Altera reports record quarterly results; First quarter sales increase 4% annually and 12% sequentially; Net income up 8% annually and 16% 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.--(BUSINESS WIRE)--April 9, 1997--Altera Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ALTR) today reported record levels of sales, operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. , net income, and earnings per share for the quarter ended March 31, 1997. First quarter sales of $142.4 million were up 4% over the same period last year, and 12% over the previous quarter. Gross margin, as a percentage of sales for the first quarter was 62.0%, up 0.7 percentage points over the same period last year and up 0.5 percentage points over the previous quarter. Gross margin improvements are attributed to improved yields and wafer (1) A small, thin continuous-loop magnetic tape cartridge that has been used from time to time for data storage and specialized applications. (2) The base unit of chip making. It is a slice taken from a salami-like silicon crystal ingot up to 12" (300mm) in diameter. price reductions. Net income for the first quarter was a record $34.1 million, up 8% over the first quarter of 1996 and 16% above the previous quarter. First quarter earnings per share, on a fully 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. basis, were $0.35, an increase of $0.02 from the same period last year and up $0.04 from the previous quarter. Altera added $81.9 million of cash to its balance sheet during the quarter, after expenditures of $18.7 million toward the construction of the new San Jose headquarters facility, and $4.6 million for routine capital expenditures. Rodney Smith, President & 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. stated, "The financial results for the March quarter are indicative of our continued success in the marketplace. The Domestic channel provided the strongest sales growth and the International business also contributed another solid increase. Although the communications marketplace continued to provide the largest component of our results, the computer sector significantly paced our growth." Mr. Smith concluded, "Sales for new products were up significantly from the prior quarter. We believe that our aggressive price moves, especially with these products, have allowed us to maintain our design win leadership." 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. in this release are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of 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. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation risks of dependence on third-party wafer suppliers, intellectual property rights and litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , market acceptance of and demand for the Company's products as well as general market conditions, competition and pricing, and development of technology and manufacturing capabilities. Please refer to the Company's Securities and Exchange Commission filings, copies of which are available from the Company without charge, for further information. Fax on Demand: Copies of Altera's announcement are available from its fax-on-demand service. In the U.S. and Canada to request a copy call 1-800/789-ALTR. International users can dial their local International Access Code followed by 1-408/894-0466. Altera Corporation, founded in 1983, is a world-wide leader in high-performance, high-density programmable logic devices See PLD. and associated computer aided engineering (application) Computer Aided Engineering - (CAE) Use of computers to help with all phases of engineering design work. Like computer aided design, but also involving the conceptual and analytical design steps. (CAE (1) (Computer-Aided Engineering) Software that analyzes designs which have been created in the computer or that have been created elsewhere and entered into the computer. ) logic development tools. Programmable logic devices are semiconductor chips that offer on-site programmability to customers. The chips are programmed with tools that run on personal computers or engineering workstations. User benefits include ease of use, lower risk, and fast time-to-market. The Company offers the broadest line of CMOS (Complementary Metal Oxide Semiconductor) Pronounced "c-moss." The most widely used integrated circuit design. It is found in almost every electronic product from handheld devices to mainframes. programmable logic devices that address high- speed, high-density, and lower power applications. Altera products serve a broad range of market areas, including telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. , computers, and industrial applications. 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. using the symbol ALTR. -0-
ALTERA CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands, except per share data)
(Unaudited)
THREE MONTHS ENDED
Mar. 31 Mar. 31 Dec. 31
1997 1996 1996
Sales $142,439 $137,098 $127,185
Costs & Expenses:
Cost of Sales 54,094 53,054 48,961
Research and Development 12,315 12,523 12,339
Selling, General, and
Administrative 24,760 23,320 21,258
Total Costs & Expenses 91,169 88,897 82,558
Income from Operations 51,270 48,201 44,627
Interest & Other Income, Net 329 923 (215)
Income before Taxes 51,599 49,124 44,412
Taxes 17,543 17,684 15,100
Net Income $ 34,056 $ 31,440 $ 29,312
Net Income per Share:
Primary $ 0.37 $ 0.34 $ 0.32
Fully diluted $ 0.35 $ 0.33 $ 0.31
Weighted average shares and
equivalents:
Primary 93,129 91,936 92,364
Fully diluted 102,138 100,926 101,578
Tax rate 34% 36% 34%
% of Sales
Gross Margin 62% 61% 62%
Research & Development 9% 9% 10%
Selling, General, and
Administrative 17% 17% 17%
Income from Operations 36% 35% 35%
Net Income 24% 23% 23%
ALTERA CORPORATION
CONSOLIDATED BALANCE SHEETS
(Thousands)
(Unaudited)
Mar. 31 Dec. 31
1997 1996
Assets
Current assets:
Cash and short-term investments $ 362,771 $ 280,850
Accounts receivable, net 72,751 68,486
Inventories 62,029 75,798
Other assets 53,360 47,853
Total current assets 550,911 472,987
Property and equipment, net 109,069 89,804
Investments & intangibles 213,872 215,421
------------ ------------
$ 873,852 $ 778,212
Liabilities and Shareholders' Equity
Current liabilities $ 229,585 $ 177,967
Long-term debt 230,000 230,000
Shareholders' equity 414,267 370,245
------------ ------------
$ 873,852 $ 778,212
Key Ratios & Information
Current Assets/Current Liabilities 2:1 3:1
Liabilities/Equity 1:1 1:1
Annualized Quarterly Return on Equity 35% 33%
Quarterly Depreciation Expense 4,080 4,147
Quarterly Capital Expenditures 23,345 18,555
Annualized Sales per Employee 609 562
CONTACT: Altera Corporation Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs J. Nicoletti, 408/894-7700 |
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