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Last updated on April 16, 2014 at 17:34 EDT

Altera Announces Fourth Quarter Results

January 23, 2013

SAN JOSE, Calif., Jan. 23, 2013 /PRNewswire/ — Altera Corporation (NASDAQ: ALTR) today announced fourth quarter sales of $439.4 million, down 11 percent from the third quarter of 2012 and down 4 percent from the fourth quarter of 2011. Fourth quarter net income was $120.8 million, $0.37 per diluted share, compared with net income of $157.5 million, $0.49 per diluted share, in the third quarter of 2012 and $146.6 million, $0.45 per diluted share, in the fourth quarter of 2011.

(Logo: http://photos.prnewswire.com/prnh/20101012/SF78952LOGO)

Cash flow from operating activities in 2012 was $587.2 million. Altera repurchased 1.6 million shares of its common stock during the quarter at a cost of $50.0 million. Altera ended the quarter with $3.7 billion in cash and investments.

Altera’s board of directors has declared a quarterly cash dividend of $0.10 per share payable on March 1, 2013 to stockholders of record on February 11, 2013.

“While our new products had a double-digit sequential growth quarter, sales of our older products were soft–the result of a sluggish global economy,” said John Daane, president, chief executive officer, and chairman of the board. “Sales of 40 nm devices, our largest selling process node, and where we are the market leader, are likely to strengthen further as we progress through 2013. At the most advanced process node, 28 nm, Altera remains the design-win value leader, giving us a substantial growth opportunity as these customer designs transition into production.”

Several recent accomplishments mark the company’s continuing progress:

  • Huawei Technologies, a leading global information and communications technology solutions provider, has presented Altera with its 2012 Excellent Core Partner Award. In making this award, Huawei specifically recognized Altera for its excellence in terms of quality, delivery of leading-edge technologies and services. The Excellent Core Partner Award is the highest recognition Huawei gives to its suppliers. Altera is among an elite set of suppliers to earn this award for outstanding contribution toward Huawei’s business success throughout 2012. In 2012, Huawei realized the performance advantage offered by Altera’s 28 nm Stratix(®) V FPGAs and selected the high-end product family for use in the company’s 400G high-capacity OTN system. By using the industry’s first high-end 28 nm production FPGAs, Huawei enabled the evolution of communications infrastructure such as 400G systems and other high-performance systems in a variety of markets throughout the world.
  • Altera also received the 2012 Global Excellent Partnership Award from ZTE Corporation, a leading provider of telecommunications equipment and network solutions. The award recognizes Altera for overall performance in delivering best-in-class products and services to ZTE during the past year. According to ZTE, innovative programmable solutions and technical support from Altera played a critical role in supporting product development for the company’s existing and next-generation communication products. ZTE presents its Global Excellent Partnership Award each year to suppliers meeting rigorous performance criteria. Winners are chosen based on partner satisfaction surveys among company staff, including development and material engineers and purchasing employees. Suppliers are evaluated on cost efficiencies, on-time delivery, quality standards and service records. Altera scored the highest marks in all categories.
  • Altera is now shipping the first of its 28 nm SoC devices, which combine a dual-core ARM® Cortex(TM)-A9 processor system with FPGA logic on a single device. The initial devices to ship are the low-power, low-cost Cyclone(®) V SoCs. Altera SoCs include several distinctive features that enable developers in the wireless communications, industrial, video surveillance, automotive and medical equipment markets to create custom SoC variants optimized for system power, board space, performance and cost requirements. In addition, Altera is the only FPGA vendor today shipping SoCs that offer 32-bit error correction code (ECC) support which helps ensure data integrity throughout the embedded system. ECC support is a requirement for customers who must have high-performance and reliable systems. With silicon now available, customers who used Altera’s SoC Virtual Target to develop their application software can now quickly port their application software into the SoC, saving months of development time. Further strengthening the SoC device tools ecosystem support, Altera and ARM have jointly developed the ARM Development Studio 5(TM) Altera Edition (DS-5(TM)) toolkit with FPGA-adaptive debugging, which exclusively supports Altera SoC devices. The DS-5 toolkit is designed to remove the debugging barrier between the integrated dual-core CPU subsystem and the FPGA fabric in Altera SoC devices, providing embedded software developers an unprecedented level of full-chip visibility and control.
  • Altera has developed the FPGA industry’s first Software Development Kit (SDK) for OpenCL(TM) (Open Computing Language) which combines the massively parallel architecture of an FPGA with the OpenCL parallel programming model. OpenCL is an open, royalty-free standard for cross-platform, parallel programming of hardware accelerators, including CPUs, GPGPUs and FPGAs. The semiconductor industry’s approach for boosting system performance has evolved from increasing frequency in single-core CPUs, to using multi-core CPUs, to using parallel processor arrays. Today, system designers are turning to FPGAs, which are fine-grained, massively parallel digital logic arrays architected to execute computations in parallel to create higher performance levels at a fraction of the power compared to other hardware alternatives. By allowing system developers and programmers familiar with C to quickly and easily develop high-performance, power-efficient FPGA-based applications in a high-level language, Altera’s SDK for OpenCL enables customers to easily adopt FPGAs and leverage the performance and power benefits the devices provide. This unified, high-level design flow for hardware and software development automates the time-consuming tasks required in typical hardware-design language flows, and the resulting FPGA-based solution can deliver more than 5X performance/watt compared to alternative hardware implementations.

