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Linear Technology Corp. Reports Operating Results (10-Q)

February 02, 2012 | About:
10qk

10qk

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Linear Technology Corp. (LLTC) filed Quarterly Report for the period ended 2012-01-01.

Linear Technology Corp. has a market cap of $7.68 billion; its shares were traded at around $33.72 with a P/E ratio of 15.4 and P/S ratio of 5.2. The dividend yield of Linear Technology Corp. stocks is 2.9%. Linear Technology Corp. had an annual average earning growth of 15.1% over the past 10 years. GuruFocus rated Linear Technology Corp. the business predictability rank of 4.5-star.

Highlight of Business Operations:

Geographically, revenues for the quarter ended January 1, 2012 decreased in each major geographical region compared to the same quarter of the previous fiscal year. International revenues for the quarter ended January 1, 2012 were $209.3 million or 71% of revenues, a decrease of $71.5 million as compared to international revenues of $280.8 million or 73% of revenues for the same period in the previous fiscal year. Revenues for the quarter ended January 1, 2012 for Rest of the World (“ROW”), which is primarily Asia excluding Japan, represented $109.8 million or 37% of revenues, while sales to Europe and Japan were $51.0 million or 17% of revenues and $48.5 million or 17% of revenues, respectively. Domestic revenues were $85.0 million or 29% of revenues in the second quarter of fiscal year 2012, a decrease of $17.8 million from $102.8 million or 27% of revenues in the same period of fiscal year 2011.

Geographically, revenues for the six months ended January 1, 2012 decreased in each major geographical region compared to the same period of the previous fiscal year. International revenues for the six months ended January 1, 2012 were $445.0 million or 71% of revenues, a decrease of $121.6 million as compared to international revenues of $566.6 million or 73% of revenues for the same period in the previous fiscal year. Revenues for the the six months ended January 1, 2012 for ROW, represented $226.4 million or 36% of revenues, while sales to Europe and Japan were $115.9 million or 19% of revenues and $102.7 million or 16% of revenues, respectively. Domestic revenues were $179.2 million or 29% of revenues for the six months ended January 1, 2012, a decrease of $26.4 million from $205.6 million or 27% of revenues in the same period of fiscal year 2011.

Gross profit of $220.5 million for the quarter ended January 1, 2012 decreased $80.5 million or 27% from gross profit of $301.0 million in the second quarter of fiscal year 2011. Gross profit of $470.6 million for the six months ended January 1, 2012 decreased $135.2 million or 22% from gross profit of $605.9 million in the same period of fiscal year 2011. Gross profit as a percentage of revenues decreased to 74.9% in the second quarter of fiscal year 2012 as compared to 78.5% for the same period in the previous fiscal year. Gross profit as a percentage of revenues decreased to 75.4% for the six months ended January 1, 2012 as compared to 78.5% for the same period in the previous fiscal year. The decrease in gross profit as a percentage of revenues for the three and six months ended January 1, 2012 was primarily due to spreading fixed costs over a lower sales base, partially offset by higher ASP's and lower employee profit sharing.

R&D expense for the six months ended January 1, 2012 was $107.4 million, a decrease of $7.8 million or 7% from R&D expense of $115.2 million for the same period in the previous fiscal year. The decrease in R&D expense was primarily due to a $6.4 million decrease in employee profit sharing and a $2.7 million decrease in stock-based compensation costs. Offsetting these decreases was a $0.7 million increase in compensation costs due to increased headcount and an increase in annual merit compensation, and a $0.7 million increase in other R&D expenses.

SG&A for the six months ended January 1, 2012 was $72.6 million, a decrease of $12.4 million or 15% from SG&A expense of $85.0 million for the same period in the previous fiscal year. The decrease in SG&A expenses was primarily due to a $6.8 million decrease in legal expense due to the prior year period having a one-time legal charge of $5.3 million. In addition, SG&A expense decreased due to a $4.6 million decrease in employee profit sharing and a $1.8 million decrease in stock-based compensation costs. Other SG&A expenses decreased $0.3 million. Offsetting these decreases was a $1.1 million increase in compensation costs due to increased headcount and an increase in annual merit compensation.

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10qk
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