Altera Reports 2003 Financial Results; Net Income Up 70%.Business Editors 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.--(BUSINESS WIRE)--Jan. 26, 2004 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 reported 2003 net income of $155.1 million, $0.40 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, versus net income of $91.3 million, or $0.23 per diluted share in 2002. Revenues in 2003 were $827.2 million, up 16.2% compared to $711.7 million in 2002. Fourth quarter net income was $45.1 million, $0.12 per diluted share, up 66% versus net income of $27.1 million, $0.07 per diluted share, in the fourth quarter of 2002. Pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern earnings included a $3.1 million benefit in the fourth quarter of 2003 and an $11.2 million benefit in the fourth quarter of 2002 resulting from the sale of inventory previously written-down in 2001. Fourth quarter revenues were $217.4 million, an increase of 20% compared to $180.6 million of revenues in the fourth quarter of 2002. Altera repurchased 12.5 million shares of its common stock during 2003 at a cost of $239.0 million, with 6.0 million shares repurchased during the fourth quarter at a cost of $129.1 million. Altera ended the quarter with $1.0 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. "New product sales were up nearly 300% in 2003, which drove Altera's overall 16% sales gains. The Stratix(TM) family led our growth, and the more recently introduced 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) family, with more than one million units shipped, far exceeded our expectations. These two families have made Altera the leading supplier of 0.13-micron-based FPGAs," said John Daane, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "As customers take their early Stratix and Cyclone designs into production, we expect these families to drive growth for Altera. 2004 also will be a year of significant new product introductions as we roll out our new Stratix II and Cyclone II FPGAs and MAX(R) II CPLDs. This new Altera technology will further add to our momentum as we pursue growth opportunities across all the markets we serve." Altera continues to advance its leadership position in 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. -- With its sales up sharply in the quarter, Altera's Stratix device family remains the top selling 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. at the advanced 0.13-micron process 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). . More than 1,000 customers have purchased these devices for applications across all the markets served by Altera. The Stratix family delivers high performance, flexible memory, and the industry's most powerful digital signal processing See DSP. Digital Signal Processing - (DSP) Computer manipulation of analog signals (commonly sound or image) which have been converted to digital form (sampled). (DSP (1) (Digital Signal Processor) A special-purpose CPU used for digital signal processing applications (see definition #2 below). It provides ultra-fast instruction sequences, such as shift and add, and multiply and add, which are commonly used in math-intensive ) capability. In addition, for customers targeting high-volume production with the higher density members of the Stratix family, Altera offers a seamless See seamless integration. migration path to a lower cost HardCopy (jargon) hardcopy - A paper printout of data displayed on a screen. Contrast softcopy. (TM) device. Altera's HardCopy devices are the PLD (Programmable Logic Device) Refers to a variety of logic chips that are programmable at the customer's site, the customer being the vendor of the finished chip, not the end user. industry's only complete prototype-to-volume production solution for high density designs. HardCopy devices provide engineers with a no-risk alternative to the lengthy and costly ASIC-based redesign re·de·sign tr.v. re·de·signed, re·de·sign·ing, re·de·signs To make a revision in the appearance or function of. re process that has been the traditional path to volume production. -- Altera has now shipped more than one million Cyclone devices, demonstrating the broad appeal of this innovative device family that delivers FPGA performance and flexibility at low cost. The Cyclone family expands the reach of Altera's PLD technology into applications traditionally reserved for low-cost ASICs. In the 13 months since the family began shipping, Cyclone devices have been delivered to an Altera record-setting 2,200+ customers. Intensive customer dialogue in the design phase identified the optimal blend “Blending” redirects here. For alpha blending, see Alpha compositing. In linguistics, a blend is a word formed from parts of two other words. These parts are sometimes, but not always, morphemes. of performance, features, and price. These insights, when combined with a fast Cyclone manufacturing ramp, set the stage for very rapid customer adoption of this new family. The Cyclone family also provides a very cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. environment for