Linear Technology Corp. Earnings: Booking a Profit AGAIN

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S&P 500 (NYSE:SPY) component Linear Technology Corporation (NASDAQ:LLTC) reported its results for the fourth quarter. Linear Technology offers a line of standard high performance linear integrated circuits.

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Linear Technology Corporation Earnings Cheat Sheet

Results: Net income for Linear Technology Corporation fell to $103.3 million (44 cents per share) vs. $158.2 million (68 cents per share) a year earlier. This is a decline of 34.7% from the year-earlier quarter.

Revenue: Fell 8% to $330 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Linear Technology Corporation fell short of the mean analyst estimate of 45 cents per share. Analysts were expecting revenue of $330.3 million.

Quoting Management: “Our fourth quarter financial results were in the mid-range of our guidance as sales grew 6% compared to the preceding third quarter and both gross margin and operating margin improved as a percent of sales,” stated Lothar Maier, CEO. “This was also our fiscal year-end. In a challenging global economic environment we improved as the year progressed growing sequentially 6% in each of the last two quarters. Automotive was our best performing end-market, growing bookings 24% year over year. Our largest end-market is industrial, which was 40% of our business. Over the last three years industrial and automotive have been the fastest growing analog end-markets and we have grown these end-markets at a faster rate than the industry overall. As we turn our focus to fiscal 2013, general economic sluggishness remains in the U.S. and we are particularly cautious about the European market and its sovereign debt issues. Historically, the first fiscal quarter is a seasonally weak period in that region and this could be exacerbated by the continuing debt crisis. We are hopeful that the strength we are seeing in Japan and Asia will continue to offset weakness in Europe and flatness in the USA. Given the current environment and the level of bookings we have received over the past quarter, we are currently forecasting our revenues to be flat to up 3% over our just completed fourth fiscal quarter, generally in line with our historical seasonality for summer quarters.”

Key Stats:

The company has now seen net income fall in each of the last four quarters. In the third quarter, net income fell 30.4% while the figure fell 38.9% in the second quarter and 21% in the first quarter.

For four consecutive quarters, revenue has fallen. Revenue declined 11.6% to $312.4 million in the third quarter. The figure fell 23.3% in the second quarter from the year earlier and dropped 15.1% in the first quarter from the year-ago quarter.

The company fell short of forecasts after beating estimates in the previous two quarters. In the third quarter, it topped the mark by 2 cents, and in the second quarter, it was ahead by one cent.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from 49 cents a share to 48 cents over the last sixty days. The average estimate for the fiscal year is $1.73 per share, down from $1.75 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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