Delaware | 0-16617 | 77-0016691 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
101 Innovation Drive, San Jose, California | 95134 | |
(Address of principal executive offices) | (Zip Code) |
Not Applicable |
(Former name or former address, if changed since last report.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ALTERA CORPORATION |
/s/ Ronald J. Pasek |
Ronald J. Pasek Senior Vice President, Finance and Chief Financial Officer |
99.1 | Press release dated July 24, 2012 |
INVESTOR CONTACT | MEDIA CONTACT | |
Scott Wylie - Vice President | Sue Martenson - Senior Manager | |
Investor Relations | Public Relations | |
(408) 544-6996 | (408) 544-8158 | |
swylie@altera.com | newsroom@altera.com |
• | Altera released the latest version of its industry-proven Quartus® II development software, the industry's number one software in performance and productivity for FPGA design. Quartus II software version 12.0 provides customers additional productivity and performance advantages, such as up to 4X faster compile times for high-performance 28-nm designs. Additional upgrades include broadened 28-nm device support, including initial support for Altera's system-on-chip (SoC) FPGAs, enhanced Qsys system integration and DSP Builder tools, and improved intellectual property (IP) core offerings. |
• | Altera has delivered significant reductions in development times and dramatic increases in system performance for early customers in Altera's OpenCL for FPGAs program. Altera launched its OpenCL for FPGAs program in November 2011. As part of the program, Altera initiated work with early customers, academia and standards groups to define and develop an OpenCL for FPGAs solution. OpenCL for FPGAs combines the industry-standard OpenCL parallel programming language with the parallel performance capabilities of FPGAs to deliver higher performance compared to multi-core CPUs and CPU/GPU-based systems. In addition, Open CL for FPGAs delivers a significant productivity advantage to designers who have traditionally modeled their algorithms in C and converted them to HDL. An OpenCL solution for FPGAs further drives adoption of FPGAs in a variety of markets, including military, medical, computer and broadcast. |
Key New Product Devices | Sequential Comparisons | |
Stratix V | 190% | |
Stratix IV | 37% | |
Arria II | 67% | |
Cyclone IV | 59% | |
HardCopy IV | (55)% |
Vertical Markets | Sequential Comparisons | Comments | ||
Telecom & Wireless | 33% | Telecom and Wireless both up | ||
Industrial Automation, Military & Automotive | 4% | Industrial up, Military and Automotive down | ||
Networking, Computer & Storage | 26% | Networking and Computer & Storage up | ||
Other | 12% | Broadly up |
($ in thousands) Key Ratios & Information | June 29, 2012 | March 30, 2012 | ||||||
Current Ratio | 6:1 | 4:1 | ||||||
Liabilities/Equity | 1:2 | 1:2 | ||||||
Quarterly Operating Cash Flows | $ | 85,539 | $ | 89,763 | ||||
TTM Return on Equity | 20 | % | 23 | % | ||||
Quarterly Depreciation Expense | $ | 7,688 | $ | 7,367 | ||||
Quarterly Capital Expenditures | $ | 7,409 | $ | 23,903 | ||||
Inventory MSOH (1): Altera | 3.1 | 2.9 | ||||||
Inventory MSOH (1): Distribution | 0.6 | 0.7 | ||||||
Cash Conversion Cycle (Days) | 130 | 91 | ||||||
Turns | 38 | % | 46 | % | ||||
Book to Bill | <1.0 | >1.0 | ||||||
Note (1): MSOH: Months Supply On Hand |
Three Months Ended | Quarterly Growth Rate | |||||||||||||
June 29, 2012 | March 30, 2012 | July 1, 2011 | Sequential Change | Year- Over-Year Change | ||||||||||
Geography | ||||||||||||||
Americas | 17 | % | 18 | % | 19 | % | 18 | % | (22 | )% | ||||
Asia Pacific | 46 | % | 43 | % | 40 | % | 29 | % | (4 | )% | ||||
EMEA | 23 | % | 23 | % | 27 | % | 18 | % | (28 | )% | ||||
Japan | 14 | % | 16 | % | 14 | % | 8 | % | (15 | )% | ||||
Net Sales | 100 | % | 100 | % | 100 | % | 21 | % | (15 | )% |
Product Category | ||||||||||||||