implementation of Altera's industry-leading Nios(R) soft processor core. The editors of Electronic Design News magazine recently recognized the Nios embedded processor Nios is a soft configurable 16-bit processor designed to target FPGAs from Altera. It is intended for embedded applications. Altera now recommends the 32-bit Nios II configurable processor for all new design activity. version 3.0 as one of its Hot 100 Products of 2003. More than 12,000 Nios development kits have shipped, demonstrating the appeal of this unique configurable soft processor core. Conference Call and Quarterly Update A conference call will be held today at 1:45 PM Pacific Time to discuss the quarter's results and management's business outlook. A webcast and subsequent replay will be available on the company's website, www.altera.com. A telephonic replay of the call may be accessed after 5:00 PM Pacific Time by calling (719) 457-0820 and referencing code 258712. Altera will provide a business update on March 11, 2004. This business update will be made available after the market close and will be posted on the company's web site. Those who do not have access to the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the may contact Altera's investor relations Investor relations The process by which the corporation communicates with its investors. department at (408) 544-7707. 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", "expects", or words that imply or predict a future state. Investors are cautioned that all forward-looking statements in this release involve risks and uncertainty which can cause actual results to differ from those currently anticipated, due to a number of factors, including without limitation, the risk that future performance is dependent on the rate at which customers' designs move from the prototyping (1) Creating a demo of a new system. Prototyping is essential for clarifying information requirements. The design of a system (functional specs) must be finalized before the system can be built. stage to volume production, the rate of growth of our customers' end markets, the design performance of software and other tools, market acceptance of the company's products, the rate of growth of the company's new products and in particular the Stratix, Stratix GX, and Cyclone device families, market demand for the company's mainstream and mature products, 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 in system-on-a-programmable-chip (SOPC) solutions. Combining programmable logic See PLD. 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 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.
ALTERA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data and note)
(Unaudited)
THREE MONTHS ENDED YEAR ENDED
----------------------------- -------------------
Dec. 31 Sept. 30 Dec. 31 Dec. 31 Dec. 31
2003 2003 2002 2003 2002
--------- --------- --------- --------- ---------
Net sales $217,426 $209,446 $180,647 $827,207 $711,684
Costs and expenses:
Cost of sales 70,613 65,578 59,130 265,873 263,067
Research and
development 41,274 40,976 49,294 178,543 182,766
Selling, general, and
administrative 47,869 46,943 41,515 184,609 168,484
--------- --------- --------- --------- ---------
Total costs and
expenses 159,756 153,497 149,939 629,025 614,317
--------- --------- --------- --------- ---------
Income from
operations 57,670 55,949 30,708 198,182 97,367
Interest and other
income, net 4,167 4,002 5,944 14,319 25,961
--------- --------- --------- --------- ---------
Income before income
taxes 61,837 59,951 36,652 212,501 123,328
Provision for income
taxes (16,695) (16,188) (9,529) (57,376) (32,065)
--------- --------- --------- --------- ---------
Net income $ 45,142 $ 43,763 $ 27,123 $155,125 $ 91,263
========= ========= ========= ========= =========
Income per share:
Basic $ 0.12 $ 0.11 $ 0.07 $ 0.41 $ 0.24
========= ========= ========= ========= =========
Diluted $ 0.12 $ 0.11 $ 0.07 $ 0.40 $ 0.23
========= ========= ========= ========= =========
Shares used in computation:
Basic 378,199 381,366 382,176 381,387 383,619
========= ========= ========= ========= =========
Diluted 388,299 391,013 387,595 389,753 391,708
========= ========= ========= ========= =========
Tax rate 27.0% 27.0% 26.0% 27.0% 26.0%
% of Sales:
Gross margin 67.5% 68.7% 67.3% 67.9% 63.0%
Research and
development 19.0% 19.6% 27.3% 21.6% 25.7%
Selling, general,
and administrative 22.0% 22.4% 23.0% 22.3% 23.6%
Income from
operations 26.5% 26.7% 17.0% 24.0% 13.7%
Net income 20.8% 20.9% 15.0% 18.8% 12.8%
Note: Statements of operations for the three month periods ended
December 31, 2003, September 30, 2003, and December 31, 2002 included
benefits of $3.1 million, $7.6 million, and $11.2 million,
respectively, resulting from the sale of inventory previously written
down in 2001. Such benefits had a favorable gross margin impact of
1.4%, 3.6%, and 6.2%, respectively. For the years ended December 31,
2003 and December 31, 2002, these benefits were $29.0 million and
$18.0 million, respectively. Such benefits had a gross margin impact
of 3.5% and 2.5%, respectively.
