|
EDITOR CONTACT:
Scott Wylie, Vice President - Investor Relations
Altera Corporation
San Jose, CA
(408) 544-6996
RELEASE DATE: January 18, 2001
Altera Reports Record Annual Sales & Profits
2000 Sales Increase 65%, Fourth Quarter Sales up 55% Annually
San Jose, Calif., January 18, 2001 - Altera Corporation (Nasdaq: ALTR) today reported record annual sales of $1.38 billion. Income, excluding the net gain associated with the previously announced sale of the company's interest in WaferTech, LLC, was $394.1 million, up 76% over 1999 and a record 28.6% of sales. On this basis, income was $0.95 per diluted share versus $0.54 in the prior year. Including the gain, total year net income was $496.9 million or $1.19 per diluted share.
Fourth quarter sales of $368.0 million, up 55% over the same period last year, were down 7% from the previous quarter. Fourth quarter net income of $205.5 million, or $0.50 per diluted share, included a $102.8 million net after-tax gain related to the sale of the company's 23% interest in WaferTech to Taiwan Semiconductor Manufacturing Company. This one-time net after-tax gain results from the effects of a $178.1 million pre-tax gain offset by an associated increase in the company's tax provision and a $4.1 million net change in equity income (loss). Pro forma net income, excluding these one-time effects, was $102.7 million or 27.9% of sales, a decline of 13% from the prior quarter and an increase of 46% over the fourth quarter of 1999. Pro forma net income of $0.25 per diluted share was down $0.03 from the $0.28 reported in the third quarter of 2000 and up $0.08 from the $0.17 reported in the fourth quarter of 1999.
Altera repurchased 12.3 million shares of its common stock during the quarter at a cost of $368.1 million, received $350.4 million in gross proceeds from the WaferTech transaction, and ended the quarter with a $1.13 billion cash position.
"The year 2000 was an excellent year for Altera. Overall annual sales growth was robust as customers increasingly turned to our programmable devices to meet their needs for design flexibility and fast time-to-market. Although an industry-wide inventory correction is impacting demand in the short-term, our new product portfolio positions us well for long-term growth. We are particularly pleased with the positive customer reaction to the introduction of our industry-leading ExcaliburTM family of embedded processor solutions," said John Daane, president and CEO.
Altera continued to enhance its leadership position in System-on-a-Programmable-Chip (SOPC) solutions:
- Altera announced the APEXTM 20KC, the industry's first programmable logic device (PLD) using all-layer copper interconnect. Copper interconnect presents lower electrical resistance, and coupled with the device's 0.15-micron process technology, delivers performance up to 25% faster than comparable 0.18-micron aluminum devices. Benefiting from its unique True-LVDSTM capability, the APEX 20KC features the industry's fastest I/O speeds--particularly appealing in advanced communications applications.
- Altera has reduced the price of its highest density APEX 20KE devices by 60% as a result of manufacturing cost reductions from the company's patented redundancy technology. Altera is the only company in the PLD industry with an architecture that facilitates the use of redundancy, a technology that enhances yield and lowers cost. Redundancy's benefits contribute to Altera's position as the industry's most profitable PLD company and help make the APEX EP20K1500E the largest PLD available in commercial quantities today.
- Delivering an attractive extension to Altera's intellectual property offerings, Mentor Graphics has joined the Altera Megafunction Partners Program (AMPPSM) and will offer twenty Inventra commodity cores to Altera customers developing next generation signal processing, networking, bus interface and memory applications. Intellectual property cores offer customers the benefit of parameterizable standard functions that can be easily incorporated into a PLD design thereby speeding time-to-market. Cores offered by Altera AMPP partners are reusable, synthesizable megafunctions that are optimized for Altera PLDs.
- Altera's Toronto Technology Center and San Diego Applications Engineering Center opened during the quarter. The Toronto facility will focus on development of next generation software and device architectures for SOPC solutions and will leverage the extensive knowledge and resources available from the University of Toronto's engineering program.
