Linear Technology Earnings Cheat Sheet: Revenue Ticks Lower

S&P 500 (NYSE:SPY) component Linear Technology Corporation (NASDAQ:LLTC) posted a decrease in profit as revenue declined. Linear Technology offers a line of standard high performance linear integrated circuits.

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Linear Technology Earnings Cheat Sheet for the First Quarter

Results: Net income for the semiconductor company fell to $108.4 million (47 cents per share) vs. $137.3 million (59 cents per share) a year earlier. This is a decline of 21% from the year earlier quarter.

Revenue: Fell 15.1% to $329.9 million from the year earlier quarter.

Actual vs. Wall St. Expectations: LLTC reported adjusted net income of 53 cents per share. By that measure, the company beat the mean estimate of 50 cents per share. Analysts were expecting revenue of $332.9 million.

Quoting Management: According to Lothar Maier, CEO, “Revenue declined 8% in our first fiscal quarter compared to the preceding fourth quarter of fiscal 2011, in line with our guidance. In the beginning of the quarter, we noted that orders had slowed and that global economic sluggishness appeared to affect the ordering patterns of our customers as they continued to work down inventories. Although cautious given the current economic state, we were hopeful that this would be temporary and that orders would pick up in the latter half of the quarter as inventories and orders were balanced against end customer demand. This did occur in a few of our markets, notably the automotive market as the efforts we have invested in that business are having positive results. However, business in our core industrial and communications end-markets continued to soften through the quarter as it appears that end-demand has softened. Consequently, we are cautious and we expect many of our customers, particularly in the industrial and communications end-markets to have year-end shutdowns and thereby delay inventory procurement into the new year. Accordingly, we expect another difficult quarter of declining revenues and earnings, with revenues down 9%-13% sequentially in the second quarter.”

Key Stats:

Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the fourth quarter of the last fiscal year, net income rose 27.1% from the year earlier, while the figure increased 40.7% in the third quarter of the last fiscal year, 90.3% in the second quarter of the last fiscal year and more than twofold in the first quarter of the last fiscal year.

Revenue has fallen in the past two quarters. In the fourth quarter of the last fiscal year, revenue declined 2.1% to $358.6 million from the year earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from 59 cents a share to 51 cents over the last ninety days. At $2.08 per share, the average estimate for the fiscal year has fallen from $2.38 ninety days ago.

Competitors to Watch: Texas Instruments Inc. (NYSE:TXN), Analog Devices, Inc. (NYSE:ADI), National Semicond. Corp. (NYSE:NSM), Maxim Integrated Products Inc. (NASDAQ:MXIM), Intersil Corporation (NASDAQ:ISIL), Micrel, Incorporated (NASDAQ:MCRL), Advanced Analogic Tech. Incorp. (NASDAQ:AATI), ON Semiconductor Corp. (NASDAQ:ONNN), Semtech Corporation (NASDAQ:SMTC), and Microchip Technology Inc. (NASDAQ:MCHP).

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(Source: Xignite Financials)