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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: Earlie who wrote (144042)1/16/2002 9:38:04 AM
From: Don Lloyd  Read Replies (2) of 436258
 
Earlie -

- Linear Tech is doing just fine. This minor adjustment to their employment ranks and pending sale (the company hopes) of excess plants has nothing to do with the free fall in revs ($121.0 m vs y-o-y of $258.0m).

Read the release again, your interpretation is entirely mistaken. They are simply retiring a 4 inch fab, long since paid for multiple times. Note that they will not even take any special charges for it. Note that even at extremely low revenues, their NET after tax margin is still about 38% of sales, with absolutely clean earnings reports and a pristine, debt free and cash heavy balance sheet. The stock is overpriced, of course, but there are no operational issues not related to the economic environment.

Regards, Don
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