Altera Announces First Quarter Results; Sales up 10% Sequentially.SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif. -- Altera Altera Corporation (NASDAQ: ALTR) is a leading manufacturer of programmable logic devices. It is a member of the NASDAQ-100 group of technology stocks and the S&P 500. Corporation (Nasdaq:ALTR) today announced first quarter 2005 sales of $264.8 million, up 10% from the fourth quarter of 2004 and up 9% from the first quarter of 2004. Sales of the company's new products grew 16% sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen and were up 96% from the prior year's first quarter. First quarter net income was $63.8 million, $0.17 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to net income of $58.8 million, $0.15 per diluted share, in the first quarter of 2004. Gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. was 68.3% for the first quarter of 2005 versus 68.8% for the first quarter of 2004. Altera repurchased 2.3 million shares of its common stock during the quarter at a cost of $43.4 million. Altera's tax rate for the first quarter was 20%, in line with the company's expected annual tax rate for 2005, and 1% lower than prior guidance. Altera ended the quarter with $1.2 billion in cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments. "Stratix(R) II FPGA (Field Programmable Gate Array) A type of gate array that is programmed in the field rather than in a semiconductor fab. Containing up to hundreds of thousands of gates, there are a variety of FPGA architectures on the market. revenues more than doubled sequentially and this family remains, by a wide margin, the best selling high-density high-den·si·ty adj. Having a high concentration: high-density urban areas. FPGA for customers in the development phase today. This success builds on the market-leading position we previously established with our high-density Stratix and low-cost Cyclone cyclone, atmospheric pressure distribution in which there is a low central pressure relative to the surrounding pressure. The resulting pressure gradient, combined with the Coriolis effect, causes air to circulate about the core of lowest pressure in a (TM) families," said John Daane, president, chief executive officer, and chairman of the board. "We believe that the peak revenues for Cyclone and Stratix devices are still well ahead of us and that our overall competitive position for securing design wins at the leading edge is increasing with the Stratix II and Cyclone II families. On the CPLD (Complex PLD) A programmable logic device that is made up of several simple PLDs (SPLDs) with a programmable switching matrix in between the logic blocks. CPLDs typically use EEPROM, flash memory or SRAM to hold the logic design interconnections. See PLD and SPLD. side of our business, the MAX(R) II family is now completely rolled out. We expect that this family, with its innovative low-cost architecture, will further expand our position as the world's leader in CPLDs." Altera's innovation and execution made the company the fastest growing programmable logic See PLD. company in 2004. The track record of innovation and execution continues in 2005: --Introduced in 2004 as the market's first high-density 90-nm FPGA, the Stratix II family remains the best selling FPGA in its class. To fully optimize optimize - optimisation the potential advantages of 90-nm production, the Stratix II family introduced the unique adaptive logic See adaptive computing. module (ALM) architecture. This highly efficient architecture produces significant performance gains compared to the traditional approach used by others in the industry and also allows designers to pack more functionality into less die area. The combination of the ALM's performance and density advantages, the Stratix II family's ready availability, and Altera's leading market share at the prior 130-nm node node, in astronomy, point at which the orbit of a body crosses a reference plane. One reference plane that is often used is the plane of the earth's orbit around the sun (ecliptic). all contribute to the Stratix II family's number one position in high-density 90-nm FPGAs. Further, in cases where customer production economics dictate TO DICTATE. To pronounce word for word what is destined to be at the same time written by another. Merlin Rep. mot Suggestion, p. 5 00; Toull. Dr. Civ. Fr. liv. 3, t. 2, c. 5, n. 410. the use of a lower cost non-programmable device, Stratix II devices can be migrated into an Altera HardCopy (jargon) hardcopy - A paper printout of data displayed on a screen. Contrast softcopy. (R) II structured ASIC A type of application specific IC (ASIC) chip that contains blocks of logic, called "tiles" or "modules," that have their transistors already wired together forming gates along with some combination of multiplexors, flip/flops, look up tables and the like. . The 90-nm-based HardCopy II family provides a fast and seamless See seamless integration. migration path from the Stratix II FPGA to a lower cost device with even higher performance and lower power consumption. Combined, the HardCopy II and Stratix II families create greater competitive strength for Stratix II devices and, through the ability to migrate to HardCopy II structured ASICs, expand Altera's market opportunity into applications not served by other programmable device companies. --In just over two years since its introduction, Altera's Cyclone family of low-cost FPGAs has shipped more than 10 million units. Cyclone devices reached this milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. faster than any other product family in the programmable logic industry. In designing the Cyclone family, Altera broke with industry