Linear Technology Corp. (LLTC) Misses Q1 EPS by 1c; Appoints New CFO

Linear Technology Corp. (NASDAQ: LLTC) reported Q1 EPS of $0.53, $0.01 worse than the analyst estimate of $0.54. Revenue for the quarter came in at $371.1 million versus the consensus estimate of $372.6 million.

According to Lothar Maier, CEO, “For our first fiscal quarter, we grew revenue $5.6 million which approximated the midpoint of our guidance, of 1% to 3%, and represented 9% growth over the similar quarter in the prior year. Operating income grew in concert with sales and remained an industry leading 47% of sales. Bookings were down from the prior quarter while our book to bill ratio was only modestly negative. Seasonally this is typical performance for us as our major end markets, industrial and automotive, generally experience some softness in the summer and fall, but show strength in the first half of the calendar year. The industrial end-market was 43% of our business, down from 44% last quarter whereas automotive at 19% was similar to last quarter.

“Looking forward, revenue in the December quarter is typically down from the September quarter, averaging down sequentially 6% over the past four years. Based upon this and our current bookings rate, we are forecasting revenue to be down 3% to 6% sequentially though up year over year in the 4% to 8% range. Overall, we remain optimistic about the increased electronics content in our end markets, especially automotive and industrial.”

The company also announced that Paul Coghlan, the Company’s Chief Financial Officer, plans to retire at the end of the current fiscal year in July 2015. Donald Zerio, the current Linear Technology Corporate Controller and a thirteen year Linear veteran will be promoted to CFO on June 29, 2015. In the interim months, Messrs. Coghlan and Zerio will continue to work closely together to ensure a smooth transition. Mr. Coghlan will continue to work for the Company on a part time consulting basis until June 30, 2016.

Mr. Zerio has been Corporate Controller for eleven years and prior to that, International Controller at Linear. Mr. Zerio has over 25 years of financial experience in the technology industry gained from senior financial management positions with large multinational companies, small emerging companies and a Big 4 accounting firm.

Lothar Maier, CEO, commented that, “The rest of management and I have worked closely with Don over the years. He has the background, experience, and respect at Linear to provide the Company continuing sound financial leadership. Linear is unique and Don will be instrumental in guiding Linear to continuing industry leading financial performance.”

“Paul’s outstanding contributions in the past 27 years have benefited every part of our business,” said Bob Swanson, Executive Chairman and Founder. “Paul as CFO set the highest standards for integrity, leadership and expertise earning the deep respect of the entire Linear Technology team and investors. During his tenure, the Company annual revenue grew from $22 million to nearly $1.4 billion while reporting 114 consecutive quarters of positive cash flow from operations. Paul will be missed by all of us and we wish him and his family the very best in his retirement,” said Mr. Maier.

For earnings history and earnings-related data on Linear Technology Corp. (LLTC) click here.

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