Earnings Call Excerpt
Here’s the entire text of the Q&A from Linear Technology's (ticker: LLTC) Q3 2005 conference call. The prepared remarks are in a separate article. We recognize that this transcript may contain inaccuracies - if you find any, please post a comment below and we’ll incorporate your corrections. And please note: this conference call transcript is a Seeking Alpha product, so feel free to link to it but reproduction is not permitted without the explicit permission of Seeking Alpha.
You may want to read the prepared remarks before reading the Q&A.
Q&A
[Operator]:
Thank you. Our first question comes from Adam Parker with Sanford Bernstein.
[Q]: Thanks for all the details there on the options, Paul. Given the high volume handset environment that seems to be out there for the last couple of quarters and the expectations that maybe that will that continue or that the 3G units, the high-end of that will grow dramatically next year, how do you think that's going to impact Linear's business, albeit it's not a huge percent of your revenue right now, but do you think you can commensurately participate there or what's the roadmap in terms of your cell phone business?
[A]: Hi, Adam, this is Dave Bell. I will attempt to answer your question for you. I think in general, the 3G cell phones are going to create a growing opportunity for us. What you have seen during the last decade you went back to cell phones ten years ago they were largely made from commodity components, and as more and more performance, more and more features, battery life expectations and so forth grew in those phones, there were opportunities for more and more high performance products and part of our revenue growth was due to that. As there is more and more business in 3G and more of those phones to get designed, I think the same trend will continue and it will create even more opportunity for high performance products.
[Q]: It's not really represented in your revenue this year. Should I think about cell phone being a bigger percentage of your overall mix at the end of next year than it is now?
[A]: Part of the problem is categorization. As Paul mentioned earlier during his monologue we have some challenges on where to bucket some of these products. Is a cell phone with an MP3 player, should that be called a cell phone, should that be called an MP3 player? If you are looking at the total combination of our consumer products, as Paul mentioned when you look at cell phones, computer and high-end consumer, we actually grew 2 percentage points from last quarter. So you may see a little bit of fluctuation in the cell phone number itself but when you look at the whole consumer business it's actually growing. And I think there is some possibility of continued growing in the future.
[Operator] There are no further questions in the queue, but I would like to take this opportunity to remind everyone that it is ?*
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