Attached files
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| 8-K - 8-K - LINEAR TECHNOLOGY CORP /CA/ | lltc-8kq1fy14.htm |
Contact: | Paul Coghlan | 5:00 EDT | |
Vice President, Finance, Chief Financial Officer | October 15, 2013 | ||
(408) 432-1900 | NATIONAL DISTRIBUTION | ||
LINEAR TECHNOLOGY REPORTS SEQUENTIAL AND YEAR OVER YEAR QUARTERLY INCREASES IN REVENUES AND NET INCOME.
Milpitas, California, October 15, 2013, Linear Technology Corporation (NASDAQ:LLTC), a leading, independent manufacturer of high performance linear integrated circuits, today reported financial results for the fiscal quarter ended September 29, 2013. Quarterly revenues of $340.4 million for the first quarter of fiscal year 2014 increased $13.1 million or 4% over the previous quarter's revenue of $327.3 million and increased $5.2 million or 2% over $335.1 million reported in the first quarter of fiscal year 2013. Net income of $107.9 million increased $5.9 million or 6% over the fourth quarter of fiscal year 2013 and increased $2.7 million or 3% over the first quarter of fiscal year 2013. Diluted earnings per share of $0.45 per share in the first quarter of fiscal year 2014 increased $0.02 per share or 5% over the fourth quarter of fiscal year 2013 and was flat compared to the first quarter of fiscal year 2013.
During the first quarter the Company's cash, cash equivalents and marketable securities increased by $64.7 million over the fourth quarter of fiscal year 2013 to $1,589 million net of spending $7.9 million to purchase approximately 200,000 shares of its common stock in the open market. A cash dividend of $0.26 per share will be paid on November 27, 2013 to stockholders of record on November 15, 2013.
According to Lothar Maier, CEO, “For our first fiscal quarter, we grew revenue sequentially over the prior quarter by 4% which was at the high end of our guidance and represented a good September quarter for us. Once again, growth in our major end-markets was lead by Automotive and Industrial. The Automotive end-market represented 19% of bookings in the first quarter which was a historical high for the Company. We added a full point to operating margin, which is an industry leading 45.9%. Looking ahead, our second fiscal quarter has been challenging over the past three years partially due to the December quarter being a historically slow quarter for the automotive and industrial end-markets. Our book to bill ratio for the first quarter was slightly positive, however, bookings normally weaken the last month of the December quarter due to the holiday period. In addition, business in the United States may be impacted by the current budgeting stalemate at the Federal Government level. Accordingly, we are forecasting revenue for our second quarter to be flat to down 4% from the first quarter of fiscal 2014.”
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 30, 2013.
Company officials will be discussing these results in greater detail in a conference call tomorrow, Wednesday, October 16, 2013 at 8:30 a.m. Pacific Coast Time. Those investors wishing to listen in may call 785-830-7979, or toll free 800-344-6698 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 October 16, 2013 through October 23, 2013. You may access the archive by calling (719) 457-0820 or toll free (888) 203-1112 and entering reservation #1371501. An archive of the webcast will also be available at www.linear.com and www.streetevents.com as of October 23, 2013 until the first 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 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 | ||||||||||||
September 29, 2013 | June 30, 2013 | September 30, 2012 | ||||||||||
Revenues | $ | 340,357 | $ | 327,265 | $ | 335,148 | ||||||
Cost of sales (1) | 84,001 | 81,314 | 83,758 | |||||||||
Gross profit | 256,356 | 245,951 | 251,390 | |||||||||
Expenses: | ||||||||||||
Research & development (1) | 61,512 | 60,560 | 58,803 | |||||||||
Selling, general & administrative (1) | 38,678 | 38,308 | 37,504 | |||||||||
100,190 | 98,868 | 96,307 | ||||||||||
Operating income | 156,166 | 147,083 | 155,083 | |||||||||
Interest expense | (6,807 | ) | (6,812 | ) | (6,855 | ) | ||||||
Amortization of debt discount(2) | (5,446 | ) | (5,370 | ) | (5,146 | ) | ||||||
Interest and other income | 876 | 1,020 | 1,003 | |||||||||
Income before income taxes | 144,789 | 135,921 | 144,085 | |||||||||
Provision for income taxes | 36,921 | 33,980 | 38,903 | |||||||||
Net income | $ | 107,868 | $ | 101,941 | $ | 105,182 | ||||||
Earnings per share: | ||||||||||||
