-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Uqhrp960DkUVzRCRLE4imKK3DftolRhZSTg9gGL31PhsrC/K5VSxTZsIewfp/k5d FcuudSgTEloBbCsm2L55hQ== 0000891618-95-000703.txt : 19951119 0000891618-95-000703.hdr.sgml : 19951119 ACCESSION NUMBER: 0000891618-95-000703 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951114 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALTERA CORP CENTRAL INDEX KEY: 0000768251 STANDARD INDUSTRIAL CLASSIFICATION: SEMICONDUCTORS & RELATED DEVICES [3674] IRS NUMBER: 770016691 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-16617 FILM NUMBER: 95592120 BUSINESS ADDRESS: STREET 1: 2610 ORCHARD PARKWAY CITY: SAN JOSE STATE: CA ZIP: 95134-2020 BUSINESS PHONE: 4088947000 MAIL ADDRESS: STREET 1: 2610 ORCHARD PARKWAY CITY: SAN JOSE STATE: CA ZIP: 95134-2020 10-Q 1 FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 1995 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) /X/ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 1995 or / / Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to ------------ -------------- Commission file number 0-16617 ALTERA CORPORATION (Exact name of registrant as specified in its charter) California 77-0016691 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 2610 Orchard Parkway, San Jose, California 95134 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (408) 894-7000 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for at least the past 90 days. Yes X No ------ ------ Number of shares of common stock outstanding at September 30, 1995: 43,500,231 2 ALTERA CORPORATION FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 1995 PART I FINANCIAL INFORMATION AND MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 2 3 ALTERA CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands, except share amounts)
Sept. 30, Dec.31, 1995 1994 -------- -------- ASSETS (Unaudited) Current assets: Cash, cash equivalents $ 58,376 $ 41,639 Short-term investments 283,457 50,955 -------- -------- Total cash, cash equivalents, and short-term investments 341,833 92,594 Accounts receivable, less allowance for doubtful accounts of $1,162 and $727 65,497 31,662 Inventories 42,369 38,477 Deferred income taxes 21,365 12,365 Other current assets 5,306 2,244 -------- -------- Total current assets 476,370 177,342 Property and equipment, net 49,203 18,212 Investments and other assets 37,624 18,328 -------- -------- $563,197 $213,882 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 19,523 $ 11,313 Accrued liabilities 66,090 35,919 Accrued compensation 12,075 8,631 -------- -------- Total current liabilities 97,688 55,863 -------- --------- Long Term Debt 244,400 -- -------- -------- Shareholders' equity: Common stock; no par value:80,000,000 shares authorized, 43,500,231 and 42,975,628 shares issued and outstanding 77,778 73,146 Retained earnings 143,331 84,873 -------- -------- 221,109 158,019 -------- -------- $563,197 $213,882 ======== ========
3 4 ALTERA CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED ------------------------ ------------------------- Sept. 30, Sept. 30, Sept. 30, Sept. 30, 1995 1994 1995 1994 -------- ------- -------- -------- Sales $109,079 $49,051 $276,282 $139,622 -------- ------- -------- -------- Costs and expenses: Cost of sales 42,817 18,871 110,357 54,057 Research and development 9,105 5,829 23,368 15,728 Selling, general, and administrative 20,340 11,501 52,736 32,580 -------- ------- -------- -------- Total operating expenses 72,262 36,201 186,461 102,365 -------- ------- -------- -------- Operating income 36,817 12,850 89,821 37,257 Interest and other income 848 559 2,970 1,469 -------- ------- -------- -------- Income before taxes 37,665 13,409 92,791 38,726 Provision for income taxes 13,936 4,961 34,333 14,329 -------- ------- -------- -------- Net income $ 23,729 $ 8,448 $ 58,458 $ 24,397 ======== ======= ======== ======== Earnings per share $ 0.52 $ 0.20 $ 1.28 $ 0.57 ======== ======= ======== ======== Shares and equivalents used in calculation of earnings per share 45,852 42,718 45,527 42,766 ======== ======= ======== ========
4 5 ALTERA CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (In thousands) (Unaudited)
NINE MONTHS ENDED --------------------------- Sept. 30, Sept. 30, 1995 1994 --------- -------- Cash flows from operating activities: Net income $ 58,458 $ 24,397 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 8,630 6,318 Changes in assets and liabilities: Accounts receivable, net (33,835) (4,345) Inventories (3,892) (6,932) Deferred income taxes (9,000) -- Other current and non-current assets (4,137) (149) Accounts payable 8,210 (325) Accrued liabilities 30,088 4,148 Accrued compensation 3,444 382 --------- -------- Cash provided by operating activities 57,966 23,494 --------- -------- Cash flows from investing activities: Purchases of property and equipment (37,684) (7,433) Net change in short-term investments (232,502) 22,595 Long-term investments (500) (100) --------- -------- Cash provided by (used for) investing activities (270,686) 15,062 --------- -------- Cash flows from financing activities: Long-term debt, net of issuance costs 224,825 -- Net proceeds from issuance of common stock 4,632 3,829 --------- -------- Cash provided by financing activities 229,457 3,829 --------- -------- Net increase in cash and cash equivalents 16,737 42,385 Cash and cash equivalents at beginning of period 41,639 16,832 --------- -------- Cash and cash equivalents at end of period $ 58,376 $ 59,217 ========= ======== Supplemental disclosure of cash flow information: Cash paid during the period for: Income taxes $ 45,399 $ 6,595
