- New Products include the Arria® 10, Stratix® V, Stratix IV, Arria V, Arria II, Cyclone® V, Cyclone IV, MAX® 10, MAX V, HardCopy® IV devices and Enpirion PowerSoCs.
- 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, MAX 3000A, MAX 7000, MAX 7000A, MAX 7000B, MAX 7000S, MAX 9000, HardCopy II, HardCopy, FLEX® series, APEX™ series, Mercury™, Excalibur™ devices, configuration and other devices, intellectual property cores, and software and other tools.
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, but are not limited to, statements regarding absolute and relative product performance and features, Stratix® 10 FPGA competitive advantages and market expansion potential, future product availability, and the potential benefits that may be delivered through the pending acquisition of Altera by Intel. Investors are cautioned that all forward-looking statements in this release involve risks and uncertainty that can cause actual results to differ materially from those currently anticipated, due to a number of factors, including without limitation, the risk that the acquisition of Altera by Intel will not be completed, current global economic conditions, customer business environment, customer inventory levels, product availability, vertical market mix, market acceptance of the company's products, the performance of products once introduced, product introduction schedules, the rate of growth of the company's new products including Cyclone® V, Cyclone IV, Arria® 10, Arria V, Arria II, Stratix V, Stratix IV, MAX® 10 FPGAs, MAX V CPLDs, HardCopy® IV device families and Enpirion PowerSoCs, 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 designers of electronic systems to rapidly and cost effectively innovate, differentiate and win in their markets. Altera offers FPGA, SoC, CPLD products, and complementary technologies, such as power solutions, to provide high-value solutions to customers worldwide. Visit www.altera.com.
ALTERA, ARRIA, CYCLONE, ENPIRION, 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.
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INVESTOR CONTACT |
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MEDIA CONTACT |
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Scott Wylie - Vice President |
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Sue Martenson - Senior Manager |
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Investor Relations |
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Public Relations |
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(408) 544-6996 |
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(408) 544-8158 |
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ALTERA CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) | ||||||||||||||||||||
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Three Months Ended |
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Six Months Ended | ||||||||||||||||
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(In thousands, except per share amounts) |
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June 26,
|
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March 27,
|
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June 27,
|
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June 26,
|
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June 27,
| ||||||||||
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|
|
|
|
|
|
|
|
|
|
| ||||||||||
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Net sales |
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$ |
414,162 |
|
|
$ |
435,485 |
|
|
$ |
491,517 |
|
|
$ |
849,647 |
|
|
$ |
952,609 |
|
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Cost of sales |
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126,590 |
|
|
156,263 |
|
|
162,391 |
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|
282,853 |
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|
314,259 |
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Gross margin |
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287,572 |
|
|
279,222 |
|
|
329,126 |
|
|
566,794 |
|
|
638,350 |
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Operating expense |
|
|
|
|
|
|
|
|
|
| ||||||||||
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Research and development expense |
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105,345 |
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|
103,231 |
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|
101,121 |
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|
208,576 |
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|
198,778 |
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Selling, general, and administrative expense |
|
75,011 |
|
|
70,506 |
|
|
78,974 |
|
|
145,517 |
|
|
153,481 |
| |||||
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Amortization of acquisition-related intangible assets |
|
2,427 |
|
|
2,464 |
|
|
2,464 |
|
|
4,891 |
|
|
4,929 |
| |||||
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Merger expenses |
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18,458 |
|
|
— |
|
|
— |
|
|
18,458 |
|
|
— |
| |||||
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Total operating expense |
|
201,241 |
|
|
176,201 |
|
|
182,559 |
|
|
377,442 |
|
|
357,188 |
| |||||
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Operating margin (2) |
|
86,331 |
|
|
103,021 |
|
|
146,567 |
|
|
189,352 |
|
|
281,162 |
| |||||
|
Compensation expense — deferred compensation plan |
