Altera Reports Record Quarterly and Annual Results; Fourth Quarter Sales Increase 112% Annually and 15% Sequentially
SAN JOSE, Calif.–(BUSINESS WIRE)–Jan. 17, 1996–Altera Corporation (Nasdaq: ALTR) today reported record levels of sales, operating income, net income, and earnings per share for the quarter and year ended December 31, 1995.
Fourth quarter sales of $125.3 million were up 112% over the same period last year, and 15% over the previous quarter. Total year 1995 sales were $401.6 million, an increase of 102% from 1994.
Operating margin as a percentage of sales for the fourth quarter was 35.5%, up 8.7 percentage points over the same period last year, excluding the 1994 charge for in-process R&D related to the Intel PLD acquisition, and 1.7 percentage points over the previous quarter. Gross margin as a percentage of sales for the fourth quarter was 61.3%, up 1.2 percentage points over the same period last year and 0.6 percentage points over the previous quarter. Gross margin improvements are attributed to a greater proportion of proprietary product shipments at higher margins and to improved manufacturing yields.
Net income for the fourth quarter was a record $28.4 million, up 173% over the fourth quarter of 1994, excluding the 1994 charge for in-process R&D, and 20% above the previous quarter. Fourth quarter earnings per share were $0.62, an increase of $0.39 from the same period last year, before consideration of the 1994 charge for in- process R&D, and up $0.10 from the previous quarter. 1995 earnings per share were $1.91, an increase of 137% from 1994, before consideration of the 1994 charge for in-process R&D.
Altera added $23.4 million of cash to its balance sheet during the quarter, after capital expenditures of $8.2 million and a convertible debt interest payment of $6.4 million. Annualized return on equity was 48% for the quarter.
Rodney Smith, President & CEO stated, “Altera’s financial results for this quarter are indicative of our increasing momentum in the marketplace. Sales growth was strongest in the domestic channel and our International business posted a solid increase.”
Mr. Smith continued, “Quarterly sales growth was driven by our MAX 7000 and FLEX 8000 product families. These products, which are sole-sourced, account for the major portion of our business and continue to be the fastest growing of our product offerings. FLEX 10K50, the first member of our FLEX 10K family and the industry’s first programmable embedded array, began shipping in the fourth quarter as planned.”
Mr. Smith concluded, “The communications marketplace continued to pace our growth, creating strong demand for our products, and resulting in a backlog increase of over $23 million compared to the prior quarter.”
Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation risks of dependence on third- party wafer suppliers, intellectual property rights and litigation, market acceptance of and demand for the Company’s products as well as general market conditions, competition and pricing, and development of technology and manufacturing capabilities. Please refer to the Company’s Securities and Exchange Commission filings, copies of which are available from the Company without charge, for further information.
Fax on Demand:
Copies of Altera’s quarterly earnings are available from its fax-on-demand service. In the U.S. and Canada to request a copy call 1-800-789-ALTR. International users can dial their local International Access Code followed by 1-408-894-0466.
Altera Corporation, founded in 1983, is a world-wide leader in high-performance, high-density programmable logic devices and associated computer aided engineering (CAE) logic development tools. Programmable logic devices are semiconductor chips that offer on-site programmability to customers. The chips are programmed with tools that run on personal computers or engineering workstations. User benefits include ease of use, lower risk, and fast time-to- market. The Company offers the broadest line of CMOS programmable logic devices that address high-speed, high density, and lower power applications. Altera products serve a broad range of market areas, including telecommunications, data communications, computers, and industrial applications. Altera common stock is traded on the Nasdaq National Market using the symbol ALTR. -0-
COPYRIGHT 1996 Business Wire
COPYRIGHT 2004 Gale Group