ebnews.com
Thursday, May 30, 2002
Linear's Swanson eyes the recovery
By Andrew MacLellan
EBN
(05/28/02, 01:40:11 PM EST)
Following the bloodbath of the past year, Linear Technology Inc. is showing signs of a business upturn in analog chip -- often a precursor of better times for the electronics industry as a whole.
The environment, however, is still tough. The Milpitas, Calif., company suffered a revenue drop of 54% in its fiscal third quarter ended March 31, to $130 million, and a nearly 60% decline in net earnings, to $51.5 million. Fiscal pressures have also forced Linear to lay off employees for the first time in its 20-year history-a 17% reduction-and close a 4in.-wafer fab.
Nevertheless, Linear maintained a 40% aftertax profit margin in its latest quarter, enviable in any business climate, and also strengthened its design team. Noting that Linear's performance beat Wall Street expectations, straight-talking chairman and chief executive Bob Swanson said in a recent conference call, “For the first time in several quarters, all of the critical financial trends showed healthy improvement.”
---more---
Regards, Don |
