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 | |||||||||||
| September 28, | June 29, | September 29, | |||||||||
| 2014 | 2014 | 2013 | |||||||||
| Revenues | $ | 371,060 | $ | 365,428 | $ | 340,357 | |||||
| Cost of sales (1) | 89,007 | 87,579 | 84,001 | ||||||||
| Gross profit | 282,053 | 277,849 | 256,356 | ||||||||
| Expenses: | |||||||||||
|
Research and development (1) |
65,600 | 64,785 | 61,512 | ||||||||
| Selling, general and administrative (1) | 42,089 | 41,419 | 38,678 | ||||||||
| Total operating expenses | 107,689 | 106,204 | 100,190 | ||||||||
| Operating income | 174,364 | 171,645 | 156,166 | ||||||||
| Interest expense | — | (2,271 | ) | (6,813 | ) | ||||||
| Amortization of debt discount (2) | — | (1,885 | ) | (5,446 | ) | ||||||
| Interest income and other income | 581 | 452 | 882 | ||||||||
| Income before income taxes | 174,945 | 167,941 | 144,789 | ||||||||
| Provision for income taxes | 45,486 | 38,206 | 36,921 | ||||||||
| Net income | $ | 129,459 | $ | 129,735 | $ | 107,868 | |||||
| Earnings per share: | |||||||||||
| Basic | $ | 0.53 | $ | 0.53 | $ | 0.45 | |||||
| Diluted | $ | 0.53 | $ | 0.53 | $ | 0.45 | |||||
| Shares used in determining earnings per share: | |||||||||||
| Basic | 244,145 | 243,279 | 238,146 | ||||||||
| Diluted | 244,801 | 244,935 | 239,328 | ||||||||
| Includes the following non-cash charges: | |||||||||||
| (1) Stock-based compensation | |||||||||||
| Cost of sales | $ | 2,100 | $ | 2,043 | $ | 1,964 | |||||
| Research and development | 9,791 | 9,513 | 9,162 | ||||||||
| Selling, general and administrative | 5,056 | 4,913 | 4,730 | ||||||||
| (2) Amortization of debt discount | |||||||||||
| (non-cash interest expense) | — | 1,885 | 5,446 | ||||||||
| LINEAR TECHNOLOGY CORPORATION | ||||||||
| CONSOLIDATED CONDENSED BALANCE SHEETS | ||||||||
| (in thousands) | ||||||||
| U.S. GAAP (unaudited) | ||||||||
| September 28, 2014 | June 29, 2014 | |||||||
| ASSETS: | ||||||||
| Current assets: | ||||||||
| Cash, cash equivalents and marketable securities | $ | 1,027,643 | $ | 1,012,787 | ||||
|
Accounts receivable, net of allowance for doubtful accounts of $1,653 ($1,653 at June 29, 2014) |
175,494 | 173,340 | ||||||
| Inventories | 97,642 | 91,310 | ||||||
| Deferred tax assets and other current assets | 86,916 | 87,276 | ||||||
| Total current assets | 1,387,695 | 1,364,713 | ||||||
| Property, plant & equipment, net | 291,333 | 277,080 | ||||||
| Other noncurrent assets | 13,235 | 13,785 | ||||||
| Total assets | $ | 1,692,263 | $ | 1,655,578 | ||||
| LIABILITIES & STOCKHOLDERS’ EQUITY: | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 27,037 | $ | 28,221 | ||||
| Accrued income taxes, payroll & other accrued liabilities | 125,406 | 141,275 | ||||||
| Deferred income on shipments to distributors | 46,705 | 45,619 | ||||||
| Total current liabilities | 199,148 | 215,115 | ||||||
| Deferred tax and other noncurrent liabilities | 109,837 | 109,094 | ||||||
| Stockholders’ equity: | ||||||||
| Common stock | 1,964,206 | 1,948,006 | ||||||
| Accumulated deficit | (581,086 | ) | (616,992 | ) | ||||
| Accumulated other comprehensive loss | 158 | 355 | ||||||
| Total stockholders’ equity | 1,383,278 | 1,331,369 | ||||||
| $ | 1,692,263 | $ | 1,655,578 | |||||
| LINEAR TECHNOLOGY CORPORATION | ||||||||||||
| CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS | ||||||||||||
| (In thousands) | ||||||||||||
| (unaudited) | ||||||||||||
| Three Months Ended | ||||||||||||
| September 28, | June 29, | September 29, | ||||||||||
| 2014 | 2014 | 2013 | ||||||||||
| Cash flow from operating activities: | ||||||||||||
| Net income | $ | 129,459 | $ | 129,735 | $ | 107,868 | ||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
| Depreciation and amortization | 13,214 | 12,851 | 12,835 | |||||||||
| Stock-based compensation | 16,947 | 16,469 | 15,856 | |||||||||
| Amortization of convertible senior notes discount | — | 1,885 | 5,446 | |||||||||
| Excess tax benefit from stock-based compensation | (2,202 | ) | (4,101 | ) | (1,529 | ) | ||||||
| Change in operating assets and liabilities: | (21,042 | ) | 46,903 | (18,278 | ) | |||||||
| Cash provided by operating activities | 136,376 | 203,742 | 122,198 | |||||||||
| Cash flow from investing activities: | ||||||||||||
|
Net purchases and proceeds from sale and maturities of available-for-sale securities |
(26,426 | ) | 101,618 | 83,552 | ||||||||
| Purchase of property, plant and equipment | (26,917 | ) | (21,033 | ) | (3,888 | ) | ||||||
| Cash (used in) provided by investing activities | (53,343 | ) | 80,585 | 79,664 | ||||||||
| Cash flow from financing activities: | ||||||||||||
| Extinguishment of Convertible Senior Notes | — | (845,087 | ) | — | ||||||||
| Excess tax benefit from stock-based compensation | 2,202 | 4,101 | 1,529 | |||||||||
| Issuance of common stock under employee stock plans | 3,323 | 9,910 | 21,655 | |||||||||
| Purchase of common stock | (34,086 | ) | (36,202 | ) | (14,671 | ) | ||||||
| Payment of cash dividends | (65,739 | ) | (66,095 | ) | (62,059 | ) | ||||||
| Cash used in financing activities | (94,300 | ) | (933,373 | ) | (53,546 | ) | ||||||
| (Decrease) increase in cash and cash equivalents | (11,267 | ) | (649,046 | ) | 148,316 | |||||||
| Cash and cash equivalents, beginning of period | 157,323 | 806,369 | 126,650 | |||||||||
| Cash and cash equivalents, end of period | $ | 146,056 | $ | 157,323 | $ | 274,966 | ||||||
