Linear Technology Sees Sales Stabilizing In 4Q

MILPITAS, Calif. (AP) — Chip maker Linear Technology Corp. on Tuesday said it expects its sales to stop their dramatic decline in the current quarter.

The company, which posted a 33 percent year-over-year drop in sales for its fiscal third quarter, said it is seeing positive signs from customers.

"Forecasting operating results in the current environment is difficult, particularly since lead times are shorter than usual as customers tend to order only what they need urgently," the company said. "However, we are encouraged going into the fourth quarter as we expect to see some stability in customer bookings."

As a result, Linear Technology said it expects fourth-quarter revenue to be down 2 percent to up 4 percent from the third quarter's $200.9 million. That implies a range between $196.9 million and $209 million revenue for the quarter ending in June.

The low end of that projection falls short of Wall Street expectations. Analysts polled by Thomson Reuters, on average, expect revenue of $205 million.

Linear Technology shares closed Tuesday's session unchanged at $23.25, then slipped 67 cents, or 2.9 percent, to $22.58 in aftermarket electronic trading.