MILPITAS, Calif. — (BUSINESS WIRE) — April 19, 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 April 3, 2016. Quarterly revenues of $361.1 million for the third quarter of fiscal year 2016 increased $14.0 million or 4.0% over the previous quarter's revenue of $347.1 million and decreased $10.9 million or 2.9% from $372.0 million reported in the third quarter of fiscal year 2015. Net income of $128.4 million increased $6.9 million or 5.6% over the previous quarter’s net income of $121.5 million and decreased $6.8 million or 5.0% from the third quarter of fiscal year 2015. Diluted earnings per share of $0.52 per share in the third quarter of fiscal year 2016 increased $0.02 per share or 4% over the second quarter of fiscal year 2016 and decreased $0.03 per share or 5% from the third quarter of fiscal year 2015.
Cash, cash equivalents and marketable securities increased by $55.3 million over the second quarter of fiscal year 2016 to $1.36 billion. A cash dividend of $0.32 per share will be paid on May 25, 2016 to stockholders of record on May 13, 2016. During the third quarter the Company generated positive cash flows from operations of $177.4 million or 49% of total revenues. During the third quarter of fiscal year 2016 the Company returned $110.8 million to shareholders in the form of dividends of $78.2 million, representing $0.32 per share, and stock purchases of $32.6 million totaling 0.8 million shares.
According to Lothar Maier, CEO, “We are pleased to report strong financial results for our fiscal third quarter. Revenue for the quarter came in at the upper range of our guidance, growing 4% to $361.1 million. Growth for the quarter was led by higher sales into the Industrial and Transportation markets though Communications showed improvement as well. Our industry leading gross margin improved to 76.2% and operating margin improved to 45.0%. Earnings per share were $0.52, up from $0.50 per share reported in the prior quarter.
Looking ahead, the headlines suggest that the macroeconomic climate continues to be weak overall and we continue to see some weakness in our business in certain geographies and markets. Nevertheless, we are seeing signs of improvement over our broad base of customers and the Transportation market in particular continues to fuel strong growth for us. In addition, we saw higher bookings in our two other major markets, Industrial and Communications. Assuming our bookings rate stays near the current level, we are forecasting revenue to be up 2% to 5% sequentially in our fiscal fourth quarter.”
Supplemental financial information for bookings by end market and revenue by geography is available under the Investor Relations section 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 and our expectations regarding the duration of the weak cycle 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 28, 2015.
Company officials will be discussing these results in greater detail in a conference call tomorrow, Wednesday, April 20, 2016 at 8:30 a.m. Pacific Coast Time. Those investors wishing to listen in may call (212) 231-2912, or toll free (800) 954-0648 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 20, 2016 through April 27, 2016. You may access the archive by calling (402) 977-9140 or toll free (800) 633-8284 and entering reservation #21807934. An archive of the webcast will also be available at www.linear.com and www.streetevents.com for one year following the date of this call.
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) |
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Three Months Ended | Nine Months Ended | ||||||||||||||
April 3,
2016 |
January 3,
2016 |
March 29,
2015 |
April 3,
2016 |
March 29,
2015 |
|||||||||||
Revenues | $ | 361,125 | $ | 347,128 | $ | 372,021 | $ | 1,050,170 | $ | 1,095,656 | |||||
Cost of sales (1) | 85,960 | 84,384 | 89,147 | 255,549 | 264,880 | ||||||||||
Gross profit | 275,165 | 262,744 | 282,874 | 794,621 | 830,776 | ||||||||||
Expenses: | |||||||||||||||
Research and development (1) | 69,645 | 69,884 | 67,100 | 206,131 | 197,801 | ||||||||||
Selling, general and administrative (1) | 43,042 | 43,403 | 42,221 | 126,638 | 126,847 | ||||||||||
Total operating expenses | 112,687 | 113,287 | 109,321 | 332,769 | 324,648 | ||||||||||
Operating income | 162,478 | 149,457 | 173,553 | 461,852 | 506,128 | ||||||||||
Interest income and other income | 1,593 | 1,521 | 881 | 4,101 | 1,715 | ||||||||||
Income before income taxes | 164,071 | 150,978 | 174,434 | 465,953 | 507,843 | ||||||||||
Provision for income taxes | 35,679 | 29,446 | 39,247 | 103,982 | 119,595 | ||||||||||
