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Contact: | Donald P. Zerio | | |
| Vice President, Finance, Chief Financial Officer | October 13, 2015 | |
| (408) 432-1900 | NATIONAL DISTRIBUTION | |
LINEAR TECHNOLOGY REPORTS DECREASES IN REVENUE AND NET INCOME FROM THE COMPARABLE SEQUENTIAL AND PRIOR YEAR PERIODS
Milpitas, California, October 13, 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 September 27, 2015. Quarterly revenues of $341.9 million for the first quarter of fiscal year 2016 decreased $29.1 million or 7.9% from $371.1 million reported in the first quarter of fiscal year 2015 and decreased $37.6 million or 9.9% from the previous quarter's revenue of $379.5 million. Net income of $112.0 million decreased $17.4 million or 13.4% from the first quarter of fiscal year 2015 and decreased $20.7 million or 15.6% from the previous quarter’s net income of $132.7 million. Diluted earnings per share of $0.46 per share in the first quarter of fiscal year 2016 decreased $0.07 per share or 13% from the first quarter of fiscal year 2015 and decreased $0.08 per share or 15% from the fourth quarter of fiscal year 2015. Net income and diluted earnings per share decreased on a sequential basis and from the comparable prior year period primarily due to the decrease in revenue.
Cash, cash equivalents and marketable securities increased by $42.3 million over the fourth quarter of fiscal year 2015 to $1.24 billion. A cash dividend of $0.30 per share will be paid on November 25, 2015 to stockholders of record on November 13, 2015. During the first quarter the Company generated positive cash flows from operations of $175.7 million or 51% of total revenues. During the first quarter of fiscal year 2016 the Company returned $129.9 million to shareholders in the form of dividends of $73.3 million, representing $0.30 per share, and stock purchases of $56.6 million totaling 1.4 million shares.
According to Lothar Maier, CEO, “As we reported at this time last quarter, we expected a difficult September quarter due to lower bookings as our customers reacted to sluggish global macroeconomic conditions. Revenue declined 9.9% from the previous quarter, which was near the midpoint of our guidance. Revenue declined in all major geographies. The revenue decline was led by the Industrial market, followed by Communications and Transportation though the Computer market grew slightly. Despite the revenue decline, we earned $0.46 per share which we believe to be a good result in a difficult quarter.
We stated last quarter that we expected the current negative cycle to be a short one as inventories are rebalanced to the current demand. However, the second fiscal quarter is historically a weaker quarter for us, particularly for the Industrial market, and we remain cautious due to the macroeconomic climate. Accordingly, for our fiscal second quarter we are forecasting revenue to be flat to up 3% sequentially.”
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, October 14, 2015 at 8:30 a.m. Pacific Coast Time. Those investors wishing to listen in may call 719-457-2631, or toll free 888-504-7953 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 14, 2015 through October 21, 2015. You may access the archive by calling (719) 457-0820 or toll free (888) 203-1112 and entering reservation #2256266. 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.
