ALTERA CORPORATION 
By SAN JOSE, Calif., Jan. 24, 2012 /PRNewswire/ -- Altera Corporation (NASDAQ: ALTR) today announced fourth quarter sales of $457.8 million, down 12 percent from the third quarter of 2011 and down 18 percent from the fourth quarter of 2010. Fourth quarter net income was $146.6 million, $0.45 per diluted share, compared with net income of $185.4 million, $0.57 per diluted share, in the third quarter of 2011 and $231.6 million, $0.72 per diluted share, in the fourth quarter of 2010.
(Logo: http://photos.prnewswire.com/prnh/20101012/SF78952LOGO)
Cash flow from operating activities in 2011 was $959.6 million. Altera ended the quarter with $3.5 billion in cash and investments.
Altera's board of directors has declared a quarterly cash dividend of $0.08 per share payable on March 1, 2012 to stockholders of record on February 10, 2012.
"While industry conditions led to sequential sales declines in the fourth quarter, Altera grew 6 percent in 2011--well ahead of most of the semiconductor industry. Our FPGA market share once again improved," said John Daane, president, chief executive officer, and chairman of the board. "As we have seen over the last several years, there are long-term technology-based trends that favor FPGAs. We continue to believe that these factors, plus ongoing FPGA share gains, give us the potential over time for sales growth twice that of the semiconductor industry."
Several recent accomplishments mark the company's continuing progress:
-- Altera has begun shipping its first mid-range 28-nm Arria® V FPGAs.
Arria V devices are the lowest power mid-range FPGAs available in the
market today. Offering transceiver speeds up to 10.3125-Gbps, the Arria
V family was developed on TSMC's 28-nm Low-Power (28LP) process. With 50
percent lower static power and 50 percent lower transceiver power than
any FPGA in its class, the Arria V FPGA delivers the lowest total power
of any mid-range FPGA family. Available in four family variants,
designers can choose the device that meets their exact needs, including
devices that embed a dual-core ARM® Cortex(TM) -A9 MPCore(TM)
processor. The Arria V family's innovative features allow designers to
tailor their low-power, high-bandwidth, and low-cost requirements for
next-generation shipments in wireless, broadcast, and military markets.
-- Altera has announced the industry's first OpenCL(TM) program for FPGAs.
The OpenCL standard is a C-based open standard for parallel programming.
Altera's OpenCL program combines the parallel processing performance
capability of FPGAs with the OpenCL standard to enable powerful system
acceleration. This combination also offers a significant time-to-market
advantage compared with traditional FPGA development. Altera has
expanded its university program to support the OpenCL standard for FPGA
development in academia, and is actively contributing to the evolution
of the Open CL standard based on customer feedback. Early results of
customer evaluations show a 35X performance increase compared with
multi-core CPU solutions and a 50 percent reduction in development time
compared with traditional HDL-developed FPGA solutions. OpenCL
FPGA-targeted applications range from high-performance computing to
advanced radar systems, medical imaging, and video encoding and
processing--any system that requires fast computations that can be
parallelized.
-- Altera has received further industry recognition for its 28-nm FPGA
portfolio. Electronics Weekly selected Altera's 28-nm portfolio as the
Semiconductor Product of the Year - Digital at its annual Elektra
European Electronics Industry Awards. The Elektra European Electronics
Industry Awards are the most prestigious product technology and business
awards in Europe. The awards recognize the achievements of individuals
and companies in the electronics industry. A panel of independent
industry experts and a representative from Electronics Weekly selected
Altera's 28-nm FPGA portfolio as the winner of the Semiconductor Product
of the Year - Digital from a pool of six nominees based on Altera's
28-nm portfolio's performance, design flexibility and suitability for
applications. EDN Magazine also selected Altera's 28-nm SoC FPGA family
as one of its 100 Hot Products of 2011. The 2011 EDN Hot 100 highlights
the electronics industry's most significant products of the year based
on innovation, significance, usefulness, and popularity as determined by
the magazine's editors and readers.
