Linear Technology Misses Q2 Revenue, Increases Dividend

Linear Technology Corporation LLTC reported financial results Tuesday for the fiscal second quarter ended December 28, 2014.

Second quarter revenue came in at $352.6 million, below estimates of $354.57 million.

The revenue was an increase of $18.0 million or 5.4 percent over the $334.6 million reported in the second quarter of fiscal year 2014 but a decrease of $18.5 million or 5.0 percent from the previous quarter's revenue of $371.1 million.

Net income was $123.6 million, an increase of $18.9 million or 8.0 percent over the second quarter of fiscal year 2014.

Diluted EPS was $0.51, above estimates of $0.50 and the $0.44 reported in the year-ago period.
 Second quarter net income and earnings per share were positively impacted by a lower effective income tax rate of 22 percent.

In addition, the company had no interest expense compared with $12.3 million of interest expense in the second quarter of the prior fiscal year as a result of the extinguishment of the Convertible Senior Notes at the end of fiscal 2014.

The Board of Directors also approved an increase in the company's quarterly dividend from $0.27 per share to $0.30 per share.

According to Lothar Maier, CEO, “Revenues declined 5 percent sequentially from our first quarter and were up 5 percent year over year, which was within our guidance. We had expected this sequential decline as the second quarter has historically been seasonally weak for us. Bookings declined slightly although improved as the quarter progressed. The industrial end-market showed the most strength. As is typical, we expect our major end-markets to improve during the second half of our fiscal year.”

Linear Technology Corporation traded at $44.00, down 2.59 percent.