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

Paul Coghlan

I will take a first crack at it. Particularly a couple years ago, it was invoked at move your assembly or test to China. We didn’t do it and then for a while that it was a lot of employee turnover in China. And also wage rates were starting to pick up in China. So that major difference between China in, say, places like what Penang for example where we are, those differences were starting to narrow. Then given the stableness of the workforce kept us saying we would rather stay where we are, but is that what you meant would we be more likely to open up assembly or test in China?

Doug Freedman

Or just find a way to tap into the capital that they are basically making available for the industry in an effort to increase their onshore semiconductor content.

Paul Coghlan

Probably fab would be the only thing, where we are very capital-intensive where someone helps you but I do not know if we would go there for another fab. Not this time.

Doug Freedman

Great, thanks.

Rob Swanson

No. Linear Technology’s strength is its engineering IP, so that is what separates us from everybody. I guess that is what they like to acquire, that would be the last thing that we would give away.

Doug Freedman

Alright, great. Thanks so much.

Paul Coghlan

You’re welcome.

Operator

We will take our next question from Gilbert Alexander. Go ahead. Your line is open.

Gilbert Alexander,  Darfil Associates

Thanks for taking my question. I assume all your overseas sales are in dollars?

Paul Coghlan

Yes.

Gilbert Alexander

Thank you. Could you just, for housekeeping, give us your capital expenditures depreciation for this year?

Paul Coghlan

We estimate for this fiscal year it will be $80 million for CapEx and $50 million for depreciation.

Gilbert Alexander

Thank you.

Paul Coghlan

You’re welcome.

Gilbert Alexander

May I just ask one thing and maybe this goes back 15 years, and I am basically a consumer analyst and I do not have much growth in the food industry. Why do you have to do sequential sales and earnings when you could just do the quarter last year to the quarter this year? I know the industry likes it, but is it necessary?

Paul Coghlan

You have opened that question. We might argue that any quarterly data to spend so much time on given the long-term nature of our business isn’t as necessary as the attention it gets, but it is just the only way I can answer it for you as it has been that way historically. People have been in our industry, electronics – investors look more at quarter-to-quarter.

Gilbert Alexander

Thank you very much.

Paul Coghlan

You’re welcome.

Gilbert Alexander

Congratulations.
Paul Coghlan

Thank you.

Operator

It appears we have no further questions at this time.

Paul Coghlan

Okay, well thank you very much for your attention. We wish you all a happy and successful new year and have a good day. Bye bye.

Operator

That concludes today’s conference. Have a great day.