Altera Reports First Quarter Results.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)--April 18, 2001 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 earnings 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 of $0.16, which meets First Call consensus estimates, and compares to $0.25 per share pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma results in the fourth quarter and $0.18 per share in the first quarter of 2000. First quarter net income of $63.0 million declined 39% from the fourth quarter's pro forma income and 16% from the prior year's first quarter. The company's fourth quarter pro forma income excludes the one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. gain and other one-time charges and credits relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the sale of the company's 23% interest in WaferTech to Taiwan Taiwan (tī`wän`), Portuguese Formosa, officially Republic of China, island nation (2005 est. pop. 22,894,000), 13,885 sq mi (35,961 sq km), in the Pacific Ocean, separated from the mainland of S China by the 100-mi-wide (161-km) Taiwan Semiconductor Manufacturing Company. First quarter sales of $287.4 million were down 22% from the previous quarter and up 5% from the same period last year. Sales of the company's new products grew 22% sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen , while sales of the company's mainstream and mature products declined 22% and 28% respectively. Including March stock transactions that settled in April, Altera repurchased 3.5 million shares of its common stock during the quarter at a cost of $90.8 million. Altera ended the quarter with a $925.9 million cash position. "The quarter's results reflect the slowing end demand experienced by many of our customers, particularly in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , and a continuation continuation - continuation passing style of the sharp industry-wide inventory correction CORRECTION,punishment. Chastisement by one having authority of a person who has committed some offence, for the purpose of bringing him to legal subjection. 2. It is chiefly exercised in a parental manner, by parents, or those who are placed in loco parentis. that began in the previous quarter," 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. . "We are reacting to this difficult economic environment with rigorous expense controls, but are pressing forward with our new product development efforts. I am pleased with the strength of our new product growth in the quarter, and more importantly with the continued market acceptance of our Excalibur Excalibur (ĕkskăl`ĭbər), in Arthurian legend, sword given to King Arthur by the Lady of the Lake. At Arthur's death Sir Bedivere threw Excalibur into the lake; a hand rose from the water, caught the sword, and disappeared. (TM) family of embedded processor A CPU chip used in a system other than a general purpose workstation, desktop or laptop computer. Such chips are used by the billions every year in a myriad of products. See embedded system. solutions and with the initial market reactions to our newly introduced Mercury Mercury, in astronomy Mercury, in astronomy, nearest planet to the sun, at a mean distance of 36 million mi (58 million km); its period of revolution is 88 days. (TM) family of programmable ASSPs. We are leveraging these new products to win designs and position ourselves competitively for the return to growth in our end markets." Altera continued to enhance 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:
-- Altera began shipping the Mercury device family, the world's first
programmable application-specific standard products (ASSPs). The
Mercury family offers the only programmable devices available
today that combine the functionality of a high-speed transceiver
ASSP with a high-performance PLD core. The Mercury transceivers
utilize clock data recovery (CDR) technology to offer
industry-leading data rates of up to 1.25 Gbps and a total CDR
bandwidth of 45 Gbps. For the first time, system designers have an
effective PLD-based solution for key communication applications,
including serial backplane, chip-to-chip, and line-side
applications. Mercury devices support a wide variety of
communications protocols including Gigabit Ethernet, RapidIO, and
Fibre Channel.
-- Quartus(R) II development software began shipping in January. The
Quartus II software offers best-in-industry performance and
provides a comprehensive environment for SOPC design including
support for the Excalibur embedded processor solutions. From the
Quartus introduction in 1999 to this release of the Quartus II
software, compile times have been reduced significantly resulting
in the fastest compile times in the industry. Resulting design
performance measured in frequency achieved (fMAX) also increased
dramatically when compared to year earlier software.
-- Leveraging Altera's long-standing relationship with Taiwan
Semiconductor Manufacturing Company, Altera reached an important
milestone this quarter. Altera is the first PLD company to develop
a high-density test chip on a 0.13-um process. Available later
this year, these devices, which use an all-copper-interconnect
system, will allow Altera to supply the highest density and
highest performance devices in the PLD marketplace at the lowest
cost.