|
2,732 |
|
|
27 |
|
|
3,126 |
|
|
2,759 |
|
|
4,580 |
| |||||
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Gain on deferred compensation plan securities |
|
(2,732) |
|
|
(27) |
|
|
(3,126) |
|
|
(2,759) |
|
|
(4,580) |
| |||||
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Interest income and other |
|
(8,495) |
|
|
(6,596) |
|
|
(7,819) |
|
|
(15,091) |
|
|
(13,804) |
| |||||
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Gain reclassified from other comprehensive income |
|
(1,463) |
|
|
(2,506) |
|
|
(43) |
|
|
(3,969) |
|
|
(91) |
| |||||
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Interest expense |
|
10,859 |
|
|
10,408 |
|
|
10,877 |
|
|
21,267 |
|
|
21,365 |
| |||||
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Income before income taxes |
|
85,430 |
|
|
101,715 |
|
|
143,552 |
|
|
187,145 |
|
|
273,692 |
| |||||
|
Income tax expense |
|
15,091 |
|
|
6,863 |
|
|
16,548 |
|
|
21,954 |
|
|
30,174 |
| |||||
|
Net income |
|
70,339 |
|
|
94,852 |
|
|
127,004 |
|
|
165,191 |
|
|
243,518 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
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Other comprehensive (loss)/income: |
|
|
|
|
|
|
|
|
|
| ||||||||||
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Unrealized (loss)/gain on investments: |
|
|
|
|
|
|
|
|
|
| ||||||||||
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Unrealized holding (loss)/gain on investments arising during period, net of tax of ($460), $41, $23, ($419) and $46 |
|
(24,805) |
|
|
16,785 |
|
|
14,471 |
|
|
(8,020) |
|
|
27,031 |
| |||||
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Less: Reclassification adjustments for gain on investments included in net income, net of tax of $9, $6, $6, $15 and $10 |
|
(1,454) |
|
|
(2,500) |
|
|
(37) |
|
|
(3,954) |
|
|
(81) |
| |||||
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Other comprehensive (loss)/income |
|
(26,259) |
|
|
14,285 |
|
|
14,434 |
|
|
(11,974) |
|
|
26,950 |
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Comprehensive income |
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$ |
44,080 |
|
|
$ |
109,137 |
|
|
$ |
141,438 |
|
|
$ |
153,217 |
|
|
$ |
270,468 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
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Net income per share: |
|
|
|
|
|
|
|
|
|
| ||||||||||
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Basic |
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$ |
0.23 |
|
|
$ |
0.31 |
|
|
$ |
0.41 |
|
|
$ |
0.55 |
|
|
$ |
0.78 |
|
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Diluted |
|
$ |
0.23 |
|
|
$ |
0.31 |
|
|
$ |
0.41 |
|
|
$ |
0.54 |
|
|
$ |
0.77 |
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|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
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Shares used in computing per share amounts: |
|
|
|
|
|
|
|
|
|
| ||||||||||
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Basic |
|
301,799 |
|
|
301,308 |
|
|
311,000 |
|
|
301,561 |
|
|
313,713 |
| |||||
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Diluted |
|
304,604 |
|
|
303,285 |
|
|
313,513 |
|
|
303,951 |
|
|
316,145 |
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|
|
|
|
|
|
|
|
|
|
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Dividends per common share |
|
$ |
0.18 |
|
|
$ |
0.18 |
|
|
$ |
0.15 |
|
|
$ |
0.36 |
|
|
$ |
0.30 |
|
|
|
|
|
|
|
|
|
|
|
|
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Tax rate |
|
17.7 |
% |
|
6.7 |
% |
|
11.5 |
% |
|
11.7 |
% |
|
11.0 |
% | |||||
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% of Net sales: |
|
|
|
|
|
|
|
|
|
| ||||||||||
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Gross margin |
|
69.4 |
% |
|
64.1 |
% |
|
67.0 |
% |
|
66.7 |
% |
|
67.0 |
% | |||||
|
Research and development (1) |
|
26.0 |
% |
|
24.3 |
% |
|
21.1 |
% |
|
25.1 |
% |
|
21.4 |
% | |||||
|
Selling, general, and administrative |
|
18.1 |
% |
|
16.2 |
% |
|
16.1 |
% |
|
17.1 |
% |
|
16.1 |
% | |||||
|
Operating margin (2) |
|
20.8 |
% |
|
23.7 |
% |
|
29.8 |
% |
|
22.3 |
% |
|
29.5 |
% | |||||
|
Net income |
|
17.0 |
% |
|
21.8 |
% |
|
25.8 |
% |
|
19.4 |
% |
|
25.6 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Notes: |
|
|
|
|
|
|
|
|
|
| ||||||||||
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(1) Research and development expense as a percentage of Net sales includes amortization of acquisition-related intangible assets. | ||||||||||||||||||||
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(2) We define operating margin as gross margin less research and development expense, selling, general and administrative expense, amortization of acquisition-related intangible assets, and merger 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 losses/(gains) 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: | ||||||||||||||||||||
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|
|
|
|
|
|
| ||||||||||||||
|
|
|
Three Months Ended |
|
Six Months Ended | ||||||||||||||||
|
(In thousands, except per share amounts) |
|
June 26,
|
|
March 27,
|
|
June 27,
|
|
June 26,
|
|
June 27,
| ||||||||||
|
Operating margin (non-GAAP) |
|
$ |
86,331 |
|
|
$ |
103,021 |
|
|
$ |
146,567 |
|
|
$ |
189,352 |
|
|
$ |
281,162 |
|
|
Compensation expense — deferred compensation plan |
|
2,732 |
|
|
27 |
|
|
3,126 |
|
|
2,759 |
|
|
4,580 |
| |||||
|
Income from operations (GAAP) |
|
$ |
83,599 |
|
|
$ |
102,994 |
|
|
$ |
143,441 |
|
|
$ |
186,593 |
|
|
$ |
276,582 |
|
