Linear Technology Corp. (LLTC, Financial) filed Quarterly Report for the period ended 2009-05-06.
Linear Technology products include operational instrumentation and audio amplifiers; voltage regulators power management devices DC-DC converters and voltage references; comparators; monolithic filters; communications interface circuits; one-chip data acquisition sub-systems; pulse-width modulators and sample-and-hold devices. (Company Press Release) Linear Technology Corp. has a market cap of $4.98 billion; its shares were traded at around $22.43 with a P/E ratio of 14.6 and P/S ratio of 4.2. The dividend yield of Linear Technology Corp. stocks is 3.9%. Linear Technology Corp. had an annual average earning growth of 10.7% over the past 10 years. GuruFocus rated Linear Technology Corp. the business predictability rank of 4-star.
Revenue for the quarter ended March 29, 2009 was $200.9 million, a decrease of $96.9 million or 33% from revenue of $297.9 million for the same quarter of the previous fiscal year. The decrease in revenue is due to lower domestic and international sales as a result of the global recession. The average selling price (“ASP”) of $1.59 per unit in the third quarter of fiscal year 2009 was relatively flat as compared to the third quarter of fiscal year 2008 ASP of $1.57 per unit. Geographically, international revenues were $135.7 million or 68% of revenues, a decrease of $74.2 million as compared to international revenues of $209.9 million or 70% of revenues for the same quarter of the previous fiscal year. Internationally, revenues to Rest of the World (“ROW”), which is primarily Asia excluding Japan, represented $80.7 million or 40% of revenues, while sales to Europe and Japan were $27.9 million or 14% of revenues and $27.1 million or 14% of revenues, respectively. Domestic revenues were $65.2 million or 32% of revenues in the third quarter of fiscal year 2009, a decrease of $22.7 million, from $88.0 million or 30% of revenues in the same period in fiscal year 2008.
Revenue for the nine months ended March 29, 2009 was $760.5 million, a decrease of $107.6 million or 12% from revenue of $868.1 million for the same period of the previous fiscal year. The decrease in revenue for the nine-month period was due to similar factors as the three-month period discussed above. The ASP for the first nine-month period of fiscal year 2009 was relatively flat at $1.53 per unit compared to $1.54 per unit in the same period of fiscal year 2008. Geographically, international revenues were $532.8 million or 70% of revenues, decreased $79.1 million from international revenues of $611.9 million or 70% of revenues for the same period of the previous fiscal year. Internationally, revenues to ROW, represented $304.2 million or 40% of revenues, while sales to Europe and Japan were $127.8 million or 17% of revenues and $100.8 million or 13% of revenues, respectively. Domestic revenues were $227.7 million or 30% of revenues in the first nine-month period of fiscal year 2009, a decrease of $28.5 million, compared to $256.2 million or 30% of revenues in the same period in fiscal year 2008.
Research and development (“R&D”) expenses for the quarter ended March 29, 2009 were $44.7 million, a decrease of $4.9 million or 10% from R&D expenses of $49.6 million for the same period in the previous fiscal year. The decrease in R&D expenses was primarily due to a $3.4 million decrease in employee profit sharing and a $2.2 million decrease in compensation costs related to the impact of requiring employees to take approximately 2.5 weeks of vacation or time-off without pay and the reduction in workforce that occurred during the second quarter of fiscal year 2009. The decrease in R&D was also due to $0.5 million decrease in other R&D expenses such as software and equipment maintenance fees. Partially offsetting these decreases to R&D expense was a $1.2 million increase in stock-based compensation.
