Linear Technology Reports Sequential and Year Over Year

Linear Technology Reports Sequential and Year Over Year Quarterly Increases in Revenues and Net Income.

MILPITAS, Calif. — (BUSINESS WIRE) — April 14, 2015 — Linear Technology Corporation (NASDAQ: LLTC), a leading, independent manufacturer of high performance linear integrated circuits, today reported financial results for the fiscal quarter ended March 29, 2015. Quarterly revenues of $372.0 million for the third quarter of fiscal year 2015 increased $24.0 million or 6.9% over the $348.0 million reported in the third quarter of fiscal year 2014 and increased $19.4 million or 5.5% over the previous quarter's revenue of $352.6 million. Net income of $135.2 million increased $17.6 million or 15.0% over the third quarter of fiscal year 2014 and increased $11.6 million or 9.4% over the second quarter of fiscal year 2015. The Company had no interest expense compared with $12.4 million of interest expense in the third quarter of the prior fiscal year as a result of the extinguishment of the Convertible Senior Notes at the end of fiscal 2014. Diluted earnings per share of $0.55 per share in the third quarter of fiscal year 2015 increased $0.07 per share or 15% over the third quarter of fiscal year 2014 and increased $.04 per share or 8% over the second quarter of fiscal year 2015.

Cash, cash equivalents and marketable securities increased by $62.4 million over the second quarter of fiscal year 2015 to $1,135 million. A cash dividend of $0.30 per share will be paid on May 27, 2015 to stockholders of record on May 15, 2015. During the third quarter the Company generated positive cash flows from operations of $153.2 million or 41% of total revenues. The Company has historically generated strong cash flows from its operations. During the third quarter of fiscal year 2015 the Company returned $96.6 million to shareholders in the form of dividends of $73.4 million, representing $0.30 per share and stock purchases of $23.2 million.

According to Lothar Maier, CEO, “The March quarter is historically a growth quarter for us and this year we continued that trend with another successful quarter. Revenue grew 5.5% sequentially and operating income grew 9.7%. Our operating margin as a percent of sales was 46.7% up from 44.9% reported last quarter. Compared with the similar quarter in the prior year, sales grew 7% and operating income grew 8%. The book to bill ratio was positive for the quarter and bookings increased sequentially in all of our major end markets with our largest end markets, industrial and automotive, showing the most gains. Looking forward we expect growth to continue in the June quarter although moderately tempered by worldwide macroeconomic conditions. Accordingly, we are currently estimating sequential revenue growth of 2% to 5% for our fiscal fourth 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 and country specific conditions in the world economy and financial markets and other factors described in our 10-K for the year ended June 29, 2014.

Company officials will be discussing these results in greater detail in a conference call tomorrow, Wednesday, April 15, 2015 at 8:30 a.m. Pacific Coast Time. Those investors wishing to listen in may call 719-457-2634, or toll free 800-967-7185 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 April 15, 2015 through April 22, 2015. You may access the archive by calling (719) 457-0820 or toll free (888) 203-1112 and entering reservation #7771582. An archive of the webcast will also be available at www.linear.com and www.streetevents.com as of April 22, 2015 until the third 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								Nine Months Ended
		March 29,		December 28,		March 30,			March 29,		March 30,
		2015		2014		2014			2015		2014

Revenues	$	372,021	$	352,575	$	348,006		$	1,095,656	$	1,022,958
Cost of sales ⁽¹⁾		89,147		86,726		84,479			264,880		251,001
Gross profit		282,874		265,849		263,527			830,776		771,957
Expenses:
Research and development ⁽¹⁾		67,100		65,101		62,129			197,801		185,649
Selling, general and administrative ⁽¹⁾		42,221		42,537		40,693			126,847		118,223
Total operating expenses		109,321		107,638		102,822			324,648		303,872
Operating income		173,553		158,211		160,705			506,128		468,085
Interest expense		—		—		(6,813	)		—		(20,439	)
Amortization of debt discount ⁽²⁾		—		—		(5,603	)		—		(16,573	)
Interest income and other income		881		253		581			1,715		2,254
Income before income taxes		174,434		158,464		148,870			507,843		433,327
Provision for income taxes		39,247		34,862		31,263			119,595		103,101
Net income	$	135,187	$	123,602	$	117,607		$	388,248	$	330,226

