|
EDITOR CONTACT: Scott Wylie, Vice President - Investor
Relations
Altera Corporation
San Jose, CA
(408-544-6996)
RELEASE DATE: April 12, 2000
ALTERA REPORTS RECORD FIRST QUARTER 2000
RESULTS
SALES INCREASE 15% SEQUENTIALLY & 46% ANNUALLY
San Jose, Calif., April 12, 2000- Altera Corporation
(Nasdaq: ALTR) today reported record first quarter sales of $272.8 million, up
15% from the previous quarter and up 46% over the same period last year. First
quarter sales growth of 15% was achieved through gains of 17% in North America,
30% in Europe, and 12% in Asia/Pacific; sales declined 6% in Japan. New and
mainstream products made up 75% of sales for the quarter. New product revenues
were 42% of sales, grew 28% sequentially and 187% over the same period last
year. Mainstream product revenues were 33% of sales, grew 10% sequentially and
29% over the first quarter of last year. Mature product sales grew 2%
sequentially.
First quarter net income of $75.2 million, or $0.36 per diluted share, was a record. Net income increased 17% over the previous quarter's income excluding the effect of one- time events in that quarter, principally the gain on the sale of the MAXâ
5000 product family. Diluted earnings per share of $0.36 increased $0.05 from the $0.31 reported in the prior quarter excluding the one-time items. First quarter earnings included after-tax charges of $1.4 million representing the company's share in the start-up losses of WaferTech. Altera added $85.0 million of cash to its balance sheet during the quarter with routine capital expenditures of $15.5 million.
Rodney Smith, President and CEO, stated, "We are extremely pleased with this quarter's revenue growth and profit performance. Revenues were ahead of our expectations driven by accelerating growth in North America and Europe and continued new product sales strength. Our aggressive roll-out of new products continued on schedule and we augmented our design tool capabilities with the addition of several leading electronic design automation packages. The APEXÔ
E product family roll-out continued, the ACEXÔ
family of products for low-cost high-volume applications began shipping, and we introduced the first member of the MAXâ 7000B
family, the most advanced product-term device available on the market. We continue
to step up our pace to address rapidly growing customer demand for the
flexibility and fast time-to-market advantages available through Altera's industry
leading programmable logic devices."
Altera continued to advance its leadership position in system-on-a-programmable-chip solutions.
- Continuing the roll-out of 1.8-V APEX 20KE products, four new family members shipped during the first quarter. The APEX 20KE family features on-chip content addressable memory (CAM), low-voltage differential signaling (LVDS), and phased-locked loops (PLLs), enabling designers to create true system-on-a-programmable-chip silicon for leading-edge communications applications. Additional APEX 20KE family members will ship by mid-year, providing a density range from 60,000 to 1,500,000 usable gates.
- Altera began shipping the EPM7128B, the first member of the MAX 7000B family -- the industry's most advanced product-term device family. The MAX 7000B devices are the industry's first 0.22-micron, 2.5-V product-term devices and provide as low as 3.5-nanosecond pin-to-pin performance and support several new high bandwidth I/O features, making them ideal for communications applications. An additional MAX 7000B device, the EPM7256B, began customer sampling in the quarter with entire family rollout to be completed during the second quarter.
- Altera's new ACEX device family, aimed at low-cost, high-volume applications, was introduced, and three members of the 2.5-V ACEX 1K family shipped this quarter. These look-up table (LUT)-based devices provide the industry's lowest cost structure while offering density and performance levels that enable designers to replace ASICs and ASSPs in high-volume, price-sensitive communications applications, including low-cost switches, cable modems, and xDSL modems.
- Version 2000.02 of Altera's Quartus™ development software was released. This update provides enhanced capabilities that improve design performance of high-density APEX devices by an average of more than 40 percent. Altera's Quartus software meets the challenges of designing for multi-million-gate devices and enables system-on-a-programmable-chip design methodology and fast time-to-market.
