Company officials will be discussing these results in greater detail in a conference call tomorrow, Wednesday, July 23, 2008 at 8:30 a.m. Pacific Coast Time. Those investors wishing to listen in may call (719) 325-4765 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, 2008 through July 29, 2008.
You may access the archive by calling (719) 457-0820 and entering reservation #3775341. An archive of the webcast will also be available at www.linear.com and www.streetevents.com as of July 23, 2008 until the fourth quarter earnings release next year.
Linear Technology Corporation, a manufacturer of high performance linear integrated circuits, was founded in 1981, became a public company in 1986 and joined the S&P 500 index of major public companies in 2000. Linear Technology products include high performance amplifiers, comparators, voltage references, monolithic filters, linear regulators, DC-DC converters, battery chargers, data converters, communications interface circuits, RF signal conditioning circuits, uModuleTM products, and many other analog functions. Applications for Linear Technology’s high performance circuits include telecommunications, cellular telephones, networking products such as optical switches, notebook and desktop computers, computer peripherals, video/multimedia, industrial instrumentation, security monitoring devices, high-end consumer products such as digital cameras and MP3 players, complex medical devices, automotive electronics, factory automation, process control, and military and space systems. 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.
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LINEAR TECHNOLOGY CORPORATION CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) GAAP (unaudited) |
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| Three Months Ended | Twelve Months Ended | ||||||||||||||||||
| June 29, | Mar. 30, | July 1, | June 29, | July 1, | |||||||||||||||
| 2008 | 2008 | 2007 |
|
2008 | 2007 |
|
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| Revenues | $ | 307,080 | $ | 297,865 | $ | 268,116 | $ | 1,175,153 | $ | 1,083,078 | |||||||||
| Cost of sales (1) | 69,793 | 66,939 | 61,338 | 267,005 | 241,513 | ||||||||||||||
| Gross profit | 237,287 | 230,926 | 206,778 | 908,148 | 841,565 | ||||||||||||||
| Expenses: | |||||||||||||||||||
| Research & development (1) | 51,897 | 49,613 | 46,713 | 197,089 | 183,557 | ||||||||||||||
| Selling, general & administrative (1) | 40,634 | 35,423 | 32,861 |
|
142,395 | 133,690 | |||||||||||||
| 92,531 | 85,036 | 79,574 | 339,484 | 317,247 | |||||||||||||||
| Operating income | 144,756 | 145,890 | 127,204 | 568,664 | 524,318 | ||||||||||||||
| Interest expense | (14,421 | ) | (14,435 | ) | (10,795 | ) | (57,792 | ) | (12,093 | ) | |||||||||
| Interest income | 9,056 | 7,334 | 7,908 | 30,082 | 57,699 | ||||||||||||||
| Income before income taxes | 139,391 | 138,789 | 124,317 | 540,954 | 569,924 | ||||||||||||||
| Provision for income taxes | 36,242 | 39,555 | 28,593 | 153,341 | 158,249 | ||||||||||||||
| Net income | $ | 103,149 | $ | 99,234 | $ | 95,724 | $ | 387,613 | $ | 411,675 | |||||||||
| Earnings per share: | |||||||||||||||||||
| Basic | $ | 0.47 | $ | 0.45 | $ | 0.37 | $ | 1.74 | $ | 1.42 | |||||||||
| Diluted | $ | 0.46 | $ | 0.44 | $ | 0.36 | $ | 1.71 | $ | 1.39 | |||||||||
| Shares used in the calculation of earnings per share: | |||||||||||||||||||
| Basic | 221,426 | 222,046 | 260,664 | 222,232 | 290,502 | ||||||||||||||
| Diluted | 225,014 | 224,489 | 266,474 | 226,257 | 296,616 | ||||||||||||||