New | 31 | % | 26 | % | 18 | % | 44 | % | 43 | % | ||||
Mainstream | 30 | % | 32 | % | 36 | % | 14 | % | (30 | )% | ||||
Mature and Other | 39 | % | 42 | % | 46 | % | 13 | % | (27 | )% | ||||
Net Sales | 100 | % | 100 | % | 100 | % | 21 | % | (15 | )% |
Vertical Market | ||||||||||||||
Telecom & Wireless | 45 | % | 41 | % | 46 | % | 33 | % | (17 | )% | ||||
Industrial Automation, Military & Automotive | 19 | % | 22 | % | 22 | % | 4 | % | (25 | )% | ||||
Networking, Computer & Storage | 18 | % | 17 | % | 15 | % | 26 | % | (1 | )% | ||||
Other | 18 | % | 20 | % | 17 | % | 12 | % | (11 | )% | ||||
Net Sales | 100 | % | 100 | % | 100 | % | 21 | % | (15 | )% |
FPGAs and CPLDs | ||||||||||||||
FPGA | 85 | % | 83 | % | 80 | % | 24 | % | (11 | )% | ||||
CPLD | 9 | % | 10 | % | 10 | % | 8 | % | (27 | )% | ||||
Other Products | 6 | % | 7 | % | 10 | % | 9 | % | (42 | )% | ||||
Net Sales | 100 | % | 100 | % | 100 | % | 21 | % | (15 | )% |
• | New Products include the Stratix® V (including GS, GT and GX), Stratix IV (including E, GX and GT), Arria® V, Arria II (including GX and GZ), Cyclone® V, Cyclone IV (including E and GX), MAX® V, and HardCopy® IV devices. |
• | Mainstream Products include the Stratix III, Cyclone III, MAX II, and HardCopy III devices. |
• | Mature and Other Products include the Stratix II (and GX), Stratix (and GX), Arria GX, Cyclone II, Cyclone, Classic™, MAX 3000A, MAX 7000, MAX 7000A, MAX 7000B, MAX 7000S, MAX 9000, HardCopy II, HardCopy, FLEX® series, APEX™ series, Mercury™, and Excalibur™ devices, configuration and other devices, intellectual property cores, and software and other tools. |
Sequential Sales Growth | Up 2% to 6% |
Gross Margin | 70% +/- .5% |
Research and Development | $95 to 97 million |
SG&A | $72 to 74 million |
Tax Rate | 12 to 13% |
Diluted Share Count | Approximately 324 million |
Turns | Mid-30's |
MSOH | Approximately 4.0 |
Telecom & Wireless | Up slightly |
Industrial Automation, Military & Automotive | Up, driven primarily by Military and Automotive |
Networking, Computer & Storage | Both down |
Other | Up |
Three Months Ended | Six Months Ended | |||||||||||||||||||
(In thousands, except per share amounts) | June 29, 2012 | March 30, 2012 | July 1, 2011 | June 29, 2012 | July 1, 2011 | |||||||||||||||
Net sales | $ | 464,831 | $ | 383,754 | $ | 548,383 | $ | 848,585 | $ | 1,084,196 | ||||||||||
Cost of sales | 141,315 | 114,834 | 159,716 | 256,149 | 306,626 | |||||||||||||||
Gross margin | 323,516 | 268,920 | 388,667 | 592,436 | 777,570 | |||||||||||||||
Operating expense | ||||||||||||||||||||
Research and development expense | 92,356 | 82,297 | 80,260 | 174,653 | 154,668 | |||||||||||||||
Selling, general, and administrative expense | 71,796 | 69,785 | 70,182 | 141,581 | 139,204 | |||||||||||||||
Total operating expense | 164,152 | 152,082 | 150,442 | 316,234 | 293,872 | |||||||||||||||
Operating margin (1) | 159,364 | 116,838 | 238,225 | 276,202 | 483,698 | |||||||||||||||
Compensation (gain) expense — deferred compensation plan | (2,313 | ) | 5,736 | 54 | 3,423 | 1,716 | ||||||||||||||
Loss/(gain) on deferred compensation plan securities | 2,313 | (5,736 | ) | (54 | ) | (3,423 | ) | (1,716 | ) | |||||||||||
Interest income and other | (1,415 | ) | (1,807 | ) | (957 | ) | (3,222 | ) | (1,842 | ) | ||||||||||
Gain reclassified from other comprehensive income | (69 | ) | (102 | ) | — | (171 | ) | — | ||||||||||||
Interest expense | 2,116 | 937 | 870 | 3,053 | 1,911 | |||||||||||||||
Income before income taxes | 158,732 | 117,810 | 238,312 | 276,542 | 483,629 | |||||||||||||||
Income tax expense | (3,947 | ) | 1,976 | 23,685 | (1,971 | ) | 44,933 | |||||||||||||
Net income | 162,679 | 115,834 | 214,627 | 278,513 | 438,696 | |||||||||||||||
Other comprehensive income: | ||||||||||||||||||||
Unrealized gain on investments | ||||||||||||||||||||
