ALTERA CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands, except per share data)
(Unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED
----------------------------------- ----------------------
Sept. 30 Sept. 30 June 30 Sept. 30 Sept. 30
1996 1995 1996 1996 1995
-------- -------- -------- -------- --------
Sales $116,728 $109,079 $116,295 $370,121 $276,282
-------- -------- -------- -------- --------
Costs & Expenses:
Cost of Sales 45,094 42,817 44,849 142,997 110,357
Research and Development 13,308 9,105 11,343 37,174 23,368
Selling, General, and
Administrative 20,590 20,340 22,574 66,484 52,736
-------- -------- -------- -------- --------
Total Costs & Expenses 78,992 72,262 78,766 246,655 186,461
-------- -------- -------- -------- --------
Income from Operations 37,736 36,817 37,529 123,466 89,821
Interest & Other
Income, Net (51) 848 387 1,259 2,970
-------- -------- -------- -------- --------
Income before Taxes 37,685 37,665 37,916 124,725 92,791
Taxes 13,567 13,936 13,651 44,902 34,333
-------- -------- -------- -------- --------
Net Income $24,118 $23,729 $24,265 $ 79,823 $58,458
======== ======== ======== ======== ========
Net Income per Share:
Primary $ 0.53 $ 0.52 $ 0.53 $ 1.74 $ 1.28
======== ======== ======== ======== ========
Fully diluted $ 0.52 $ 0.51 $ 0.52 $ 1.70 $ 1.29
======== ======== ======== ======== ========
Weighted average shares
and equivalents:
Primary 45,575 45,852 45,774 45,794 45,527
======== ======== ======== ======== ========
Fully diluted 50,305 50,388 50,269 50,303 47,301
======== ======== ======== ======== ========
Tax rate 36% 37% 36% 36% 37%
% of Sales
Gross Margin 61% 61% 61% 61% 60%
Research & Development 11% 8% 10% 10% 8%
Selling, General and
Administrative 18% 19% 19% 18% 19%
Income from Operations 32% 34% 32% 33% 33%
Net Income 21% 22% 21% 22% 21%
ALTERA CORPORATION
CONSOLIDATED BALANCE SHEETS
(Thousands)
(Unaudited)
Sept. 30 June 30
1996 1996
-------- --------
Assets
Current assets:
Cash and short-term investments $285,636 $291,351
Accounts receivable, net 54,282 40,048
Inventories 89,429 101,124
Other assets 46,221 47,090
-------- --------
Total Current Assets 475,568 479,613
Property and equipment, net 71,006 64,067
Investments & Intangibles 217,025 218,630
-------- --------
$763,599 $762,310
======== ========
Liabilities and Shareholders' Equity
Current Liabilities $194,925 $160,606
Long Term Debt 230,000 286,160
Shareholders' Equity 338,674 315,544
-------- -------
$763,599 $762,310
======== ========
Key Ratios & Information
Current assets/current liabilities 2:1 3:1
Liabilities/Equity 1:1 1:1
Annualized Quarterly Return on Equity 29% 32%
Quarterly Depreciation Expense 3,837 3,481
Quarterly Capital Expenditures 10,776 9,613
Annualized Sales per Employee 528 517
ALTERA CORPORATION
CORPORATE PROFILE
Products:
Programmable Logic Chips (94% Dollar Volume)
Development Software and Hardware (6 % Dollar Volume)
Market: General Logic Replacement
End Use Markets -
- Communications 61%
- Computer 16%
- Industrial 14%
- Military 5%
- Consumer 3%
- Other 1%
- Serve over 12,800 customers
- Three distributors in North America - 80 branch locations
- 49% of sales in export markets
- Distributors in all European countries and major Asian markets
Operations:
Corporate Offices: San Jose, CA
Employees: 892
Sales Offices: Atlanta, Austin, Baltimore, Boston, Chicago, Cleveland, Dallas, Denver, Irvine,
Los Angeles, Minneapolis, New York, Phoenix, Portland, Raleigh, San Diego, San Jose,
Seattle, Hong Kong, London, Munich, Ottawa, Paris, Seoul, Stockholm, Tokyo, Turin
Financial Highlights: (In thousands, except EPS)
1992 1993 1994* 1995 Q3 1996
-------- -------- -------- -------- --------
Sales $101,470 $140,279 $198,796 $401,598 $116,728
Net Income 11,539 21,195 14,608 86,871 24,118
Average Shares:
Primary 41,286 41,992 43,246 45,577 45,575
Fully Diluted 41,286 41,992 43,246 48,019 50,305
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 92,594 365,219 285,636
Total Assets 114,693 155,757 213,882 715,554 763,599
ShareholdersĂ Equity 95,606 121,699 158,019 255,187 338,674
Annualized ROE 13% 20% 10% 42% 29%
*Includes Research & Development in Process Charge of $20.2 million on an after-tax basis
Ownership:
Management/Directors/Employees: 5%
Institutional Holdings: 70%
Retail/Other: 25%
Nasdaq Symbol: ALTR
Avg. Trading Volume - 1.9 million shares/day
Public since March 30, 1988
Research Coverage:
Alex Brown & Sons Greg Mishou (415) 544-2815
Bear Stearns Nimal Vallipuram (212) 272-8294
Chicago Corp. David Wu (212) 293-5304
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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