Altera Announces Fourth Quarter Results - WAFF-TV: News, Weather and Sports for Huntsville, AL

Altera Announces Fourth Quarter Results

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.

SOURCE Altera Corporation

SAN JOSE, Calif., Jan. 23, 2014 /PRNewswire/ -- Altera Corporation (NASDAQ: ALTR) today announced fourth quarter sales of $454.4 million, up 2 percent from the third quarter of 2013 and up 3 percent from the fourth quarter of 2012. Fourth quarter net income was $98.9 million, $0.31 per diluted share, compared with net income of $119.4 million, $0.37 per diluted share, in the third quarter of 2013 and $120.8 million, $0.37 per diluted share, in the fourth quarter of 2012.

(Logo: http://photos.prnewswire.com/prnh/20101012/SF78952LOGO)

Cash flow from operating activities in 2013 was $590.2 million. Altera repurchased 4.4 million shares of its common stock during the quarter at a cost of $140.8 million.

Altera's board of directors has declared a quarterly cash dividend of $0.15 per share, to be paid on March 3, 2014 to stockholders of record on February 10, 2014.

"Sales growth exceeded our expectations as a diverse blend of end markets grew sequentially. Once again, our new products were the quarter's growth drivers, with double digit growth, led by our 28 nm FPGAs," said John Daane, president, chief executive officer, and chairman of the board. "In the first quarter we will begin shipping our 20 nm mid-range Arria 10 devices, which deliver performance that exceeds that of our 28 nm high-end devices and can deliver up to 40 percent lower power consumption than our previous mid-range FPGA. With the fourth quarter release of Quartus II software Arria 10 edition, we became the first and today remain the only major FPGA vendor with fully available development software for a 20 nm FPGA family." 

Several recent accomplishments mark the company's continuing progress:

  • With release of Altera's Quartus II Software Arria® 10 Edition, Altera became the first FPGA supplier to offer full publicly available software support for a 20 nm FPGA. This release supports Arria 10 mid-range FPGAs and provides customers access to dramatic improvements in performance, power and system cost. Based on TSMC 20 nm process technology, Arria 10 FPGAs and SoCs effectively reinvent the mid-range FPGA and SoC category by simultaneously delivering a 15 percent performance gain over current high-end FPGAs and up to 40 percent lower power than previous mid-range devices. Customers can start developing Arria 10 FPGA- and SoC-based systems today using the familiar and proven Quartus II design environment with the fastest compile times in the industry. Arria 10 FPGAs and SoCs are optimized for systems that require high-performance features while being constrained by strict cost and power budgets. These mid-range devices leverage an advanced 20 nm process and include features tailored to address the requirements of a variety of end markets, including communications, broadcast, and computer and storage.
  • Altera received the Huawei 2013 Excellent Core Partner Award for outstanding support, high-quality standards and FPGA product innovation. The Huawei Excellent Core Partner Award is a distinguished recognition for companies that consistently deliver the highest performance and quality products that meet Huawei's highly specialized requirements. Altera was the only major programmable logic company to win an Excellent Core Partner Award at Huawei's 2013 Core Partner Convention, which was held in November. During 2013, Huawei delivered multiple wireline, wireless and enterprise infrastructure solutions to its customers based on Altera's 28 nm portfolio of products, ranging from the high-end Stratix® V to the low-cost Cyclone® V families of FPGAs. Telecommunications providers worldwide deploy Huawei's communications infrastructure offerings to upgrade their network architectures for the performance and capacity needed to handle the bandwidth expansion driven by the proliferation of internet-connected devices.
  • As the recipient of the Best Technical Support Award from ZTE, Altera has been recognized as a ZTE technical supplier who delivered the best technical support in 2013. ZTE holds an annual event in Shenzhen, China, to affirm and recognize the key role its suppliers play in growing the company's position as one of the world's leading innovators in the telecommunications equipment and networking industry. Altera's technologies, including FPGAs, CPLDs and power products, are used in ZTE's wireless, wireline and cloud computing offerings. ZTE's telecommunications equipment is used by the world's largest service providers.