Conference Call & Updates:
A conference call will be held today at 2:00 p.m. Pacific Time to discuss the quarter's results. The webcast and subsequent replay will be available on the company's web site, www.altera.com. A telephonic replay of the call may be accessed later in the day by calling (719) 457-0820 and referencing confirmation code 424062.
Altera first quarter business updates will be made available after the market close on January 30 and February 27 and will be posted on the company's web site. For those who do not have access to the Internet, Altera's investor relations department may be contacted directly at (408) 544-7707.
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 may dial their local International Access Code followed by 1-408-894-0466.
About Altera:
Altera Corporation, The Programmable Solutions CompanyTM, was founded in 1983 and is a leading supplier of programmable logic devices (PLDs). Altera's CMOS-based PLDs are user-programmable semiconductor chips that enhance flexibility and reduce time-to-market for companies in the communications, computer peripheral, and industrial markets. By using high performance devices, software development tools, and sophisticated intellectual property cores, system-on-a-programmable-chip (SOPC) solutions can be created with embedded processors, memory, and other complex logic together on a single PLD. Altera common stock is traded on the Nasdaq Stock Market under the symbol ALTR. More information on Altera is available 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 |
YEAR ENDED |
| |
Dec. 31
|
Dec. 31
|
Sept. 30
|
Dec. 31
|
Dec. 31
|
| |
2000
|
1999
|
2000
|
2000
|
1999
|
| |
|
|
|
|
|
| Net sales |
$ 367,953
|
$ 237,320
|
$ 395,395
|
$ 1,376,815
|
$ 836,623
|
| Costs & expenses: |
|
|
|
|
|
| Cost of sales |
125,025
|
83,193
|
132,694
|
466,994
|
301,322
|
| Research and development |
50,560
|
25,967
|
48,475
|
172,373
|
86,065
|
| Selling, general and administrative |
60,489
|
40,369
|
57,293
|
209,979
|
143,214
|
| Acquired in-process research and development |
-
|
-
|
-
|
6,305
|
-
|
| Total costs and expenses |
236,074
|
149,529
|
238,462
|
855,651
|
530,601
|
| |
|
|
|
|
|
| Income from operations |
131,879
|
87,791
|
156,933
|
521,164
|
306,022
|
| Gain on sale of WaferTech |
178,105
|
-
|
-
|
178,105
|
-
|
| Interest & other income, net |
12,287
|
18,445
|
12,912
|
46,145
|
37,055
|
| |
|
|
|
|
|
| Income before income taxes and equity investment |
322,271
|
106,236
|
169,845
|
745,414
|
343,077
|
| Provision for income taxes |
(115,932)
|
(34,526)
|
(52,651)
|
(247,107)
|
(111,499)
|
| Equity in income (loss) of WaferTech |
(837)
|
(1,341)
|
795
|
(1,400)
|
(7,584)
|
| |
|
|
|
|
|
| Net income |
$ 205,502
=======
|
$ 70,369
=======
|
$ 117,989
=======
|
$ 496,907
=======
|
$ 223,994
=======
|
| Income per share: |
|
|
|
|
|
| Basic |
$ 0.52
=======
|
$ 0.18
=======
|
$ 0.30
=======
|
$ 1.25
=======
|
$ 0.57
=======
|
| Diluted |
$ 0.50
=======
|
$ 0.17
=======
|
$ 0.28
=======
|
$ 1.19
=======
|
$ 0.54
=======
|
| Shares used in computation: |
|
|
|
|
|
| Basic |
392,655
=======
|
398,780
=======
|
398,540
=======
|
396,849
=======
|
396,158
=======
|
| Diluted |
408,836
=======
|
417,826
=======
|
419,396
=======
|
416,629
=======
|
414,928
=======
|
| |
|
|
|
|
|
| Supplemental information: |
|
|
|
|
|
Income excluding acquired in-process
research and development, net of tax |
$ 205,502
=======
|
$ 70,369
=======
|
$ 117,989
=======
|
$ 501,258
=======
|
$ 223,994