Basic | $ | 0.45 | $ | 0.43 | $ | 0.45 | ||||||
Diluted | $ | 0.45 | $ | 0.43 | $ | 0.45 | ||||||
Shares used in determining earnings per share: | ||||||||||||
Basic | 238,146 | 237,947 | 234,990 | |||||||||
Diluted | 239,328 | 238,925 | 236,010 | |||||||||
Includes the following non-cash charges: | ||||||||||||
(1) Stock-based compensation | ||||||||||||
Cost of sales | $ | 1,964 | $ | 1,960 | $ | 1,970 | ||||||
Research & development | 9,162 | 9,129 | 9,196 | |||||||||
Selling, general & administrative | 4,730 | 4,714 | 4,745 | |||||||||
(2) Amortization of debt discount (non- | ||||||||||||
cash interest expense) | 5,446 | 5,370 | 5,146 | |||||||||
LINEAR TECHNOLOGY CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
U.S. GAAP (unaudited)
September 29, 2013 | June 30, 2013 | ||||||
ASSETS: | |||||||
Current assets: | |||||||
Cash, cash equivalents and marketable securities | $ | 1,589,447 | 1,524,741 | ||||
Accounts receivable, net of allowance for doubtful | |||||||
accounts of $1,881 ($1,891 at June 30, 2013) | 182,186 | 145,274 | |||||
Inventories | 86,996 | 87,229 | |||||
Deferred tax assets and other current assets | 35,770 | 36,646 | |||||
Total current assets | 1,894,399 | 1,793,890 | |||||
Property, plant & equipment, net | 280,069 | 288,466 | |||||
Other noncurrent assets | 15,435 | 15,985 | |||||
Total assets | $ | 2,189,903 | $ | 2,098,341 | |||
LIABILITIES & STOCKHOLDERS’ EQUITY: | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 13,238 | $ | 10,258 | |||
Accrued income taxes, payroll & other accrued liabilities | 119,952 | 109,426 | |||||
Deferred income on shipments to distributors | 42,245 | 44,088 | |||||
Convertible senior notes | 832,075 | 826,629 | |||||
Deferred tax liabilities- current portion | 37,028 | 35,479 | |||||
Total current liabilities | 1,044,538 | 1,025,880 | |||||
Deferred tax and other noncurrent liabilities | 92,960 | 90,553 | |||||
Stockholders’ equity: | |||||||
Common stock | 1,773,024 | 1,736,729 | |||||
Accumulated deficit | (720,672 | ) | (754,555 | ) | |||
Accumulated other comprehensive income | 53 | (266 | ) | ||||
Total stockholders’ equity | 1,052,405 | 981,908 | |||||
$ | 2,189,903 | $ | 2,098,341 | ||||
LINEAR TECHNOLOGY CORPORATION
RECONCILIATION OF U.S. GAAP NET INCOME TO NON-GAAP NET INCOME
(In thousands, except per share amounts)
(unaudited)
Three Months Ended | ||||||||||||
September 29, 2013 | June 30, 2013 | September 30, 2012 | ||||||||||
Reported net income | ||||||||||||
(GAAP basis) | $ | 107,868 | $ | 101,941 | $ | 105,182 | ||||||
Stock-based compensation | 15,856 | 15,803 | 15,911 | |||||||||
Amortization of debt | ||||||||||||
discount(1) | 5,446 | 5,370 | 5,146 | |||||||||
Income tax effect of non-GAAP adjustments | (5,432 | ) | (5,293 | ) | (5,685 | ) | ||||||
Non-GAAP net income | $ | 123,738 | $ | 117,821 | $ | 120,554 | ||||||
Non-GAAP earnings per share | ||||||||||||
Basic | $ | 0.52 | $ | 0.50 | $ | 0.51 | ||||||
Diluted | $ | 0.52 | $ | 0.49 | $ | 0.51 | ||||||
1) Amortization of debt discount is non-cash interest expense related to the Company’s Convertible Senior Notes.
The Company’s non-GAAP measures set forth above exclude charges related to stock-based compensation and the amortization of the Company’s debt discount which is a non-cash interest expense. The Company’s management uses non-GAAP net income and non-GAAP earnings per share to evaluate the Company’s current operating results and financial results and to compare them against historical financial results. The Company excludes stock-based compensation, non-cash interest expenses and the related tax effects primarily because they are significant special expense estimates, which management separates for consideration when evaluating and managing business operations. In addition management believes it is useful to investors because it is frequently used by securities analysts, investors and other interested parties in evaluating the Company and provides further clarity on its profitability.
In addition, the Company believes that providing investors with these non-GAAP measurements enhances their ability to compare the Company’s business against that of its many competitors who employ and disclose similar non-GAAP measures. This financial measure may be different from non-GAAP methods of accounting and reporting used by the Company’s competitors to the extent their non-GAAP measures include other items. The presentation of this additional information should not be considered a substitute for net income or net income per diluted share prepared in accordance with GAAP.