INVESTOR CONTACT MEDIA CONTACT
---------------- -------------
Scott Wylie -Vice
President Yoko Okamura - Senior Manager
Investor Relations Public Relations
(408) 544-6996 (408) 544-6397
swylie@altera.com newsroom@altera.com
----------------- -------------------
SELECTED FOURTH QUARTER REVENUE AND RELATED RESULTS
Key New Product Devices Sequential Comparisons
----------------------- ----------------------
Stratix V 49%
Stratix IV (19)%
Arria II (4)%
Cyclone IV 26%
HardCopy IV (20)%
Vertical Markets Sequential Comparisons Comments
---------------- ---------------------- --------
Telecom flat and
Telecom & Wireless (11)% Wireless down
Military up, rest
Industrial Automation, (1)% of vertical down
Military & Automotive
Category
decreased due to
end of short-
term earthquake-
related ASIC
Networking, Computer & replacement
Storage (30)% business
Other (9)% Broadly down
December 31, September 30,
($ in thousands) 2011 2011
---------------- ------------- --------------
Key Ratios & Information
------------------------
Current Ratio 4:1 3:1
Liabilities/Equity 1:2 1:2
Quarterly Operating Cash Flows $220,363 $282,873
TTM Return on Equity 28% 34%
Quarterly Depreciation Expense $7,772 $7,428
Quarterly Capital Expenditures $8,634 $13,382
Inventory MSOH (1): Altera 2.7 2.4
Inventory MSOH (1): Distribution 0.6 0.6
Cash Conversion Cycle (Days) 90 78
Turns 42% 33%
Book to Bill <1.0 <1.0
Note (1): MSOH: Months Supply On Hand
ALTERA CORPORATION
NET SALES SUMMARY
(Unaudited)
Quarterly Growth
Three Months Ended Rate Years Ended
------------------ ----------------- -----------
September
December 30, December Sequential December December Annual
31, 2011 2011 31, 2010 Change Year- 31, 2011 31, 2010 Growth
--------- ---------- --------- ----- --------- --------- -------
Over-
Year
------
Change
------
Geography
---------
Americas 21% 16% 17% 10% 4% 19% 19% 7%
Asia Pacific 40% 44% 43% (20)% (23)% 41% 42% 2%
EMEA 22% 25% 22% (22)% (18)% 25% 23% 17%
Japan 17% 15% 18% - % (23)% 15% 16% (1)%
--- --- ---
Net Sales 100% 100% 100% (12)% (18)% 100% 100% 6%
=== === === === ===
Product
Category
---------
New 27% 27% 16% (13)% 41% 22% 11% 107%
Mainstream 33% 32% 37% (10)% (26)% 34% 32% 11%
Mature and Other 40% 41% 47% (13)% (30)% 44% 57% (18)%
--- --- ---
Net Sales 100% 100% 100% (12)% (18)% 100% 100% 6%
=== === === === ===
Vertical
Market
--------
Telecom &
Wireless 43% 42% 47% (11)% (25)% 43% 44% 4%
Industrial
Automation,
Military &
Automotive 24% 22% 19% (1)% 6% 23% 21% 12%
Networking,
Computer &
Storage 16% 20% 15% (30)% (9)% 17% 14% 29%
Other 17% 16% 19% (9)% (29)% 17% 21% (13)%
--- --- ---
Net Sales 100% 100% 100% (12)% (18)% 100% 100% 6%
=== === === === ===
FPGAs and
CPLDs
---------
FPGA 82% 82% 83% (12)% (18)% 81% 82% 5%
CPLD 9% 9% 10% (10)% (27)% 10% 12% (11)%
Other Products 9% 9% 7% (17)% 6% 9% 6% 41%
--- --- ---
Net Sales 100% 100% 100% (12)% (18)% 100% 100% 6%
=== === === === ===
Product Category Description
-- New Products include the Stratix® V, Stratix IV, Arria® V, Arria II ,
Cyclone® IV , MAX® V, and HardCopy® IV devices.
