Great quarter reported.
Linear shows higher profit, forecasts growth
Tue Apr 15, 2008 6:12pm EDT
(Adds details, Wall Street estimates, company forecasts)
SAN FRANCISCO, April 15 (Reuters) - Linear Technology Corp (LLTC.O: Quote, Profile, Research) posted a quarterly net profit on Tuesday that grew slightly from a year ago and the maker of analog microchips said it expected strong demand in its current quarter, despite concerns about the U.S. economy.
Linear, which makes digital-analog converters, amplifiers and chips that regulate battery usage in consumer electronics, expected revenue and income in its current, fourth quarter to grow 1 percent to 5 percent sequentially.
The midpoint of that range would put revenue at $306.8 million, higher than the $304.4 million that was the average forecast of Wall Street analysts on Reuters Estimates.
"June should be a growth quarter as we had a positive book- to-bill ration in the March quarter, and we would expect the June quarter to continue to have strength in many of our end- markets," Chief Executive Lothar Maier said in a statement. "However, the overriding general economic conditions merit concern."
Book-to-bill is the ratio of orders a company receives to how much product it ships. A positive ratio means Linear is getting orders for more product than it is selling.
Linear shares rose 3 percent to $31.47 in extended trading. The stock have fallen 9 percent over the last six months, compared with a fall of 16.5 percent for Texas Instruments Inc (TXN.N: Quote, Profile, Research) and of more than 25 percent for National Semiconductor Inc (NSM.N: Quote, Profile, Research), two of its largest rivals.
For its third fiscal quarter ended March 30, Linear had a net profit of $99.2 million, or 44 cents per share, compared with a profit of $98.6 million, or 32 cents per share, a year earlier.
Excluding special items such as stock-based compensation, Linear's profit was $110 million, or 49 cents per share, beating the 43 cents expected by analysts.
Revenue rose 17 percent to $297.9 million, topping the $296.6 million expected by analysts.
Linear's net profit fell in dollar terms, but the per-share amount rose due to a $3 billion stock buyback program launched a year ago that reduced the number of shares outstanding. (Reporting by Scott Hillis; Editing by Andre
