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To: Softechie who wrote (1105)	4/17/2001 10:13:57 PM
From: Softechie	Read Replies (1) \| Respond to of 2155

UPDATE 1-Linear Tech warns of drop in Q4 chip sales -------------------------------------------------------------------------------- (adds detail throughout, previous MILPITAS, Calif.) LOS ANGELES, April 17 (Reuters) - Semiconductor manufacturer Linear Technology Corp. on Tuesday reported record profits for the past quarter but slashed forecasts for the current period because of slower bookings and faster order cancellations. Analysts had expected the company to lower its sales targets for the current quarter as it was swept into the broader slowdown facing the semiconductor industry, but the magnitude of the projected sequential drop at 20-30 percent was more than had been expected. "This was a difficult quarter as business turned dramatically downward," Robert Swanson, Linear Technology chairman and chief executive said in a statement. Linear, which makes a range of chips that control power and voltage for products ranging from cell phones to factory automation systems, was initially buffered by its strong order backlog, but "as the quarter progressed cancellations increased and bookings decreased significantly across all business areas," Swanson said. Analysts have said that the company has been sheltered from the broader drop in technology spending because corporate customers were reluctant to cancel orders for its chips, which translate analog readings on pressure speed and temperature into digital information and had been in short supply for much of 2000. Credit Suisse First Boston analyst Michael Masdea said the market for such high-end analog chips tends to lag the rest of the chip sector, but that conditions had worsened markedly in the first quarter and would not recover until year-end. Linear reported revenues of $282 million in its fiscal third quarter ending April 1, up from $258.45 million in the prior quarter. Net income for the quarter was $125.7 million, or 38 cents per share, compared with $114.76 million, or 34 cents in the prior quarter. The quarterly revenue tally was at the high end of the company's own forecast of sales between $279 million to $282 million. Wall Street analysts had forecast earnings-per-share of between 34 cents and 39 cents in the most recent quarter, according to Thomson Financial/First Call which tracks those estimates. Linear Technology shares closed at $38.69 on the Nasdaq ahead of the earnings release, but rebounded in after-hours trade in line with gains for market-leader Intel Corp . Linear Technology lost about 16 percent since the start of the year, underperforming the benchmark Philadelphia Stock Exchange semiconductor index, which is down only about 2 percent over that period. Despite a slowing U.S. economy, Intel Chief Executive Craig Barrett said he believes the company's sales of microprocessors have stabilized. REUTERS Rtr 21:50 04-17-01