-- Mainstream Products include the Stratix III, Cyclone III, MAX II, and
HardCopy III devices.
-- Mature and Other Products include the Stratix II , Stratix , Arria GX,
Cyclone II, Cyclone, Classic(TM), MAX 3000A, MAX 7000, MAX 7000A, MAX
7000B, MAX 7000S, MAX 9000, HardCopy II, HardCopy, FLEX® series,
APEX(TM) series, Mercury(TM), and Excalibur(TM) devices, configuration
and other devices, intellectual property cores, and software and other
tools.
Business Outlook for the First Quarter 2012
Sales and Income Statement
--------------------------
Sequential
Sales
Growth Down 5% to 9%
Gross
Margin 70% +/- .5%
Research
and
Development $90 to 92 million
SG&A $72 to 74 million
Tax Rate 10% to 11%
Diluted
Share
Count 326 million
Turns Approximately 50%
MSOH Low 3's
Vertical Market
---------------
Telecom
&
Wireless Down slightly overall, with Telecom up and Wireless down
Industrial Down overall, with Automotive up, Industrial Automation
Automation, flat, and Military significantly down
Military & Automotive
Networking,
Computer
& Flat overall, with Networking up and Computer & Storage
Storage down
Other Down slightly
Fourth Quarter Earnings Conference Call
A conference call will be held today at 1:45 p.m. Pacific Time to discuss the quarter's results and management's current business outlook. The web cast and subsequent replay will be available in the Investor Relations section of the company's website at 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.
First Quarter Update
Altera's first quarter business update will be issued in a press release available after the market close on March 8, 2012.
Forward-Looking Statements
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 of 1995. Forward-looking statements are generally written in the future tense and/or preceded by words such as "will," "expects," "anticipates," or other words that imply or predict a future state. Forward-looking statements include forecasts of future growth relative to the semiconductor industry, any projection of revenue, gross margin, expense or other financial items discussed in the Business Outlook section or elsewhere in this press release. 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, current global economic conditions, customer business environment, customer inventory levels, vertical market mix, market acceptance of the company's products, product introduction schedules, the rate of growth of the company's new products including Cyclone® IV, Arria® V, Arria II, Stratix® V, Stratix IV FPGAs, MAX® V CPLDs and HardCopy® IV device families, as well as changes in economic conditions and other risk factors discussed in documents filed by the company with the Securities and Exchange Commission (SEC) from time to time. Copies of Altera's SEC filings are posted on the company's website 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.
About Altera
Altera programmable solutions enable system and semiconductor companies to rapidly and cost-effectively innovate, differentiate and win in their markets. Find out more about Altera's FPGA, CPLD and ASIC devices at www.altera.com. Follow Altera via Facebook, RSS and Twitter.
ALTERA, ARRIA, CYCLONE, HARDCOPY, MAX, MEGACORE, NIOS, QUARTUS and STRATIX words and logos are trademarks of Altera Corporation and registered in the U.S. Patent and Trademark Office and in other countries. All other words and logos identified as trademarks or service marks are the property of their respective holders as described at www.altera.com/legal.