Earnings per share:
Basic	$	0.55	$	0.51	$	0.49		$	1.59	$	1.38
Diluted	$	0.55	$	0.51	$	0.48		$	1.58	$	1.37

Shares used in determining earnings per share:
Basic		244,286		244,033		240,669			244,181		239,592
Diluted		245,084		244,591		243,992			245,117		241,724

Includes the following non-cash charges:
⁽¹⁾ Stock-based compensation
Cost of sales	$	2,240	$	2,223	$	1,961		$	6,563	$	6,031
Research and development		10,447		10,350		9,133			30,588		28,111
Selling, general and administrative		5,394		5,346		4,718			15,796		14,517
⁽²⁾ Amortization of debt discount (non-cash interest expense)		—		—		5,603			—		16,573


LINEAR TECHNOLOGY CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
U.S. GAAP (unaudited)

	March 29, 2015			June 29, 2014
ASSETS:
Current assets:
Cash, cash equivalents and marketable securities	$	1,135,284		$	1,012,787
Accounts receivable, net of allowance for doubtful accounts of $1,651 ($1,653 at June 29, 2014)		159,964			173,340
Inventories		102,640			91,310
Deferred tax assets and other current assets		94,130			87,276
Total current assets		1,492,018			1,364,713

Property, plant & equipment, net		292,533			277,080
Other noncurrent assets		12,135			13,785
Total assets	$	1,796,686		$	1,655,578

LIABILITIES & STOCKHOLDERS’ EQUITY:
Current liabilities:
Accounts payable	$	19,408		$	28,221
Accrued income taxes, payroll & other accrued liabilities		98,480			141,275
Deferred income on shipments to distributors		47,560			45,619
Total current liabilities		165,448			215,115

Deferred tax and other noncurrent liabilities		119,808			109,094

Stockholders’ equity:
Common stock		2,018,654			1,948,006
Accumulated deficit		(508,023	)		(616,992	)
Accumulated other comprehensive loss		799			355
Total stockholders’ equity		1,511,430			1,331,369
	$	1,796,686		$	1,655,578


LINEAR TECHNOLOGY CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)

	Three Months Ended									Nine Months Ended
	March 29,			December 28,			March 30,			March 29,			March 30,
	2015			2014			2014			2015			2014
Cash flow from operating activities:
Net income	$	135,187		$	123,602		$	117,607		$	388,248		$	330,226
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		13,592			13,555			12,777			40,361			38,404
Stock-based compensation		18,081			17,919			15,812			52,947			48,659
Amortization of convertible senior notes discount		—			—			5,603			—			16,573
Excess tax benefit from stock-based compensation		(4,223	)		(2,548	)		(5,108	)		(8,973	)		(6,937	)
Change in operating assets and liabilities:		(9,416	)		(4,571	)		(44,948	)		(35,029	)		(34,240	)

Cash provided by operating activities		153,221			147,957			101,743			437,554			392,685

Cash flow from investing activities:
Net (purchases) and proceeds from sale and maturities of available-for-sale securities		8,990			(55,632	)		347,928			(73,068	)		440,946
Purchase of property, plant and equipment		(11,046	)		(16,201	)		(8,739	)		(54,164	)		(16,636	)

Cash (used in) provided by investing activities		(2,056	)		(71,833	)		339,189			(127,232	)		424,310

Cash flow from financing activities:
Excess tax benefit from stock-based compensation		4,223			2,548			5,108			8,973			6,937
Issuance of common stock under employee stock plans		10,998			12,092			31,065			26,413			90,581
Purchase of common stock		(23,202	)		(34,709	)		(18,731	)		(91,997	)		(45,584	)
Payment of cash dividends		(73,406	)		(65,822	)		(65,128	)		(204,967	)		(189,210	)

Cash used in financing activities		(81,387	)		(85,891	)		(47,686	)		(261,578	)		(137,276	)

(Decrease) increase in cash and cash equivalents		69,778			(9,767	)		393,246			48,744			679,719
Cash and cash equivalents, beginning of period		136,289			146,056			413,123			157,323			126,650
Cash and cash equivalents, end of period	$	206,067		$	136,289		$	806,369		$	206,067		$	806,369

1 | 2 Next Page »