SELECTED FOURTH QUARTER REVENUE AND RELATED RESULTS

    Key New Product Devices                 Sequential
                                            Comparisons
    -----------------------                -----------
    Stratix V                                         (9)%
    Arria V                                           152%
    Stratix IV                                         19%
    Arria II                                          (6)%
    Cyclone IV                                         21%
    HardCopy IV                                      (15)%

    Vertical
     Markets     Sequential Comparisons       Comments
    --------     ----------------------       --------
    Telecom
     &
     Wireless                           (12)% Both Telecom and Wireless down
     Industrial
     Automation,                         (9)% Broadly down
    Military
     &
     Automotive
     Networking,                               Networking down and Computer
     Computer                                  and Storage up
     &
     Storage                            (12)%
    Other                               (10)%                               -

    ($ in
     thousands)   December 31, 2012           September 30, 2012
    Key
     Ratios &
     Information
    ------------
    Current
     Ratio                      7:1                               6:1
     Liabilities/
     Equity                     1:3                               1:2
    Quarterly
     Operating
     Cash
     Flows                           $126,709                          $285,203
    TTM
     Return
     on
     Equity                      18%                               19%
    Quarterly
     Depreciation
     Expense                           $9,170                            $9,677
    Quarterly
     Capital
     Expenditures                      $7,201                           $17,749
    Inventory
     MSOH (1):
     Altera                     3.4                               3.1
    Inventory
     MSOH (1):
     Distribution               0.6                               0.6
    TTM Cash
     Conversion
     Cycle
     (Days)                     117                               140
    Turns                        40%                               37%
    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                        Years Ended
                                             ------------------                    ---------------------                        -----------
                                   December                September      December    Sequential                Year-            December   December  Annual
                                   31, 2012                28, 2012       31, 2011      Change                                   31, 2012   31, 2011  Growth
                                                                                                                Over-Year
                                                                                                                Change
                                                                                                                ------
    Geography
    ---------
    Americas                             19%                          19%                     21%                          (8)%                 (12)%         18%  19% (18)%
    Asia Pacific                         39%                          43%                     40%                         (21)%                  (7)%         43%  41%  (9)%
    EMEA                                 28%                          25%                     22%                          (2)%                   20%         25%  25% (15)%
    Japan                                14%                          13%                     17%                          (4)%                 (19)%         14%  15% (18)%
                                        ---                          ---                     ---
    Net Sales                           100%                         100%                    100%                         (11)%                  (4)%        100% 100% (14)%
                                        ===                          ===                     ===                                                             ===  ===
    Product Category
    ----------------
    New                                  39%                          31%                     27%                           11%                   39%         32%  22%   22%
    Mainstream                           28%                          32%                     33%                         (20)%                 (18)%         30%  34% (22)%
    Mature and Other                     33%                          37%                     40%                         (22)%                 (21)%         38%  44% (26)%
                                        ---                          ---                     ---
    Net Sales                           100%                         100%                    100%                         (11)%                  (4)%        100% 100% (14)%
                                        ===                          ===                     ===                                                             ===  ===
    Vertical Market
    ---------------
    Telecom & Wireless                   44%                          45%                     43%                         (12)%                    0%         44%  43% (12)%
    Industrial Automation,
     Military & Automotive               21%                          20%                     24%                          (9)%                 (17)%         21%  23% (22)%
    Networking, Computer & Storage       17%                          17%                     16%                         (12)%                    0%         17%  17% (11)%
    Other                                18%                          18%                     17%                         (10)%                    1%         18%  17% (10)%
                                        ---                          ---                     ---
    Net Sales                           100%                         100%                    100%                         (11)%                  (4)%        100% 100% (14)%
                                        ===                          ===                     ===                                                             ===  ===
    FPGAs and CPLDs
    ---------------
    FPGA                                 84%                          82%                     82%                          (9)%                  (2)%         84%  81% (11)%
    CPLD                                  9%                           9%                      9%                         (12)%                 (12)%          9%  10% (22)%
    Other Products                        7%                           9%                      9%                         (29)%                 (19)%          7%   9% (27)%
                                        ---                          ---                     ---
    Net Sales                           100%                         100%                    100%                         (11)%                  (4)%        100% 100% (14)%
                                        ===                          ===                     ===                                                             ===  ===

