Contact: Paul Coghlan 5:00 EDT
Vice President, Finance Tuesday, July 26, 2005
(408) 432-1900 US1
LINEAR TECHNOLOGY REPORTS A STRONG YEAR WITH ANNUAL AND QUARTERLY YEAR OVER YEAR
INCREASES IN REVENUES AND PROFITS.
Milpitas, California, July 26, 2005, Linear Technology Corporation
(NASDAQ-LLTC), a leading, independent manufacturer of high performance linear
integrated circuits, today announced that net revenue for its fiscal year ended
July 3, 2005, was $1,049,694,000, an increase of 30% over net revenue of
$807,281,000 for the previous year. This revenue included $40,000,000 in royalty
revenue received and previously reported in the third quarter. The Company also
reported net income for the year of $433,974,000 or $1.38 diluted earnings per
share, an increase of 32% from $328,171,000 or $1.02 diluted earnings per share
reported for fiscal 2004. Net sales for the fourth quarter ended July 3, 2005
were $255,811,000, a 7% increase from net sales of $238,050,000 for the fourth
quarter of the previous year. Net income for the quarter was $106,047,000 or
$0.34 diluted earnings per share, compared with $98,816,000 or $0.31 diluted
earnings per share, also an increase of 7% from the fourth quarter of the
previous year. Return on Sales was 41% for both the quarter and the year. A cash
dividend of $0.10 per share will be paid on August 24, 2005 to stockholders of
record on August 5, 2005. The Company generated additional cash and short-term
investments of $134.4 million for the year, net of spending $257.2 million to
purchase 7,032,770 shares of its common stock. During the quarter, the Company's
cash and short-term investments increased by $53.8 million, net of spending
$90.2 million to purchase 2,500,000 shares of its common stock.
The Board of Directors authorized the Company to purchase an additional 10
million shares of its outstanding common stock in the open market over the next
two years.
According to Lothar Maier, CEO, "Fiscal 2005 was a good year for us in what
was generally described as a slow growth environment, and our rate of sales
growth was greater than all of our major competitors allowing us to achieve over
$1 billion in revenues for the first time in the Company's history. For the June
quarter our product sales grew 2% sequentially from the prior quarter, however,
the March quarter also had $40,000,000 of royalty revenue, whereas there was no
royalty revenue in the June quarter.
The September quarter that we are entering is difficult to confidently
forecast. It is typically a slow quarter for industrial and communication
business, yet typically shows growing strength in consumer oriented businesses,
as the build period for year end holiday sales approaches. Further, while we
expect our bookings to increase over the prior quarter, we enter the quarter
requiring a modestly higher percentage of "turns" business, which is orders that
must be both booked and shipped in the period. Consequently, we currently expect
sales to be similar to the quarter just completed.
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, July 27, 2005 at 8:30 a.m. Pacific Coast
Time. Those investors wishing to listen in may call (913) 981-5592 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
July 27 through August 2, 2005. You may access this post view by calling (719)
457-0820 and entering reservation #3240650. An archive of the webcast will also
be available at www.linear.com and www.streetevents.com as of July 27, 2005
until the fourth 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)
Three Months Ended Twelve Months Ended
------------------ -------------------
(unaudited) (audited)
July 3, June 27, July 3, June 27,
2005 2004 2005 2004
---------- ---------- ---------- ----------
Net sales $ 255,811 $ 238,050 $1,049,694 $ 807,281
Cost of sales 53,859 53,178 219,188 185,960
---------- ---------- ---------- ----------
Gross profit 201,952 184,872 830,506 621,321
---------- ---------- ---------- ----------
Expenses:
Research & development 32,380 28,660 131,429 104,620
Selling, general and
administrative 27,897 22,607 109,448 79,971
---------- ---------- ---------- ----------
60,277 51,267 240,877 184,591
---------- ---------- ---------- ----------
Operating income 141,675 133,605 589,629 436,730
Interest income, net 9,821 5,574 30,335 25,483
---------- ---------- ---------- ----------
Income before income taxes 151,496 139,179 619,964 462,213
Provision for income taxes 45,449 40,363 185,990 134,042
---------- ---------- ---------- ----------
Net income $ 106,047 $ 98,816 $ 433,974 $ 328,171
========== ========== ========== ==========
Basic earnings per share $ 0.35 $ 0.32 $ 1.41 $ 1.05
========== ========== ========== ==========
Shares used in the
calculation of basic
earnings per share 306,964 309,479 307,426 312,063
========== ========== ========== ==========
Diluted earnings per share $ 0.34 $ 0.31 $ 1.38 $ 1.02
========== ========== ========== ==========
Shares used in the
calculation of diluted
earnings per share 314,080 317,984 315,067 321,456
========== ========== ========== ==========
LINEAR TECHNOLOGY CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(Dollars in thousands)
July 3, June 27,
2005 2004
(audited) (audited)
--------- ---------
ASSETS
Current assets:
Cash, cash equivalents and
short-term investments $1,790,912 $1,656,540
Accounts receivable, net of
allowance for doubtful
accounts of $1,713 ($1,762
at June 27, 2004) 125,864 79,142
Inventories 34,328 32,704
Deferred tax assets and other
current assets 56,205 63,709
---------- ----------
Total current assets 2,007,309 1,832,095
---------- ----------
Property, plant & equipment, net 221,028 201,080
Other non current assets 57,897 54,528
---------- ----------
Total assets $2,286,234 $2,087,703
========== ==========
July 3, June 27,
2005 2004
(audited) (audited)
--------- ---------
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 11,800 $ 14,410
Accrued income taxes, payroll &
other accrued liabilities 152,231 146,342
Deferred income on shipments
to distributors 43,708 41,862
----------- -----------
Total current liabilities 207,739 202,614
----------- -----------
Deferred tax and other long-term
liabilities 71,461 74,484
Stockholders' equity:
Common stock 926,763 815,472
Retained earnings 1,083,110 997,593
Accumulated other comprehensive
income (2,839) (2,460)
----------- -----------
Total stockholders' equity 2,007,034 1,810,605
----------- -----------
$ 2,286,234 $ 2,087,703
=========== ===========