 

SELECTED FOURTH QUARTER REVENUE AND RELATED RESULTS


Key New Product Devices


Sequential  Comparisons

Stratix V


36%

Stratix IV


4%

Arria II


0%

Arria V


5%

Cyclone IV


17%

Cyclone V


89%

HardCopy IV


23%

Enpirion PowerSoCs


(8)%






($ in thousands)





Key Ratios & Information      


December 31, 2013


September 27, 2013

Current Ratio


6:1


6:1

Liabilities/Equity


2:3


1:2

Quarterly Operating Cash Flows


$

130,759


$

245,406

TTM Return on Equity


13%


14%

Quarterly Depreciation Expense


$

11,321


$

10,772

Quarterly Capital Expenditures


$

14,253


$

8,633

Inventory MSOH (1): Altera


3.4


3.4

Inventory MSOH (1): Distribution


0.7


0.6

TTM Cash Conversion Cycle (Days)


160


158

Turns


45%


39%

Book to Bill


1.0


<1.0






Note (1): MSOH: Months Supply On Hand

 

 

ALTERA CORPORATION

NET SALES SUMMARY

(Unaudited)



Three Months Ended


Quarterly Growth Rate


Years Ended


December 31, 2013


September 27, 2013


December 31, 2012


Sequential Change


Year-

Over-Year

Change


December 31, 2013


December 31, 2012


Annual Growth

Geography
















Americas

19%


18%


19%


5%


1%


18%


18%


(1)%

Asia Pacific

41%


39%


39%


5%


8%


40%


43%


(10)%

EMEA

24%


28%


28%


(11)%


(10)%


26%


25%


4%

Japan

16%


15%


14%


13%


20%


16%


14%


5%

Net Sales

100%


100%


100%


2%


3%


100%


100%


(3)%

















Product Category
















New

47%


44%


39%


10%


26%


43%


32%


31%

Mainstream

24%


26%


28%


(8)%


(13)%


27%


30%


(14)%

Mature and Other

29%


30%


33%


(1)%


(9)%


30%


38%


(22)%

Net Sales

100%


100%


100%


2%


3%


100%


100%


(3)%

















Vertical Market
















Telecom & Wireless

40%


41%


44%


0%


(6)%


41%


44%


(9)%

Industrial Automation, Military & Automotive

22%


23%


21%


(1)%


10%


22%


21%


4%

Networking, Computer & Storage

19%


19%


17%


3%


17%


19%


17%


6%

Other

19%


17%


18%


9%


7%


18%


18%


(3)%

Net Sales

100%


100%


100%


2%


3%


100%


100%


(3)%

















FPGAs and CPLDs
















FPGA

83%


82%


84%


3%


1%


83%


84%


(4)%

CPLD

9%


9%


9%


(2)%


8%


9%


9%


(4)%

Other Products

8%


9%


7%


(4)%


25%


8%


7%


9%

Net Sales

100%


100%


100%


2%


3%


100%


100%


(3)%

Product Category Description

  • New Products include the Stratix® V, Stratix IV, Arria® V, Arria II, Cyclone® V, Cyclone IV, MAX® V, HardCopy® IV devices and Enpirion PowerSoCs.
  • Mainstream Products include the Stratix III, Cyclone III, MAX II and HardCopy III devices.
  • Mature and Other Products include the Stratix II, Stratix, Arria GX, Cyclone II, Cyclone, Classic™, MAX 3000A, MAX 7000, MAX 7000A, MAX 7000B, MAX 7000S, MAX 9000, HardCopy II, HardCopy, FLEX® series, APEX™ series, Mercury™, Excalibur™ devices, configuration and other devices, intellectual property cores, and software and other tools.

 


Business Outlook for the First Quarter 2014

 

Sales and Income Statement



Sequential Sales Growth

- 2% to - 6%

Gross Margin

68% +/- .5%

Research and Development

$100 - $102 million

SG&A

$75 - $77 million

Other Income/Expense, Net (1)

Net expense of approximately $4 million

Tax Rate

12% - 13%

Diluted Share Count

Less than 322 million

Turns

Mid 40's

Inventory MSOH

Low 4's


Note (1): Other Income/ Expense, Net includes Interest income and other and Interest expense in our consolidated statements of comprehensive income.

