Post a Comment
Results roundup: Linear Tech bucks economic trends with record results
Freescale, STMicroelectronics report modest revenue and earnings--if one ignores certain expenses and special charges.
By Matthew Miller, Editor in Chief, EDN.com -- Electronic News, 7/23/2008
Showing seeming imperviousness to prevailing economic conditions, Linear Technology today announced record revenue and earnings for both its fiscal quarter and its fiscal year, but the picture for other industry stalwarts is not nearly as encouraging.
Linear (Nasdaq: LLTC) reported revenue of $307.1 million for its fiscal Q4, which ended June 29, an increase of 3.1% over the previous quarter and 14.5% over Q4 2007. Diluted earnings per share rose to $0.46, up 4.5% over Q3 and 28% over Q4 of last year. Net income, based on GAAP (generally accepted accounting principles), hit $103.1 million, an increase of 3.9% over Q3 and 7.8% over Q3 2007.
As for the annual numbers, Linear reported revenue of $1.175 billion (up 8.5% over 2007), diluted earnings per share of $1.71 (up 23.0%), and net income of $387.6 million. The net income number represents a 5.8% decrease from 2007's $411.7 million; by way of explanation, Linear pointed to a $3.0 billion ASR (accelerated stock repurchase) program—funded with $1.3 billion in cash and $1.7 billion in convertible debt—that had the effect of decreasing interest earnings and increasing interest expenses.
The company has grown revenue and EPS for five consecutive quarters, according to CEO Lothar Maier, who in a statement cited geographic and end-market diversification as reasons driving the company's outperformance of the market.
Meanwhile, STMicroelectronics (NYSE: STM) today reported Q2 net revenues of $2.39 billion, up 9.7% sequentially and 14.6% year-over-year. These comparisons factor out revenue from ST's flash-memory group, which the company contributed to Numonyx, the memory company created in March along with Intel and Francisco Partners.
Diluted earnings per share for the quarter hit $0.18, and pro-forma operating income (excluding restructuring and impairment charges related largely to the sale of a Phoenix fab) came in at $159 million. Factoring those charges in results in a $26 million loss for Q2.
The company's CEO, Carlo Bozotti, cited strong top-line growth, market-share gains, and higher margins in a statement.
Like ST, Freescale Semiconductor (NYSE: FSL) couldn't proudly point to the actual bottom line in announcing its Q2 results; doing so would reveal an operating loss of $137 million and a net loss of $184 million.
Those numbers actually compare favorably to Q1 2008 ($152 operating loss and $245 million net loss) and Q2 of 2007 ($268 million operating loss and $288 million net loss). But the company today urged its shareholders to focus instead on EBITA (earnings before interest, taxes, depreciation, and amortization) exclusive of expenses related to the company's December 2006 acquisition by a private equity consortium, reorganization charges, and "certain other items" as a true measure of the company's performance.
On that basis, Freescale reports operating earnings of $234 million and EBITA of $368 million. Q2 sales hit $1.47 billion, up 4.3% over $1.41 billion in Q1 and 6.5% over $1.38 billion in Q2 2007.
In a statement, Freescale CEO Rich Beyer pointed to revenue growth, operating efficiencies, and improved margins while praising the company for solid execution.
