- 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 Fourth Quarter 2013 | |
|
| |
|
Sales and Income Statement | |
|
|
|
|
Sequential Sales |
Down 3% to Up 1% |
|
Gross Margin |
68.5% +/- .5% |
|
Research and Development |
$110 to $111 million |
|
SG&A |
$82 to $83 million |
|
Tax Rate |
11% to 12% |
|
Diluted Share Count |
Approximately 323 million (assumes no share repurchases) |
|
Turns |
Mid 40's |
|
MSOH |
Low 4's |
|
Vertical Market | |
|
|
|
|
Telecom & Wireless |
Flat |
|
Industrial Automation, Military & Automotive |
Flat |
|
Networking, Computer & Storage |
Up |
|
Other |
Down |
Third 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 new product growth momentum, the competitive advantage related to the use of Intel's 14 nm process, product performance parameters, new product sales momentum, 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, including uncertainty arising from United States budget and debt ceiling legislation, 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.
Mobile Device Investor Information
Altera now provides highlights of its investor relations web page optimized for mobile users. Investors can equip their mobile devices with this new capability by linking to http://phx.corporate-ir.net/Mobile.view?c=83265.
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 subscribe to product update emails and newsletters. Visit www.altera.com.
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.
|
ALTERA CORPORATION
| ||||||||||||||||||||
|
| ||||||||||||||||||||
|
|
|
Three Months Ended |
|
Nine Months Ended | ||||||||||||||||
|
(In thousands, except per share amounts) |
|
September 27,
|
|
June 28,
|
|
September 28,
|
|
September 27,
|
|
September 28,
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Net sales |
|
$ |
445,945 |
|
|
$ |
421,759 |
|
|
$ |
495,010 |
|
|
$ |
1,278,205 |
|
|
$ |
1,343,595 |
|
|
Cost of sales |
|
141,525 |
|
|
135,104 |
|
|
152,007 |
|
|
402,712 |
|
|
408,156 |
| |||||
|
Gross margin |
|
304,420 |
|
|
286,655 |
|
|
343,003 |
|
|
875,493 |
|
|
935,439 |
| |||||
|
Operating expense |
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Research and development expense |
|
95,336 |
|
|
95,489 |
|
|
91,393 |
|
|
278,542 |
|
|
265,619 |
| |||||
|
Selling, general, and administrative expense |
|
78,907 |
|
|
77,869 |
|
|
74,243 |
|
|
235,376 |
|
|
215,824 |
| |||||
|
Amortization of acquisition-related intangible assets |
|
1,846 |
|
|
915 |
|
|
213 |
|
|
2,974 |
|
|
640 |
| |||||
|
Total operating expense |
|
176,089 |
|
|
174,273 |
|
|
165,849 |
|
|
516,892 |
|
|
482,083 |
| |||||
|
Operating margin (1) |
|
128,331 |
|
|
112,382 |
|
|
177,154 |
|
|
358,601 |
|
|
453,356 |
| |||||
|
Compensation expense/(benefit) — deferred compensation plan |
|
3,462 |
|
|
(160) |
|
|
3,274 |
|
|
6,724 |
|
|
6,697 |
| |||||
|
(Gain)/loss on deferred compensation plan securities |
|
(3,462) |
|
|
160 |
|
|
(3,274) |
|
|
(6,724) |
|
|
(6,697) |
| |||||
|
Interest income and other |
|
(2,214) |
|
|
(2,778) |
|
|
(2,775) |
|
|
(6,651) |
|
|
(5,997) |
| |||||
|
(Gain)/loss reclassified from other comprehensive income |
|
(33) |
|
|
(42) |
|
|
108 |
|
|
(129) |
|
|
(63) |
| |||||
|
Interest expense |
|
2,511 |
|
|
3,389 |
|
|
2,333 |
|
|
8,365 |
|
|
5,386 |
| |||||
|
Income before income taxes |
|
128,067 |
|
|
111,813 |
|
|
177,488 |
|
|
357,016 |
|
|
454,030 |
| |||||
|
Income tax expense |
|
8,635 |
|
|
10,304 |
|
|
19,999 |
|
|
15,885 |
|
|
18,028 |
| |||||
|
Net income |
|
119,432 |
|
|
101,509 |
|
|
157,489 |
|
|
341,131 |
|
|
436,002 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Other comprehensive income/(loss): |
