Shares of Linear Tech fell in midday trading on Wednesday after the Milpitas circuit maker reported third-quarter net income that missed analyst expectations and forecast lower revenue in the fourth quarter, saying customers are still cutting back on inventory.
Shares fell $1.51, or 4.8 percent, to $30.05 in midday trading. Shares have traded between $25.56 and $33.06 in the last 52 weeks.
The company said after the markets closed Tuesday that net income more than doubled to $137.3 million, or 59 cents a share, in the three months ended Sept. 26 from $60.7 million, or 27 cents a share, a year ago. Excluding charges, the company earned 67 cents a share.
Revenue rose 65 percent to $388.6 million from $236.1 million a year ago.
Analysts surveyed by Thomson Reuters, whose estimates typically exclude charges and other items, expected the company to earn 62 cents a share on revenue of $383.8 million.
Linear Tech said its fourth quarter contains “more uncertainty than in recent quarters, which makes forecasting difficult.”
But the company said customers are more confident in their ability to get parts and therefore are cutting inventories. That will result in a 4 percent drop in revenue during the fourth quarter, the company said, implying it expects revenue of roughly $246.1 million.
Analysts expected $387 million.
