Linear Technology Corporation (NASDAQ:LLTC) Q1 2016 Earnings Conference Call - Final Transcript
Oct 14, 2015 • 11:30 am ET
Good day everyone and welcome to the Linear Technology Corporation Fiscal 2016 First Quarter Earnings Conference Call. Today's conference is being recorded. And now your host for today's call, Mr. Don Zerio. Mr. Zerio, please go ahead, sir.
Good morning. Welcome to the Linear Technology conference call. I'm joined today by Bob Swanson, our Executive Chairman and Lothar Maier, our CEO. I assume, we've all seen copies of our press release, which was published yesterday just after the market close. I will take you through our first quarter results in more detail and then open up the conference call for your questions.
(Forward-Looking Cautionary Statements) Also SEC Regulation FD regarding selective disclosure influences our interaction with investors. Accordingly, this conference call will be our forum to respond to questions regarding our estimated financial performance going forward. Should you have questions regarding our estimates of sales and profits or other financial matters for the upcoming quarter, this is the time we are free to respond to your questions.
As noted in our press release, revenue for the September quarter came in near the midpoint of our guidance at $341.9 million, declining 9.9% from the June quarter. Due to the lower sales, gross margin and operating margin were also down at 75.1% and 43.8% respectively. Net income and earnings per share were $112 million and $0.46 per share on a slightly higher tax rate of 25.75% which we believe to be a good result despite the lower revenue. Though we're disappointed with the weak quarter, from our call and guidance last quarter that the results were generally as expected.
I don't wish to rehash the current state of the macroeconomic environment and the impact on our markets, but it's not a strong global business environment right now and I think that view has been confirmed by many companies within and outside of our industry. We made a call last quarter that we thought this correction would be a relatively short one. We are not yet ready to say we were right.
But we are sticking with the view that this down cycle does not appear to be one that'll be prolonged. It generally takes at least a few quarters for inventories to be rebalanced. However, we are encouraged that the worst of the inventory correction that comes with a decline in demand may be behind us. Bookings have stabilized. Our book- to-bill ratio was greater than 1 for the quarter and inventory is down in the channel in all major regions.
As most of you are aware, December quarter is historically a weaker period for us, as the industrial market is generally weaker this period even in good economic times. So it is difficult for us to make a strong recovery during the December quarter. Also note that our visibility is limited based upon our relatively short lead times. Given these data points we are currently projecting revenue to be flat to up 3% in the December quarter. I would like