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Linear Tech Cautions 'It Remains Difficult To Forecast In The Current Environment'

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Linear Technology Corporation (NASDAQ: LLTC) reported its second quarter results after Tuesday's market close and offered a cautious guidance looking forward.

Shares of Linear Technology were trading higher by 1.59 percent at $40.20 early Wednesday morning.

Linear Technology reported that it earned $0.50 per share in the second quarter on revenue of $347.128 million. Wall Street analysts were expecting the company to earn $0.46 per share on revenue of $347 million.

Net income for the quarter rose $9.5 million from the previous quarter, but fell $2.1 million from the same quarter a year ago.

According to Lothar Maier, CEO, "Revenue for the quarter came in at the midpoint of our guidance as we grew revenues 1.5% over the September quarter to $347.1 million as we saw an improvement in sales into the transportation market. Earnings per share were $0.50, up from $0.46 per share as the permanent reinstatement of the R&D tax credit in the December quarter added $0.04 due to the lower tax rate. Gross margin improved to 75.7% of sales, though operating expenses were higher due in part to an extra week of expenses included in the December quarter as fiscal 2016 is a 53 week fiscal year."

Outlook

Maier stated that it "remains difficult" to forecast its outlook in the current environment. The executive added that the macroeconomic climate "does not appear to have improved noticeably" as the company's largest market, Industrial, remains "weak in most regions."

However, Maier stated that the inventory correction that began at the end of its fiscal year is "mostly behind us" and "demand overall has picked up."

As a result, Linear Technology is guiding for its third quarter revenue to rise 2 to 5 percent sequentially.

Posted-In: Circuit Makers Circuits linear technology Lothar MaierEarnings News Guidance

 

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