SAN JOSE, Calif. (AP) — Linear Technology Corp. on Tuesday posted quarterly earnings that topped Wall Street’s forecasts, but a forecast for falling revenue in the current period undercut its stock.
Shares of the Milpitas-based chip maker shed almost 4 percent in extended trading, after the results were announced.
Linear warned that its bookings declined toward the end of the latest quarter, and that customers were reducing their inventories faster than expected. The worry over U.S. and European debt issues has left some customers “cautious and delaying orders and shipments until the current economic picture becomes clearer.”
As a result, the company expects that revenue will fall 6 percent to 8 percent in the current quarter, Linear Technology’s fiscal first quarter, from the prior three-month period. That translates to a range of $329.9 million to $337.0 million. Analysts were expecting $366.3 million, according to FactSet.
The stock fell $1.20, or 3.9 percent, to $30 in extended trading.
Linear reported after the market closed that net income in the quarter that ended July 3 rose 27 percent to $158.2 million, or 68 cents per share, or 76 cents per share excluding certain expenses. Analysts were expecting 55 cents per share, according to FactSet.
Revenue fell 2 percent to $358.6 million. Analysts were expecting $358.8 million.