                                                                             

Vertical Market



Telecom & Wireless

Up

Industrial Automation, Military & Automotive

Flat

Networking, Computer & Storage

Down

Other

Down

Fourth Quarter Earnings Conference Call

A conference call will be held today at 1:45 p.m. Pacific Time to discuss the quarter's results and management's current business outlook. The web cast and subsequent replay will be available in the Investor Relations section of the company's website at 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 258712. The telephonic replay will be available for two weeks following the live call.

Forward-Looking Statements

Statements in this press release that are not historical are "forward-looking statements" as the term is defined in 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," "expects," "anticipates," or other words that imply or predict a future state. Forward-looking statements include, but are not limited to, statements regarding product performance parameters, the Arria 10 shipping date, and any projection of revenue, gross margin, expense or other financial items discussed in the Business Outlook section or elsewhere in this press release. Investors are cautioned that all forward-looking statements in this release involve risks and uncertainty that can cause actual results to differ from those currently anticipated, due to a number of factors, including without limitation, current global economic conditions, customer business environment, customer inventory levels, vertical market mix, market acceptance of the company's products, product introduction schedules, the rate of growth of the company's new products including Cyclone® V, Cyclone IV, Arria® V, Arria II, Stratix® V, Stratix IV FPGAs, MAX® V CPLDs, HardCopy®  IV device families and Enpirion PowerSoCs, as well as changes in economic conditions and other risk factors discussed in documents filed by the company with the Securities and Exchange Commission (SEC) from time to time. Copies of Altera's SEC filings are posted on the company's website and are available from the company without charge. Forward-looking statements are made as of the date of this release, and, except as required by law, the company does not undertake an obligation to update its forward-looking statements to reflect future events or circumstances.

About Altera

Altera® programmable solutions enable designers of electronic systems to rapidly and cost effectively innovate, differentiate and win in their markets. Altera offers FPGAs, SoCs, CPLDs, ASICs and complementary technologies, such as power management, to provide high-value solutions to customers worldwide. Follow Altera via Facebook, Twitter, LinkedIn, Google+ and RSS, and

ALTERA, ARRIA, CYCLONE, HARDCOPY, MAX, MEGACORE, NIOS, QUARTUS and STRATIX words and logos are trademarks of Altera Corporation and registered in the U.S. Patent and Trademark Office and in other countries. All other words and logos identified as trademarks or service marks are the property of their respective holders as described at www.altera.com/legal.

INVESTOR CONTACT


MEDIA CONTACT

Scott Wylie - Vice President


Sue Martenson - Senior Manager

Investor Relations


Public Relations

(408) 544-6996


(408) 544-8158

swylie@altera.com


newsroom@altera.com

 

 



ALTERA CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)




Three Months Ended


Years Ended

(In thousands, except per share amounts)


December 31, 2013


September 27, 2013


December 31, 2012


December 31, 2013


December 31, 2012












Net sales


$

454,367


$

445,945


$

439,440


$

1,732,572


$

1,783,035

Cost of sales


144,024


141,525


133,367


546,736


541,523

Gross margin


310,343


304,420


306,073


1,185,836


1,241,512

Operating expense











Research and development expense


106,643


95,336


93,949


385,185


359,568

Selling, general, and administrative expense


84,692


78,907


74,030


320,068


289,854

Amortization of acquisition-related intangible assets


1,850


1,846


213


4,824


853

Total operating expense


193,185


176,089


168,192


710,077


650,275

Operating margin (1)


117,158


128,331


137,881


475,759


591,237

Compensation expense - deferred compensation plan


3,881


3,462


358


10,605


7,055

Gain on deferred compensation plan securities


(3,881)


(3,462)


(358)


(10,605)


(7,055)

Interest income and other


(4,902)


(2,214)


(2,390)


(11,553)


(8,388)

Gain reclassified from other comprehensive income


(24)


(33)


(205)


(153)


(268)

Interest expense


8,272


2,511


2,589


16,637


7,976

Income before income taxes


113,812


128,067


137,887


470,828


591,917

Income tax expense


14,878


8,635


17,082


30,763


35,110

Net income


$

98,934


$

119,432


$

120,805


$

440,065


$

556,807













Other comprehensive (loss)/ income:











Unrealized (loss)/gain on investments:











Unrealized holding (loss)/gain on investments arising during period, net of tax of ($11), $30, ($11), ($1) and $114


