Linear Technology Reports Sequential and Year Over Year

Linear Technology Reports Sequential and Year Over Year Quarterly Increases in Revenues and Net Income


LINEAR TECHNOLOGY CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
U.S. GAAP (unaudited)

	Three Months Ended									Nine Months Ended
	March 30, 2014			December 29, 2013			March 31, 2013			March 30, 2014			March 31, 2013
Revenues	$	348,006		$	334,595		$	314,542		$	1,022,958		$	954,971
Cost of sales ⁽¹⁾	84,479			82,521			79,259			251,001			241,202
Gross profit	263,527			252,074			235,283			771,957			713,769
Expenses:
Research & development ⁽¹⁾	62,129			62,008			58,517			185,649			174,624
Selling, general & administrative ⁽¹⁾	40,693			38,852			38,480			118,223			113,074
	102,822			100,860			96,997			303,872			287,698
Operating income	160,705			151,214			138,286			468,085			426,071
Interest expense	(6,813		)	(6,813		)	(6,812		)	(20,439		)	(20,502		)
Amortization of debt discount ⁽²⁾	(5,603		)	(5,524		)	(5,294		)	(16,573		)	(15,659		)
Interest and other income	581			791			1,004			2,254			3,050
Income before income taxes	148,870			139,668			127,184			433,327			392,960
Provision for income taxes	31,263			34,917			16,216			103,101			87,976
Net income	$	117,607		$	104,751		$	110,968		$	330,226		$	304,984

Earnings per share:
Basic	$	0.49		$	0.44		$	0.47		$	1.38		$	1.29
Diluted	$	0.48		$	0.44		$	0.46		$	1.37		$	1.28

Shares used in determining earnings per share:
Basic	240,669			239,206			237,296			239,592			236,323
Diluted	243,992			240,670			238,641			241,724			237,388

Includes the following non-cash charges:
⁽¹⁾ Stock-based compensation
Cost of sales	$	1,961		$	2,106		$	1,998		$	6,031		$	5,952
Research & development	9,133			9,816			9,324			28,111			27,775
Selling, general & administrative	4,718			5,069			4,812			14,517			14,335
⁽²⁾ Amortization of debt discount (non-cash interest expense)	5,603			5,524			5,294			16,573			15,659


LINEAR TECHNOLOGY CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
U.S. GAAP (unaudited)

	March 30, 2014			June 30, 2013
ASSETS:
Current assets:
Cash, cash equivalents and marketable securities	$	1,762,728		$	1,524,741
Accounts receivable, net of allowance for doubtful accounts of $1,870 ($1,891 at June 30, 2013)	182,032			145,274
Inventories	87,675			87,229
Deferred tax assets and other current assets	41,291			36,646
Total current assets	2,073,726			1,793,890

Property, plant & equipment, net	268,348			288,466
Other noncurrent assets	14,335			15,985
Total assets	$	2,356,409		$	2,098,341

LIABILITIES & STOCKHOLDERS’ EQUITY:
Current liabilities:
Accounts payable	$	18,353		$	10,258
Accrued income taxes, payroll & other accrued liabilities	85,318			109,426
Deferred income on shipments to distributors	43,194			44,088
Convertible senior notes	843,202			826,629
Deferred tax liabilities- current portion	38,177			35,479
Total current liabilities	1,028,244			1,025,880

Deferred tax and other noncurrent liabilities	104,494			90,553

Stockholders’ equity:
Common stock	1,874,616			1,736,729
Accumulated deficit	(650,833		)	(754,555		)
Accumulated other comprehensive loss	(112		)	(266		)
Total stockholders’ equity	1,223,671			981,908
	$	2,356,409		$	2,098,341


LINEAR TECHNOLOGY CORPORATION
RECONCILIATION OF U.S. GAAP NET INCOME TO NON-GAAP NET INCOME
(In thousands, except per share amounts)
(unaudited)

	Three Months Ended									Nine Months Ended
	March 30, 2014			December 29, 2013			March 31, 2013			March 30, 2014			March 31, 2013
Reported net income
(GAAP basis)	$	117,607		$	104,751		$	110,968		$	330,226		$	304,984

Stock-based compensation	15,812			16,991			16,134			48,659			48,062
Amortization of debt discount ⁽¹⁾	5,603			5,524			5,294			16,573			15,659
Income tax effect of non-GAAP adjustments	(4,497		)	(5,629		)	(2,732		)	(15,521		)	(14,266		)

Non-GAAP net income	$	134,525		$	121,637		$	129,664		$	379,937		$	354,439

Non-GAAP earnings per share
Basic	$	0.56		$	0.51		$	0.55		$	1.59		$	1.50
Diluted	$	0.55		$	0.51		$	0.54		$	1.57		$	1.49

¹⁾ Amortization of debt discount is non-cash interest expense related to the Company’s Convertible Senior Notes.