EXHIBIT 99.1
Contact: Paul Coghlan 5:00 EDT
Vice President, Finance Tuesday, January 18, 2005
(408) 432-1900 US1
LINEAR TECHNOLOGY REPORTS INCREASED QUARTERLY SALES AND PROFITS OVER THE PRIOR
YEAR'S QUARTER AND INCREASES ITS QUARTERLY CASH DIVIDEND FROM $0.08 TO $0.10 PER
SHARE.
Milpitas, California, January 18, 2005, Linear Technology Corporation
(NASDAQ-LLTC), a leading, independent manufacturer of high performance linear
integrated circuits, today announced that net sales for its second quarter ended
January 2, 2005, were $250,121,000, an increase of 34% over net sales of
$186,021,000 for the second quarter of the previous year. The Company also
reported net income for the quarter of $102,818,000 or $0.33 diluted earnings
per share, an increase of 38% from $74,335,000 or $0.23 diluted earnings per
share reported for the second quarter of last year. During the quarter, the
Company's cash and short-term investments increased by $27.3 million, net of
spending $54.7 million to purchase 1,500,000 shares of common stock.
The Company increased its quarterly dividend from $0.08 to $0.10 per
share. The payment will be made on February 16, 2005 to stockholders of record
on January 28, 2005.
According to Lothar Maier, CEO, "As expected, sales and net income were
slightly down from the September quarter. However the Company continued to be
cash flow positive and strongly profitable as evidenced by the 41% return on
sales. Bookings improved slightly during the quarter, particularly late in the
quarter. Our ending on-hand inventory at distributors is lean; cancellations are
still minimal; and, lead times have remained unchanged at 4 to 6 weeks.
These continue to be challenging times to forecast. Softness in
bookings for semiconductor companies has resulted from both inventory
corrections throughout the various sales channels and also some moderations in
the rate of growth of end demand. Looking forward to the March quarter we do not
expect further inventory reductions in the sales chain, rather bookings in the
March quarter will be more reflective of true end-user consumption patterns. We
expect end demand to be relatively stable, with bookings increasing moderately
over the prior quarter. Consequently, we expect sequential revenues to be
similar to the quarter just ended."
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 growth of 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 conditions in the world economy and financial
markets and other factors described in our 10-K for the fiscal year ended June
27, 2004.
Company officials will be discussing these results in greater detail in
a conference call tomorrow, Wednesday, January 19, 2005 at 8:30 a.m. Pacific
Coast Time. Those investors wishing to listen in may call (719) 457-2633 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
January 19 through January 25, 2005. You may access this post view by calling
(719) 457-0820 and entering reservation # 347471. An archive of the webcast will
also be available at www.linear.com and www.streetevents.com as of January 19,
2005 until the second quarter earnings release next year.
Linear Technology Corporation was founded in 1981 as a manufacturer of
high performance linear integrated circuits. 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, 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 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 Six Months Ended
---------------------------- ------------------------------
January 2, December 28, January 2, December 28,
2005 2003 2005 2003
-------- -------- -------- --------
Net sales $250,121 $186,021 $503,149 $360,098
Cost of sales 53,890 43,777 108,729 85,186
-------- -------- -------- --------
Gross profit 196,231 142,244 394,420 274,912
-------- -------- -------- --------
Expenses:
Research & development 32,413 24,992 63,047 49,327
Selling, general and administrative 26,321 19,240 49,379 36,811
-------- -------- -------- --------
58,734 44,232 112,426 86,138
-------- -------- -------- --------
Operating income 137,497 98,012 281,994 188,774
Interest income, net 7,244 6,684 12,712 13,769
-------- -------- -------- --------
Income before income taxes 144,741 104,696 294,706 202,543
Provision for income taxes 41,923 30,361 88,412 58,737
-------- -------- -------- --------
Net income $102,818 $ 74,335 $206,294 $143,806
======== ======== ======== ========
Basic earnings per share $ 0.33 $ 0.24 $ 0.67 $ 0.46
======== ======== ======== ========
Shares used in the calculation of basic
earnings per share 307,856 313,369 307,879 313,389
======== ======== ======== ========
Diluted earnings per share $ 0.33 $ 0.23 $ 0.65 $ 0.44
======== ======== ======== ========
Shares used in the
calculation of diluted
earnings per share 315,797 323,440 315,967 323,167
======== ======== ======== ========
LINEAR TECHNOLOGY CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(Dollars in thousands)
January 2, June 27,
2005 2004
(unaudited) (audited)
----------- -----------
ASSETS
Current assets:
Cash, cash equivalents and
short-term investments $ 1,731,911 $ 1,656,540
Accounts receivable, net of
allowance for doubtful
accounts of $1,727 ($1,762
at June 27, 2004) 97,518 79,142
Inventories 31,912 32,704
Deferred tax assets and other
current assets 63,321 63,709
----------- -----------
Total current assets 1,924,662 1,832,095
----------- -----------
Property, plant & equipment, net 214,617 201,080
Other non current assets 56,359 54,528
----------- -----------
Total assets $ 2,195,638 $ 2,087,703
=========== ===========
January 2, June 27,
2005 2004
(unaudited) (audited)
----------- -----------
LIABILITIES & STOCKHOLDERS ' EQUITY
Current liabilities:
Accounts payable $ 10,576 $ 14,410
Accrued income taxes, payroll &
other accrued liabilities 138,133 146,342
Deferred income on shipments
to distributors 45,257 41,862
----------- -----------
Total current liabilities 193,966 202,614
----------- -----------
Deferred tax and other long-term
liabilities 73,620 74,484
Stockholders' equity:
Common stock 875,770 815,472
Retained earnings 1,052,860 997,593
Accumulated other comprehensive income (578) (2,460)
----------- -----------
Total stockholders' equity 1,928,052 1,810,605
----------- -----------
$ 2,195,638 $ 2,087,703
=========== ===========