=======
|
| Diluted income per share |
$ 0.50
=======
|
$ 0.17
=======
|
$ 0.28
=======
|
$ 1.20
=======
|
$ 0.54
=======
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| Tax rate |
36.0%
|
32.5%
|
31.0%
|
33.2%
|
32.5%
|
| % of Sales: |
|
|
|
|
|
| Gross margin |
66.0%
|
64.9%
|
66.4%
|
66.1%
|
64.0%
|
| Total research and development |
13.8%
|
10.9%
|
12.2%
|
13.0%
|
10.3%
|
| Selling, general and administrative |
16.4%
|
17.0%
|
14.5%
|
15.2%
|
17.1%
|
| Income from operations |
35.8%
|
37.0%
|
39.7%
|
37.9%
|
36.6%
|
| Net income |
55.9%
|
29.7%
|
29.8%
|
36.1%
|
26.8%
|
| Income excluding acquired in-process |
|
|
|
|
|
| research and development, net of tax |
55.9%
|
29.7%
|
29.8%
|
36.4%
|
26.8%
|
Note: Income per share and shares used in computation have been retroactively restated, for all periods presented, to give effect to the two-for-one stock split effective August 10, 2000.
ALTERA CORPORATION
COMPARISONS WITH AND WITHOUT ONE-TIME EFFECTS OF WAFERTECH SALE *
(In thousands, except per share data)
(Unaudited)
| |
THREE MONTHS ENDED
|
YEAR ENDED
|
| |
Dec. 31
|
Dec. 31
|
Dec. 31
|
Dec. 31
|
| |
2000
|
2000
|
2000
|
2000
|
| |
|
*Pro forma
|
|
*Pro forma
|
| Net sales |
$ 367,953
|
$ 367,953
|
$ 1,376,815
|
$ 1,376,815
|
| Costs & expenses: |
|
|
|
|
| Cost of sales |
125,025
|
125,025
|
466,994
|
466,994
|
| Research and development |
50,560
|
50,560
|
172,373
|
172,373
|
| Selling, general and administrative |
60,489
|
60,489
|
209,979
|
209,979
|
| Acquired in-process research and development |
-
|
-
|
6,305
|
6,305
|
| Total costs and expenses |
236,074
|
236,074
|
855,651
|
855,651
|
| |
|
|
|
|
| Income from operations |
131,879
|
131,879
|
521,164
|
521,164
|
| Gain on sale of WaferTech |
178,105
|
-
|
178,105
|
-
|
| Interest & other income, net |
12,287
|
12,287
|
46,145
|
46,145
|
| |
|
|
|
|
Income before income taxes and
equity investment |
322,271
|
144,166
|
745,414
|
567,309
|
| Provision for income taxes |
(115,932)
|
(44,691)
|
(247,107)
|
(175,866)
|
| Equity in income (loss) of WaferTech |
(837)
|
3,242
|
(1,400)
|
2,679
|
| |
|
|
|
|
| Net income |
$ 205,502
=======
|
$ 102,717
=======
|
$ 496,907
=======
|
$ 394,122
=======
|
| Income per share: |
|
|
|
|
| Basic |
$ 0.52
=======
|
$ 0.26
=======
|
$ 1.25
=======
|
$ 0.99
=======
|
| Diluted |
$ 0.50
=======
|
$ 0.25
=======
|
$ 1.19
=======
|
$ 0.95
=======
|
| Shares used in computation: |
|
|
|
|
| Basic |
392,655
=======
|
392,655
=======
|
396,849
=======
|
396,849
=======
|
| Diluted |
408,836
=======
|
408,836
=======
|
416,629
=======
|
416,629
=======
|
| |
|
|
|
|
| Supplemental information: |
|
|
|
|
Income excluding acquired in-process
research and development, net of tax |
$ 205,502
=======
|
$ 102,717
=======
|
$ 501,258
=======
|
$ 398,473
=======
|
| Diluted income per share |
$ 0.50
=======
|
$ 0.25
=======
|
$ 1.20
=======
|
$ 0.96
=======
|
| |
|
|
|
|
| Tax rate |
36.0%
|
31.0%
|
33.2%
|
31.0%
|
| % of Sales: |
|
|
|
|
| Gross margin |
66.0%
|
66.0%
|
66.1%
|
66.1%
|
| Total research and development |
13.8%
|
13.8%
|
13.0%
|
13.0%
|
| Selling, general and administrative |
16.4%
|
16.4%
|
15.2%
|
15.2%
|
| Income from operations |
35.8%
|
35.8%
|
37.9%
|
37.9%
|
| Net income |
55.9%
|
27.9%
|
36.1%
|
28.6%
|
Income excluding acquired in-process
research and development, net of tax |
55.9%
|
27.9%
|
36.4%
|
28.9%
|
* The pro forma financial data excludes the one-time gain and other one-time charges and credits relating to WaferTech.
