SAN JOSE, Calif., Jan. 23, 2013 -- Altera Corporation (NASDAQ: ALTR) today announced fourth quarter sales of $439.4 million, down 11 percent from the third quarter of 2012 and down 4 percent from the fourth quarter of 2011. Fourth quarter net income was $120.8 million, $0.37 per diluted share, compared with net income of $157.5 million, $0.49 per diluted share, in the third quarter of 2012 and $146.6 million, $0.45 per diluted share, in the fourth quarter of 2011.
Cash flow from operating activities in 2012 was $587.2 million. Altera repurchased 1.6 million shares of its common stock during the quarter at a cost of $50.0 million. Altera ended the quarter with $3.7 billion in cash and investments.
Altera's board of directors has declared a quarterly cash dividend of $0.10 per share payable on March 1, 2013 to stockholders of record on February 11, 2013.
"While our new products had a double-digit sequential growth quarter, sales of our older products were soft—the result of a sluggish global economy," said John Daane, president, chief executive officer, and chairman of the board. "Sales of 40 nm devices, our largest selling process node, and where we are the market leader, are likely to strengthen further as we progress through 2013. At the most advanced process node, 28 nm, Altera remains the design-win value leader, giving us a substantial growth opportunity as these customer designs transition into production."
Several recent accomplishments mark the company's continuing progress:
SELECTED FOURTH QUARTER REVENUE AND RELATED RESULTS
Key New Product Devices | Sequential Comparisons |
Stratix V | (9)% |
Arria V | 152% |
Stratix IV | 19% |
Arria II | (6)% |
Cyclone IV | 21% |
HardCopy IV | (15)% |
Vertical Markets | Sequential Comparisons | Comments |
Telecom & Wireless | (12)% | Both Telecom and Wireless down |
Industrial Automation, Military & Automotive | (9)% | Broadly down |
Networking, Computer & Storage | (12)% | Networking down and Computer and Storage up |
Other | (10)% | – |
($ in thousands) Key Ratios & Information | December 31, 2012 | September 30, 2012 |
Current Ratio | 7:1 | 6:1 |
Liabilities/Equity | 1:3 | 1:2 |
Quarterly Operating Cash Flows | $ 126,709 | $ 285,203 |
TTM Return on Equity | 18% | 19% |
Quarterly Depreciation Expense | $ 9,170 | $ 9,677 |
Quarterly Capital Expenditures | $ 7,201 | $ 17,749 |
Inventory MSOH (1): Altera | 3.4 | 3.1 |
Inventory MSOH (1): Distribution | 0.6 | 0.6 |
TTM Cash Conversion Cycle (Days) | 117 | 140 |
Turns | 40% | 37% |
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, 2012 | September 28, 2012 | December 31, 2011 | Sequential Change | Year- Over-Year Change | December 31, 2012 | December 31, 2011 | Annual Growth | |
Geography | ||||||||
Americas | 19 % | 19 % | 21 % | (8) % | (12) % | 18 % | 19 % | (18) % |
Asia Pacific | 39 % | 43 % | 40 % | (21) % | (7) % | 43 % | 41 % | (9) % |
EMEA | 28 % | 25 % | 22 % | (2) % | 20 % | 25 % | 25 % | (15) % |
Japan | 14 % | 13 % | 17 % | (4) % | (19) % | 14 % | 15 % | (18) % |
Net Sales | 100 % | 100 % | 100 % | (11) % | (4) % | 100 % | 100 % | (14) % |
Product Category | ||||||||
New | 39 % | 31 % | 27 % | 11 % | 39 % | 32 % | 22 % | 22 % |
Mainstream | 28 % | 32 % | 33 % | (20) % | (18) % | 30 % | 34 % | (22) % |
Mature and Other | 33 % | 37 % | 40 % | (22) % | (21) % | 38 % | 44 % | (26) % |
Net Sales | 100 % | 100 % | 100 % | (11) % | (4) % | 100 % | 100 % | (14) % |
Vertical Market | ||||||||
Telecom & Wireless | 44 % | 45 % | 43 % | (12) % | 0 % | 44 % | 43 % | (12) % |
Industrial Automation, Military & Automotive | 21 % | 20 % | 24 % | (9) % | (17) % | 21 % | 23 % | (22) % |
Networking, Computer & Storage | 17 % | 17 % | 16 % | (12) % | 0 % | 17 % | 17 % | (11) % |
Other 18 % | 18 % | 17 % | (10) % | 1 % | 18 % | 17 % | (10) % | |
Net Sales | 100 % | 100 % | 100 % | (11) % | (4) % | 100 % | 100 % | (14) % |
FPGAs and CPLDs | ||||||||
FPGA | 84 % | 82 % | 82 % | (9) % | (2) % | 84 % | 81 % | (11) % |
CPLD | 9 % | 9 % | 9 % | (12) % | (12) % | 9 % | 10 % | (22) % |
Other Products | 7 % | 9 % | 9 % | (29) % | (19) % | 7 % | 9 % | (27) % |
Net Sales | 100 % | 100 % | 100 % | (11) % | (4) % | 100 % | 100 % | (14) % |
Product Category Description
Business Outlook for the First Quarter 2013
Sales and Income Statement
Sequential Sales Growth | Down 4% to 8% |
Gross Margin | 69% to 70% |
Research and Development | $99 to 101 million |
SG&A | $77 to 78 million |
Tax Rate | 4% to 5% |
Diluted Share Count | Approximately 323 million |
Turns | Mid-40's |
Inventory MSOH | Approximately 4.0 |
Vertical Market
Telecom & Wireless | Wireless down |
Industrial Automation, Military & Automotive | Up slightly |
Networking, Computer & Storage | Down slightly |
Other | Up slightly |
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.
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 .