Conference Call and Updates: A conference call will be held today at 2:00 p.m. Pacific Daylight For other uses, see Daylight (disambiguation). Daylight or the light of day is the combination of all direct and indirect sunlight outdoors during the daytime (and perhaps twilight). Time to discuss the quarter's results and management's outlook for the second quarter. The webcast and subsequent replay will be available on 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 410161. The telephonic replay will be available for two weeks following the live call. Altera second quarter business updates will be made available after the market close on May 2 and May 31 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 directly at (408) 544-7707. Fax-on-Demand: Copies of Altera's announcement are available from its fax-on-demand service. In the U.S. and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , call (800) 789-ALTR to request a copy. International users may dial their local International Access Code followed by (408) 894-0466. About Altera: Altera Corporation, The Programmable Solutions Company(R), was founded in 1983 and is a leading supplier of programmable logic devices See PLD. (PLDs). Altera's CMOS-based PLDs are user-programmable semiconductor chips that enhance flexibility and reduce time-to-market for companies in the communications, computer peripheral Any input, output or storage device connected externally or internally to the computer's CPU, such as a monitor, keyboard, printer, disk, tape, graphics tablet, scanner, joy stick, paddle or mouse. , and industrial markets. By using high performance devices, software development tools, and sophisticated intellectual property cores, system-on-a-programmable-chip (SOPC) solutions can be created with embedded processors, memory, and other complex logic together on a single 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. . Altera common stock is traded on the Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. under the symbol ALTR. More information on Altera is available on the Internet at http://www.altera.com. Note to Editors: Altera, The Programmable Solutions Company, Excalibur, Mercury, Quartus Quartus (Latin "fourth") was a Corinthian Christian who sent messages to friends in Rome through Paul of Tarsus. He is mentioned in Rom. 16:23. This entry incorporates text from the public domain Easton's Bible Dictionary, originally published in 1897. , Quartus II Quartus II is a software tool produced by Altera for analysis and synthesis of HDL designs. Quartus II enables the developer to compile their designs, perform timing analysis, examine RTL diagrams and configure the target device with the programmer. , and specific device designations are trademarks 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. service marks of Altera Corporation in the U.S. and other countries. ARM is a registered trademark of ARM Limited. All other trademarks are the property of their respective holders.
ALTERA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
COMPARISONS WITH AND WITHOUT ONE-TIME EFFECTS OF WAFERTECH SALE(1)
(In thousands, except per share data)
(Unaudited)
THREE MONTHS ENDED
---------------------------------------------
Mar. 31 Mar. 31 Dec. 31 Dec. 31
2001 2000 2000 2000
-------- -------- -------- --------
(1)Pro forma
Net sales $ 287,438 $ 272,781 $ 367,953 $ 367,953
Costs and expenses:
Cost of sales 99,195 94,590 125,025 125,025
Research and
development 50,973 34,442 50,560 50,560
Selling, general
and administrative 61,963 43,378 60,489 60,489
--------- --------- --------- ---------
Total costs
and expenses 212,131 172,410 236,074 236,074
--------- --------- --------- ---------
Income from operations 75,307 100,371 131,879 131,879
Gain on sale
of WaferTech, LLC -- -- 178,105 --
Interest and
other income, net 14,681 10,548 12,287 12,287
--------- --------- --------- ---------
Income before
income taxes and
equity investment 89,988 110,919 322,271 144,166
Provision for
income taxes (26,996) (34,386) (115,932) (44,691)
Equity in income
(loss) of
WaferTech, LLC -- (1,379) (837) 3,242
--------- --------- --------- ---------
Net income $ 62,992 $ 75,154 $ 205,502 $ 102,717
========= ========= ========= =========
Income per share:
Basic $ 0.16 $ 0.19 $ 0.52 $ 0.26
========= ========= ========= =========
Diluted $ 0.16 $ 0.18 $ 0.50 $ 0.25
========= ========= ========= =========
Shares used
in computation:
Basic 387,894 398,538 392,655 392,655
========= ========= ========= =========
Diluted 402,927 419,552 408,836 408,836
========= ========= ========= =========
Tax rate 30.0% 31.0% 36.0% 31.0%
% of Sales:
Gross margin 65.5% 65.3% 66.0% 66.0%
Research and development 17.7% 12.6% 13.8% 13.8%
Selling, general
and administrative 21.6% 15.9% 16.4% 16.4%
Income from operations 26.2% 36.8% 35.8% 35.8%
Net income 21.9% 27.6% 55.9% 27.9%
(1) The pro forma financial data excludes the one-time gain and other
one-time charges and credits relating to WaferTech sale.