Product Category Description

  • New Products include the Stratix(®) V, Stratix IV, Arria(®) V, Arria II, Cyclone(® )V, Cyclone IV, 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, Stratix, Arria GX, Cyclone II, Cyclone, Classic(TM), MAX 3000A, MAX 7000, MAX 7000A, MAX 7000B, MAX 7000S, MAX 9000, HardCopy II, HardCopy, FLEX(®) series, APEX(TM) series, Mercury(TM), Excalibur(TM) devices, configuration and other devices, intellectual property cores, and software and other tools.

Business Outlook for the First Quarter 2013

    Sales and Income Statement
    --------------------------

    Sequential Sales Growth                              Down 4% to 8%
    Gross Margin                                            69% to 70%
    Research and Development                        $99 to 101 million
    SG&A                                             $77 to 78 million
    Tax Rate                                                  4% to 5%
    Diluted Share Count              Approximately 323 million
    Turns                            Mid-40's
    Inventory MSOH                   Approximately 4.0

    Vertical Market
    ---------------

    Telecom & Wireless              Wireless down
    Industrial Automation,
     Military & Automotive          Up slightly
    Networking, Computer & Storage  Down slightly
    Other                           Up slightly

Fourth 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.

Forward-Looking Statements

Statements in this press release that are not historical are “forward-looking statements” as the term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally written in the future tense and/or preceded by words such as “will,” “expects,” “anticipates,” or other words that imply or predict a future state. Forward-looking statements include, but are not limited to, statements regarding our competitive position at 40 nm, our expectation of stronger sales at 40 nm in 2013, our expectation of expansion in 28 nm FPGA opportunities, and our competitive position at 28 nm, as well as any projection of revenue, gross margin, expense or other financial items discussed in the Business Outlook section or elsewhere in this press release. Investors are cautioned that all forward-looking statements in this release involve risks and uncertainty that can cause actual results to differ from those currently anticipated, due to a number of factors, including without limitation, current global economic conditions, customer business environment, customer inventory levels, vertical market mix, market acceptance of the company’s products, product introduction schedules, the rate of growth of the company’s new products including Cyclone(®) V, Cyclone( )IV, Arria(®) V, Arria( )II, Stratix(®) V,( )Stratix IV FPGAs, MAX(®) V CPLDs and HardCopy(® )IV device families, as well as changes in economic conditions and other risk factors discussed in documents filed by the company with the Securities and Exchange Commission (SEC) from time to time. Copies of Altera’s SEC filings are posted on the company’s website and are available from the company without charge. Forward-looking statements are made as of the date of this release, and, except as required by law, the company does not undertake an obligation to update its forward-looking statements to reflect future events or circumstances.

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 www.altera.com. Follow Altera via Facebook, RSS and Twitter.

ALTERA, ARRIA, CYCLONE, HARDCOPY, MAX, MEGACORE, NIOS, QUARTUS and STRATIX words and logos are trademarks of Altera Corporation and registered in the U.S. Patent and Trademark Office and in other countries. All other words and logos identified as trademarks or service marks are the property of their respective holders as described at www.altera.com/legal.

    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 CORPORATION
                                                                                                                          CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                                                                                                                                            (Unaudited)

                                                                                                                Three Months Ended                                                              Years Ended
                                                                                                                ------------------                                                              -----------
    (In thousands, except per share amounts)                                   December 31, 2012             September 28, 2012           December 31, 2011                  December 31,                  December 31,
                                                                                                                                                                                       2012                      2011
    ---                                                                                                                                                                                ----                      ----

    Net sales                                                                                      $439,440                                                   $495,010                                       $457,804                                    $1,783,035                                   $2,064,475
    Cost of sales                                                                        133,367                                 152,007                                   136,764                            541,523                           610,329
                                                                                         -------                                 -------                                   -------                            -------                           -------
    Gross margin                                                                         306,073                                 343,003                                   321,040                          1,241,512                         1,454,146
    Operating expense
    Research and development expense                                                      94,162                                  91,606                                    90,295                            360,421                           325,733
    Selling, general, and administrative expense                                          74,030                                  74,243                                    70,667                            289,854                           279,217
                                                                                          ------                                  ------                                    ------                            -------                           -------
    Total operating expense                                                              168,192                                 165,849                                   160,962                            650,275                           604,950
                                                                                         -------                                 -------                                   -------                            -------                           -------
    Operating margin (1)                                                                 137,881                                 177,154                                   160,078                            591,237                           849,196
    Compensation expense (benefit) -deferred compensation
     plan                                                                                    358                                   3,274                                     2,962                              7,055                            (1,964)
    (Gain) loss on deferred compensation plan securities                                    (358)                                (3,274)                                    (2,962)                            (7,055)                            1,964
    Interest income and other                                                             (2,390)                                (2,775)                                    (1,039)                            (8,388)                           (3,544)
    (Gain)/loss reclassified from other comprehensive income                                (205)                                    108                                        18                               (268)                               18
    Interest expense                                                                       2,589                                   2,333                                     1,013                              7,976                             3,730
                                                                                           -----                                   -----                                     -----                              -----                             -----
    Income before income taxes                                                           137,887                                 177,488                                   160,086                            591,917                           848,992
    Income tax expense                                                                    17,082                                  19,999                                    13,475                             35,110                            78,281
                                                                                          ------                                  ------                                    ------                             ------                            ------
    Net income                                                                                     $120,805                                                   $157,489                                       $146,611                                      $556,807                                     $770,711
                                                                                                                                                              ========

    Other comprehensive (loss) income:
    Unrealized (loss)/gain on investments:
    Unrealized holding (loss)/gain on investments arising
     during period, net of tax of ($11), $43, $8, $114 and
     ($17)                                                                                  (889)                                  3,620                                        41                              5,839                              (149)
    Less: Reclassification adjustments for (gain)/loss on
     investments included in net income, net of tax of $24,
     $1, ($2), $25 and ($2)                                                                  (44)                                    (41)                                       16                               (114)                               16
                                                                                            (933)                                  3,579                                        57                              5,725                              (133)
    Unrealized (loss)/gain on derivatives:
    Unrealized gain/(loss) on derivatives arising during
     period, net of tax of $9, ($6) and $45                                                   17                                     (10)                                        -                                 84                                 -
    Less: Reclassification adjustments for (gain)/loss on
     derivatives included in net income, net of tax of $48,
     ($53) and $45                                                                           (89)                                     97                                         -                                (84)                                -
                                                                                             (72)                                     87                                         -                                  -                                 -
    Other comprehensive (loss) income:                                                    (1,005)                                  3,666                                        57                              5,725                              (133)
    Comprehensive income                                                                           $119,800                                                   $161,155                                       $146,668                                      $562,532                                     $770,578
                                                                                                   ========                                                   ========                                       ========                                      ========                                     ========

    Net income per share:
    Basic                                                                                             $0.38                                                      $0.49                                          $0.46                                         $1.74                                        $2.39
                                                                                                      =====                                                      =====                                          =====                                         =====                                        =====
    Diluted                                                                                           $0.37                                                      $0.49                                          $0.45                                         $1.72                                        $2.35
                                                                                                      =====                                                      =====                                          =====                                         =====                                        =====

