Linear Tech. Profit Rises On Revenue Growth - Update

(RTTNews) - Chip maker Linear Technology Corp (LLTC), Tuesday reported a six percent increase in third-quarter profit, helped by double-digit growth in revenues, partly offset by a higher tax rate. However, revenue for the quarter came in short of Wall Street estimates.

Looking ahead to the fourth quarter, the company expects a sequential revenue growth of 2 percent to 6 percent, adding that bookings were strong across major markets.

Milpitas, California-based Linear Technology posted third-quarter net earnings of $117.6 million or $0.48 per share, compared with $111 million or $0.46 per share last year.

Excluding items, adjusted earnings for the quarter were $134.5 million or $0.55 per share.

On average, 14 analysts polled by Thomson Reuters estimated earnings of $0.48 per share for the quarter. Analysts' estimates typically exclude special items

Linear Technology, which makes high performance analog integrated circuits, posted third-quarter revenues of $348 million, up 10.6 percent from $314.5 million a year ago. Analysts expected revenues of $350 million for the quarter.

CEO Lothar Maier said, "After the slight decline we experienced last quarter, we are pleased to report that the bookings momentum that occurred at the end of our second quarter continued through the third quarter."

Results were partly offset by income tax expense that climbed to $31 million from $16 million a year ago, when there was reinstatement of the federal R&D tax credit and the release of certain tax liabilities.

Linear stock closed Tuesday at $47.13, up $0.53 or 1.14%, on a volume of over 4 million shares on the Nasdaq. In after hours, the stock dropped $0.13 or 0.28% at $47.00.