5 6 ALTERA CORPORATION NOTES TO FINANCIAL INFORMATION (Unaudited) Note 1 - Interim Statements: In the opinion of the Company, the accompanying unaudited financial data contain all adjustments, consisting only of normal, recurring adjustments, necessary to present fairly the financial information included therein. This financial data should be read in conjunction with the audited financial statements and notes thereto included in the Company's Annual Report to Shareholders for the year ended December 31, 1994. Results for the interim period presented are not necessarily indicative of results for the entire year. Note 2 - Balance Sheet Detail: .
(In Thousands) Sept. 30, Dec. 31, 1995 1994 -------- -------- (Unaudited) Inventories: Purchased parts and raw materials $ 2,072 $ 2,185 Work-in-process 29,636 22,230 Finished goods 10,661 14,062 -------- -------- $ 42,369 $ 38,477 ======== ======== Property and equipment: Land $ 19,925 $ -- Equipment 58,440 43,284 Office furniture and equipment 4,743 4,124 Leasehold improvements 3,388 2,852 -------- -------- 86,496 50,260 Less accumulated depreciation and amortization (37,293) (32,048) -------- -------- $ 49,203 $ 18,212 ======== ========
Note 3 - Earnings per Share: Income per share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period. Dilutive common equivalent shares consist of the assumed net shares issuable upon the exercise of dilutive stock options using the treasury stock method. 6 7 Note 4 - Notes Payable: In July, the Company entered into an agreement with Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC) whereby it has made deposits to TSMC for future wafer capacity allocations extending into 1999. The Company made cash payments amounting to $2.4 million and issued promissory notes for $14.4 million relating to this agreement. The promissory notes are due in equal amounts in 1996, 1997, and 1998, respectively. In October 1995, the Company entered into two additional agreements with TSMC for additional future wafer capacity allocations through 2001. In conjunction with these agreements, the Company issued promissory notes for $57.1 million and $49 million, due in 1996 and 1997, respectively. 7 8 ALTERA CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Results of Operations Sales. Third quarter 1995 sales of $109.1 million were 122% higher than the $49.1 million reported for the same period last year, and were up 18% from second quarter 1995 sales of $92.2 million. Sales were higher than the third quarter of 1994 primarily as a result of higher sales of the Company's MAX 7000 and FLEX 8000 product lines, as well as sales of products acquired from Intel on October 1, 1994, including the Classic and FLEXlogic (now called FLASHlogic) product lines. As compared to the same period last year, sales in North America increased 129% and international sales increased 115%. As compared to prior quarter, sales growth was driven by the MAX 7000, FLEX 8000, and FLASHlogic families. FLEX 8000 grew the fastest as measured in percentage terms while MAX 7000 grew the fastest when measured in absolute dollars. Although sales growth was strongest domestically, all channels of distribution reported double-digit growth compared to the second quarter of 1995. Historically, semiconductor prices decline as products mature. New product introductions from competitors may also increase pricing pressure and compete for overall unit sales. Historically, the Company has responded to these pressures with the introduction of new, higher margin products. In the second quarter of 1995 the Company began shipping a new product family, the MAX 9000 family. Future growth rates will be highly dependent on, among other things, market acceptance of the MAX 9000 family and other new product lines such as the FLEX 10K family. There can be no assurance that the MAX 9000 family, or other new products will be successful in securing broad market acceptance or achieving higher margins, or that the average selling price decline on existing products will not accelerate. In general, economic conditions in many of the end markets that use the Company's products have been favorable in recent quarters. The favorable economic climate has been a positive factor in stimulating demand for