| (1) Includes stock-based compensation charges as follows: | |||||||||||||||||||
| Cost of sales | $ | 1,997 | $ | 1,996 | $ | 2,946 | $ | 7,862 | $ | 11,481 | |||||||||
| Research & development | 8,454 | 8,360 | 9,595 | 32,743 | 37,341 | ||||||||||||||
| Sales, general & administrative | 4,758 | 4,675 | 5,885 | 18,261 | 22,786 | ||||||||||||||
| LINEAR TECHNOLOGY CORPORATION | ||||||||
| CONSOLIDATED CONDENSED BALANCE SHEETS | ||||||||
| (in thousands) | ||||||||
| June 29, | July 1, | |||||||
| 2008 | 2007 | |||||||
| (unaudited) | (audited) | |||||||
| ASSETS: | ||||||||
| Current assets: | ||||||||
| Cash, cash equivalents and | ||||||||
| short-term investments | $ | 966,701 | $ | 633,307 | ||||
| Accounts receivable, net of | ||||||||
| allowance for doubtful | ||||||||
| accounts of $1,752 ($1,775 | ||||||||
| at July 1, 2007) | 161,452 | 130,546 | ||||||
| Inventories | 56,017 | 51,075 | ||||||
| Deferred tax assets and | ||||||||
| other current assets | 61,370 | 46,176 | ||||||
| Total current assets | 1,245,540 | 861,104 | ||||||
| Property, plant & equipment, net | 261,085 | 266,600 | ||||||
| Other noncurrent assets | 77,264 | 91,153 | ||||||
| Total assets | $ | 1,583,889 | $ | 1,218,857 | ||||
| LIABILITIES & STOCKHOLDERS ’ | ||||||||
| EQUITY: | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 16,860 | $ | 11,161 | ||||
|
Accrued income taxes, payroll &
other accrued liabilities |
120,521 |
128,762 |
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| Deferred income on shipments | ||||||||
| to distributors | 37,777 | 39,946 | ||||||
| Total current liabilities | 175,158 | 179,869 | ||||||
| Convertible senior notes | 1,700,000 | 1,700,000 | ||||||
| Deferred tax and other long-term | ||||||||
| liabilities | 142,649 | 46,953 | ||||||
| Stockholders ’ equity: | ||||||||
| Common stock | 1,050,259 | 902,135 | ||||||
| Accumulated deficit | (1,485,629 | ) | (1,609,453 | ) | ||||
| Accumulated other | ||||||||
| comprehensive income | 1,452 | (647 | ) | |||||
| Total stockholders ’ deficit | (433,918 | ) | (707,965 | ) | ||||
| $ | 1,583,889 | $ | 1,218,857 | |||||
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LINEAR TECHNOLOGY CORPORATION RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME (In thousands, except per share amounts) |
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| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||
| June 29, | Mar. 30, | July 1, | June 29, | July 1, | ||||||||||||||||||
| 2008 | 2008 | 2007 | 2008 | 2007 | ||||||||||||||||||
| Reported net income | ||||||||||||||||||||||
| (GAAP basis) | $ | 103,149 | $ | 99,234 | $ 95,724 | $ | 387,613 | $ | 411,675 | |||||||||||||
| Stock-based compensation (1) | 15,209 | 15,031 | 18,426 | 58,866 | 71,608 | |||||||||||||||||
| Income tax effect of non-GAAP adjustments | ||||||||||||||||||||||
| (3,954 | ) | (4,284 | ) | (4,238 | ) | (16,686 | ) | (19,883 | ) | |||||||||||||
| Non-GAAP net income | $ | 114,404 | $ | 109,981 | $ 109,912 | $ | 429,793 | $ | 463,400 | |||||||||||||
| Non-GAAP earnings per share excluding the effects of stock-based compensation: | ||||||||||||||||||||||
| Basic | $ | 0.52 | $ | 0.50 | $ | 0.42 | $ | 1.93 | $ | 1.60 | ||||||||||||
| Diluted | $ | 0.51 | $ | 0.49 | $ | 0.42 | $ | 1.91 | $ | 1.57 | ||||||||||||
| Shares used in the calculation of Non-GAAP earnings per share: | ||||||||||||||||||||||
| Basic | 221,426 | 222,046 | 260,664 | 222,232 | 290,502 | |||||||||||||||||
| Diluted | 223,651(2 | ) | 223,119(2 | ) |
|
264,842(2 | ) | 224,681(3 | ) | 294,792(3 | ) |
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