    Shares used in computing per share amounts:
    Basic                                                                                319,765                                 319,870                                   321,553                            320,830                           321,892
                                                                                         =======                                 =======                                   =======                            =======                           =======
    Diluted                                                                              322,209                                 323,560                                   325,653                            324,497                           327,606
                                                                                         =======                                 =======                                   =======                            =======                           =======

    Cash dividends per common share                                                                   $0.10                                                      $0.10                                          $0.08                                         $0.36                                        $0.28
                                                                                                      =====                                                      =====                                          =====                                         =====                                        =====

    Tax rate                                                                                12.4%                                   11.3%                                      8.4%                               5.9%                              9.2%
    % of Net sales:
    Gross margin                                                                            69.7%                                   69.3%                                     70.1%                              69.6%                             70.4%
    Research and development                                                                21.4%                                   18.5%                                     19.7%                              20.2%                             15.8%
    Selling, general, and administrative                                                    16.8%                                   15.0%                                     15.4%                              16.3%                             13.5%
    Operating margin(1)                                                                     31.4%                                   35.8%                                     35.0%                              33.2%                             41.1%
    Net income                                                                              27.5%                                   31.8%                                     32.0%                              31.2%                             37.3%

    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 gains and losses 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                                                             Years Ended
                                                                                                                ------------------                                                             -----------
    (In thousands)                                                             December 31, 2012             September 30, 2012           December 31, 2011                December 31,                 December 31,
                                                                                                                                                                                       2012                      2011
                                                                                                                                                                                       ----                      ----
    Operating margin (non-GAAP)                                                                    $137,881                                                   $177,154                                       $160,078                                      $591,237                                     $849,196
    Compensation expense (benefit) -deferred compensation
     plan                                                                                    358                                   3,274                                     2,962                              7,055                            (1,964)
    Income from operations (GAAP)                                                                  $137,523                                                   $173,880                                       $157,116                                      $584,182                                     $851,160
                                                                                                   ========                                                   ========                                       ========                                      ========                                     ========

                                                  ALTERA CORPORATION
                                                  ------------------
                                             CONSOLIDATED BALANCE SHEETS
                                             ---------------------------
                                                     (Unaudited)
                                                      ----------

    (In thousands, except par value amount)          December 31,              December 31,
                                                             2012                        2011
    ---                                                      ----                        ----

    Assets
    Current assets:
    Cash and cash equivalents                                       $2,876,627                 $3,371,933
    Short-term investments                                140,958                      65,222
                                                          -------                      ------
    Total cash, cash equivalents, and short-
     term investments                                   3,017,585                   3,437,155
    Accounts receivable, net                              323,708                     232,273
    Inventories                                           152,721                     122,279
    Deferred income taxes - current                        59,049                      58,415
    Deferred compensation plan -marketable
     securities                                            60,321                      54,041
    Deferred compensation plan -restricted
     cash equivalents                                      17,116                      17,938
    Other current assets                                   49,852                      52,710
                                                           ------                      ------
    Total current assets                                3,680,352                   3,974,811
    Property and equipment, net                           206,148                     171,721
    Long-term investments                                 704,758                      74,033
    Deferred income taxes - non-current                    17,082                      26,629
    Other assets, net                                      49,488                      35,074
                                                           ------                      ------
    Total assets                                                    $4,657,828                 $4,282,268
                                                                    ==========                 ==========

    Liabilities and stockholders' equity
    Current liabilities:
    Accounts payable                                                   $50,036                    $52,154
    Accrued liabilities                                    29,005                      34,029
    Accrued compensation and related
     liabilities                                           40,606                      78,181
    Deferred compensation plan obligations                 77,437                      71,979
    Deferred income and allowances on sales
     to distributors                                      345,993                     279,876
    Credit facility                                             -                     500,000
                                                              ---                     -------
    Total current liabilities                             543,077                   1,016,219
    Income taxes payable - non-current                    272,000                     263,423
    Long-term debt                                        500,000                           -
    Other non-current liabilities                           9,304                       8,730
                                                            -----                       -----
    Total liabilities                                   1,324,381                   1,288,372
                                                        ---------                   ---------
    Commitments and contingencies
    Stockholders' equity:
    Common stock: $.001 par value; 1,000,000
     shares authorized; outstanding -319,564
     at December 31, 2012 and 322,054 shares
     at December 31, 2011                                     320                         322
    Capital in excess of par value                      1,122,555                   1,050,752
    Accumulated other comprehensive income
     (loss)                                                 5,592                        (133)
    Retained earnings                                   2,204,980                   1,942,955
                                                        ---------                   ---------
    Total stockholders' equity                          3,333,447                   2,993,896
                                                        ---------                   ---------
    Total liabilities and stockholders'
     equity                                                         $4,657,828                 $4,282,268
                                                                    ==========                 ==========