R&D expenses for the nine months ended March 29, 2009 were $141.4 million, a decrease of $3.8 million or 3% from R&D expenses of $145.2 million for the same period in the previous fiscal year. The decrease in R&D expenses was primarily due to a $3.7 million decrease in employee profit sharing. In addition, compensation costs decreased $0.5 million due to the impact of requiring employees to take approximately 4.5 weeks of vacation or time-off without pay during this period, which was partially offset by the impact of higher average headcount in fiscal year 2009. The decrease in R&D expense was also due to a $1.1 million decrease in other R&D expenses such as software and equipment maintenance fees. Partially offsetting these decreases to R&D expenses was a $1.5 million increase in stock-based compensation.
At March 29, 2009, cash, cash equivalents and marketable securities totaled $920.0 million and working capital was $995.5 million. The Company s cash, cash equivalents and marketable securities balance decreased $46.7 million as compared to June 29, 2008 primarily due to the following cash outflows: $207.3 million to retire $230.0 million face value of its 3.125% Convertible Senior Notes; $144.8 million for the payment of cash dividends, representing $0.64 per share; $35.5 million for capital asset additions and $25.8 million to purchase its common stock. These cash outflows were offset by positive cashflow from operating activities of $350.0 million.
Read the The complete ReportLLTC is in the portfolios of Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
Linear Technology products include operational instrumentation and audio amplifiers; voltage regulators power management devices DC-DC converters and voltage references; comparators; monolithic filters; communications interface circuits; one-chip data acquisition sub-systems; pulse-width modulators and sample-and-hold devices. (Company Press Release) Linear Technology Corp. has a market cap of $4.98 billion; its shares were traded at around $22.43 with a P/E ratio of 14.6 and P/S ratio of 4.2. The dividend yield of Linear Technology Corp. stocks is 3.9%. Linear Technology Corp. had an annual average earning growth of 10.7% over the past 10 years. GuruFocus rated Linear Technology Corp. the business predictability rank of 4-star.
Highlight of Business Operations:
The Company recognizes revenues when the earnings process is complete, when persuasive evidence of an arrangement exists, the product has been delivered, the price is fixed and determinable and collection is reasonably assured. During the third quarter and the first nine months of fiscal year 2009, the Company recognized approximately 17% and 16%, respectively, of net revenues from domestic distributors that are recognized under agreements which provide for certain sales price rebates and limited product return privileges. Given the uncertainties associated with the levels of pricing rebates, the ultimate sales price on domestic distributor sales transactions is not fixed or determinable until domestic distributors sell the merchandise to the end-user. At the time of shipment to domestic distributors, the Company records a trade receivable and deferred revenue at the distributor purchasing price since there is a legally enforceable obligation from the distributor to pay for the products delivered. The Company relieves inventory as title has passed to the distributor and recognizes deferred cost of sales in the same amount. “Deferred income on shipments to distributors” represents the difference between deferred revenue and deferred cost of sales and is recognized as a current liability until such time as the distributor confirms a final sale to its end customer. At March 29, 2009, the Company had approximately $38.3 million of deferred revenue and $7.0 million of deferred cost of sales recognized as $31.3 million of “Deferred income on shipment to distributors.” At June 29, 2008, the Company had approximately $46.2 million of deferred revenue and $8.4 million of deferred cost of sales recognized as $37.8 million of “Deferred income on shipment to distributors.” The Company believes that its deferred costs of revenues have limited risk of material impairment, as the Company offers stock rotation privileges to distributors (up to 3% to 5% of quarterly purchases) which enable distributors to rotate slow moving inventory. In addition, stock rotated inventory that is returned to the Company is generally resalable. The Company reviews distributor ending on-hand inventory balances, as well as orders placed on the Company to ensure that distributors are not overstocking parts and are ordering to forecasted demand. To the extent the Company had a significant reduction in distributor price or grant significant price rebates, there could be a material impact on the ultimate revenue and gross profit recognized. The price rebates that have been remitted back to distributors have ranged from $1.5 million to $3.1 million per quarter.Revenue for the quarter ended March 29, 2009 was $200.9 million, a decrease of $96.9 million or 33% from revenue of $297.9 million for the same quarter of the previous fiscal year. The decrease in revenue is due to lower domestic and international sales as a result of the global recession. The average selling price (“ASP”) of $1.59 per unit in the third quarter of fiscal year 2009 was relatively flat as compared to the third quarter of fiscal year 2008 ASP of $1.57 per unit. Geographically, international revenues were $135.7 million or 68% of revenues, a decrease of $74.2 million as compared to international revenues of $209.9 million or 70% of revenues for the same quarter of the previous fiscal year. Internationally, revenues to Rest of the World (“ROW”), which is primarily Asia excluding Japan, represented $80.7 million or 40% of revenues, while sales to Europe and Japan were $27.9 million or 14% of revenues and $27.1 million or 14% of revenues, respectively. Domestic revenues were $65.2 million or 32% of revenues in the third quarter of fiscal year 2009, a decrease of $22.7 million, from $88.0 million or 30% of revenues in the same period in fiscal year 2008.