ALTERA CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Years Ended
------------------ -----------
(In thousands,
except per share December September December December December
amounts) 31, 2011 30, 2011 31, 2010 31, 2011 31, 2010
----------------- --------- ---------- --------- --------- ---------
Net sales $457,804 $522,474 $555,378 $2,064,475 $1,954,426
Cost of sales 136,764 166,938 161,296 610,329 566,942
------- ------- ------- ------- -------
Gross margin 321,040 355,536 394,082 1,454,146 1,387,484
Operating expense
Research and
development
expense 90,295 80,771 66,788 325,733 264,649
Selling, general,
and
administrative
expense 70,667 69,345 64,074 279,217 254,495
------ ------ ------ ------- -------
Total operating
expense 160,962 150,116 130,862 604,950 519,144
------- ------- ------- ------- -------
Operating margin
(1) 160,078 205,420 263,220 849,196 868,340
Compensation
expense (benefit)
- deferred
compensation plan 2,962 (6,642) 3,554 (1,964) 6,839
(Gain) loss on
deferred
compensation plan
securities (2,962) 6,642 (3,554) 1,964 (6,839)
Interest income
and other (1,021) (663) (936) (3,526) (3,330)
Interest expense 1,013 806 351 3,730 3,843
----- --- --- ----- -----
Income before
income taxes 160,086 205,277 263,805 848,992 867,827
Income tax expense 13,475 19,873 32,192 78,281 84,943
------ ------ ------ ------ ------
Net income $146,611 $185,404 $231,613 $770,711 $782,884
========
Net income per
share:
Basic $0.46 $0.58 $0.73 $2.39 $2.55
===== ===== ===== ===== =====
Diluted $0.45 $0.57 $0.72 $2.35 $2.49
===== ===== ===== ===== =====
Shares used in
computing per
share amounts:
Basic 321,553 321,745 316,440 321,892 307,302
======= ======= ======= ======= =======
Diluted 325,653 327,044 323,592 327,606 313,912
======= ======= ======= ======= =======
Cash dividends per
common share $0.08 $0.08 $0.06 $0.28 $0.22
===== ===== ===== ===== =====
Tax rate 8.4% 9.7% 12.2% 9.2% 9.8%
% of Net sales:
Gross margin 70.1% 68.0% 71.0% 70.4% 71.0%
Research and
development 19.7% 15.5% 12.0% 15.8% 13.5%
Selling, general,
and
administrative 15.4% 13.3% 11.5% 13.5% 13.0%
Operating
margin(1) 35.0% 39.3% 47.4% 41.1% 44.4%
Net income 32.0% 35.5% 41.7% 37.3% 40.1%
Notes:
------
(1)We define operating margin as gross margin less research and
development and selling, general and administrative expenses, as
presented above. This presentation differs from income from operations
as defined by U.S. Generally Accepted Accounting Principles ("GAAP"),
as it excludes the effect of compensation associated with the deferred
compensation plan obligations. Since the effect of compensation
associated with our deferred compensation plan obligations is offset by
gains and losses from related securities, we believe this presentation
provides a more meaningful representation of our ongoing operating
performance. A reconciliation of operating margin to income from
operations follows:
Three Months Ended Years Ended
------------------ -----------
December September December December December
(In thousands) 31, 2011 30, 2011 31, 2010 31, 2011 31, 2010
--------- ---------- --------- --------- ---------
Operating margin
(non-GAAP) $160,078 $205,420 $263,220 $849,196 $868,340
Compensation
expense (benefit)
- deferred
compensation plan 2,962 (6,642) 3,554 (1,964) 6,839
Income from
operations (GAAP) $157,116 $212,062 $259,666 $851,160 $861,501
======== ======== ======== ======== ========
ALTERA CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except par value December December
amount) 31, 31,
------------------------------- 2011 2010
---- ----
Assets
Current assets:
Cash and cash equivalents $3,371,933 $2,765,196
Short-term investments 65,222 -
------ ---
Total cash, cash equivalents, and
short-term investments 3,437,155 2,765,196
Accounts receivable, net 232,273 363,614
Inventories 122,279 146,524
Deferred income taxes - current 58,415 66,839
Deferred compensation plan -
marketable securities 54,041 54,419
Deferred compensation plan -
restricted cash equivalents 17,938 19,817
Other current assets 52,710 114,601
------ -------
Total current assets 3,974,811 3,531,010