ALTERA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
Dec. 31 Sept. 30 Dec. 31
2003 2003 2002
----------- ----------- -----------
Assets
Current assets:
Cash and short-term investments $1,031,890 $1,087,737 $ 942,659
Accounts receivable, net 87,204 62,367 57,111
Inventories 44,583 43,151 39,089
Other current assets 106,355 99,438 111,500
----------- ----------- -----------
Total current assets 1,270,032 1,292,693 1,150,359
Long-term investments 14,451 14,452 -
Property and equipment, net 160,924 167,184 183,999
Intangible and other assets, net 42,199 38,849 37,379
----------- ----------- -----------
$1,487,606 $1,513,178 $1,371,737
=========== =========== ===========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and current
liabilities $ 139,781 $ 143,178 $ 96,194
Deferred income and allowances on
sales to distributors 245,421 199,505 144,307
----------- ----------- -----------
Total current liabilities 385,202 342,683 240,501
Stockholders' equity 1,102,404 1,170,495 1,131,236
----------- ----------- -----------
$1,487,606 $1,513,178 $1,371,737
=========== =========== ===========
Key Ratios & Information
Current Assets/Current Liabilities 3:1 4:1 5:1
Liabilities/Equity 1:3 1:3 1:5
Annualized Return on Equity 14% 13% 8%
Quarterly Depreciation Expense $ 10,875 $ 8,160 $ 10,321
Quarterly Capital Expenditures $ 4,615 $ 2,573 $ 3,258
Annualized Sales per Employee $ 426 $ 421 $ 375
Number of Employees 1,995 1,959 1,882
Inventory MSOH (a): Altera 1.9 2.0 2.0
Inventory MSOH (a): Distribution 1.7 1.5 1.6
Days Sales Outstanding 36 27 29
(a) MSOH: Months Supply On Hand
ALTERA CORPORATION
REVENUE SUMMARY
(Unaudited)
Quarterly
Growth Rates Year ending Annual
------------- ----------- Growth
Q4'03 Q3'03 Q4'02 Q-Q Y-Y 2003 2002 Rate
----- ----- ----- --- ---- ----- ----- -------
Geography
----------------
North America 31% 33% 34% -4% 9% 33% 40% -4%
----- ----- ----- ----- -----
Europe 21% 22% 24% -1% 8% 22% 24% 9%
Japan 24% 24% 25% 2% 13% 24% 21% 30%
Asia Pacific 24% 21% 17% 23% 71% 21% 15% 62%
----- ----- ----- ----- -----
International 69% 67% 66% 8% 26% 67% 60% 30%
----- ----- ----- ----- -----
Total 100% 100% 100% 4% 20% 100% 100% 16%
===== ===== ===== ===== =====
Product Category (redefined below)
----------------------------------
New 16% 13% 5% 30% 275% 12% 4% 288%
Mainstream 47% 50% 51% -3% 12% 50% 49% 18%
Mature & Other 37% 37% 44% 3% 0% 38% 47% -5%
----- ----- ----- ----- -----
Total 100% 100% 100% 4% 20% 100% 100% 16%
===== ===== ===== ===== =====
Market Segment
----------------
Communications 47% 43% 44% 13% 29% 44% 46% 12%
Industrial &
Automotive 29% 30% 28% 0% 22% 30% 27% 26%
Computer &
Storage 11% 11% 13% -3% 2% 11% 13% -4%
Consumer 13% 16% 15% -9% 8% 15% 14% 30%
----- ----- ----- ----- -----
Total 100% 100% 100% 4% 20% 100% 100% 16%
===== ===== ===== ===== =====
Product Category Description (redefinition applies to all periods
presented)
----------------------------------------------------------------------
Category Products
New Stratix, Stratix GX, Cyclone, MAX 3000A, and
HardCopy families
Mainstream MAX 7000A, MAX 7000B, FLEX 10KE, APEX 20K,
APEX 20KE, APEX 20KC, APEX II, ACEX 1K, Mercury,
and Excalibur families
Mature & Other Classic, FLEX 6000, FLEX 8000, FLEX 10K, FLEX 10KA,
MAX 7000, MAX 7000S, and MAX 9000 families, MPLD,
configuration and other devices, software and other
tools, and intellectual property cores
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion