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
1997 1996 1997 1997 1996
-------- -------- -------- -------- --------
Sales $164,115 $116,295 $142,439 $306,554 $253,393
-------- -------- -------- -------- --------
Costs & Expenses:
Cost of Sales 61,243 44,849 54,094 115,337 97,903
Research and Development 14,439 11,343 12,315 26,754 23,866
Selling, General and
Administrative 29,500 22,574 24,760 54,260 45,894
-------- -------- -------- -------- --------
Total Costs & Expenses 105,182 78,766 91,169 196,351 167,663
-------- -------- -------- -------- --------
Income from Operations 58,933 37,529 51,270 110,203 85,730
Interest & Other Income,
Net 1,262 387 329 1,591 1,310
-------- -------- -------- -------- --------
Income before Taxes 60,195 37,916 51,599 111,794 87,040
Taxes 20,466 13,651 17,543 38,009 31,335
-------- -------- -------- -------- --------
Net Income $ 39,729 $ 24,265 $ 34,056 $ 73,785 $ 55,705
======== ======== ======== ======== ========
Net Income per Share:
Primary $ 0.42 $ 0.27 $ 0.37 $ 0.79 $ 0.61
======== ======== ======== ======== ========
Fully Diluted $ 0.40 $ 0.26 $ 0.35 $ 0.75 $ 0.59
======== ======== ======== ======== ========
Weighted average shares
and equivalents:
Primary 93,625 91,548 93,129 93,388 91,778
======== ======== ======== ======== ========
Fully Diluted 102,655 100,538 102,138 102,573 100,746
======== ======== ======== ======== ========
Tax rate 34% 36% 34% 34% 36%
% of Sales:
Gross Margin 63% 61% 62% 62% 61%
Research and Development 9% 10% 9% 9% 9%
Selling, General and
Administrative 18% 19% 17% 18% 18%
Income from Operations 36% 32% 36% 36% 34%
Net Income 24% 21% 24% 24% 22%
ALTERA CORPORATION
CONSOLIDATED BALANCE SHEETS
(Thousands)
(Unaudited)
June 30 March 31
1997 1997
---------- ----------
Assets
Current assets:
Cash and short-term investments $ 373,426 $ 362,771
Accounts receivable, net 57,992 72,751
Inventories 71,988 62,029
Other assets 76,401 53,360
---------- ----------
Total current assets 579,807 550,911
Property and equipment, net 130,336 109,069
Investments and intangibles 204,915 213,872
---------- ----------
$ 915,058 $ 873,852
========== ==========
Liabilities and Stockholders' Equity
Current liabilities $ 223,498 $ 229,585
Long-term debt 230,000 230,000
Stockholders' equity 461,560 414,267
---------- ----------
$ 915,058 $ 873,852
========== ==========
Key Ratios & Information
Current Assets/Current Liabilities 3:1 2:1
Liabilities/Equity 1:1 1:1
Annualized Quarterly Return on Equity 36% 35%
Quarterly Depreciation Expense 4,206 4,080
Quarterly Capital Expenditures 25,473 23,345
Annualized Sales per Employee 669 609
ALTERA CORPORATION
Sales ($M)
Net Income ($M)
ALTERA CORPORATION
CORPORATE PROFILE
Products:
Programmable Logic Chips (96% Dollar Volume)
Development Software and Hardware (4% Dollar Volume)
Market: General Logic Replacement
End Use Markets -
- Communications 52%
- Computer 28%
- Industrial 12%
- Military 3%
- Consumer 4%
- Other 1%
- Serve over 13,600 customers
- Three distributors in North America - 85 branch locations
- 42% of sales in export markets
- Distributors in all European countries and major Asian markets
Operations:
Corporate Offices: San Jose, CA
Employees: 1010
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, Stockholm, Tokyo, Turin
Financial Highlights: (In thousands, except EPS)
1993 1994* 1995 1996 Q2 1997
-------- -------- -------- -------- --------
Sales $140,279 $198,796 $401,598 $497,306 $164,115
Net Income 21,195 14,608 86,871 109,135 39,729
Average Shares:
Primary 83,984 86,492 91,154 91,824 93,625
Fully Diluted 83,984 86,492 96,088 101,437 102,655
EPS:
Primary 0.25 0.17 0.95 1.19 0.42
Fully Diluted 0.25 0.17 0.95 1.15 0.40
Cash and Investments 81,637 92,594 365,219 280,850 373,426
Total Assets 155,757 213,882 715,554 778,212 915,058
Stockholders' Equity 121,699 158,019 255,189 370,245 461,560
Annualized ROE 20% 10% 42% 33% 36%
*Includes Research & Development in Process Charge of $20.2 million on an after-tax basis
Ownership:
- Management/Directors/Employees: 5%
- Institutional Holdings: 79%
- Retail/Other: 16%
- Nasdaq Symbol: ALTR
- Avg. Trading Volume - 2.8 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 ABN-AMRO Chicago Corp. David Wu (212) 314-1247 Deutsche Morgan Grenfell Scott Nirenberski (415) 217-4220 First Boston Jack Geraghty (212)-325-3085 Goldman Sachs Edison Chu (212) 902-6771 Hambrecht & Quist Rob Chaplinsky (415) 576-3489 J. P. Morgan Terry Ragsdale (212) 648-9047 Merrill Lynch Tom Kurlak (212) 449-2308 Montgomery Securities Brett Hodess (415) 627-2355 Morgan Stanley Mark Edelstone (415) 576-2381 Needham & Co. Sandy Harrison (212) 705-0314 Prudential Securities Milind Behezar (415) 391-0918 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 Volpe, Brown, Whelan & Co. Hans Mosesmann (415) 274-7968 Number of Market Makers: 30
