SAN JOSE, Calif. -- April 16, 2008
-- Altera Corporation (NASDAQ:ALTR) today announced first quarter sales of $336.1 million, up 4 percent from the fourth quarter of 2007 and up 10 percent from the first quarter of 2007. First quarter net income was $83.9 million, $0.27 per diluted share, up from net income of $65.5 million, $0.20 per diluted share, in the fourth quarter of 2007.
With the repurchase of 15.5 million shares in the first quarter of 2008, at a cost of $275 million, Altera has completed its previously announced $1.5 billion share repurchase plan. The plan was originally targeted for mid-2008 completion. Approximately 16 million shares remain available for additional repurchases under the existing board of directors' authorization. Cash flow from operating activities was $149.7 million. Altera ended the quarter with $995 million in cash and short-term investments.
Altera's board of directors has increased the company's quarterly cash dividend to $0.05 per share, up from the previous dividend of $0.04 per share. The board of directors has declared that the next quarterly dividend will be paid on June 2, 2008 to shareholders of record on May 12, 2008.
"Revenue growth was better than expected, as new products grew strongly," said John Daane, president, chief executive officer, and chairman of the board. "We are very pleased to see the quarter's improved operating efficiency which represents a significant step toward our long-term 30 percent plus operating margin target."
Several recent accomplishments mark the company's continuing progress.
Business Outlook for the Second Quarter 2008
Altera's Stratix(R) III FPGAs have been presented with the International Engineering Consortium's (IEC) DesignVision Award in the semiconductor and IC category. Stratix III FPGAs were recognized by the IEC for their unique and innovative architecture, which enables Altera to deliver the industry's highest performance and lowest power high-end FPGAs. Started in 2005, the IEC's DesignVision Award recognizes technologies, applications, products, and services judged to be the most unique and beneficial to the industry. DesignVision Award candidates are judged based on innovation, uniqueness, market impact, customer benefits and value to society.
The company's Arria(TM) GX transceiver-based FPGA family has received two distinguished industry recognitions. From the EN-Genius Network, Arria GX FPGAs received the annual "Product of the Year" award for best value high-performance FPGA. EN-Genius editorial staff selects award-winning products based on technical merit, design innovation and marketability. From EDN magazine, Arria GX FPGAs were named to its "Hot 100 Products" list in the digital and programmable ICs category. EDN's "Hot 100 Products" identify products that will have the greatest significance to the design engineering community.
Following the initial customer adoption of the Arria GX family for high-volume opportunities, further enhancements have now been incorporated into the family that increase transceiver speeds and provide additional serial protocol support. Based on proven Stratix II GX technology, these new capabilities and 3.125 Gbps transceiver speed broaden the markets that can be served by this product family. Arria GX FPGAs now provide new levels of value in communications, broadcast, computer, storage, and industrial markets. All Arria GX devices are now shipping and available.
Altera's new zero-power MAX(R) IIZ CPLDs received the 2008 Editor's Choice Award by Portable Design magazine in the programmable logic category and the Product of the Year Award from Electronic Products China. The Portable Design award recognizes innovative electronic components that make possible the design of leading-edge portable products. The Electronic Products China award is given to products that show significant progress in technology, innovative design or offer distinct price performance improvements compared to competing devices. Altera developed MAX IIZ CPLDs to break through the power, space and cost limitations of traditional CPLDs by combining non-volatility and instant-on operation with an innovative look-up table logic structure and an unprecedented combination of logic, I/O and low power. These capabilities increase Altera's appeal to designers of smart phones, GPS, and other portable electronic system applications.
Conference Call and Quarterly Update:
|Sequential Sales Growth || 1 to 4% |
|Gross Margin || 65% +/- .5% |
|Research and Development || $65 to 67 million |
|SG&A || $63 to 65 million |
|Other Income || $3 million |
|Tax Rate || 16% to 17% |
|Diluted Share Count || 305 to 310 million |
A conference call will be held today at 2:00 p.m. Pacific Time to discuss the quarter's results and management's outlook for the second quarter of 2008. The web cast and subsequent replay will be available in the investor relations section of the company's web site at http://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.
Altera's second quarter business update will be issued in a press release available after the market close on June 3, 2008.About Altera
Altera's programmable solutions enable system and semiconductor companies to rapidly and cost-effectively innovate, differentiate and win in their markets. Find out more at www.altera.com