Note: Income per share and shares used in computation have been retroactively restated, for all periods presented, to give effect to the two-for-one stock split effective August 10, 2000.
ALTERA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
| |
Dec. 31
|
Sept. 30
|
Dec. 31
|
| |
2000
|
2000
|
1999
|
| Assets |
|
|
|
| |
|
|
|
| Current assets: |
|
|
|
| Cash and short-term investments |
$1,133,609
|
$1,022,805
|
$845,666
|
| Accounts receivable, net |
168,940
|
170,729
|
90,101
|
| Inventories |
273,562
|
177,339
|
64,027
|
| Other assets |
193,248
|
151,020
|
107,091
|
| Total current assets |
1,769,359
|
1,521,893
|
1,106,885
|
| Property and equipment, net |
207,858
|
197,916
|
155,217
|
| Investments & intangibles |
26,917
|
202,207
|
177,497
|
| |
$2,004,134
========
|
$1,922,016
========
|
$1,439,599
========
|
| |
|
|
|
| Liabilities and Stockholders' Equity |
|
|
|
| |
|
|
|
| Accounts payable and current liabilities |
$295,890
|
$170,014
|
$93,766
|
| Deferred income on sales to distributors |
460,314
|
366,202
|
227,760
|
| Total current liabilities |
756,204
|
536,216
|
321,526
|
| Stockholders' equity |
1,247,930
|
1,385,800
|
1,118,073
|
| |
$2,004,134
========
|
$1,922,016
========
|
$1,439,599
========
|
| |
|
|
|
| Key Ratios & Information |
|
|
|
| |
|
|
|
| Current Assets/Current Liabilities |
2:1
|
3:1
|
3:1
|
| Liabilities/Equity |
1:2
|
1:3
|
1:4
|
| Annualized Quarterly Return on Equity |
38%
|
36%
|
26%
|
| Quarterly Depreciation Expense, Net |
9,901
|
9,681
|
7,639
|
| Quarterly Capital Expenditures |
19,843
|
31,105
|
10,774
|
| Annualized Sales per Employee |
830
|
848
|
689
|
| Number of Employees |
1,945
|
1,799
|
1,398
|
| Inventory MSOH *: Altera |
6.6
|
4.0
|
2.3
|
| Inventory MSOH *: Distribution |
2.5
|
1.9
|
2.3
|
| Days Sales Outstanding |
42
|
39
|
35
|
*MSOH: Months Supply On Hand
ALTERA CORPORATION
REVENUE SUMMARY
| |
|
|
|
Q-Q
|
Y-Y
|
Year ending
|
Annual
|
| |
Q4'99
|
Q3'00
|
Q4'00
|
Growth
|
Growth
|
1999
|
2000
|
Growth
|
| Geography |
|
|
|
|
|
|
|
|
| North America |
56%
|
58%
|
56%
|
-10%
|
57%
|
56%
|
57%
|
68%
|
| Europe |
20%
|
21%
|
22%
|
-2%
|
70%
|
19%
|
22%
|
88%
|
| Japan |
18%
