SAN JOSE, Calif.--Jan. 27, 2009--Altera Corporation (NASDAQ:ALTR) today announced 2008 sales of $1.37 billion, up 8 percent compared with $1.26 billion in 2007. New product sales increased 51 percent. Net income rose 24 percent to $359.7 million, $1.18 per diluted share, versus net income of $290.0 million, $0.82 per diluted share, in 2007.
Fourth quarter sales were $314.5 million, down 3 percent from the fourth quarter of 2007 and down 12 percent from the third quarter of 2008. Fourth quarter net income was $83.0 million, $0.28 per diluted share, up from net income of $65.5 million, $0.20 per diluted share, in the fourth quarter of 2007.
Altera repurchased 26.6 million shares of its common stock during 2008 at a cost of $473.2 million, with 9.0 million shares repurchased during the fourth quarter at a cost of $154.2 million. Altera ended the quarter with $1.2 billion in cash and short-term investments.
Altera's board of directors has declared a quarterly cash dividend of $0.05 per share payable on March 2, 2009 to shareholders of record on February 10, 2009.
"While we experienced the effects of a global economic-driven slowdown in the fourth quarter, we increased our market share in the programmable logic industry for the sixth year in a row. Net income growth substantially outpaced sales growth as a result of our sustained focus on improving efficiencies across the company. We will apply these simplification and cost reduction skills in this current challenging business environment to help protect shareholder value," said John Daane, president, chief executive officer, and chairman of the board." As previously committed, we shipped our first 40-nm Stratix IV FPGAs in the fourth quarter, placing us in a leadership position that will strengthen our competitive position in 2009 and beyond."
Several recent accomplishments mark the company's continuing progress.
-- Following the introduction of development software in May 2008, Altera began shipping Stratix(R) IV FPGAs in December. As the only supplier of 40-nm FPGAs in the industry, Altera's customers will benefit from the industry's largest density, highest performance, highest system bandwidth, and lowest power among high-end FPGA solutions. With increasing demand for services such as video over Internet, high-speed wireless data and digital TV, designers need to deliver solutions that provide higher data rates, higher interface bandwidths, and increased data processing all in a power-efficient manner. To address these design challenges, Stratix IV FPGAs leverage Altera's innovations in transceivers, memory interfaces, low-power technology and FPGA core architecture to offer new capabilities in its 40-nm devices. For designers faced with sharply increased ASIC design costs and otherwise limited to lagging node technology, the comparative economics and performance advantages of advanced-node FPGAs are compelling. As the industry leader at the 40-nm node, Altera is in a unique position to compete for these new design wins and gain increased share in the FPGA market, which will continue to be the fastest growing portion of the programmable logic industry.
-- Even though just launched, the combination of process node and architectural leadership represented by Stratix IV FPGAs has already led to broad industry recognition:
- China Electronics News selected Stratix IV FPGAs as its "2008 Editor's Choice Award" winner in the FPGA category. Winners of this award demonstrated a significant leap in innovation.
- EDN named Stratix IV FPGAs to its annual list of "Hot 100 Electronic Products." This list encompasses the 100 most significant products of 2008, as determined by the magazine's editors and readers.
- Stratix IV FPGAs received EDN China's "Leading Products Award" in the digital IC and programmable logic category. Winners of this award were chosen by a panel of technical experts and professors that selects products having the greatest impact on the electronics industry.
- Stratix IV FPGAs received Electronic Products' 2008 "Product of the Year" award in the digital ICs category. Award winners are selected by the magazine's editors based on innovative design, significant advancement in technology or application and substantial achievement in price and performance.
-- Recognizing Altera's overall business performance, Forbes.com identified Altera as the best managed company in the semiconductor category. Altera was selected from Forbes.com's Platinum 400 and chosen based on sales and earnings growth, debt to total capital, earnings outlook and stock market returns.
Business Outlook for the First Quarter 2009
|Sequential Sales Growth || Down 15% to 25% |
|Gross Margin ||67% +/- .5% |
|Research and Development ||$62 to $64 million |
|SG&A ||$58 to $60 million |
|Other Income || approximately $3 million |
|Tax Rate ||13% - 15% |
to read financial tables
Conference Call and Quarterly Update:
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 webcast 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.
Altera's first quarter business update will be issued in a press release available after the market close on March 2, 2009.
Altera(R) 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.