About Altera
Altera programmable solutions enable system and semiconductor companies to rapidly and cost-effectively innovate, differentiate and win in their markets. Find out more about Altera's FPGA, CPLD and ASIC devices at www.altera.com. Follow Altera via Facebook, RSS and Twitter.
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.
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INVESTOR CONTACT |
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MEDIA CONTACT |
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Scott Wylie - Vice President |
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Sue Martenson - Senior Manager |
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Investor Relations |
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Public Relations |
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(408) 544-6996 |
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(408) 544-8158 |
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ALTERA CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) | ||||||||||||
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Three Months Ended | ||||||||||
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(In thousands, except per share amounts) |
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March 29, 2013 |
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December 31, 2012 |
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March 30, 2012 | ||||||
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Net sales |
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$ |
410,501 |
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$ |
439,440 |
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$ |
383,754 |
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Cost of sales |
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126,083 |
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133,367 |
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114,834 |
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Gross margin |
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284,418 |
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306,073 |
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268,920 |
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Operating expense |
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Research and development expense |
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87,930 |
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94,162 |
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82,297 |
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Selling, general, and administrative expense |
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78,600 |
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74,030 |
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69,785 |
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Total operating expense |
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166,530 |
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168,192 |
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152,082 |
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Operating margin (1) |
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117,888 |
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137,881 |
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116,838 |
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Compensation expense — deferred compensation plan |
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3,422 |
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358 |
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5,736 |
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Gain on deferred compensation plan securities |
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(3,422) |
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(358) |
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(5,736) |
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Interest income and other |
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(1,659) |
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(2,390) |
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(1,807) |
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Gain reclassified from other comprehensive income |
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(54) |
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(205) |
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(102) |
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Interest expense |
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2,465 |
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2,589 |
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937 |
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Income before income taxes |
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117,136 |
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137,887 |
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117,810 |
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Income tax (benefit)/expense |
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(3,053) |
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17,082 |
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1,976 |
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Net income |
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120,189 |
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120,805 |
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115,834 |
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Other comprehensive (loss) income: |
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Unrealized (loss)/gain on investments: |
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Unrealized holding (loss)/gain on investments arising during period, net of tax of ($5), ($11) and $58 |
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(1) |
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(889) |
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304 |
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Less: Reclassification adjustments for gain on investments included in net income, net of tax of $5, $24 and $5 |
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(49) |
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(44) |
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(20) |
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(50) |
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(933) |
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284 |
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Unrealized gain on derivatives: |
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Unrealized gain on derivatives arising during period, net of tax of $9 and $8 |
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— |
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17 |
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14 |
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Less: Reclassification adjustments for gain on derivatives included in net income, net of tax of $48 and $27 |
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— |
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(89) |
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(50) |
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— |
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(72) |
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(36) |
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Other comprehensive (loss) income |
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(50) |
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(1,005) |
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248 |
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Comprehensive income |
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$ |
120,139 |
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$ |
119,800 |
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$ |
116,082 |
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Net income per share: |
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Basic |
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$ |
0.38 |
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$ |
0.38 |
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$ |
0.36 |
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Diluted |
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$ |
0.37 |
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$ |
0.37 |
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$ |
0.35 |
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Shares used in computing per share amounts: |
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Basic |
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319,867 |
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319,765 |
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322,586 |
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Diluted |
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323,021 |
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322,209 |
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327,061 |
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Cash dividends per common share |
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$ |
0.10 |
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$ |
0.10 |
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$ |
0.08 |
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Tax rate |
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(2.6) |
% |
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12.4 |
% |
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1.7 |
% | |||
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% of Net sales: |
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Gross margin |
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69.3 |
% |
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69.7 |
% |
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70.1 |
% | |||
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Research and development |
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21.4 |
% |
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21.4 |
% |
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21.4 |
% | |||
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Selling, general, and administrative |
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19.1 |
% |
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16.8 |
% |
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18.2 |
% | |||
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Operating margin (1) |
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28.7 |
% |
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31.4 |
% |
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30.4 |
% | |||
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Net income |
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29.3 |
% |
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27.5 |
% |
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30.2 |
% | |||
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Notes: |
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(1) We define operating margin as gross margin less research and development and selling, general and administrative expenses, 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 losses/(gains) 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: | ||||||||||||
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Three Months Ended | ||||||||||
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(In thousands, except per share amounts) |
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March 29, 2013 |
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December 31, 2012 |
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March 30, 2012 | ||||||
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Operating margin (non-GAAP) |
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$ |
117,888 |
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$ |
137,881 |
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$ |
116,838 |
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Compensation expense — deferred compensation plan |
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3,422 |
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358 |
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5,736 |
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Income from operations (GAAP) |
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$ |
114,466 |
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$ |
137,523 |
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$ |
111,102 |
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