Chip maker Linear Technology Corp. (LLTC), Tuesday reported a 13 percent increase in third-quarter profit, helped mainly by a sharply lower income tax provision. Revenues for the quarter grew one percent and topped Wall Street estimates, but was offset by increased operating expenses.
Moving forward, Linear Technology said customers, while hopeful of growth, continue to order cautiously to the low-end of published lead times.
Shares of the company are currently losing about 3 percent in after-hours trade on the Nasdaq.
Quarterly results were favorably helped by an income tax rate of 12.75 percent as compared to 23.75 percent in the prior year. This was due to the reinstatement of federal R&D tax credit and the release of estimated liabilities for fiscal years that are no longer subject to audit.
The Milpitas, California-based Linear Technology reported third-quarter net income of $111 million or $0.46 per share, compared to $98.5 million or $0.42 per share last year.
Excluding items, adjusted earnings for the quarter were $129.6 million or $0.54 per share, compared to $114 million or $0.49 per share a year ago.
Analysts polled by Thomson Reuters expected earnings of $0.44 per share for the quarter. Analysts' estimates typically exclude special items.
Linear Technology, which makes high performance analog integrated circuits, reported quarterly revenues that modestly increased to $314.5 million from $312 million in the prior year. Analysts on consensus estimated revenues of $313.46 million for the quarter.
The company estimates fourth-quarter revenue growth in the range of 1 to 4 percent. Analysts currently estimate revenues of $329.39 million for the quarter.
In the prior-year fourth quarter, Linear Technology had reported revenues of $330 million.
The company also announced a cash dividend of $0.26 per share, payable on May 29 stockholders asv of May 17.
Linear Technology stock closed Tuesday at $36.68, up 1.78%, on a volume of 2.3 million shares. In after hours, the stock dropped 3%.
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