In this letter, some sufficient conditions are obtained to guarantee recurrent neural networks with linear saturation activation functions, and time-varying delays have multiequilibria located in the saturation region and the boundaries of the saturation region. These results on pattern characterization are used to analyze and design autoassociative memories, which are directly based on the parameters of the neural networks. Moreover, a formula for the numbers of spurious equilibria is also derived. Four design procedures for recurrent neural networks with linear saturation activation functions and time-varying delays are developed based on stability results. Two of these procedures allow the neural network to be capable of learning and forgetting. Finally, simulation results demonstrate the validity and characteristics of the proposed approach.