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

Operator

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

Chris Danely, JPMorgan

Hey, thanks guys. Just a quick one then the clarification. So it sounds like know your business overall maybe have gotten a little bit better, but roughly in the seasonal range over the last whatever 3, 6, 12 months. Would you guys say your visibility has improved at all or is everything more or less the same as it was 3 months, 6 months, 12 months ago?

Paul Coghlan

I think it is pretty similar. I mean if the customer doesn’t have a lot of inventory, then your visibility is about the same as it has been for the last 12 months. We have little cancellations, sometimes you get a 911 call, somebody in a hurry to get product, so we would probably have more of that than we would have if there was a lot inventory out at the customers, so I think that visibility has been similar.

Chris Danely

Okay, thanks, Paul. Then just two quick housekeeping ones, what should we assume for the tax rate going forward? Then you talked a little bit about the stronger dollar, you know, if the dollar continues to appreciate, what would be the impact on your business and your P&L if any?

Paul Coghlan

Okay, the first one, the ongoing tax rate will be 25.5%, probably through to the end of June and then once you get into that second half of the calendar year or our new fiscal year, if the R&D credit hasn’t been approved that would probably have a 0.75 or one point impact on the effective tax rate. So I guess for the next six months the one we have — provided we don’t have discrete items should be good, after that it might get a little higher depending on the R&D credit.

Lothar Maier

The dollar, that is always a tough question, because for me anyways, when I look at it as a financial guy in a close room, I think if the dollar get stronger that will hurt you internationally, yet my experience has been a stronger dollar really hasn’t hurt internationally. If it changes dramatically quickly and then keeps going up and down then it impacts you, but if it strengthens bit by bit and stays stable in that pattern as obvious it may sound, found I think historically that has not hurt our business.

Chris Danely

Okay. Thanks. As an evidenced, so long I forgot it was like.

Paul Coghlan

Yes. We do as well, yes.

Chris Danely

Time to go to shop in Europe.

Paul Coghlan

There you go. Have a nice vacation, Chris. Take the family this summer.