SAN JOSE, Calif., April 23, 2015 -- Altera Corporation (NASDAQ: ALTR) today announced first quarter sales of $435.5 million, down 9 percent from the fourth quarter of 2014 and down 6 percent from the first quarter of 2014. First quarter net income was $94.9 million, $0.31 per diluted share, compared with net income of $111.1 million, $0.36 per diluted share, in the fourth quarter of 2014 and $116.5 million, $0.37 per diluted share, in the first quarter of 2014.
Cash flow from operating activities was $136.6 million. Altera repurchased approximately 1.6 million shares during the quarter at a cost of approximately $57.5 million.
Altera's board of directors has declared a quarterly cash dividend of $0.18 per share, to be paid on June 1, 2015 to shareholders of record on May 11, 2015.
"While we had anticipated a weak start to the year, the first quarter was more challenging than expected," said John Daane, president, chief executive officer, and chairman of the board. "There continues to be solid market acceptance of our Generation 10 devices, with record opportunities for our high-end 14 nm FinFET Stratix 10 FPGAs. The combination of our HyperFlex architecture and the FinFET manufacturing process delivers substantial competitive advantages and market expansion potential."
Recent accomplishments mark Altera's continuing progress:
SELECTED FIRST QUARTER RATIOS AND RELATED RESULTS
($ in thousands) Key Ratios & Information | March 27, 2015 | December 31, 2014 |
Current Ratio | 5:1 | 6:1 |
Liabilities/Equity | 3:4 | 3:4 |
Quarterly Operating Cash Flows | $ 136,633 | $150,778 |
TTM Return on Equity | 13% | 14% |
Quarterly Depreciation Expense | $ 12,777 | $12,099 |
Quarterly Capital Expenditures | $ 33,245 | $9,836 |
Inventory MSOH (1): Altera | 3.0 | 2.7 |
Inventory MSOH (1): Distribution | 0.7 | 0.5 |
Cash Conversion Cycle (Days) | 149 | 144 |
Turns | 41% | 41% |
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 | ||||
March 27, | December 31, | March 28, | Sequential Change | Year- Over-Year Change | |
Geography | |||||
Americas | 17% | 15% | 15% | (1)% | 4% |
Asia Pacific | 45% | 41% | 43% | (2)% | (1)% |
EMEA | 27% | 30% | 26% | (17)% | (3)% |
Japan | 11% | 14% | 16% | (26)% | (32)% |
Net Sales | 100% | 100% | 100% | (9)% | (6)% |
Product Category | |||||
New | 59% | 59% | 49% | (9)% | 15% |
Mainstream | 19% | 18% | 23% | (5)% | (20)% |
Mature and Other | 22% | 23% | 28% | (14)% | (29)% |
Net Sales | 100% | 100% | 100% | (9)% | (6)% |
Vertical Market | |||||
Telecom & Wireless | 42% | 42% | 45% | (8)% | (12)% |
Industrial Automation, Military & Automotive | 21% | 22% | 22% | (13)% | (7)% |
Networking, Computer & Storage | 17% | 16% | 15% | (8)% | 2% |
Other | 20% | 20% | 18% | (8)% | 7% |
Net Sales | 100% | 100% | 100% | (9)% | (6)% |
FPGAs and CPLDs | |||||
FPGA | 84 | 84 | 83 | (9) | (4)% |
CPLD | 8 | 8 | 9 | (8) | (10)% |
Other Products | 8 | 8 | 8 | (15) | (14)% |
Net Sales | 100 | 100 | 100 | (9) | (6)% |
Product Category Description
Business Outlook for the Second Quarter 2015
Sales and Income Statement
Sequential Sales | -4% to -8% |
Gross Margin | 66.5% - 67.5% |
Research and Development (1) | $110 - $112 million |
SG&A | $73 - $75 million |
Other Income/Expense, Net (2) | Net expense of approximately $2 million |
Tax Rate | 12% - 14% |
Diluted Share Count | Approximately 300 million |
Turns | Mid 40's |
Inventory MSOH | Approximately 4 |
Note (1): The business outlook for Research and Development expense includes amortization of acquisition-related intangible assets
Note (2): Other Income/Expense, Net includes Interest income and other and Interest expense in our consolidated statements of comprehensive income.
Vertical Market
Telecom & Wireless | Down |
Industrial Automation, Military & Automotive | Up |
Networking, Computer & Storage | Flat |
Other | Down |
First 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 designers of electronic systems to rapidly and cost effectively innovate, differentiate and win in their markets. Altera offers FPGA, SoC, CPLD products, and complementary technologies, such as power solutions, to provide high-value solutions to customers worldwide. Visit www.altera.com.