                                                       ALTERA CORPORATION
                                             CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                          (Unaudited)

                                                                   YEARS ENDED
                                                                   -----------
    (In thousands)                    December 31,                  December 31,      December 31,
                                              2012                              2011          2010
    ---                                       ----                              ----          ----
    Cash Flows from Operating
     Activities:
    Net income                                        $556,807                            $770,711              $782,884
    Adjustments to reconcile net
     income to net cash provided by
     operating activities:
    Depreciation and amortization           36,862                            31,927                  27,535
    Stock-based compensation                93,586                            82,750                  62,118
    Deferred income tax expense              8,824                            15,657                  34,256
    Tax effect of employee stock
     plans                                   9,811                            16,162                  27,444
    Excess tax benefit from employee
     stock plans                           (16,278)                          (17,307)                (21,866)
    Changes in assets and
     liabilities, net of the effects
     of acquisition:
    Accounts receivable, net               (91,435)                          131,341               (145,330)
    Inventories                            (30,442)                           24,245                 (76,819)
    Other assets                            (3,050)                           54,661                 (52,805)
    Accounts payable and other
     liabilities                           (50,566)                          (32,534)                 59,200
    Deferred income and allowances on
     sales to distributors                  66,117                         (148,836)                 146,826
    Income taxes payable                     8,576                            31,116                  15,746
    Deferred compensation plan
     obligations                            (1,598)                             (293)                 (2,494)
                                            ------                              ----                  ------
    Net cash provided by operating
     activities                            587,214                           959,600                 856,695
                                           -------                           -------                 -------
    Cash Flows from Investing
     Activities:
    Purchases of property and
     equipment                             (60,913)                          (31,812)                (12,442)
    Proceeds from sales of deferred
     compensation plan securities,
     net                                     1,598                               293                   2,494
    Purchases of available-for-sale
     securities                           (921,430)                        (164,408)                       -
    Proceeds from sale and maturity
     of available-for-sale
     securities                            220,784                            25,003                       -
    Acquisition related payments, net
     of cash acquired                            -                                 -                  (8,004)
    Purchases of intangible assets          (2,280)                                -                  (5,000)
    Purchase of other investments           (4,935)                                -                       -
                                            ------                               ---                     ---
    Net cash used in investing
     activities                           (767,176)                        (170,924)                 (22,952)
                                          --------                          --------                 -------
    Cash Flows from Financing
     Activities:
    Proceeds from issuance of common
     stock through various stock
     plans                                  49,665                           119,989                 453,719
    Shares withheld for employee
     taxes                                 (31,472)                          (32,152)                (20,164)
    Payment of dividends to
     stockholders                         (115,514)                          (90,060)                (67,774)
    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           (229,057)                        (197,023)                       -
    Excess tax benefit from employee
     stock plans                            16,278                            17,307                  21,866
    Principal payments on capital
     lease obligation                            -                                 -                  (2,866)
                                               ---                               ---                  ------
    Net cash (used in) provided by
     financing activities                 (315,344)                        (181,939)                 384,781
                                          --------                          --------                 -------
    Net (decrease) increase in cash
     and cash equivalents                 (495,306)                          606,737               1,218,524
    Cash and cash equivalents at
     beginning of period                 3,371,933                         2,765,196               1,546,672
                                         ---------                         ---------               ---------
    Cash and cash equivalents at end
     of period                                      $2,876,627                          $3,371,933            $2,765,196
                                                    ==========                          ==========            ==========
    Supplemental cash flow
     information:
    Income taxes paid, net                              $9,797                              $9,856               $29,887
    Interest paid                                       $6,898                              $3,704                $3,395

SOURCE Altera Corporation


Source: PR Newswire