COMPANY PRESS RELEASE: Linear Technology Corporation a leading, independent manufacturer of high performance linear integrated circuits, has announced that net sales for its second quarter ended December 30, 2001, were $121,266,000, a decrease of 53% from net sales of $258,450,000 for the second quarter of the previous year.
The Company also reported net income for the quarter of $45,965,000 or $0.14 diluted earnings per share, a decrease of 60% from $114,758,000 or $0.34 diluted earnings per share reported for the second quarter of last year. A cash dividend of $0.04 per share will be paid on February 13, 2002 to stockholders of record on January 25, 2002. During the quarter the Company generated approximately $68 million in additional cash and short-term investments.
According to Robert H. Swanson, Chairman of the Board and CEO, These continue to be difficult times for technology companies. However, the trend of improved bookings at the Company continued throughout the December quarter, but the level is close, but not yet equal to, billings. Sales and profits, while down from the second quarter in the previous year, did slightly improve sequentially from the September quarter. We continue to be strongly profitable even at these reduced sales levels, as demonstrated by our 38% after tax return on sales.
We have two wafer fabrication operations in Milpitas, California, one processing 4-inch diameter wafers and a new one processing 6-inch diameter wafers, which was planned to replace the 4-inch line. Consequently, in January, we will discontinue production in the 4-inch line. This will result in certain severance costs and equipment and inventory write downs. These costs had been previously anticipated and provided for in the financial statements and, therefore, will not require any special one-time charge in the income statement.