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 $0.15 per share, to be paid on September 3, 2013 to stockholders of record on August 12, 2013.
"As anticipated, the pace of business picked up, and backlog has increased," said John Daane, president, chief executive officer, and chairman of the board. "We have announced our next generation of FPGAs sourced by TSMC for 20 nm devices and, for the first time, Intel, for 14 nm FinFET devices. This combination gives us an ideal blend of manufacturing processes to optimize performance across our next generation of FPGAs. As the only major FPGA company with access to the generation-ahead Intel FinFET technology for our high end devices, which typically are about half of the FPGA market, our competitive advantage is substantial."
Several recent accomplishments mark the company's continuing progress:
SELECTED SECOND QUARTER REVENUE AND RELATED RESULTS
Key New Product Devices | Sequential Comparisons | ||
Stratix V | (22) | % | |
Stratix IV | 11 | % | |
Arria II | (13) | % | |
Arria V | 113 | % | |
Cyclone IV | 17 | % | |
Cyclone V | 73 | % | |
HardCopy IV | 64 | % |
($ 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
(Unaudited)
Three Months Ended | Quarterly Growth Rate | |||||||||||||
June 28, 2013 | March 29, 2013 | June 29, 2012 | Sequential | 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
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.