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Unrealized gain/(loss) on investments: |
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Unrealized holding gain/(loss) on investments arising during period, net of tax of $30, ($47), $43, ($12) and $108 |
|
2,419 |
|
|
(9,031) |
|
|
3,620 |
|
|
(6,613) |
|
|
6,723 |
| |||||
|
Less: Reclassification adjustments for gain on investments included in net income, net of tax of $11, $5, $1, $21 and $6 |
|
(22) |
|
|
(37) |
|
|
(41) |
|
|
(108) |
|
|
(64) |
| |||||
|
|
|
2,397 |
|
|
(9,068) |
|
|
3,579 |
|
|
(6,721) |
|
|
6,659 |
| |||||
|
Unrealized (loss)/gain on derivatives: |
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Unrealized (loss)/gain on derivatives arising during period, net of tax of ($6) and $36 |
|
— |
|
|
— |
|
|
(10) |
|
|
— |
|
|
67 |
| |||||
|
Less: Reclassification adjustments for loss on derivatives included in net income, net of tax of $53 and $2 |
|
— |
|
|
— |
|
|
97 |
|
|
— |
|
|
5 |
| |||||
|
|
|
— |
|
|
— |
|
|
87 |
|
|
— |
|
|
72 |
| |||||
|
Other comprehensive income/(loss) |
|
2,397 |
|
|
(9,068) |
|
|
3,666 |
|
|
(6,721) |
|
|
6,731 |
| |||||
|
Comprehensive income |
|
$ |
121,829 |
|
|
$ |
92,441 |
|
|
$ |
161,155 |
|
|
$ |
334,410 |
|
|
$ |
442,733 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Net income per share: |
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Basic |
|
$ |
0.37 |
|
|
$ |
0.32 |
|
|
$ |
0.49 |
|
|
$ |
1.07 |
|
|
$ |
1.36 |
|
|
Diluted |
|
$ |
0.37 |
|
|
$ |
0.31 |
|
|
$ |
0.49 |
|
|
$ |
1.05 |
|
|
$ |
1.34 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Shares used in computing per share amounts: |
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Basic |
|
320,445 |
|
|
320,472 |
|
|
319,870 |
|
|
320,266 |
|
|
321,200 |
| |||||
|
Diluted |
|
323,505 |
|
|
323,527 |
|
|
323,560 |
|
|
323,355 |
|
|
325,275 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Dividends per common share |
|
$ |
0.15 |
|
|
$ |
0.10 |
|
|
$ |
0.10 |
|
|
$ |
0.35 |
|
|
$ |
0.26 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Tax rate |
|
6.7 |
% |
|
9.2 |
% |
|
11.3 |
% |
|
4.4 |
% |
|
4.0 |
% | |||||
|
% of Net sales: |
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Gross margin |
|
68.3 |
% |
|
68.0 |
% |
|
69.3 |
% |
|
68.5 |
% |
|
69.6 |
% | |||||
|
Research and development |
|
21.4 |
% |
|
22.6 |
% |
|
18.5 |
% |
|
21.8 |
% |
|
19.8 |
% | |||||
|
Selling, general, and administrative |
|
17.7 |
% |
|
18.5 |
% |
|
15.0 |
% |
|
18.4 |
% |
|
16.1 |
% | |||||
|
Operating margin (1) |
|
28.8 |
% |
|
26.6 |
% |
|
35.8 |
% |
|
28.1 |
% |
|
33.7 |
% | |||||
|
Net income |
|
26.8 |
% |
|
24.1 |
% |
|
31.8 |
% |
|
26.7 |
% |
|
32.5 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Notes: | |||||||||||||||||||||
|
(1) We define operating margin as gross margin less research and development expense, selling, general and administrative expense 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 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: |
|
| |||||||||||||||||||||
|
|
|
Three Months Ended |
|
Nine Months Ended | |||||||||||||||||
|
(In thousands, except per share amounts) |
|
September 27,
|
|
June 28,
|
|
September 28,
|
|
September 27,
|
|
September 28,
| |||||||||||
|
Operating margin (non-GAAP) |
|
$ |
128,331 |
|
|
$ |
112,382 |
|
|
$ |
177,154 |
|
|
$ |
358,601 |
|
|
$ |
453,356 |
| |
|
Compensation expense/(benefit) — deferred compensation plan |
|
3,462 |
|
|
(160) |
|
|
3,274 |
|
|
|
6,724 |
|
|
6,697 |
| |||||
|
Income from operations (GAAP) |
|
$ |
124,869 |
|
|
$ |
112,542 |
|
|
$ |
173,880 |
|
|
$ |
351,877 |
|
|
$ |
446,659 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