Revenue for the nine months ended March 29, 2009 was $760.5 million, a decrease of $107.6 million or 12% from revenue of $868.1 million for the same period of the previous fiscal year. The decrease in revenue for the nine-month period was due to similar factors as the three-month period discussed above. The ASP for the first nine-month period of fiscal year 2009 was relatively flat at $1.53 per unit compared to $1.54 per unit in the same period of fiscal year 2008. Geographically, international revenues were $532.8 million or 70% of revenues, decreased $79.1 million from international revenues of $611.9 million or 70% of revenues for the same period of the previous fiscal year. Internationally, revenues to ROW, represented $304.2 million or 40% of revenues, while sales to Europe and Japan were $127.8 million or 17% of revenues and $100.8 million or 13% of revenues, respectively. Domestic revenues were $227.7 million or 30% of revenues in the first nine-month period of fiscal year 2009, a decrease of $28.5 million, compared to $256.2 million or 30% of revenues in the same period in fiscal year 2008.
Research and development (“R&D”) expenses for the quarter ended March 29, 2009 were $44.7 million, a decrease of $4.9 million or 10% from R&D expenses of $49.6 million for the same period in the previous fiscal year. The decrease in R&D expenses was primarily due to a $3.4 million decrease in employee profit sharing and a $2.2 million decrease in compensation costs related to the impact of requiring employees to take approximately 2.5 weeks of vacation or time-off without pay and the reduction in workforce that occurred during the second quarter of fiscal year 2009. The decrease in R&D was also due to $0.5 million decrease in other R&D expenses such as software and equipment maintenance fees. Partially offsetting these decreases to R&D expense was a $1.2 million increase in stock-based compensation.
R&D expenses for the nine months ended March 29, 2009 were $141.4 million, a decrease of $3.8 million or 3% from R&D expenses of $145.2 million for the same period in the previous fiscal year. The decrease in R&D expenses was primarily due to a $3.7 million decrease in employee profit sharing. In addition, compensation costs decreased $0.5 million due to the impact of requiring employees to take approximately 4.5 weeks of vacation or time-off without pay during this period, which was partially offset by the impact of higher average headcount in fiscal year 2009. The decrease in R&D expense was also due to a $1.1 million decrease in other R&D expenses such as software and equipment maintenance fees. Partially offsetting these decreases to R&D expenses was a $1.5 million increase in stock-based compensation.
At March 29, 2009, cash, cash equivalents and marketable securities totaled $920.0 million and working capital was $995.5 million. The Company s cash, cash equivalents and marketable securities balance decreased $46.7 million as compared to June 29, 2008 primarily due to the following cash outflows: $207.3 million to retire $230.0 million face value of its 3.125% Convertible Senior Notes; $144.8 million for the payment of cash dividends, representing $0.64 per share; $35.5 million for capital asset additions and $25.8 million to purchase its common stock. These cash outflows were offset by positive cashflow from operating activities of $350.0 million.
Read the The complete ReportLLTC is in the portfolios of Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
