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Linear Tech Earnings Beat Views

The circuit maker's earnings before charges top analysts' forecast, but revenue is light.

Linear Technology's


earnings dropped as the company marked its first quarter expensing stock-based compensation, but results excluding the costs topped Wall Street's projection.

For the first quarter ended Oct. 2, the integrated-circuit maker earned $99.2 million, or 31 cents a share, down from $103.5 million, or 33 cents a share, a year earlier. The latest earnings included $13.3 million in costs for stock-based compensation, which the company began recording during the quarter in accordance with new accounting standards.

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Excluding the stock-based compensation, Linear Technology posted earnings of $108.5 million, or 35 cents a share. Analysts had pegged first-quarter earnings at 33 cents a share, before the stock-option expense, according to Thomson First Call.

Linear Technology's sales rose to $256 million from $253 million a year earlier, shy of analysts' mean estimate for a $257 million top line.

"Sequentially sales were similar to the June quarter, however, demand increased resulting in a positive book to bill ratio," said Chief Executive Lothar Maier in a statement.

For the fiscal second quarter, Linear Technology predicted 3% to 4% sales growth. Analysts, on average, expect sales of $268 million for the December quarter.

Linear Technology's shares recently fell $1.07, or 3%, in after-hours trading to $34.89.