Note: Income per share and shares used in the computation have been
retroactively restated, for all periods presented, to give
effect to the two-for-one stock split effective August 10, 2000.
ALTERA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
Mar. 31 Dec. 31
2001 2000
Assets ---------- ----------
Current assets:
Cash and short-term investments $ 925,948 $1,133,609
Accounts receivable, net 74,222 168,940
Inventories 314,496 273,562
Other assets 178,296 193,248
---------- ----------
Total current assets 1,492,962 1,769,359
Property and equipment, net 217,894 207,858
Investments and other assets 24,995 26,917
---------- ----------
$1,735,851 $2,004,134
========== ==========
Liabilities and Stockholders' Equity
Accounts payable and current liabilities $ 112,398 $ 295,890
Deferred income on sales to distributors 349,367 460,314
---------- ----------
Total current liabilities 461,765 756,204
Stockholders' equity 1,274,086 1,247,930
---------- ----------
$1,735,851 $2,004,134
========== ==========
Key Ratios & Information
Current Assets/Current Liabilities 3:1 2:1
Liabilities/Equity 1:3 1:2
Annualized Return on Equity 20% 38%
Quarterly Depreciation Expense, Net 10,422 9,901
Quarterly Capital Expenditures 20,458 19,843
Annualized Sales per Employee 567 830
Number of Employees 2,109 1,947
Inventory MSOH(2): Altera 9.5 6.6
Inventory MSOH(2): Distribution 2.6 2.5
Days Sales Outstanding 23 42
(2)MSOH: Months Supply On Hand
ALTERA CORPORATION
REVENUE SUMMARY
Q-Q Y-Y
Q1'00 Q4'00 Q1'01 Growth Growth
----- ----- ----- ------ ------
Geography
---------
North America 57% 56% 47% -35% -13%
---- ---- ----
Europe 23% 22% 27% -3% 27%
Japan 15% 16% 18% -10% 27%
Asia/Pacific 5% 6% 8% -2% 41%
---- ---- ----
International 43% 44% 53% -5% 29%
---- ---- ----
Total 100% 100% 100%
==== ==== ====
Market Segment
--------------
Communications 65% 66% 61% -28% -1%
EDP 18% 18% 18% -20% 7%
Industrial 11% 11% 15% 4% 35%
Consumer 3% 2% 2% -16% -24%
Other 3% 3% 4% 9% 44%
---- ---- ----
Total 100% 100% 100%
==== ==== ====
Product Category
----------------
New 1% 6% 10% 22% N/A
Mainstream 41% 49% 49% -22% 25%
Mature & Other 58% 45% 41% -28% -26%
---- ---- ----
Total 100% 100% 100%
==== ==== ====
Product Category Description
----------------------------
Category Products
New APEX 20KE, APEX 20KC, MAX 7000B, ACEX 1K,
Excalibur and Mercury families
Mainstream MAX 7000A, MAX 3000A, FLEX 6000, FLEX
10KA, FLEX 10KE, APEX 20K families
Mature & Other Classic, MAX 7000, MAX 7000S, MAX 9000,
FLEX 8000, FLEX 10K, FLASHlogic families,
Tools, MPLDs, configuration devices,
intellectual property and Northwest Logic
design services
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