Linear Technology Reports Record Quarterly Sales and Profits; Increases Its Cash Dividend to $0.04 Per Share; But, Raises Caution on Subsequent Quarter's Results

Apr 17, 2001, 01:00 ET from Linear Technology Corporation

    MILPITAS, Calif., April 17 /PRNewswire/ --
 Linear Technology Corporation (Nasdaq: LLTC), a leading, independent
 manufacturer of high performance linear integrated circuits, today announced
 that net sales for its third quarter ended April 1, 2001, were $282,021,000,
 an increase of 52% over net sales of $185,075,000 for the similar quarter of
 the previous year.  The Company also reported net income for the quarter of
 $125,703,000 or $0.38 diluted earnings per share, an increase of 66% over
 $75,867,000 or $0.23 diluted earnings per share reported for the same quarter
 of last year.
     The Company is increasing its quarterly dividend from $0.03 to $0.04 per
 share.  The payment will be on May 16, 2001 to stockholders of record on
 April 27, 2001.  During the quarter the Company generated approximately
 $84 million in additional cash and short-term investments, net of spending
 approximately $11 million to purchase 275,000 shares of its common stock.
     According to Robert H. Swanson, Chairman of the Board and CEO, "This was a
 difficult quarter as business turned dramatically downward.  Aided by a strong
 beginning backlog we were able to meet our sales and profit goals of 9% and
 10% sequential growth over the December quarter.  However, as the quarter
 progressed, cancellations increased and bookings decreased significantly
 across all business areas.  North American business activity was the weakest,
 particularly in the networking communications area.  Business now continues to
 be weak as customers have been reacting to larger inventories in several
 channels, shorter supplier lead times and diminished end-user demand.
 Consequently, we believe our business going forward will be negatively
 impacted and next quarter could be 20 - 30% lower in sales and profits than
 the quarter just ended.
     Looking out, our design-in activity at customers is very active, so we
 believe we will be well positioned when business conditions improve.
 Historically, the Company has maintained a very high rate of profitability
 even in declining quarters and we believe we can continue to do so in this
 depressed environment."
     Company officials will be discussing these results in greater detail in a
 conference call tomorrow, Wednesday, April 18, 2001 at 8:30 a.m. Pacific Coast
 Time.  Those investors wishing to listen in may call 913-981-5507 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.streetfusion.com.  A replay of the conference call will be available
 April 18 through April 25, 2001.  You may access this post view by calling
 719-457-0820 and entering reservation #555202.  An archive of the webcast will
 also be available at www.linear.com and www.streetfusion.com as of
 April 18, 2001 until the next earnings release on July 24, 2001.
     Except for historical information contained herein, the matters set forth
 in this news release are forward-looking statements that are dependent on
 certain risks and uncertainties including such factors, among others, as new
 orders received and shipped during the quarter, timely ramp-up of new
 facilities, and the timely introduction of new processes and products.
     Linear Technology Corporation was founded in 1981 as a manufacturer of
 high performance linear integrated circuits.  Linear Technology products
 include operational, instrumentation and audio amplifiers; voltage regulators,
 power management devices, DC-DC converters and voltage references;
 comparators; monolithic filters; communications interface circuits; one-chip
 data acquisition sub-systems; pulse-width modulators and sample-and-hold
 devices.  Applications for Linear Technology's high performance circuits
 include telecommunications, cellular telephones, networking products and
 satellite systems, notebook and desk top computers, computer peripherals,
 video/multimedia, industrial instrumentation, automotive electronics, factory
 automation, process control, and military and space systems.
     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)
                                  (unaudited)
 
                              Three Months Ended         Nine Months Ended
 
                            April 1,     April 2,      April 1,      April 2,
                             2001          2000         2001          2000
 
     Net sales             $282,021      $185,075     $772,612      $494,900
 
     Cost of sales           65,192        47,435      181,814       126,942
 
      Gross profit          216,829       137,640      590,798       367,958
 
     Expenses:
 
      Research &
       development           28,532        19,435       78,766        56,077
 
      Selling, general
       and administrative    25,460        19,394       70,382        53,078
 
                             53,992        38,829      149,148       109,155
 
      Operating income      162,837        98,811      441,650       258,803
 
      Interest income        16,738        11,141       47,834        30,003
 
     Income before
       income taxes         179,575       109,952      489,484       288,806
 
     Provision for
       income taxes          53,872        34,085      146,845        89,531
 
     Net income            $125,703       $75,867     $342,639      $199,275
 
     Basic earnings
      per share               $0.40         $0.24        $1.08         $0.64
 
     Shares used in the
      calculation of basic
      earnings per share    317,098       312,119      316,453       309,927
 
     Diluted earnings
      per share               $0.38         $0.23        $1.03         $0.61
 
     Shares used in the
      calculation of
      diluted earnings
      per share             331,801       329,536      332,689       326,774
 
                         LINEAR TECHNOLOGY CORPORATION
                    CONSOLIDATED CONDENSED BALANCE SHEETS
                            (Dollars in thousands)
 
                    April 1,     July 2,                  April 1,     July 2,
                      2001        2000                      2001        2000
                   (unaudited)  (audited)                (unaudited)  (audited)
 
     ASSETS                               LIABILITIES & STOCKHOLDERS ' EQUITY
 
     Current                               Current
      assets:                               liabilities:
      Cash, cash                              Accounts
       equivalents and                        payable        $14,278    $16,829
      short-term
       investments  $1,429,434   $1,175,558
                                             Accrued income
                                              taxes, payroll &
                                              other accrued
                                              liabilities    135,593    117,360
 
      Accounts receivable,                   Deferred income
       net of allowance                       on shipments
       for doubtful                           to distributors 51,836     34,488
       accounts of $803
      ($803 at         120,918       69,326    Total current
       July 2, 2000)                            liabilities  201,707    168,677
 
 
      Inventories       22,970       21,912  Deferred tax
                                              liabilities     16,382     16,382
 
     Deferred tax
      assets and other
      current assets    52,987       43,307
                                             Stockholders'
                                              equity:
     Total current
      assets         1,626,309    1,310,103
                                               Common stock  577,270    467,474
     Property, plant,                          Retained
     & equipment, net  276,925      197,153     earnings   1,107,875    854,723
                                                 Total
                                                  stockholders'
                                                  equity   1,685,145  1,322,197
 
                    $1,903,234   $1,507,256               $1,903,234 $1,507,256
 
 

SOURCE Linear Technology Corporation
    MILPITAS, Calif., April 17 /PRNewswire/ --
 Linear Technology Corporation (Nasdaq: LLTC), a leading, independent
 manufacturer of high performance linear integrated circuits, today announced
 that net sales for its third quarter ended April 1, 2001, were $282,021,000,
 an increase of 52% over net sales of $185,075,000 for the similar quarter of
 the previous year.  The Company also reported net income for the quarter of
 $125,703,000 or $0.38 diluted earnings per share, an increase of 66% over
 $75,867,000 or $0.23 diluted earnings per share reported for the same quarter
 of last year.
     The Company is increasing its quarterly dividend from $0.03 to $0.04 per
 share.  The payment will be on May 16, 2001 to stockholders of record on
 April 27, 2001.  During the quarter the Company generated approximately
 $84 million in additional cash and short-term investments, net of spending
 approximately $11 million to purchase 275,000 shares of its common stock.
     According to Robert H. Swanson, Chairman of the Board and CEO, "This was a
 difficult quarter as business turned dramatically downward.  Aided by a strong
 beginning backlog we were able to meet our sales and profit goals of 9% and
 10% sequential growth over the December quarter.  However, as the quarter
 progressed, cancellations increased and bookings decreased significantly
 across all business areas.  North American business activity was the weakest,
 particularly in the networking communications area.  Business now continues to
 be weak as customers have been reacting to larger inventories in several
 channels, shorter supplier lead times and diminished end-user demand.
 Consequently, we believe our business going forward will be negatively
 impacted and next quarter could be 20 - 30% lower in sales and profits than
 the quarter just ended.
     Looking out, our design-in activity at customers is very active, so we
 believe we will be well positioned when business conditions improve.
 Historically, the Company has maintained a very high rate of profitability
 even in declining quarters and we believe we can continue to do so in this
 depressed environment."
     Company officials will be discussing these results in greater detail in a
 conference call tomorrow, Wednesday, April 18, 2001 at 8:30 a.m. Pacific Coast
 Time.  Those investors wishing to listen in may call 913-981-5507 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.streetfusion.com.  A replay of the conference call will be available
 April 18 through April 25, 2001.  You may access this post view by calling
 719-457-0820 and entering reservation #555202.  An archive of the webcast will
 also be available at www.linear.com and www.streetfusion.com as of
 April 18, 2001 until the next earnings release on July 24, 2001.
     Except for historical information contained herein, the matters set forth
 in this news release are forward-looking statements that are dependent on
 certain risks and uncertainties including such factors, among others, as new
 orders received and shipped during the quarter, timely ramp-up of new
 facilities, and the timely introduction of new processes and products.
     Linear Technology Corporation was founded in 1981 as a manufacturer of
 high performance linear integrated circuits.  Linear Technology products
 include operational, instrumentation and audio amplifiers; voltage regulators,
 power management devices, DC-DC converters and voltage references;
 comparators; monolithic filters; communications interface circuits; one-chip
 data acquisition sub-systems; pulse-width modulators and sample-and-hold
 devices.  Applications for Linear Technology's high performance circuits
 include telecommunications, cellular telephones, networking products and
 satellite systems, notebook and desk top computers, computer peripherals,
 video/multimedia, industrial instrumentation, automotive electronics, factory
 automation, process control, and military and space systems.
     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)
                                  (unaudited)
 