Unrealized holding gain on investments arising during period, net of tax of $8, $58 and $66 | 2,799 | 304 | — | 3,103 | — | |||||||||||||||
Less: Reclassification adjustments for gain on investments included in net income, net of tax of $1, $5 and $6 | (3 | ) | (20 | ) | — | (23 | ) | — | ||||||||||||
2,796 | 284 | — | 3,080 | — | ||||||||||||||||
Unrealized gain on derivatives | ||||||||||||||||||||
Unrealized gain on derivatives arising during period, net of tax of $34, $8 and $42 | 63 | 14 | — | 77 | — | |||||||||||||||
Less: Reclassification adjustments for gain on derivatives included in net income, net of tax of $23, $27 and $50 | (42 | ) | (50 | ) | — | (92 | ) | — | ||||||||||||
21 | (36 | ) | — | (15 | ) | — | ||||||||||||||
Other comprehensive income | 2,817 | 248 | — | 3,065 | — | |||||||||||||||
Comprehensive income | $ | 165,496 | $ | 116,082 | $ | 214,627 | $ | 281,578 | $ | 438,696 | ||||||||||
Net income per share: | ||||||||||||||||||||
Basic | $ | 0.51 | $ | 0.36 | $ | 0.66 | $ | 0.87 | $ | 1.36 | ||||||||||
Diluted | $ | 0.50 | $ | 0.35 | $ | 0.65 | $ | 0.85 | $ | 1.33 | ||||||||||
Shares used in computing per share amounts: | ||||||||||||||||||||
Basic | 321,218 | 322,586 | 323,271 | 321,898 | 322,145 | |||||||||||||||
Diluted | 325,285 | 327,061 | 329,904 | 326,172 | 328,874 | |||||||||||||||
Cash dividends per common share | $ | 0.08 | $ | 0.08 | $ | 0.06 | $ | 0.16 | $ | 0.12 | ||||||||||
Tax rate | (2.5 | )% | 1.7 | % | 9.9 | % | (0.7 | )% | 9.3 | % | ||||||||||
% of Net sales: | ||||||||||||||||||||
Gross margin | 69.6 | % | 70.1 | % | 70.9 | % | 69.8 | % | 71.7 | % | ||||||||||
Research and development | 19.9 | % | 21.4 | % | 14.6 | % | 20.6 | % | 14.3 | % | ||||||||||
Selling, general, and administrative | 15.4 | % | 18.2 | % | 12.8 | % | 16.7 | % | 12.8 | % | ||||||||||
Operating margin(1) | 34.3 | % | 30.4 | % | 43.4 | % | 32.5 | % | 44.6 | % | ||||||||||
Net income | 35.0 | % | 30.2 | % | 39.1 | % | 32.8 | % | 40.5 | % |
Notes: | ||||||||||||||||||||
(1) We define operating margin as gross margin less research and development and selling, general and administrative expenses, as presented above. This presentation differs from income from operations as defined by U.S. Generally Accepted Accounting Principles ("GAAP"), as it excludes the effect of compensation associated with the deferred compensation plan obligations. Since the effect of compensation associated with our deferred compensation plan obligations is offset by losses/(gains) from related securities, we believe this presentation provides a more meaningful representation of our ongoing operating performance. A reconciliation of operating margin to income from operations follows: | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
(In thousands, except per share amounts) | June 29, 2012 | March 30, 2012 | July 1, 2011 | June 29, 2012 | July 1, 2011 | |||||||||||||||
Operating margin (non-GAAP) | $ | 159,364 | $ | 116,838 | $ | 238,225 | $ | 276,202 | $ | 483,698 | ||||||||||
Compensation (gain) expense — deferred compensation plan | (2,313 | ) | 5,736 | 54 | 3,423 | 1,716 | ||||||||||||||
Income from operations (GAAP) | $ | 157,051 | $ | 122,574 | $ | 238,279 | $ | 279,625 | $ | 485,414 |
(In thousands, except par value amount) | June 29, 2012 | December 31, 2011 | ||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 2,884,063 | $ | 3,371,933 | ||||
Short-term investments | 46,381 | 65,222 | ||||||
Total cash, cash equivalents, and short-term investments | 2,930,444 | 3,437,155 | ||||||
Accounts receivable, net | 425,267 | 232,273 | ||||||
Inventories | 146,090 | 122,279 | ||||||
Deferred income taxes — current | 71,171 | 58,415 | ||||||
Deferred compensation plan — marketable securities | 57,770 | 54,041 | ||||||
Deferred compensation plan — restricted cash equivalents | 15,707 | 17,938 | ||||||
Other current assets | 40,106 | 52,710 | ||||||