Property and equipment, net 171,721 164,155
Long term investments 74,033 -
Deferred income taxes - non-current 26,629 37,319
Other assets, net 35,074 27,353
------ ------
Total assets $4,282,268 $3,759,837
========== ==========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $52,154 $86,061
Accrued liabilities 34,029 23,278
Accrued compensation and related
liabilities 78,181 83,773
Deferred compensation plan
obligations 71,979 74,236
Deferred income and allowances on
sales to distributors 279,876 428,711
Income taxes payable - 428
Credit facility 500,000 -
------- ---
Total current liabilities 1,016,219 696,487
Income taxes payable - non-current 263,423 231,833
Credit facility - 500,000
Other non-current liabilities 8,730 7,865
----- -----
Total liabilities 1,288,372 1,436,185
--------- ---------
Commitments and contingencies
Stockholders' equity:
Common stock: $.001 par value;
1,000,000 shares authorized;
outstanding -322,054 at December
31, 2011 and 319,494 shares at
December 31, 2010 322 319
Capital in excess of par value 1,050,752 908,989
Accumulated other comprehensive loss (133) -
Retained earnings 1,942,955 1,414,344
--------- ---------
Total stockholders' equity 2,993,896 2,323,652
--------- ---------
Total liabilities and stockholders'
equity $4,282,268 $3,759,837
========== ==========
ALTERA CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
YEARS ENDED
-----------
(In
thousands) December 31, December 31, December 31,
----------- 2011 2010 2009
---- ---- ----
Cash Flows
from
Operating
Activities:
Net income $770,711 $782,884 $251,062
Adjustments
to
reconcile
net income
to net cash
provided by
operating
activities:
Depreciation
and
amortization 31,927 27,535 29,022
Stock-
based
compensation 82,750 62,118 64,446
Deferred
income tax
expense
(benefit) 15,657 34,256 (5,890)
Tax effect
of
employee
stock
plans 16,162 27,444 (3,648)
Excess tax
benefit
from
employee
stock
plans (17,307) (21,866) (990)
Gain on
substantive
termination
of retiree
medical
plan - - (6,488)
Changes in
assets and
liabilities,
net of the
effects of
acquisition:
Accounts
receivable,
net 131,341 (145,330) (136,115)
Inventories 24,245 (76,819) 14,931
Other
assets 54,661 (52,805) 38,862
Accounts
payable
and other
liabilities (32,534) 59,200 7,918
Deferred
income and
allowances
on sales
to
distributors (148,836) 146,826 77,611
Income
taxes
payable 31,116 15,746 39,860
Deferred
compensation
plan
obligations (293) (2,494) 2,125
---- ------ -----
Net cash
provided
by
operating
activities 959,600 856,695 372,706
------- ------- -------
Cash Flows
from
Investing
Activities:
Purchases
of
property
and
equipment (31,812) (12,442) (11,060)
Purchases
of
available-
for-sale
securities (164,408) - -
Proceeds
from the
maturities
and sales
of
available-
for-sale
investments 25,003 - -
Acquisition
related
payments,
net of cash
acquired - (8,004) -
Sales
(purchases)
of
deferred
compensation
plan
securities,
net 293 2,494 (2,125)
Purchases
of
intangible
assets - (5,000) (690)
--- ------ ----
Net cash
used in
investing
activities (170,924) (22,952) (13,875)
-------- ------- -------
Cash Flows
from
Financing
Activities:
Proceeds
from
issuance
of common
stock
through
various
stock
plans 119,989 453,719 42,144
Shares
withheld
for
employee
taxes (32,152) (20,164) (10,738)
Repurchases
of common
stock (197,023) - -
Payment of
dividends
to
stockholders (90,060) (67,774) (58,925)
Excess tax
benefit
from
stock-
based
compensation 17,307 21,866 990
Principal
payments
on capital
lease
obligations - (2,866) (2,373)
--- ------ ------
Net cash
(used in)
provided
by
financing
activities (181,939) 384,781 (28,902)
-------- ------- -------
Net
increase
in cash
and cash
equivalents 606,737 1,218,524 329,929
Cash and
cash
equivalents
at
beginning
of period 2,765,196 1,546,672 1,216,743
--------- --------- ---------
Cash and
cash
equivalents
at end of
period $3,371,933 $2,765,196 $1,546,672
========== ========== ==========
Supplemental
cash flow
information:
Income
taxes
paid, net $9,856 $29,887 $7,310
Interest
paid $3,704 $3,395 $4,503
SOURCE Altera Corporation