Net income | $ | 128,392 | $ | 121,532 | $ | 135,187 | $ | 361,971 | $ | 388,248 | |||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.53 | $ | 0.50 | $ | 0.55 | $ | 1.48 | $ | 1.59 | |||||
Diluted | $ | 0.52 | $ | 0.50 | $ | 0.55 | $ | 1.48 | $ | 1.58 | |||||
Shares used in determining earnings per share: | |||||||||||||||
Basic | 244,524 | 244,591 | 244,286 | 244,629 | 244,181 | ||||||||||
Diluted | 244,764 | 244,880 | 245,084 | 244,963 | 245,117 | ||||||||||
Includes the following non-cash charges: | |||||||||||||||
(1) Stock-based compensation | |||||||||||||||
Cost of sales | $ | 2,460 | $ | 2,557 | $ | 2,240 | $ | 7,359 | $ | 6,563 | |||||
Research and development | 11,477 | 11,731 | 10,447 | 34,130 | 30,588 | ||||||||||
Selling, general and administrative | 5,923 | 5,968 | 5,394 | 17,529 | 15,796 |
LINEAR TECHNOLOGY CORPORATION CONSOLIDATED CONDENSED BALANCE SHEETS (In thousands) U.S. GAAP (unaudited) |
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As of |
April 3,
2016 |
June 28,
2015 |
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Assets | ||||||
Cash, cash equivalents and marketable securities | $ | 1,363,047 | $ | 1,202,722 | ||
Accounts receivable, net of allowances ($1,651) and ($1,651 at June 28, 2015) | 152,891 | 179,264 | ||||
Inventories | 94,213 | 99,861 | ||||
Deferred tax assets and other current assets | 99,735 | 102,905 | ||||
Total current assets | 1,709,886 | 1,584,752 | ||||
Property, plant and equipment, net | 285,059 | 287,742 | ||||
Other noncurrent assets | 9,935 | 11,585 | ||||
Total assets | $ | 2,004,880 | $ | 1,884,079 | ||
Liabilities | ||||||
Accounts payable | $ | 22,216 | $ | 17,608 | ||
Accrued income taxes, payroll and other accrued liabilities | 103,883 | 118,450 | ||||
Deferred income on shipments to distributors | 48,410 | 46,860 | ||||
Total current liabilities | 174,509 | 182,918 | ||||
Deferred tax and other noncurrent liabilities | 147,048 | 123,234 | ||||
Stockholders’ equity | ||||||
Common stock and additional paid-in capital | 2,109,314 | 2,052,490 | ||||
Accumulated deficit | (426,697) | (475,124) | ||||
Accumulated other comprehensive income, net of tax | 706 | 561 | ||||
Total stockholders’ equity | 1,683,323 | 1,577,927 | ||||
$ | 2,004,880 | $ | 1,884,079 |
LINEAR TECHNOLOGY CORPORATION CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (In thousands) (unaudited) |
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Three Months Ended | Nine Months Ended | ||||||||||||||
April 3,
2016 |
January 3,
2016 |
March 29,
2015 |
April 3,
2016 |
March 29,
2015 |
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Cash flow from operating activities: | |||||||||||||||
Net income | $ | 128,392 | $ | 121,532 | $ | 135,187 | $ | 361,971 | $ | 388,248 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
Depreciation and amortization | 12,612 | 12,779 | 13,592 | 38,639 | 40,361 | ||||||||||
Stock-based compensation | 19,860 | 20,256 | 18,081 | 59,018 | 52,947 | ||||||||||
Excess tax benefit from stock-based compensation | (75) | (3,053) | (4,223) | (4,755) | (8,973) | ||||||||||
Change in operating assets and liabilities | 16,612 | 5,486 | (9,416) | 55,270 | (35,029) | ||||||||||
Cash provided by operating activities | 177,401 | 157,000 | 153,221 | 510,143 | 437,554 | ||||||||||
Cash flow from investing activities: | |||||||||||||||
Net (purchases) and proceeds from sales and maturities of available-for-sale securities | 17,837 | (104,339) | 8,990 | (106,306) | (73,068) | ||||||||||
Purchase of property, plant and equipment | (13,194) | (10,952) | (11,046) | (34,306) | (54,164) | ||||||||||
Cash provided by (used in) investing activities | 4,643 | (115,291) | (2,056) | (140,612) | (127,232) | ||||||||||
Cash flow from financing activities: | |||||||||||||||
Excess tax benefit from stock-based compensation | 75 | 3,053 | 4,223 | 4,755 | 8,973 | ||||||||||
Issuance of common stock under employee stock plans | — | 11,976 | 10,998 | 16,229 | 26,413 | ||||||||||
Purchase of common stock | (32,578) | (22,598) | (23,202) | (111,733) | (91,997) | ||||||||||
Payment of cash dividends | (78,181) | (73,498) | (73,406) | (224,991) | (204,967) | ||||||||||
Cash used in financing activities | (110,684) | (81,067) | (81,387) | (315,740) | (261,578) | ||||||||||
(Decrease) increase in cash and cash equivalents | 71,360 | (39,358) | 69,778 | 53,791 | 48,744 | ||||||||||
Cash and cash equivalents, beginning of period | 178,110 | 217,468 | 136,289 | 195,679 | 157,323 | ||||||||||
Cash and cash equivalents, end of period | $ | 249,470 | $ | 178,110 | $ | 206,067 | $ | 249,470 | $ | 206,067 |