Innovation Update

Return to Article

Linear Technology 3Q Profit Falls 45 Percent

The Associated Press

MILPITAS, Calif. (AP) — Linear Technology Corp. on Tuesday said its fiscal third-quarter profit fell 45 percent as the sales fell due to the weak economy, but the chip maker said it is seeing "some stability in customer bookings," and expects better sales results for the current period.

For the three months ended March 29, Linear Technology earned $54.5 million, or 25 cents per share, compared with $99.2 million, or 44 cents per share, in the corresponding period a year ago.

Results for the 2009 quarter got a penny boost when the company paid down certain debt.

Revenue for the period plunged 33 percent to $200.9 million, from $297.9 million last year.

Analysts surveyed by Thomson Reuters, on average, expected profit of 21 cents per share, on revenue of $203.1 million.

Operating expenses fell 11 percent, reflecting a required 2.5 week furlough for employees during the quarter. After the end of the quarter, the company laid off 130 workers to further reduce expenses.

Chief Executive Lothar Maier said in a statement it was "another difficult quarter as the company continued to experience the fallout from the ongoing global credit crisis."

However, the company said it expects its sales decline to slow dramatically, and may even reverse course. The company said it expects sales in the current quarter to be down 2 percent to up 4 percent from the third quarter. Wall Street is expecting sales to rise for the quarter.

Linear Technologies shares closed Tuesday's session unchanged at $23.25, then slipped 2 percent to $22.78 in aftermarket electronic trading.