Linear Tech. Profit Rises

(RTTNews) - Chip maker Linear Technology Corp. (LLTC), Tuesday reported a 19 percent increase in second-quarter profit, helped by higher revenues, partly offset by weakness in the automotive and industrial markets amid the holiday period. Revenue for the quarter was in line with Wall Street estimates.

Looking ahead to the third quarter, the company provided a somewhat strong revenue guidance and expects improved bookings in the auto and industrial markets.

Milpitas, California-based Linear Technology posted quarterly net earnings of $105 million or $0.44 per share, compared with $89 million or $0.38 per share last year.

Excluding items, adjusted earnings for the quarter were $121.6 million or $0.51 per share, compared with $104 million or $0.44 per share in the prior year.

On average, 11 analysts polled by Thomson Reuters estimated earnings of $0.45 per share for the quarter. Analysts' estimates typically exclude special items.

Linear Technology, which makes high performance analog integrated circuits, posted second-quarter revenues of $334.6 million, compared with $305.3 million a year ago. Analysts expected revenues of $334.8 million for the quarter.

The company earlier warned of weak second-quarter results due to the holiday period and the prevailing federal budget stalemate at that time.

For the third quarter, Linear estimates revenue to grow sequentially by 3 percent to 6 percent - implying revenues of $344.64 million to $354.68 million. Analysts currently estimate revenues of $346 million for the quarter.

The company also announced its quarterly dividend of $0.27 per share, which indicates a one-cent increase.

Linear stock closed Tuesday at $45.19, up $0.70 or 1.57%, on a volume of 4.3 million shares on the Nasdaq. In after hours, the stock gained $0.32 or 0.71% at $45.51. In the past year, the stock traded in the range of $34.21 - $45.93.