NEW YORK (
) -- Shares of linear integrated circuits maker
have slid in Wednesday trading following its announcement of lower, though better-than expected, profits in the second quarter fiscal 2010.
By early afternoon, Linear Technology stock had lost 2.1% at $29.60.
For the second quarter, Linear reported a profit of $75.5 million, or 33 cents per share, a 12% decrease from the year-ago period.
Worth noting, however, is that Linear's revenue still went up. Linear reported revenue of $256.4 million for the second quarter of fiscal year 2010, a 3% increase from the same time last year.
Wall Street analysts had expected earnings of 30 cents per share on revenue of $246.5 million for Linear.
"The company began to recover from the global recession in the first quarter, but we continued to be relatively cautious as we entered the second quarter, given the economic climate and level of uncertainty among our customers," Linear Technology's CEO, Lothar Maier, said in a statement. "However, the recovery continued throughout the second quarter and we experienced stronger-than-expected bookings with particular strength in the industrial, communications and computer end-markets."
Linear has also announced that it is increasing its quarterly dividend from 22 cents per share to 23 cents per share, marking the 18th consecutive year the company has increased its dividend.
According to Barron's, Linear has made it to J.P. Morgan's top 10 semiconductor predictions list for 2010. Barron's anticipates the company will have among the highest margin expansion in its coverage universe and expects Linear to expand its gross margins during 2010 by roughly 100 basis points, placing it among the top 30% of companies in its coverage universe.
Other semiconductor stocks are, meanwhile, trading higher Wednesday.
has edged up 0.3% to $25, while
has risen to $14.90, up 1.6%.
has edged higher at $8.50, up 0.4%
-- Reported by Andrea Tse in New York
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