(26,811)


2,419


(889)


(33,424)


5,839

Less: Reclassification adjustments for gain on investments included in net income, net of tax of $2, $11, $24, $23 and $25


(22)


(22)


(44)


(130)


(114)



(26,833)


2,397


(933)


(33,554)


5,725

Unrealized gain on derivatives:











Unrealized gain on derivatives arising during period, net of tax of $9 and $45


-


-


17


-


84

Less: Reclassification adjustments for gain on derivatives included in net income, net of tax of $48 and $45


-


-


(89)


-


(84)



-


-


(72)


-


-

Other comprehensive (loss)/ income:


(26,833)


2,397


(1,005)


(33,554)


5,725

Comprehensive income


$

72,101


$

121,829


$

119,800


$

406,511


$

562,532












Net income per share:











Basic


$

0.31


$

0.37


$

0.38


$

1.37


$

1.74

Diluted


$

0.31


$

0.37


$

0.37


$

1.36


$

1.72












Shares used in computing per share amounts:











Basic


319,993


320,445


319,765


320,195


320,830

Diluted


322,018


323,505


322,209


323,018


324,497












Dividends per common share


$

0.15


$

0.15


$

0.10


$

0.50


$

0.36












Tax rate


13.1%


6.7%


12.4%


6.5%


5.9%

% of Net sales:











Gross margin


68.3%


68.3%


69.7%


68.4%


69.6%

Research and development


23.5%


21.4%


21.4%


22.2%


20.2%

Selling, general, and administrative


18.6%


17.7%


16.8%


18.5%


16.3%

Operating margin(1)


25.8%


28.8%


31.4%


27.5%


33.2%

Net income


21.8%


26.8%


27.5%


25.4%


31.2%


Notes:


(1) We define operating margin as gross margin less research and development and selling, general and administrative expenses and amortization of acquisition-related intangible assets, as presented above. This presentation differs from income from operations as defined by U.S. Generally Accepted Accounting Principles ("GAAP"), as it excludes the effect of compensation associated with the deferred compensation plan obligations. Since the effect of compensation associated with our deferred compensation plan obligations is offset by gains and losses from related securities, we believe this presentation provides a more meaningful representation of our ongoing operating performance. A reconciliation of operating margin to income from operations follows:




Three Months Ended


Years Ended

(In thousands)


December 31, 2013


September 27, 2013


December 31, 2012


December 31, 2013


December 31, 2012

Operating margin (non-GAAP)


$

117,158


$

128,331


$

137,881


$

475,759


$

591,237

Compensation expense - deferred compensation plan


3,881


3,462


358


10,605


7,055

Income from operations (GAAP)


$

113,277


$

124,869


$

137,523


$

465,154


$

584,182

 

 

ALTERA CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited)


(In thousands, except par value amount)


December 31,

2013


December 31,

2012






Assets





Current assets:





Cash and cash equivalents


$

2,869,158


$

2,876,627

Short-term investments


141,487


140,958

Total cash, cash equivalents, and short-term investments


3,010,645


3,017,585

Accounts receivable, net


483,032


323,708

Inventories


163,880


152,721

Deferred income taxes - current


63,228


59,049

Deferred compensation plan - marketable securities


66,455


60,321

Deferred compensation plan - restricted cash equivalents


16,699


17,116

Other current assets


48,901


49,852

Total current assets


3,852,840


3,680,352

Property and equipment, net


204,142


206,148

Long-term investments


1,695,066


704,758

Deferred income taxes - non-current


25,005


17,082

Goodwill


73,968


2,329

Acquisition-related intangible assets, net


82,150


4,874

Other assets, net


76,676


42,285

Total assets


$

6,009,847


$

4,657,828






Liabilities and stockholders' equity





Current liabilities:





Accounts payable


$

44,163


$

50,036

Accrued liabilities


41,218


29,005

Accrued compensation and related liabilities


51,105


40,606

Deferred compensation plan obligations


83,154


77,437

Deferred income and allowances on sales to distributors


487,746


345,993

Total current liabilities


707,386


543,077

Income taxes payable - non-current


290,525


272,000

Long-term debt


1,491,466


500,000

Other non-current liabilities


8,403


9,304

Total liabilities


2,497,780


1,324,381






Stockholders' equity:





