Altera to Discontinue Military Products; Military Business Opportunities Diminishing.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)--Oct. 30, 1995--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 announced its decision to exit the military parts business. This business, which includes both MIL-STD-883-compliant and DESC-rated devices, reached its peak as a percentage of Altera's business during the early 1990s and has been decreasing since then. "Reductions in defense spending and a renewed emphasis on commercialization and cost-competitiveness have led defense contractors to reshape their business profiles," stated Erik Cleage, Altera's vice-president of marketing. "These factors have contributed to a reduction in usage of military semiconductor devices." This decision does not affect Altera's commercial or industrial temperature range devices. Reallocation of Resources The provision of logistic resources by the military forces of one nation from those deemed "made available" under the terms incorporated in appropriate NATO documents, to the military forces of another nation or nations as directed by the appropriate military authority. Favors Growing Markets Due to the shrinking military business, Altera will be reallocating resources into high-growth areas such as the communications market, which currently comprises approximately 50% of Altera's total sales. By focusing its R&D efforts as well as marketing and sales resources into product areas such as high-speed local area network products and broadband transmission systems, Altera expects to enhance its product solutions to companies in the communications industry communications industry, broadly defined, the business of conveying information. Although communication by means of symbols and gestures dates to the beginning of human history, the term generally refers to mass communications. . Support for Existing Military Customers Altera's decision to discontinue its military devices will not immediately affect existing customers. Altera will maintain military device shipments for a period of time to ensure that military customers may make lifetime buys. Altera anticipates to be out of the military device business by the end of 1996. About Altera Altera Corporation, founded in 1983, is a world-wide leader in high-performance, high-density programmable logic devices 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 using 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, data communications, 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- Note to Editors: Altera is a registered trademark of Altera Corporation. All other trademarks are the property of their respective holders. CONTACT: Altera Corporation Robert K. Beachler or Cliff Tong, 408/894-7000 or Cain Communications, Susan Cain, 408/291-2580 |
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