the Company's products. There can be no assurance that general economic conditions will remain favorable or will not deteriorate. The Company's business prospects in the next several quarters will depend, in part, on worldwide economic conditions, and may weaken due to the factors discussed above. Altera's sales history cannot be used to predict future results. Gross Margin. Gross margin percentage in the third quarter was 60.8%, up from 59.3% last quarter, but down from 61.5% in the same period a year ago. As compared to prior quarter, the increase in gross margin percentage was caused by improved yields resulting in higher margins on the Company's 8 9 newer higher-density products. The declining margin percentage as compared to the third quarter of 1994 is a result of declining selling prices over the last year. The decline in selling prices has been partially offset by lower manufacturing costs resulting from improved yields and also from improved scale economies on higher manufacturing volumes. Although yields improved in the last quarter, as compared to prior quarter, there can be no assurances that recently achieved yield improvements will continue or that yields will not deteriorate. The Company continues to spend significant research and development resources improving production yields on its products to commercially acceptable levels. The need to improve production yields also exists with the new products and fabrication processes used by the Company. The Company recently began contracting with Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC) of Taiwan and is now in commercial volume production at this vendor. Management is hopeful that TSMC's aggressive manufacturing processes will enable the Company to lower its costs, particularly on the FLEX 8000 family. However, there can be no assurances that these cost reductions will be achieved. Start-up difficulties often occur when beginning production of products on new processes, and these difficulties could potentially result in higher costs and reduced product availability. Management also expects to introduce products in the future using other process technologies new to the Company and expects that it may encounter similar difficulties at such times. Production throughput times also vary considerably among the Company's wafer suppliers. The Company has experienced delays from time to time in processing some of its products and recently experienced long lead times from vendors on some of its newer products. Long vendor lead times impair the Company's ability to respond to rapidly changing market conditions. Many other uncertainties exist that could adversely impact future margins, including deterioration of production yields, delays in new product availability, shortages from suppliers, or lack of market acceptance of new products. The Company has at times been unable to fully satisfy customer demand because of insufficient wafer allocation from its foundries. The Company is currently limiting the amount of orders that it will accept based on available production capacity. The Company's future growth will depend in large part on increasing its wafer capacity allocation from current foundries, adding additional foundries, and improving yields of die per wafer from its foundries through reductions in the die size of the Company's products and implementation of advanced process technologies. Wafer capacity in the semiconductor industry, particularly in the Company's advanced process geometries, has been and is presently extremely limited. Partly in response to these limitations, the Company entered into an agreement with TSMC in July of this year whereby it has made deposits, in the form of cash and promissory notes payable to TSMC, for future wafer capacity allocations extending into 1999. The cash payments amounted to $2.4 million, and the promissory notes totaled $14.4 million. In October 1995, the Company entered into two additional agreements with TSMC for additional future wafer capacity allocations through 2001. In conjunction with these agreements, the Company issued promissory notes for $57.1 million and $49 million, respectively. The amount of wafers secured by the deposits may 9 10 meet the Company's anticipated requirements from TSMC through the year 1998; however, there can be no assurance that the Company will not require additional wafer capacity. The Company will, from time to time, consider other alternatives to secure additional wafer capacity including, without limitation, equity investments in, or loans or other financial commitments to, independent wafer manufacturers in exchange for production capacity, or the use of contracts which firmly commit the Company to purchase specified quantities of wafers over extended periods. Any such transactions could require the Company to seek equity or debt financing to fund such activities and, in certain circumstances, to grant product or technology rights in return for production capacity. There can be no assurance that any such additional financing could be obtained on terms acceptable to the Company, if at all, or that the grant of any such product or technology rights would not materially adversely affect the Company's business. Moreover, there can be no assurance that even if the Company enters into agreements with its suppliers, that its suppliers will ultimately deliver according to the provisions of the agreement. There can be no assurance that the Company will be able to satisfy its future needs for wafers, assembly, or other contract manufacturing from current or alternative manufacturing sources. Any increase in general demand for wafers within the industry, or any reduction of existing wafer supply from any of the Company's foundry sources, could materially adversely affect the Company's business. Furthermore, there can be no assurance that the Company will be able to obtain an increased number of functional die per wafer. Research and Development. Research and development expenditures were $9.1 million for the quarter ended September 30, 1995, or $3.3 million higher than the quarter ended a year ago, and up $1.4 million from the prior quarter. The increase as compared to the previous year is the result of higher expenditures related to prototype and development wafers, and pre-production costs, especially for the recently introduced MAX 9000 and FLEX 10K families of products. Additional increases in research and development spending included process development costs, the development of new packages, and greater software development efforts. Management of the Company expects to continue investing significant research and development efforts into the development of programmable logic chips, related development software and hardware, and advanced semiconductor wafer fabrication processes. However, even if the Company accomplishes its goals for the development of new products and manufacturing processes, there is no assurance that these products will achieve market acceptance or that the new manufacturing processes will be successful, or that the suppliers will provide the Company with the quality or quantity of wafers and materials that the Company requires. The Company must continue to develop and introduce new products in a timely manner to counter the industry's historical trend of prices declining as products mature. Selling, General, and Administrative. Third quarter selling, general, and administrative expenses of $20.3 million increased $8.8 million from a year ago, and $3.3 million from prior quarter. The increase as compared to prior year was due to increased commission and incentive expenses (on the increased sales volume), increased advertising and promotional expenditures, and increased field sales, marketing, and administrative headcounts. Increased commission and incentive expenses and increased administrative expenses were the primary reasons for the increase compared to prior quarter. As a 10 11 percentage of revenue, third quarter selling, general, and administrative expenses at 18.6% were down from the prior year quarter due to revenues increasing at a faster rate than expenses and were approximately at the same level as the second quarter of 1995. Selling costs measured in dollar terms have increased compared to both last year and last quarter, driven by increased advertising and merchandising expenditures, higher commissions and incentives (on increased sales), and increased marketing and field sales headcounts. The Company uses three methods to market its products: direct sales to electronics manufacturers via independent sales representatives, sales through licensed domestic and foreign distributors, and direct sales to customers by Altera sales department personnel. The Company has thirteen U.S. and eight international sales offices. Approximately 79% percent of the Company's worldwide sales are made through distributors. As a percentage of revenue, selling expenses were lower than they were in the prior quarter and in the quarter ended one year ago. Operating Income. Third quarter 1995 operating income, $36.8 million, represented 33.8% of sales, and was higher than both the third quarter of 1994 and the most recent prior quarter on a percentage of revenue basis. This improvement is attributed to the growth in revenues, which have grown faster than operating expenses. Interest and Other Income. Interest income improved over last quarter and prior year as a result of increased cash balances. The increase in interest income was partially offset by interest expense of $3.4 million during the quarter related to the convertible notes issued in June 1995. Income Taxes. The Company's provision for income taxes was 37%, consistent with the third quarter of 1994 and prior quarter. Future Results. Future operating results depend on the Company's ability to develop, manufacture, and sell complicated semiconductor components and complex software that offer customers greater value than competing vendors. The Company's efforts in this regard may not be successful. Also, a number of factors outside of the Company's control, including general economic conditions and cycles in world markets, exchange rate fluctuations, or a lack of growth in the Company's end markets could impact future results. The Company is highly dependent upon subcontractors to manufacture silicon wafers and perform assembly and testing services. Disruptions or adverse supply conditions arising from market conditions, political strife, labor disruptions, natural or man-made disasters, other factors, and even normal process variations could have a material adverse effect on the Company's future operating results. Competitive break-throughs, and particularly competitive pricing could also impact future operating results. Additionally, litigation relating to competitive patents and intellectual property could have an adverse impact on the Company's financial condition or operating results. The Company owns more than 50 United States patents and has additional pending United States patent applications on its semiconductor products. The Company also has technology licensing agreements with AMD, Cypress, Intel, and Texas Instruments giving the Company royalty-free rights to 11 12 design, manufacture, and package products using certain patents they control. Other companies have filed applications for, or have been issued, other patents and may develop, or obtain proprietary rights relating to, products or processes competitive with those of the Company. From time to time the Company may find it desirable to obtain additional licenses from the holders of patents relating to products or processes competitive with those of the Company. Although its patents and patent applications may have value in discouraging competitive entry into the Company's market segment and the Company believes that its current licenses will assist it in developing additional products, there can be no assurance that any additional patents will be granted to the Company, that the Company's patents will provide meaningful protection from competition, or that any additional products will be developed based on any of the licenses that the Company currently holds. The Company believes that its future success will depend primarily upon the technical competence and creative skills of its personnel, rather than on its patents, licenses, or other proprietary rights. The Company, in the normal course of business, from time to time receives and makes inquiries with respect to possible patent infringements. As a result of inquiries received from companies, it may be necessary or desirable for the Company to obtain additional licenses relating to one or more of its current or future products. There can be no assurance that such additional licenses could be obtained, and, if obtainable, could be obtained on conditions that would not have a material adverse effect on the Company's operating results. If the inquiring companies were to allege infringement of their patents, as is the case in the Company's current litigation with two of its competitors, there can be no assurance that any necessary licenses could be obtained, and, if obtainable, that such licenses would be on terms or conditions that would not have a material adverse effect on the Company. In addition, if litigation ensued, there can be no assurance that these companies would not succeed in obtaining significant monetary damages or an injunction against the manufacture and sale of one or more of the Company's product families. It may be necessary or desirable for the Company to incur significant litigation expenses to enforce its intellectual property rights. Liquidity and Capital Resources In July, the Company entered into an agreement with TSMC whereby it has made deposits, in the form of cash and promissory notes payable to TSMC, for future wafer capacity allocations extending into 1999. The cash payment amounted to $2.4 million, and the promissory notes totaled $14.4 million. The promissory notes are due in equal amounts in 1996, 1997, and 1998, respectively. In October 1995, the Company entered into two additional agreements with TSMC whereby it issued promissory notes in the amounts of $57.1 million and $49 million, which are due in 1996 and 1997, respectively. The Company's cash and investments increased by $18.2 million in the third quarter, from $323.7 million at the end of the second quarter to $341.8 million at September 30, 1995. The Company expects to invest approximately $5 million of additional capital during the last three months of 1995. The Company believes that its cash, cash equivalents, and short-term investments, combined with cash 12 13 generated from ongoing operations, will be adequate to finance the Company's operations and capital investment needs