- Altera entered into strategic partnerships with Mentor Graphics (Nasdaq: MENT) and Synopsys Inc. (Nasdaq: SNPS). Altera customers now have easy access to two of the world's leading synthesis tools--Mentor Graphics LeonardoSpectrumä
and Synopsys FPGA Expressä
--as well as Mentor Graphics ModelSimÔ
advanced hardware description language simulation tools, all at no additional cost to customers. These leading-edge capabilities give customers a robust design platform with seamless Altera integration.
This press release contains "forward- looking statements" which are made pursuant to the safe harbor provisions of 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", "provides", or "creating". Investors are cautioned that all forward-looking statements in the release involve risks and uncertainty, including without limitation the risk that future performance is dependent on APEX, and ACEX, and MAX 7000B product development schedules and market acceptance, the design performance of Quartus software tools, as well as the company's development technology and manufacturing capabilities.
Please refer to the company's Securities and Exchange Commission filings, copies of which are available from the company without charge.
Fax on Demand:
Copies of Altera's announcement are available from its fax-on-demand service. In the U.S. and Canada to request a copy call 1-800-789-ALTR. International users can dial their local International Access Code followed by 1-408-894-0466.
Altera Corporation, The Programmable Solutions Company™, was founded in 1983 and is a leading supplier of programmable logic devices and associated logic development software tools. Programmable logic devices are semiconductor chips that may be programmed on-site, using software tools that run on personal computers or engineering workstations. User benefits include ease of use, lower risk, and fast time-to-market. Altera's CMOS-based programmable logic devices address high-speed, high-density and low-power applications in the telecommunications, data communications, computer peripheral, and industrial markets. Altera common stock is traded on the Nasdaq Stock Market under the symbol ALTR. More information on Altera can be obtained on the Internet at http://www.altera.com.
ALTERA CORPORATION
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share
data)
(Unaudited)
| |
THREE MONTHS ENDED
|
|
|
Mar. 31
2000
|
Mar. 31
1999
|
Dec. 31
1999
|
|
Net sales |
$ 272,781
|
$ 186,399
|
$ 237,320
|
|
Costs & expenses: |
|
|
|
|
Cost of sales |
94,590
|
69,154
|
83,193
|
|
Research and development |
34,442
|
17,023
|
25,967
|
|
Selling, general and administrative |
43,378
----------
|
32,320
----------
|
40,369
----------
|
|
Total costs and expenses |
172,410
----------
|
118,497
----------
|
149,529
----------
|
|
|
|
|
|
Income from operations |
100,371
|
67,902
|
87,791
|
|
Interest & other income, net |
10,548
----------
|
4,618
----------
|
18,445
----------
|
|
|
|
|
|
Income before income taxes and
equity investment |
110,919
|
72,520
|
106,236
|
|
Provision for income taxes |
34,386
----------
|
23,569
----------
|
34,526
----------
|
|
|
|
|
|
Income before equity investment |
76,533
|
48,951
|
71,710
|
|
Equity in loss of WaferTech |
(1,379)
----------
|
(1,976)
----------
|
(1,341)
----------
|
|
|
|
|
|
Net income |
$ 75,154
|
$ 46,975
|
$ 70,369
|
|
Earnings per share:
Basic |
$ 0.38
======
|
$ 0.24
======
|
$ 0.35
======
|
|
Diluted |
$ 0.36
======
|
$ 0.23
======
|
$ 0.34
======
|
|
Shares used in computation:
Basic |
199,269
======
|
195,866
======
|
199,390
======
|
|
Diluted |
209,776
======
|
205,374
======
|
208,913
======
|
|
Tax rate |
31.0%
|
32.5%
|
32.5%
|
|
% of Sales: |
|
|
|
|
Gross margin |
65.3%
|
62.9%
|
64.9%
|
|
Research and development |
12.6%
|
9.1%
|
10.9% |
|
Selling, general & administrative |
15.9%
|
17.4%
|
17.0%
|
|
Income from operations |
36.8%
|
36.4%
|
37.0%
|
|
Net income |
27.6%
|
25.2%
|
29.7%
|
Note: Earnings per share and shares used in computation reflect the two-for-one stock split effective May 4, 1999 for all periods presented.