tradition and did not reuse reuse - Using code developed for one application program in another application. Traditionally achieved using program libraries. Object-oriented programming offers reusability of code via its techniques of inheritance and genericity. an existing architecture to create a low-cost family. The Cyclone FPGA family was instead designed from the ground up to deliver low cost. In addition, the company chose to launch the family using a high-yielding, low-cost 130-nm process. The combination of an innovative architecture and high yields delivered a large performance advantage, easy availability, and Cyclone family lifetime revenues that are several times larger than competing alternatives. Earlier this year, the 90-nm-based Cyclone II family began shipping, offering customers three times higher densities, more features, and even lower costs than the original Cyclone family, expanding the opportunity for Cyclone devices across a wider set of high-volume, cost-sensitive applications. --With the arrival of the production-qualified EPM EPM equine protozoal myeloencephalitis. 1270 device, Altera has completed the rollout of its MAX II CPLD family. Altera, the leader in CPLDs, broke new ground with MAX II devices by taking a look-up-table-based approach to CPLD architecture, giving the MAX II family the industry's lowest cost, highest density, and best performance. Recent benchmarking
Benchmarking (also "best practice benchmarking" or "process benchmarking") is a process used in management and particularly strategic studies substantiate To establish the existence or truth of a particular fact through the use of competent evidence; to verify. For example, an Eyewitness might be called by a party to a lawsuit to substantiate that party's testimony. that MAX II devices outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. comparable competitive offerings by 50 to 80%. The MAX II cost, density, and performance advantages give Altera not only competitive strength in traditional CPLD applications, but also enable Altera to pursue growth opportunities beyond the range served by typical CPLDs. Conference Call and Quarterly Update A conference call will be held today at 1:45 p.m. Pacific Time to discuss the quarter's results and management's outlook for the second quarter of 2005. The web cast and subsequent replay will be available in the investor relations Investor relations The process by which the corporation communicates with its investors. section of the company's web site at http://www.altera.com. A telephonic replay of the call may be accessed later in the day by calling 719-457-0820 and referencing confirmation code 258712. The telephonic replay will be available for two weeks following the live call. Altera's second quarter business update will be issued in a press release available after the market close on May 31. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Statements in this press release that are not historical are "forward-looking statements" as the term is defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements are generally written in the future tense future tense n. A verb tense expressing future time. Noun 1. future tense - a verb tense that expresses actions or states in the future future and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. preceded by words such as "will", "believe", "expect", or words that imply or predict a future state. Investors are cautioned that all forward-looking statements in this release involve risks and uncertainty that can cause actual results to differ from those currently anticipated, due to a number of factors, including without limitation, customer business environment, market acceptance of the company's products, the rate of growth of the company's new products including the Stratix, Stratix II, Cyclone, Cyclone II, MAX II, and HardCopy II device families, the rate at which our customers' new platforms enter production, as well as changing economic conditions, and other risk factors discussed in documents filed by the company with the Securities and Exchange Commission from time to time. Copies of Altera's SEC filings are posted on the company's web site and are available from the company without charge. Forward-looking statements are made as of the date of this release, and, except as required by law, the company does not undertake an obligation to update its forward-looking statements to reflect future events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . About Altera Altera Corporation (Nasdaq:ALTR) is the world's pioneer of system-on-a-programmable-chip (SOPC SOPC System on a Programmable Chip SOPC Special Operations Preparation Course SOPC Second-Order Power Control SOPC Shuttle Operations and Planning Center SOPC 1-Stearoyl-2-Oleoyl-Sn-Glycero-3-Phosphatidylcholine SOPC Shaastra Online Programming Contest ) solutions. Combining programmable logic technology with software tools, intellectual property, and technical services, Altera provides high-value programmable solutions to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 14,000 customers worldwide. More information is available at http://www.altera.com. Altera, The Programmable Solutions Company, the stylized styl·ize tr.v. styl·ized, styl·iz·ing, styl·iz·es 1. To restrict or make conform to a particular style. 2. To represent conventionally; conventionalize. Altera logo, specific device designations and all other words that are identified as trademarks and/or service marks are, unless noted otherwise, the trademarks and service marks of Altera Corporation in the U.S. and other countries. All other product or service names are the property of their respective holder.
