered by Gartner as one of the ‘Key platform-enabling technologies to track.’ While there is a lot of ‘hype vs reality’ discussions going on, there is no arguing that blockchain is b...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, discussed the b...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
Is advanced scheduling in Kubernetes achievable?Yes, however, how do you properly accommodate every real-life scenario that a Kubernetes user might encounter? How do you leverage advanced scheduling techniques to shape and describe each scenario in easy-to-use rules and configurations? In his session at @DevOpsSummit at 21st Cloud Expo, Oleg Chunikhin, CTO at Kublr, answered these questions and demonstrated techniques for implementing advanced scheduling. For example, using spot instances and co...
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
The use of containers by developers -- and now increasingly IT operators -- has grown from infatuation to deep and abiding love. But as with any long-term affair, the honeymoon soon leads to needing to live well together ... and maybe even getting some relationship help along the way. And so it goes with container orchestration and automation solutions, which are rapidly emerging as the means to maintain the bliss between rapid container adoption and broad container use among multiple cloud host...
Imagine if you will, a retail floor so densely packed with sensors that they can pick up the movements of insects scurrying across a store aisle. Or a component of a piece of factory equipment so well-instrumented that its digital twin provides resolution down to the micrometer.