Common stock: $.001 par value; 1,000,000 shares authorized; outstanding - 317,769 at December 31, 2013 and 319,564 shares at December 31, 2012


318


320

Capital in excess of par value


1,216,826


1,122,555

Retained earnings


2,322,885


2,204,980

Accumulated other comprehensive (loss)/ income


(27,962)


5,592

Total stockholders' equity


3,512,067


3,333,447

Total liabilities and stockholders' equity


$

6,009,847


$

4,657,828






 

 

ALTERA CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)




YEARS ENDED

(In thousands)


December 31,

2013


December 31,

2012


December 31,

2011

Cash Flows from Operating Activities:







Net income


$

440,065


$

556,807


$

770,711

Adjustments to reconcile net income to net cash provided by operating activities:







Depreciation and amortization


47,225


36,009


30,344

Amortization of  acquisition-related intangible assets


4,824


853


1,583

Amortization of debt discount and debt issuance costs


1,457


648


-

Stock-based compensation


96,624


93,586


82,750

Net gain on sale of available-for-sale securities


(153)


-


-

Amortization of investment discount/premium


3,407


-


-

Deferred income tax expense


3,581


8,824


15,657

Tax effect of employee stock plans


7,009


9,811


16,162

Excess tax benefit from employee stock plans


(4,716)


(16,278)


(17,307)

Changes in assets and liabilities, net of the effects of acquisitions:







Accounts receivable, net


(157,842)


(91,435)


131,341

Inventories


(7,933)


(30,442)


24,245

Other assets


(1,309)


(3,698)


54,661

Accounts payable and other liabilities


9,414


(50,566)


(32,534)

Deferred income and allowances on sales to distributors


139,002


66,117


(148,836)

Income taxes payable


14,440


8,576


31,116

Deferred compensation plan obligations


(4,887)


(1,598)


(293)

Net cash provided by operating activities


590,208


587,214


959,600

Cash Flows from Investing Activities:







Purchases of property and equipment


(42,558)


(60,913)


(31,812)

Proceeds from sales of deferred compensation plan securities, net


4,887


1,598


293

Purchases of available-for-sale securities


(1,347,626)


(921,430)


(164,408)

Proceeds from sale of available-for-sale securities


136,791


105,411


11,903

Proceeds from maturity of available-for-sale securities


178,221


115,373


13,100

Acquisitions, net of cash acquired


(145,321)


-


-

Purchases of intangible assets


(13,465)


(2,280)


-

Purchase of other investments


(7,441)


(4,935)


-

Net cash used in investing activities


(1,236,512)


(767,176)


(170,924)

Cash Flows from Financing Activities:







Proceeds from issuance of common stock through stock plans


58,220


49,665


119,989

Shares withheld for employee taxes


(28,272)


(31,472)


(32,152)

Payment of dividends to stockholders


(160,377)


(115,514)


(90,060)

Payment of debt assumed in acquisitions


(22,000)


-


-

Proceeds from issuance of long-term debt


991,786


500,000


-

Repayment of credit facility


-


(500,000)


-

Long-term debt and credit facility issuance costs


(4,143)


(5,244)


-

Repurchases of common stock


(201,095)


(229,057)


(197,023)

Excess tax benefit from employee stock plans


4,716


16,278


17,307

Net cash provided by (used in) financing activities


638,835


(315,344)


(181,939)

Net (decrease) increase in cash and cash equivalents


(7,469)


(495,306)


606,737

Cash and cash equivalents at beginning of period


2,876,627


3,371,933


2,765,196

Cash and cash equivalents at end of period


$

2,869,158


$

2,876,627


$

3,371,933

Supplemental cash flow information:







Income taxes paid, net


$

16,299


$

9,797


$

9,856

Interest paid


$

10,865


$

6,898


$

3,704

©2012 PR Newswire. All Rights Reserved.

Powered by WorldNow

1414 North Memorial Parkway
Huntsville, AL 35801
256-533-4848

WAFF Is a Proud Member
of the Raycom Family of Stations


FCC Public File
EEO Report
Closed Captioning

All content © Copyright 2000 - 2014 Worldnow and WAFF. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.