Total current assets | 3,686,555 | 3,974,811 | ||||||
Property and equipment, net | 193,299 | 171,721 | ||||||
Long-term investments | 579,924 | 74,033 | ||||||
Deferred income taxes — non-current | 25,903 | 26,629 | ||||||
Other assets, net | 45,227 | 35,074 | ||||||
Total assets | $ | 4,530,908 | $ | 4,282,268 | ||||
Liabilities and stockholders' equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 68,779 | $ | 52,154 | ||||
Accrued liabilities | 43,691 | 34,029 | ||||||
Accrued compensation and related liabilities | 37,675 | 78,181 | ||||||
Deferred compensation plan obligations | 73,477 | 71,979 | ||||||
Deferred income and allowances on sales to distributors | 374,175 | 279,876 | ||||||
Credit facility | — | 500,000 | ||||||
Total current liabilities | 597,797 | 1,016,219 | ||||||
Income taxes payable — non-current | 246,718 | 263,423 | ||||||
Long-term debt | 500,000 | — | ||||||
Other non-current liabilities | 9,268 | 8,730 | ||||||
Total liabilities | 1,353,783 | 1,288,372 | ||||||
Stockholders' equity: | ||||||||
Common stock: $.001 par value; 1,000,000 shares authorized; outstanding - 319,945 shares at June 29, 2012 and 322,054 shares at December 31, 2011 | 320 | 322 | ||||||
Capital in excess of par value | 1,096,654 | 1,050,752 | ||||||
Retained earnings | 2,077,219 | 1,942,955 | ||||||
Accumulated other comprehensive income (loss) | 2,932 | (133 | ) | |||||
Total stockholders' equity | 3,177,125 | 2,993,896 | ||||||
Total liabilities and stockholders' equity | $ | 4,530,908 | $ | 4,282,268 | ||||
Six Months Ended | |||||||
June 29, 2012 | July 1, 2011 | ||||||
Cash Flows from Operating Activities: | |||||||
Net income | $ | 278,513 | $ | 438,696 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 16,749 | 15,214 | |||||
Stock-based compensation | 46,200 | 37,432 | |||||
Deferred income tax (benefit) expense | (12,090 | ) | 4,897 | ||||
Tax effect of employee stock plans | 16,500 | 17,048 | |||||
Excess tax benefit from employee stock plans | (16,434 | ) | (14,589 | ) | |||
Changes in assets and liabilities: | |||||||
Accounts receivable, net | (192,994 | ) | (19,896 | ) | |||
Inventories | (23,811 | ) | 23,212 | ||||
Other assets | 6,019 | 43,638 | |||||
Accounts payable and other liabilities | (19,066 | ) | (53,532 | ) | |||
Deferred income and allowances on sales to distributors | 94,299 | (47,923 | ) | ||||
Income taxes payable | (16,658 | ) | 12,921 | ||||
Deferred compensation plan obligations | (1,925 | ) | (754 | ) | |||
Net cash provided by operating activities | 175,302 | 456,364 | |||||
Cash Flows from Investing Activities: | |||||||
Purchases of property and equipment | (31,312 | ) | (9,796 | ) | |||
Sales of deferred compensation plan securities, net | 1,925 | 754 | |||||
Purchases of available-for-sale securities | (576,568 | ) | — | ||||
Proceeds from sale and maturity of available-for-sale securities | 92,643 | — | |||||
Net cash used in investing activities | (513,312 | ) | (9,042 | ) | |||
Cash Flows from Financing Activities: | |||||||
Proceeds from issuance of common stock through various stock plans | 26,086 | 87,122 | |||||
Shares withheld for employee taxes | (6,562 | ) | (8,178 | ) | |||
Payment of dividends to stockholders | (51,558 | ) | (38,681 | ) | |||
Proceeds from issuance of long-term debt | 500,000 | — | |||||
Repayment of credit facility | (500,000 | ) | — | ||||
Long-term debt and credit facility issuance costs | (5,244 | ) | — | ||||
Repurchases of common stock | (129,016 | ) | — | ||||
Excess tax benefit from employee stock plans | 16,434 | 14,589 | |||||
Net cash (used in) provided by financing activities | (149,860 | ) | 54,852 | ||||
Net (decrease) increase in cash and cash equivalents | (487,870 | ) | 502,174 | ||||
Cash and cash equivalents at beginning of period | 3,371,933 | 2,765,196 | |||||
Cash and cash equivalents at end of period | $ | 2,884,063 | $ | 3,267,370 |