ALTERA CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands, except per share data)
(Unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
---------------------------------- --------------------
June 30 June 30 March 31 June 30 June 30
1996 1995 1996 1996 1995
-------- -------- --------- --------- --------
Sales $116,295 $ 92,165 $137,098 $ 253,393 $167,203
-------- -------- --------- --------- --------
Costs & Expenses:
Cost of Sales 44,849 37,489 53,054 97,903 67,540
Research and Development 11,343 7,677 12,523 23,866 14,263
Selling, General
& Administrative 22,574 17,014 23,320 45,894 32,396
-------- -------- --------- --------- --------
Total Costs & Expenses 78,766 62,180 88,897 167,663 114,199
-------- -------- --------- --------- --------
Income from Operations 37,529 29,985 48,201 85,730 53,004
Interest & Other Income,
Net 387 1,177 923 1,310 2,122
-------- -------- --------- --------- --------
Income before Taxes 37,916 31,162 49,124 87,040 55,126
Taxes 13,651 11,530 17,684 31,335 20,397
-------- -------- --------- --------- --------
Net Income $ 24,265 $ 19,632 $ 31,440 $ 55,705 $ 34,729
======== ======== ========= ========= ========
Net Income per Share
Primary $ 0.53 $ 0.43 $ 0.68 $ 1.21 $ 0.77
======== ======== ========= ========= ========
Fully Diluted $ 0.52 $ 0.43 $ 0.66 $ 1.18 $ 0.77
======== ======== ========= ========= ========
Weighted average shares
and equivalents:
Primary 45,774 45,524 45,968 45,889 45,339
======== ======== ========= ========= ========
Fully Diluted 50,269 46,077 50,463 50,373 45,791
======== ======== ========= ========= ========
Tax rate 36% 37% 36% 36% 37%
% of Sales:
Gross Margin 61% 59% 61% 61% 60%
Research & Development 10% 8% 9% 9% 9%
Selling, General &
Administrative 19% 18% 17% 18% 19%
Income from Operations 32% 33% 35% 34% 32%
Net Income 21% 21% 23% 22% 21%
ALTERA CORPORATION
CONSOLIDATED BALANCE SHEETS
(Thousands)
(Unaudited)
June 30 March 31
1996 1996
--------- ---------
Assets
Current assets:
Cash and short-term investments $ 291,351 $ 349,666
Accounts receivable, net 40,048 60,362
Inventories 101,124 75,146
Other assets 47,090 48,960
--------- ---------
Total Current Assets 479,613 534,134
Property and equipment, net 64,067 57,935
Investments & Intangibles 218,630 143,237
--------- ---------
$ 762,310 $ 735,306
========= =========
Liabilities and Shareholders' Equity
Current Liabilities $ 160,606 $ 205,705
Long Term Debt 286,160 239,600
Shareholders' Equity 315,544 290,001
--------- ---------
$ 762,310 $ 735,306
========= =========
Key Ratios & Information
Current assets/current liabilities 3:1 3:1
Liabilities/Equity 1:1 2:1
Annualized Quarterly Return on Equity 32% 46%
Quarterly Depreciation Expense 3,481 3,139
Quarterly Capital Expenditures 9,613 6,228
Annualized Sales per Employee 517 608
ALTERA CORPORATION
CORPORATE PROFILE
Products:
Programmable Logic Chips (95% Dollar Volume)
Development Software and Hardware (5% Dollar Volume)
Market: General Logic Replacement
End Use Markets -
- Communications 63%
- Computer 15%
- Industrial 14%
- Military 5%
- Consumer 2%
- Other 1%
- Serve over 12,700 customers
- Three distributors in North America - 74 branch locations
- Distributors in all European
- 46% of sales in export markets countries and major Asian markets
Operations:
Corporate Offices: San Jose, CA
Employees: 875
Sales Offices: Atlanta, Austin, Baltimore, Boston, Chicago, Cleveland, Dallas, Denver,
Irvine, Los Angeles, Minneapolis, New York, Phoenix, Portland, Raleigh, San Diego,
San Jose, Hong Kong, London, Munich, Ottawa, Paris, Seoul, Tokyo, Turin
Financial Highlights: (In thousands, except EPS)
1992 1993 1994* 1995 Q2 1996
-------- -------- -------- -------- --------
Sales $101,470 $140,279 $198,796 $401,598 $116,295
Net Income 11,539 21,195 14,608 86,871 24,265
Average Shares:
Primary 41,286 41,992 43,246 45,577 45,774
Fully Diluted 41,286 41,992 43,246 48,019 50,269
EPS:
Primary 0.28 0.51 0.34 1.91 0.53
Fully Diluted 0.28 0.51 0.34 1.90 0.52
Cash and Investments 50,578 81,637 92,594 365,219 291,351
Total Assets 114,693 155,757 213,882 715,554 762,310
ShareholdersĂ Equity 95,606 121,699 158,019 255,187 315,544
Annualized ROE 13% 20% 10% 42% 32%
*Includes Research & Development in Process Charge of $20.2 million on an after-tax basis
Ownership:
Management/Directors/Employees: 5%
Institutional Holdings: 81% Avg.
Retail/Other: 14%
Public since March 30, 1988
Nasdaq Symbol: ALTR Trading Volume - 2.3 million shares/day
Research Coverage:
Alex Brown & Sons Greg Mishou (415) 544-2815
Bear Stearns Nimal Vallipuram (212) 272-8294
First Boston Jack Geraghty (212) 909-3085
Goldman Sachs Rajiv Chaudhri (212) 902-6771
Hambrecht & Quist Rob Chaplinsky (415) 576-3489
Merrill Lynch Tom Kurlak (212) 449-2308
Montgomery Securities Brett Hodess (415) 627-2355
Morgan Stanley John Marren (415) 576-2355
Needham & Co. Hans Mosesmann (212) 705-0423
Prudential Securities Mark Edelstone (415) 395-2623
Robertson Stephens Dan Niles (415) 693-3241
Schroeder Wertheim Stuart Johnson (212) 492-6414
Smith Barney Jim Barlage (212) 816-5818
Soundview Scott Randall (203) 462-7246
UBS Securities Inc. Charles Boucher (415) 352-5500
Number of Market Makers: 30
Literature
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