Linear Technology Corporation (LLTC)’s Q2 2015 Earnings Conference Call Transcript

Operator

We will take our next question from Chris Caso. Go ahead. Your line is open.

Chris Caso, Susquehanna Financial Group

Yes, thank you. I guess, just summing up some of your earlier comments, would it be safe to say that what you are seeing in your outlook is some degree of strengthening in the business? You mentioned where you were versus normal seasonality and I guess the guidance is little ahead of where it was last year, but I guess we are hovering close to normal seasonality, so I am just interested in kind of the tone from customers if this is indeed something to see some improving conditions.

Paul Coghlan

Well, I mean, I think our guidance last year, was it 3 to 6, I think now it is 4 to 7, so I mean, they are very, very similar. Last year, our December quarter was down, I think, one percentage point or 1.2 percentage points and this year it is down five. I think when you look overall, we think businesses if we look vis-à-vis the past couple of years, we think the macro outlook particularly, in the United States is a bit stronger. Since we are feeling that a little bit from US customers. When I was driving home last night they said this survey they do of a confidence level of American businessmen was at the highest it has been since 2008, this commentary I heard on the news driving home. So I think overall in the US, I mean, people have seen several good quarters in a row on a macro side, so I think the US, we hope, should be a good market for us.

Chris Caso

Just as a follow-on I believe in your prepared remarks you talked about the bookings up in the second half of the quarter. Could you characterize it? Is that normal seasonal behavior for your business?

Paul Coghlan

Yes. If you look at our lead times are four to six weeks, so somebody ordering early in the December quarter would be ordering for shipment to take place in the month of December. In the month of December, we told you particularly in Europe, you have got a lot of vacations and also industrial and automotive plants, some of them in the US and Europe had shutdown at the end of December. If you kind of look at that relative to lead times, you would say we will then probably want you get near the end of November, people are looking at shipments coming in the New Year, in January and that they probably would pick up their order patterns greater than what they wanted to be shipped in December, so I think it is straightforward as that, Chris.

Chris Caso

Okay, that makes sense. Thank you.

Paul Coghlan

You’re welcome.