Modest sales growth for Linear

Edited by the Electronicstalk editorial team Oct 21, 2005

Linear Technology reports net sales of $256,013,000 in Q1, an increase of 1% over the first quarter of the previous year.

Linear Technology Corporation has reported net sales for its first quarter ended 2nd October 2005 of $256,013,000, an increase of 1% over net sales of $253,028,000 for the first quarter of the previous year.

The company also reported net income for the quarter of $99,181,000 or $0.31 diluted earnings per share, ($108,451,000 or $0.35 pro forma excluding stock based compensation as noted below) as compared with $103,476,000 or $0.33 diluted earnings per share reported for the first quarter of last year.

During the quarter, the company implemented Financial Accounting Standard 123R (FAS123R): "Share-based payments", which requires companies to estimate the cost of all forms of stock based compensation, including stock options, restricted stock and employee stock purchase plans, and record a commensurate expense in their income statement.

As the company began its fiscal year this quarter, it is one of the first companies required to implement FAS123R.

For Linear Technology, the total amount of stock based compensation during this quarter was $13,338,000.

Under FAS123R calculations, there was also an increase in estimated diluted shares outstanding.

Consequently, pro forma earnings per share, excluding stock based compensation accounting estimates, would have been $0.35 for the quarter ended 2nd October 2005 versus $0.33 on a similar basis for the prior year's quarter.

The company's cash and short-term investments increased by $43.6 million, net of spending $64.5 million to purchase 1,656,165 shares of common stock.

A cash dividend of $0.10 per share will be paid on 16th November 2005 to stockholders of record on 28th October 2005.

According to Lothar Maier, CEO: "Sequentially sales were similar to the June quarter, however, demand increased resulting in a positive book to bill ratio".

"We continue to be strongly cash flow positive and our return on sales was 39%, or 42% on a pro forma basis prior to the impact of stock based compensation accounting".

"Looking ahead to the December quarter, our bookings have improved, particularly in consumer related products, and consequently we expect sales to increase, roughly in the 3 to 4% range".