|
14%
|
16%
|
1%
|
32%
|
19%
|
15%
|
31%
|
| Asia/Pacific |
6%
|
7%
|
6%
|
-14%
|
62%
|
6%
|
6%
|
70%
|
| International |
44%
|
42%
|
44%
|
-3%
|
53%
|
44%
|
43%
|
61%
|
| Total |
100%
====
|
100%
====
|
100%
====
|
|
|
100%
====
|
100%
====
|
|
| |
|
|
|
|
|
|
|
|
| Market Segment |
|
|
|
|
|
|
|
|
| Communications |
70%
|
70%
|
66%
|
-12%
|
48%
|
66%
|
67%
|
67%
|
| EDP |
14%
|
16%
|
18%
|
3%
|
98%
|
16%
|
17%
|
80%
|
| Industrial |
10%
|
9%
|
11%
|
9%
|
68%
|
11%
|
11%
|
51%
|
| Consumer |
3%
|
2%
|
2%
|
-11%
|
-11%
|
3%
|
2%
|
15%
|
| Others |
3%
|
3%
|
3%
|
10%
|
49%
|
4%
|
3%
|
44%
|
| Total |
100%
====
|
100%
====
|
100%
====
|
|
|
100%
====
|
100%
====
|
|
| |
|
|
|
|
|
|
|
|
| Voltage Category 1 |
|
|
|
|
|
|
|
|
| 1.8 Volt |
0%
|
5%
|
6%
|
15%
|
N/A
|
0%
|
4%
|
N/A
|
| 2.5 Volt |
10%
|
17%
|
14%
|
-21%
|
134%
|
5%
|
14%
|
324%
|
| 3.3 Volt |
28%
|
34%
|
35%
|
-2%
|
95%
|
25%
|
34%
|
124%
|
| 5.0 Volt |
56%
|
39%
|
39%
|
-9%
|
7%
|
63%
|
43%
|
13%
|
| Other |
6%
|
5%
|
6%
|
5%
|
43%
|
7%
|
5%
|
31%
|
| Total |
100%
====
|
100%
====
|
100%
====
|
|
|
100%
====
|
100%
====
|
|
| |
|
|
|
|
|
|
|
|
| Product Category 2 |
|
|
|
|
|
|
|
|
| New |
0%
|
5%
|
6%
|
22%
|
N/A
|
0%
|
4%
|
N/A
|
| Mainstream |
33%
|
45%
|
44%
|
-9%
|
105%
|
26%
|
42%
|
167%
|
| Mature & Other |
67%
|
50%
|
50%
|
-8%
|
15%
|
74%
|
54%
|
20%
|
| Total |
100%
====
|
100%
====
|
100%
====
|
|
|
100%
====
|
100%
====
|
|
| 1 Voltage Category Description |
|
Voltage
|
Products
|
| 1.8 V |
APEX 20KE |
| 2.5 V |
MAX 7000B, FLEX 10KE, APEX 20K, ACEX 1K |
| 3.3 V |
MAX 7000A, MAX 3000A, FLEX 6000, FLEX 10KA |
| 5.0 V |
CLASSIC, MAX 5000, MAX 7000, MAX 7000S, MAX 9000, FLEX 8000,
FLEX 10K |
| Other |
Tools, FLASHlogic, MPLDs, configuration devices and Northwest
Logic design services |
| |
|
| 2 Product Category Description |
|
Category
|
Products
|
| New |
APEX 20KE, MAX 7000B, ACEX 1K, Excalibur |
| Mainstream |
MAX 7000A, MAX 3000A, FLEX 6000, FLEX 10KA, FLEX 10KE, APEX 20K |
| Mature & Other |
CLASSIC, MAX 5000, MAX 7000, MAX 7000S, MAX 9000, FLEX 8000,
FLEX 10K, Tools, FLASHlogic, MPLDs, configuration devices and Northwest
Logic design services |
|
Literature
> 