ALTERA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data and note)
(Unaudited)
THREE MONTHS ENDED
----------------------------------
Apr. 1 Dec. 31 Apr. 2
2005 2004 2004
----------- ---------- -----------
Net sales $ 264,822 $ 239,885 $ 242,908
Costs and expenses:
Cost of sales 83,890 72,335 75,841
Research and development 51,389 46,946 42,582
Selling, general, and administrative 54,334 54,578 49,878
----------- ---------- -----------
Total costs and expenses 189,613 173,859 168,301
----------- ---------- -----------
Income from operations 75,209 66,026 74,607
Interest and other income, net 4,498 4,957 3,736
----------- ---------- ----------
Income before income taxes 79,707 70,983 78,343
Provision for income taxes (15,941) (13,019) (19,586)
----------- ---------- ----------
Net income $ 63,766 $ 57,964 $ 58,757
=========== ========== ==========
Income per share:
Basic $ 0.17 $ 0.16 $ 0.16
=========== ========== ==========
Diluted $ 0.17 $ 0.15 $ 0.15
=========== ========== ==========
Shares used in computation:
Basic 372,881 373,347 375,736
=========== ========== ==========
Diluted 379,443 381,351 385,793
=========== ========== ==========
Tax rate 20.0% 18.3% 25.0%
% of Sales:
Gross margin 68.3% 69.8% 68.8%
Research and development 19.4% 19.6% 17.5%
Selling, general, and
administrative 20.5% 22.8% 20.6%
Income from operations 28.4% 27.5% 30.7%
Net income 24.1% 24.2% 24.2%
Note: During the quarter ended April 1, 2005, the Company's
Nonqualified Deferred Compensation Plan assets experienced a market
decline of $1.2 million. This resulted in decreased compensation
expense of $1.2 million ($0.4 million R&D expense, $0.8 million SG&A
expense) and a corresponding decrease in interest and other income of
$1.2 million. There was no net impact on income before income taxes or
net income for the quarter.
ALTERA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
Apr. 1 Dec. 31
2005 2004
------------ ------------
Assets
Current assets:
Cash and short-term investments $ 1,209,470 $ 1,203,248
Accounts receivable, net 113,832 67,522
Inventories 55,604 67,454
Deferred compensation plan assets 58,965 56,148
Other current assets 132,401 142,725
------------ ------------
Total current assets 1,570,272 1,537,097
Property and equipment, net 158,145 159,587
Deferred income taxes and other assets, net 49,391 49,982
------------ ------------
$ 1,777,808 $ 1,746,666
============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and current liabilities $ 183,798 $ 190,813
Deferred compensation plan obligations 58,965 56,148
Deferred income and allowances on sales to
distributors 225,186 221,081
------------ ------------
Total current liabilities 467,949 468,042
Stockholders' equity 1,309,859 1,278,624
------------ ------------
$ 1,777,808 $ 1,746,666
============ ============
Key Ratios & Information
Current Assets/Current Liabilities 3:1 3:1
Liabilities/Equity 1:3 1:3
Annualized YTD Return on Equity 20% 24%
Quarterly Depreciation Expense $ 6,982 $ 6,245
Quarterly Capital Expenditures $ 5,540 $ 8,862
Annualized Sales per Employee $ 486 $ 489
Number of Employees 2,197 2,164
Inventory MSOH (a): Altera 2.0 2.8
Inventory MSOH (a): Distribution 1.3 1.4
Days Sales Outstanding 39 26
(a) MSOH: Months Supply On Hand
Note: Certain reclassifications have been made to prior period
balances in order to conform to the current period's presentation.
ALTERA CORPORATION
REVENUE SUMMARY
(Unaudited)
Q-Q Y-Y
Q1'05 Q4'04 Q1'04 Growth Growth
-------- -------- ------- ------- --------
Geography
---------
North America 24% 29% 30% -7% -11%
-------- -------- -------
Europe 27% 22% 24% 36% 21%
Japan 25% 24% 25% 15% 12%
Asia Pacific 24% 25% 21% 4% 21%
-------- -------- -------
International 76% 71% 70% 18% 18%
-------- -------- -------
Total 100% 100% 100% 10% 9%
======== ======== =======
Product Category
----------------
New 34% 33% 19% 16% 96%
Mainstream 39% 37% 46% 15% -7%
Mature & Other 27% 30% 35% -1% -17%
-------- -------- -------
Total 100% 100% 100% 10% 9%
======== ======== =======
Market Segment
--------------
Communications 47% 41% 42% 28% 21%
Industrial 25% 32% 32% -15% -14%
Computer & Storage 11% 11% 11% 19% 13%
Consumer 17% 16% 15% 13% 20%
-------- -------- -------
Total 100% 100% 100% 10% 9%
======== ======== =======
Product Category Description
----------------------------
Category Products
New Stratix, Stratix II, Stratix GX, Cyclone,
Cyclone II, MAX 3000A, MAX II, and
HardCopy devices
Mainstream APEX 20K, APEX 20KC, APEX 20KE, APEX II,
FLEX 10KE, ACEX 1K, Excalibur, Mercury,
MAX 7000A, and MAX 7000B devices
Mature & Other FLEX 6000, FLEX 8000, FLEX 10K, FLEX 10KA,
MAX 7000, MAX 7000S, MAX 9000, Classic,
configuration and other devices, software
and other tools, and intellectual
property cores
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion