SAN JOSE, Calif., July 20, 2010 -- Altera Corporation (Nasdaq: ALTR) today announced second quarter sales of $469.3 million, up 17 percent from the first quarter of 2010 and up 68 percent from the second quarter of 2009. New product sales increased 36 percent sequentially. Second quarter net income was $180.6 million, $0.58 per diluted share, compared with net income of $153.2 million, $0.50 per diluted share, in the first quarter of 2010 and $47.4 million, $0.16 per diluted share, in the second quarter of 2009.
Year-to-date cash flow from operating activities was $378.6 million. Altera ended the quarter with $2.1 billion in cash and short-term investments.
Altera's board of directors has increased the company's quarterly cash dividend to $0.06 per share, up from the previous dividend of $0.05 per share. The board of directors has declared that the next quarterly dividend will be paid on September 1, 2010 to stockholders of record on August 10, 2010.
"In the second quarter, our 65-nm FPGA revenue was once again up sharply. Our newer 40-nm products grew even faster as they transition into the production-demand phase of their life," said John Daane, president, chief executive officer, and chairman of the board. "Development work on our next-generation 28-nm FPGAs is reaching its final stages. The unique innovations in these FPGAs, including 28-Gbps transceivers, will extend the technology leadership that has benefited us so strongly at the 40-nm node."
Several recent accomplishments mark the company's continuing progress:
- Altera's Quartus(R) II v10.0 software, used in support of Altera's 28-nm Stratix(R) V family, is now available. Altera is the only FPGA supplier with publicly available software for its 28-nm FPGAs. This version incorporates support for Stratix V GX and Stratix V GS FPGAs and offers several new productivity and performance features with high-density compile times two to three times faster than the nearest competitor.
- With the arrival of production shipments of the Stratix IV E EP4SE820 device, the highest density member of the Stratix IV FPGA family, Altera's entire Stratix IV FPGA family is shipping in production-qualified volume.Stratix IV FPGAs are the industry's highest density, highest performance and lowest power FPGAs currently shipping in their class. This device family features proven transceiver and memory-interface technology, providing an ideal solution for customers in a variety of end markets. Altera's high-end FPGAs feature three variants, a non-transceiver enhanced (E) version and two transceiver (GX and GT) versions. The Stratix IV E FPGAs are high in density and rich with embedded memory and DSP resources. Stratix IV GX and Stratix IV GT variants feature integrated transceivers that operate up to 8.5 Gbps and 11.3 Gbps, respectively, providing an unprecedented level of system bandwidth with superior signal integrity.
- Altera has received the "Best 3G Communication FPGA Supplier Award" from China Electronic News (CEN). CEN's award is in recognition of Altera's contribution to China's telecommunication industry, especially China's successful 3G deployment in the past few years. Each year, CEN selects companies that lead the industry in innovation or have outstanding market performance in various segments of the China telecommunication market. The awards are determined by a committee comprised of industry and university technology experts and members of CEN's senior editorial team. Members of the selection committee voted based on three criteria: technology innovation, market influence and product service. CEN, with a circulation of 200,000 in China, is the most authoritative publication covering China's electronics information industry.
- Altera has been presented with the TechAmerica Foundation's American Technology Award. Winning in the electronics components category, the award recognizes the Stratix IV GT FPGA forenabling next-generation communications infrastructure to support growing bandwidth requirements. Altera's Stratix IV GT FPGAs are optimized specifically for the latest generation of 40G and 100G applications used in communications systems, high-end test equipment and military communications systems. The FPGAs feature high-speed 11.3-Gbps transceivers to support high-throughput system requirements, as well as core performance and logic density to handle the complex processing needed in these systems.
Business Outlook for the Third Quarter 2010
| Sequential Sales Growth | Up 4% to 8% |
| Gross Margin | 70% to 71% |
| Research and Development | $69 to 70 million |
| SG&A | $64 to 65 million |
| Tax Rate | 12% to 14% |
Financial Tables
To read financial tables, click here
Conference Call and Quarterly Update:
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 webcast 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.
Altera's third quarter business update will be issued in a press release available after the market close on September 7, 2010.
About Altera
Altera programmable solutions enable system and semiconductor companies to rapidly and cost-effectively innovate, differentiate and win in their markets. Find out more about Altera's FPGA, CPLD and ASIC devices at http://www.altera.com/.