ALTERA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
| |
Mar. 31
2000
-------------
|
Dec. 31
1999
-------------
|
|
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
Cash and short-term
investments |
$ 930,701 |
$ 845,666 |
|
Accounts receivable, net |
119,334 |
90,101 |
|
Inventories |
81,597 |
64,027 |
|
Other assets |
118,739
-------------
|
107,091
-------------
|
|
Total current assets |
1,250,371
|
1,106,885
|
|
Property and equipment, net |
163,375
|
155,217
|
|
Investments & intangibles |
175,903
-------------
|
177,497
-------------
|
| |
$ 1,589,649
=========
|
$ 1,439,599
=========
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
Accounts payable and current
liabilities |
$ 103,546
|
$ 93,766
|
|
Deferred income on sales to
distributors |
259,696
-------------
|
227,760
-------------
|
|
Total current liabilities |
363,242
|
321,526
|
|
Stockholders' equity |
1,226,407
-------------
|
1,118,073
-------------
|
| |
$ 1,589,649
=========
|
$ 1,439,599
=========
|
|
|
|
|
Key Ratios & Information |
|
|
| |
|
|
|
Current Assets/Current Liabilities |
3:1 |
3:1 |
|
Liabilities/Equity |
1:3 |
1:4 |
|
Annualized Quarterly Return on Equity |
26% |
26% |
|
Quarterly Depreciation Expense, Net |
7,334 |
7,639 |
|
Quarterly Capital Expenditures |
15,487 |
10,774 |
|
Annualized Sales per Employee |
753 |
689 |
Altera Corporate Profile
Revenue by Market Segment
| |
|
Q3'99 |
Q4'99 |
Q1'00 |
|
|
| |
Communications |
67% |
70% |
65% |
|
Serve over 13,000 customers
|
| |
EDP |
16% |
14% |
18% |
|
Three distributors in North America -
|
| |
Industrial |
12% |
10% |
11% |
|
85 branch locations
|
| |
Consumer |
2% |
3% |
3% |
|
43% of sales in export markets
|
| |
Other |
3% |
3% |
3% |
|
Distributors in all European countries
|
| |
|
|
|
|
|
and major Asian markets
|
| Revenue: Product Family | Channel |
| |
|
Q3'99 |
Q4'99 |
Q1'00 |
|
Q3'99 |
Q4'99 |
Q1'00 |
| |
New |
33% |
38% |
42% |
|
North America |
57% |
56% |
57% |
| |
Mainstream |
35% |
35% |
33% |
|
Europe |
19% |
20% |
23% |
| |
Mature |
26% |
21% |
19% |
|
Japan |
18% |
18% |
15% |
| |
Other |
6% |
6% |
6% |
|
Asia/Pacific |
6% |
6% |
5% |
| |
Total |
100%
===== |
100%
===== |
100%
===== |
|
International |
43% |
44% |
43% |
| |
|
|
|
|
|
Total |
100%
===== |
100%
===== |
100%
===== |
| |
|
|
|
|
Financial Highlights: (In thousands)
|
|
1996 |
1997 |
1998 |
1999 |
Q1 2000 |
|
Net sales |
$497,306 |
$631,114 |
$654,342 |
$836,623 |
$272,781 |
|
Income before effect of
accounting change |
109,135 |
151,517 |
154,387 |
223,994 |
75,154 |
|
Cash and investments |
280,850 |
377,569 |
579,106 |
845,666 |
930,701 |
|
Total assets |
778,212 |
952,518 |
1,093,331 |
1,439,599 |
1,589,649 |
|
Stockholders' equity |
370,245 |
536,687 |
881,721 |
1,118,073 |
1,226,407 |
|
Annualized ROE |
35% |
33% |
22% |
22% |
26% |
Ownership:
| Management/Directors/Employees: |
5% |
|
Corporate Office:
San Jose, CA |
| Institutional Holdings: |
80% |
|
|
| Retail/Other: |
15% |
|
Employees:
1,500 |
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