                              Three Months Ended         Nine Months Ended
 
                            April 1,     April 2,      April 1,      April 2,
                             2001          2000         2001          2000
 
     Net sales             $282,021      $185,075     $772,612      $494,900
 
     Cost of sales           65,192        47,435      181,814       126,942
 
      Gross profit          216,829       137,640      590,798       367,958
 
     Expenses:
 
      Research &
       development           28,532        19,435       78,766        56,077
 
      Selling, general
       and administrative    25,460        19,394       70,382        53,078
 
                             53,992        38,829      149,148       109,155
 
      Operating income      162,837        98,811      441,650       258,803
 
      Interest income        16,738        11,141       47,834        30,003
 
     Income before
       income taxes         179,575       109,952      489,484       288,806
 
     Provision for
       income taxes          53,872        34,085      146,845        89,531
 
     Net income            $125,703       $75,867     $342,639      $199,275
 
     Basic earnings
      per share               $0.40         $0.24        $1.08         $0.64
 
     Shares used in the
      calculation of basic
      earnings per share    317,098       312,119      316,453       309,927
 
     Diluted earnings
      per share               $0.38         $0.23        $1.03         $0.61
 
     Shares used in the
      calculation of
      diluted earnings
      per share             331,801       329,536      332,689       326,774
 
                         LINEAR TECHNOLOGY CORPORATION
                    CONSOLIDATED CONDENSED BALANCE SHEETS
                            (Dollars in thousands)
 
                    April 1,     July 2,                  April 1,     July 2,
                      2001        2000                      2001        2000
                   (unaudited)  (audited)                (unaudited)  (audited)
 
     ASSETS                               LIABILITIES & STOCKHOLDERS ' EQUITY
 
     Current                               Current
      assets:                               liabilities:
      Cash, cash                              Accounts
       equivalents and                        payable        $14,278    $16,829
      short-term
       investments  $1,429,434   $1,175,558
                                             Accrued income
                                              taxes, payroll &
                                              other accrued
                                              liabilities    135,593    117,360
 
      Accounts receivable,                   Deferred income
       net of allowance                       on shipments
       for doubtful                           to distributors 51,836     34,488
       accounts of $803
      ($803 at         120,918       69,326    Total current
       July 2, 2000)                            liabilities  201,707    168,677
 
 
      Inventories       22,970       21,912  Deferred tax
                                              liabilities     16,382     16,382
 
     Deferred tax
      assets and other
      current assets    52,987       43,307
                                             Stockholders'
                                              equity:
     Total current
      assets         1,626,309    1,310,103
                                               Common stock  577,270    467,474
     Property, plant,                          Retained
     & equipment, net  276,925      197,153     earnings   1,107,875    854,723
                                                 Total
                                                  stockholders'
                                                  equity   1,685,145  1,322,197
 
                    $1,903,234   $1,507,256               $1,903,234 $1,507,256
 
 SOURCE  Linear Technology Corporation