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.
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LINEAR TECHNOLOGY CORPORATION |
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| 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 | ||||||||||
Contact:
Linear Technology Corporation
Paul Coghlan, 408-432-1900
Vice
President, Finance, Chief Financial Officer