for at least the next year. Impact of Currency and Inflation. The Company purchases the majority of its materials and services in U.S. Dollars, and most of its foreign sales are transacted in U.S. dollars. However, Altera does have Yen denominated purchase contracts with Sharp Corporation of Japan for processed silicon wafers. The Company historically has engaged in a variety of foreign exchange hedging strategies to mitigate the exposure from these Yen denominated purchases. This hedging has included the purchase of forward contracts and the use of offsetting Yen receipts. Throughout 1994 and the first half of this year, the Company held no forward Yen contracts. However, in July of this year the Company purchased Yen forward contracts in an amount approximately equal to its expected Yen requirements for the balance of the third quarter. Effects of inflation on Altera's financial results have not been significant. 13 14 ALTERA CORPORATION FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 1995 PART II OTHER INFORMATION 14 15 ITEM 3. LEGAL PROCEEDINGS. In June 1993, Xilinx, Inc. ("Xilinx") brought suit against the Company seeking monetary damages and injunctive relief based on the Company's alleged infringement of certain patents held by Xilinx. In June 1993, the Company brought suit against Xilinx, seeking monetary damages and injunctive relief based on Xilinx's alleged infringement of certain patents held by the Company. In April 1995, the Company filed a separate lawsuit against Xilinx in Delaware, Xilinx's state of incorporation, seeking monetary damages and injunctive relief based on Xilinx's alleged infringement of one of the Company's patents. In May 1995, Xilinx counterclaimed against the Company in Delaware, asserting defenses and seeking monetary damages and injunctive relief based on the Company's alleged infringement of certain patents held by Xilinx. Due to the nature of the litigation with Xilinx and because the lawsuits are still in the pre-trial stage, the Company's management cannot estimate the total expense, the possible loss, or the range of loss that may ultimately be incurred in connection with the allegations. Management cannot ensure that Xilinx will not succeed in obtaining significant monetary damages or an injunction against the manufacture and sale of the Company's MAX 5000, MAX 7000, FLEX 8000, or MAX 9000 families of products, or succeed in invalidating any of the Company's patents. There can be no assurance that any of such results will not have a material adverse effect on the Company's financial condition or results of operations. In August 1994, Advanced Micro Devices ("AMD") brought suit against the Company seeking monetary damages and injunctive relief based on the Company's alleged infringement by the MAX 7000 product family of certain patents held by AMD. In September 1994, Altera answered the complaint asserting that it is licensed to use the patents which AMD claims are infringed and filed a counterclaim against AMD alleging infringement of certain patents held by the Company. In May 1995, AMD amended its complaint to assert that the Classic, MAX 5000, FLEX 8000, MAX 9000, FLEX 10K, and FLASHlogic product families infringe certain AMD patents. The Company also amended its counterclaim to assert that AMD's products infringe an additional patent owned by the Company. Due to the nature of the litigation with AMD, and because the lawsuit is at an early stage, the Company's management cannot estimate the total expense, the possible loss, if any, or the range of loss that may ultimately be incurred in connection with the allegations. Management cannot ensure that AMD will not succeed in obtaining significant monetary damages or an injunction against the manufacture and sale of the Classic, MAX 5000, MAX 7000, FLEX 8000, MAX 9000, FLEX 10K, and FLASHlogic product families, or succeed in invalidating any of the Company's patents. There can be no assurance that any of such results will not have a material adverse effect on the Company's financial condition or results of operations. 15 16 Item 6. Exhibits and Reports on Form 8-K (a) Exhibits 11.1 Computation of earnings per share (see Note 3 to Financial Information in Part 1 of this Form 10-Q). 27. Financial Data Schedule (b) Reports on Form 8-K None. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. ALTERA CORPORATION /s/ Nathan Sarkisian ------------------------------ Nathan Sarkisian, Vice President (duly authorized officer), and Chief Financial Officer (principal financial officer) Date: November 13, 1995 16 17 EXHIBIT INDEX Ex. 27 Financial Data Schedule EX-27 2 FINANCIAL DATA SCHEDULE
5 1,000 9-MOS DEC-31-1995 JAN-01-1995 SEP-30-1995 58,376 283,457 65,497 1,162 42,369 476,370 86,496 37,293 563,197 97,688 244,400 77,778 0 0 143,331 563,197 276,282 276,282 110,357 110,357 76,104 0 3,797 92,791 34,333 0 0 0 0 58,458 1.28 0
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