For further information contact Paul Coghlan at Linear Technology Corporation, 1630 McCarthy Blvd., Milpitas, California 95035-7417, (408) 432-1900.
| LINEAR TECHNOLOGY CORPORATION | |||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||||||
| (In thousands, except per share amounts) | |||||||||||||||||||||||||
| U.S. GAAP (unaudited) | |||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||
| June 29, | March 30, | June 30, | June 29, | June 30, | |||||||||||||||||||||
| 2014 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
| Revenues | $ | 365,428 | $ | 348,006 | $ | 327,265 | $ | 1,388,386 | $ | 1,282,236 | |||||||||||||||
| Cost of sales (1) | 87,579 | 84,479 | 81,314 | 338,580 | 322,516 | ||||||||||||||||||||
| Gross profit | 277,849 | 263,527 | 245,951 | 1,049,806 | 959,720 | ||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||||
| Research and development (1) | 64,785 | 62,129 | 60,560 | 250,434 | 235,184 | ||||||||||||||||||||
| Selling, general and administrative (1) | 41,419 | 40,693 | 38,308 | 159,642 | 151,382 | ||||||||||||||||||||
| Total operating expenses | 106,204 | 102,822 | 98,868 | 410,076 | 386,566 | ||||||||||||||||||||
| Operating income | 171,645 | 160,705 | 147,083 | 639,730 | 573,154 | ||||||||||||||||||||
| Interest expense | (2,271 | ) | (6,813 | ) | (6,812 | ) | (22,710 | ) | (27,314 | ) | |||||||||||||||
| Amortization of debt discount (2) | (1,885 | ) | (5,603 | ) | (5,370 | ) | (18,458 | ) | (21,029 | ) | |||||||||||||||
| Interest income and other income | 452 | 581 | 1,020 | 2,706 | 4,070 | ||||||||||||||||||||
| Income before income taxes | 167,941 | 148,870 | 135,921 | 601,268 | 528,881 | ||||||||||||||||||||
| Provision for income taxes | 38,206 | 31,263 | 33,980 | 141,307 | 121,956 | ||||||||||||||||||||
| Net income | $ | 129,735 | $ | 117,607 | $ | 101,941 | $ | 459,961 | $ | 406,925 | |||||||||||||||
| Earnings per share: | |||||||||||||||||||||||||
| Basic | $ | 0.53 | $ | 0.49 | $ | 0.43 | $ | 1.91 | $ | 1.72 | |||||||||||||||
| Diluted | $ | 0.53 | $ | 0.48 | $ | 0.43 | $ | 1.90 | $ | 1.71 | |||||||||||||||
| Shares used in determining earnings per share: | |||||||||||||||||||||||||
| Basic | 243,279 | 240,669 | 237,947 | 240,498 | 236,703 | ||||||||||||||||||||
| Diluted | 244,935 | 243,992 | 238,925 | 242,551 | 237,753 | ||||||||||||||||||||
| Includes the following non-cash charges: | |||||||||||||||||||||||||
| (1) Stock-based compensation | |||||||||||||||||||||||||
| Cost of sales | $ | 2,043 | $ | 1,961 | $ | 1,960 | $ | 8,074 | $ | 7,912 | |||||||||||||||
| Research and development | 9,513 | 9,133 | 9,129 | 37,624 | 36,904 | ||||||||||||||||||||
| Selling, general and administrative | 4,913 | 4,718 | 4,714 | 19,430 | 19,049 | ||||||||||||||||||||
|
(2) Amortization of debt discount (non-cash interest expense) |
1,885 | 5,603 | 5,370 | 18,458 | 21,029 | ||||||||||||||||||||
| LINEAR TECHNOLOGY CORPORATION | ||||||||||
| CONSOLIDATED CONDENSED BALANCE SHEETS | ||||||||||
| (in thousands) | ||||||||||
| U.S. GAAP (unaudited) | ||||||||||
| June 29, 2014 | June 30, 2013 | |||||||||
| ASSETS: | ||||||||||
| Current assets: | ||||||||||
| Cash, cash equivalents and marketable securities | $ | 1,012,787 | $ | 1,524,741 | ||||||
|
Accounts receivable, net of allowance for doubtful accounts of $1,653 ($1,891 at June 30, 2013) |
173,340 | 145,274 | ||||||||
| Inventories | 91,310 | 87,229 | ||||||||
| Deferred tax assets and other current assets | 87,276 | 36,646 | ||||||||
| Total current assets | 1,364,713 | 1,793,890 | ||||||||
| Property, plant & equipment, net | 277,080 | 288,466 | ||||||||
| Other noncurrent assets | 13,785 | 15,985 | ||||||||
| Total assets | $ | 1,655,578 | $ | 2,098,341 | ||||||
| LIABILITIES & STOCKHOLDERS’ EQUITY: | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 28,221 | $ | 10,258 | ||||||
| Accrued income taxes, payroll & other accrued liabilities | 141,275 | 109,426 | ||||||||
| Deferred income on shipments to distributors | 45,619 | 44,088 | ||||||||
| Convertible senior notes | — | 826,629 | ||||||||
| Deferred tax liabilities- current portion | — | 35,479 | ||||||||
| Total current liabilities | 215,115 | 1,025,880 | ||||||||
| Deferred tax and other noncurrent liabilities | 109,094 | 90,553 | ||||||||
| Stockholders’ equity: | ||||||||||
| Common stock | 1,948,006 | 1,736,729 | ||||||||
| Accumulated deficit | (616,992 | ) | (754,555 | ) | ||||||
| Accumulated other comprehensive loss | 355 | (266 | ) | |||||||
| Total stockholders’ equity | 1,331,369 | 981,908 | ||||||||
| $ | 1,655,578 | $ | 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 | Twelve Months Ended | ||||||||||||||||||||||||
| June 29, | March 30, | June 30, | June 29, | June 30, | |||||||||||||||||||||
| 2014 | 2013 | 2013 | 2014 | 2013 | |||||||||||||||||||||
| Reported net income | $ | 129,735 | $ | 117,607 | $ | 101,941 | $ | 459,961 | $ | 406,925 | |||||||||||||||
| (GAAP basis) | |||||||||||||||||||||||||
| Stock-based compensation | 16,469 | 15,812 | 15,803 | 65,128 | 63,865 | ||||||||||||||||||||
| Amortization of debt discount (1) | 1,885 | 5,603 | 5,370 | 18,458 | 21,029 | ||||||||||||||||||||
| Income tax effect of non-GAAP adjustments | (4,175 | ) | (4,497 | ) | (5,293 | ) | (19,644 | ) | (19,576 | ) | |||||||||||||||
| Non-GAAP net income | $ | 143,914 | $ | 134,525 | $ | 117,821 | $ | 523,903 | $ | 472,243 | |||||||||||||||
| Non-GAAP earnings per share | |||||||||||||||||||||||||
| Basic | $ | 0.59 | $ | 0.56 | $ | 0.50 | $ | 2.18 | $ | 2.00 | |||||||||||||||
| Diluted | $ | 0.59 | $ | 0.55 | $ | 0.49 | $ | 2.16 | $ | 1.99 | |||||||||||||||
|
(1) Amortization of debt discount is non-cash interest expense related to the Company’s Convertible Senior Notes. |
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