Design & Reuse

Altera Announces Second Quarter Results

SAN JOSE, Calif., July 23, 2013 -- Altera Corporation (NASDAQ: ALTR) today announced second quarter sales of $421.8 million, up 3 percent from the first quarter of 2013 and down 9 percent from the second quarter of 2012. Second quarter net income was $101.5 million, $0.31 per diluted share, compared with net income of $120.2 million, $0.37 per diluted share, in the first quarter of 2013 and $162.7 million, $0.50 per diluted share, in the second quarter of 2012.

Year-to-date cash flow from operating activities was $214.0 million. Altera repurchased 1.7 million shares of its common stock during the quarter at a cost of $55.0 million. Altera ended the quarter with $3.6 billion in cash and investments.

As previously announced, Altera's board of directors has declared a quarterly cash dividend of $0.15 per share, to be paid on September 3, 2013 to stockholders of record on August 12, 2013.

"As anticipated, the pace of business picked up, and backlog has increased," said John Daane, president, chief executive officer, and chairman of the board. "We have announced our next generation of FPGAs sourced by TSMC for 20 nm devices and, for the first time, Intel, for 14 nm FinFET devices. This combination gives us an ideal blend of manufacturing processes to optimize performance across our next generation of FPGAs. As the only major FPGA company with access to the generation-ahead Intel FinFET technology for our high end devices, which typically are about half of the FPGA market, our competitive advantage is substantial."

Several recent accomplishments mark the company's continuing progress:

  • Altera has announced its Generation 10 FPGAs and SoCs, offering system developers breakthrough levels of performance and power efficiencies. Stratix® 10 FPGAs and SoCs leverage Intel's 14 nm Tri-Gate process and an enhanced architecture to deliver core performance two times higher than current high-end Altera FPGAs, while enabling an up to 70 percent power savings. Stratix 10 FPGAs and SoCs provide more than 4 million logic elements (LEs) on a single die, 56-Gbps transceivers, a third-generation ultra-high-performance processor system, and multi-die 3D solutions capable of integrating SRAM, DRAM and ASICs.

    Arria® 10 FPGAs and SoCs use TSMC's 20 nm process and reinvent the midrange by simultaneously surpassing Altera's current high-end FPGAs in performance while delivering 40 percent lower power than today's midrange devices. Reflecting the industry trend toward silicon convergence, Arria 10 FPGAs and SoCs offer the highest degree of system integration available in midrange devices, including 1.15 million LEs, integrated hard intellectual property and a second-generation processor system that features a 1.5 GHz dual-core ARM® Cortex™-A9 processor. Arria 10 FPGAs and SoCs also provide four times greater bandwidth compared to the current generation, including 28-Gbps transceivers, and three times higher system performance.

    Early access customers are using the Quartus® II software today for Arria 10 product development.

    Initial samples of Arria 10 devices will be available in early 2014 with 14 nm Stratix 10 FPGA test chips coming in 2013.
  • Altera acquired Enpirion, Inc., the industry's leading provider of high-efficiency, integrated power conversion products known as PowerSoCs (power system-on-chip). The combination of Altera's FPGAs with Enpirion's PowerSoCs offers customers higher performance, lower system power, higher reliability, smaller footprint and faster time-to-market. Enpirion's key enabling power technologies—high-frequency switching, magnetics and packaging—are engineered into complete power system-on-chip products. Enpirion's portfolio of DC-DC converter PowerSoCs with integrated inductors enable the industry's smallest solution footprints and are recognized for their high efficiency, low noise, exceptional thermal performance, high reliability and ease-of-use. Unlike discrete power products, Enpirion's turnkey solutions give designers complete power systems that are fully simulated, characterized, validated and production qualified. Enpirion's technology, when used with an Altera FPGA, increases Altera's share of the customer's bill of materials while, at the same time, reducing the customer's overall bill of materials cost.

SELECTED SECOND QUARTER REVENUE AND RELATED RESULTS

Key New Product Devices


Sequential Comparisons

Stratix V


(22)

%

Stratix IV


11

%

Arria II


(13)

%

Arria V


113

%

Cyclone IV


17

%

Cyclone V


73

%

HardCopy IV


64

%






($ in thousands) Key Ratios & Information


June 28, 2013


March 29, 2013

Current Ratio


6:1



7:1


Liabilities/Equity


1:2



1:3


Quarterly Operating Cash Flows


$

64,565



$

149,478


TTM Return on Equity


15

%


17

%

Quarterly Depreciation Expense


$

10,285



$

10,175


Quarterly Capital Expenditures


$

7,221



$

5,984


Inventory MSOH (1): Altera


3.0



3.3


Inventory MSOH (1): Distribution


0.5



0.6


Cash Conversion Cycle (Days)


149



117


Turns


49

%


43

%

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


June 28,
2013

March 29,
2013

June 29,
2012

Sequential
Change


Year-
Over-Year
Change

Geography










Americas

17

%


20

%


17

%


(14)

%


(12)

%

Asia Pacific

39

%


38

%


46

%


4

%


(22)

%

EMEA

28

%


27

%


23

%


7

%


11

%

Japan

16

%


15

%


14

%


13

%


2

%

Net Sales

100

%


100

%


100

%


3

%


(9)

%

















Product Category










New

41

%


39

%


31

%


6

%


20

%

Mainstream

28

%


29

%


30

%


0

%


(14)

%

Mature and Other

31

%


32

%


39

%


1

%


(28)

%

Net Sales

100

%


100

%


100

%


3

%


(9)

%

















Vertical Market










Telecom & Wireless

42

%


41

%


45

%


4

%


(16)

%

Industrial Automation, Military & Automotive

22

%


22

%


19

%


3

%


2

%

Networking, Computer & Storage

18

%


18

%


18

%


0

%


(6)

%

Other

18

%


19

%


18

%


2

%


(8)

%

Net Sales

100

%


100

%


100

%


3

%


(9)

%

















FPGAs and CPLDs










FPGA

83

%


85

%


85

%


1

%


(11)

%

CPLD

9

%


8

%


9

%


9

%


(10)

%

Other Products

8

%


7

%


6

%


22

%


19

%

Net Sales

100

%


100

%


100

%


3

%


(9)

%

Product Category Description

  • 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, Classicâ„¢, MAX 3000A, MAX 7000, MAX 7000A, MAX 7000B, MAX 7000S, MAX 9000, HardCopy II, HardCopy, FLEX® series, APEXâ„¢ series, Mercuryâ„¢, Excaliburâ„¢ devices, configuration and other devices, intellectual property cores, and software and other tools.

Business Outlook for the Third Quarter 2013

Sales and Income Statement

Sequential Sales

5% to 9%

Gross Margin

Approximately 68%

Research and Development

$99 to 101 million

SG&A

$80 to 82 million

Tax Rate

12% to 13%

Diluted Share Count

Approximately 323 million

Turns

Low 40's

MSOH

Mid 3's


Vertical Market


Telecom & Wireless

Up

Industrial Automation, Military & Automotive

Up

Networking, Computer & Storage

Up

Other

Flat

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.