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EXHIBIT 13.1
CORPORATE PROFILE
Altera Corporation, The Programmable Solutions Company(R), is a world leader in
one of the fastest growing segments of the semiconductor industry: high-density
programmable logic devices (PLDs). Altera PLDs are standard integrated circuits
that offer significant advantages over custom logic chips such as
application-specific integrated circuits (ASICs). Today's high-density PLDs,
used in concert with Altera's desktop software design tools and optimized
intellectual property building blocks, allow electronic systems manufacturers to
execute on a single chip the same functionality that previously consumed an
entire printed circuit board. This methodology, called "system on a programmable
chip" (SOPC), helps electronic systems manufacturers shorten time-to-market and
reduce development costs.
Altera serves over 13,000 customers in three primary market segments:
communications, electronic data processing, and industrial applications. The
Company sells its chips worldwide and derives nearly half of its revenues from
markets outside the United States. Altera common stock is traded on The Nasdaq
Stock Market(R) under the symbol ALTR. Altera's web site is located at
http://www.altera.com.
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SELECTED CONSOLIDATED FINANCIAL DATA
FIVE-YEAR SUMMARY
Years ended December 31,
(In thousands, except per share amounts) 2000 1999 1998 1997 1996
- ----------------------------------------- ---------- ---------- ---------- -------- --------
STATEMENTS OF OPERATIONS DATA:
Sales $1,376,815 $ 836,623 $ 654,342 $631,114 $497,306
Cost of sales 466,994 301,322 249,474 236,958 191,958
---------- ---------- ---------- -------- --------
Gross margin 909,821 535,301 404,868 394,156 305,348
Research and development expenses 172,373 86,065 59,864 54,417 49,513
Selling, general, and administrative
expenses 209,979 143,214 113,161 112,784 87,742
Acquired in-process research and
development expense 6,305 -- -- -- --
---------- ---------- ---------- -------- --------
Income from operations 521,164 306,022 231,843 226,955 168,093
Gain on sale of WaferTech, LLC 178,105 -- -- -- --
Interest and other income (expense), net 46,145 37,055 12,340 2,616 1,044
---------- ---------- ---------- -------- --------
Income before income taxes, equity
investment and cumulative effect
of change in accounting principle 745,414 343,077 244,183 229,571 169,137
---------- ---------- ---------- -------- --------
Income before equity investment and
cumulative effect of change in
accounting principle 498,307 231,578 164,827 151,517 109,135
Equity in loss of WaferTech, LLC 1,400 7,584 10,440 -- --
---------- ---------- ---------- -------- --------
Income before cumulative effect of
change in accounting principle 496,907 223,994 154,387 151,517 109,135
Cumulative effect of change in
accounting principle -- -- -- 18,064 --
---------- ---------- ---------- -------- --------
Net income $ 496,907 $ 223,994 $ 154,387 $133,453 $109,135
---------- ---------- ---------- -------- --------
Income per share before cumulative
effect of change in accounting
principle:
Basic $ 1.25 $ 0.57 $ 0.41 $ 0.43 $ 0.31
Diluted 1.19 0.54 0.39 0.39 0.29
Net income per share:
Basic $ 1.25 $ 0.57 $ 0.41 $ 0.38 $ 0.31
Diluted 1.19 0.54 0.39 0.34 0.29
Shares used in computing income per
share:
Basic 396,849 396,158 373,972 354,100 349,624
Diluted 416,629 414,928 406,356 410,464 403,252
BALANCE SHEET DATA:
Working capital $1,013,155 $ 785,359 $ 587,923 $430,371 $295,020
Total assets 2,004,134 1,439,599 1,093,331 952,518 778,212
Long-term debt -- -- -- 230,000 230,000
Stockholders' equity 1,247,930 1,118,073 881,721 536,687 370,245
Book value per share 3.21 2.81 2.26 1.50 1.06
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About Your Investment
STOCK OWNERSHIP PROFILE
The Company estimates that at December 31, 2000, there were more than 100,000
holders of Altera stock.
STOCK PRICE
Altera's initial public offering took place on March 31, 1988. The Company's
price-to-earnings ratio at each year-end for the last five years was as follows:
1996 1997 1998 1999 2000
---- ---- ---- ---- ----
29.6 21.4 39.0 45.9 27.7
Computed using earnings that exclude the cumulative effect of change in
accounting principle in 1997, and the one-time effects relating to the WaferTech
transaction in 2000.
TRADING VOLUME
The average trading volume in the company's stock increased 6.8% in 2000 over
1999, as measured by Nasdaq(R). Trading volume in 2000 averaged 9.4 million
shares per day, compared to 8.8 million shares per day in 1999 and 10.2 million
shares in 1998, retroactively adjusted for 2-for-1 splits of the Company's
common stock in the fourth quarter of 1996, the second quarter of 1999, and the
third quarter of 2000.
ESTIMATED STOCK OWNERSHIP PERCENTAGE
Institutional Investors 80%
Individuals 15%
Officers, Directors & Employees 5%
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CORPORATE DIRECTORY
BOARD OF DIRECTORS
Rodney Smith
Chairman of the Board
Altera Corporation
John Daane
President and Chief Executive Officer
Altera Corporation
Charles M. Clough
Former Chairman, President,
and Chief Executive Officer
Wyle Electronics
Michael A. Ellison
Former Chief Executive Officer
Steller, Inc.
Paul Newhagen
Former Vice President, Administration
Altera Corporation
Robert W. Reed
Former Senior Vice President
Intel Corporation
William E. Terry
Former Director and
Executive Vice President
Hewlett-Packard Company
Deborah Rieman, Ph.D.
Former President and
Chief Executive Officer
CheckPoint Software Technologies, Inc.
CORPORATE OFFICERS
John Daane
President and Chief Executive Officer
C. Wendell Bergere
Vice President, General Counsel,
and Secretary
Denis Berlan
Executive Vice President and
Chief Operating Officer
Erik R. Cleage
Senior Vice President, Marketing
John R. Fitzhenry
Vice President, Human Resources
Jordan Plofsky
Senior Vice President,
Embedded Processor Products
Lance M. Lissner
Senior Vice President,
Business Development
Nathan Sarkisian
Senior Vice President and
Chief Financial Officer
Michael Jacobs
Senior Vice President,
Worldwide Sales
APPOINTED OFFICERS
Bahram Ahanin
Vice President, Design Automation
Alain Bismuth
Vice President,
New Market Development
Robert Blake
Vice President, Product Planning
Melonie C. Brophy
Vice President, Finance and Treasurer
Misha R. Burich
Senior Vice President,
Software Development
James W. Callas
Vice President, Finance and
Corporate Controller
Timothy W. Colleran
Vice President, Product Marketing
Donald F. Faria
Vice President, Customer Marketing
and Applications
Francois Gregoire
Vice President, Technology
Frank L. Hannig
Vice President and
Chief Information Officer
William Y. Hata
Vice President, Product Engineering
Ben A. Lee
Vice President, Asia Pacific
Craig Lytle
Vice President,
Intellectual Property Business Unit
Robert C. Mahoney
Vice President, Strategic Accounts
Bruce Mielke
Vice President, Test Development
Thomas B. Murchie
Vice President, Operations
Chris T. K. Oh
Vice President, Asia Pacific Operations
Timothy J. Propeck
Vice President, North America Sales
Timothy J. Southgate
Vice President, Software Engineering
Clifton S. Tong
Vice President, Corporate Marketing
Nigel Toon
Vice President and
Managing Director, Europe
John E. Turner
Senior Vice President,
Design Engineering
Scott Wylie
Vice President, Investor Relations
CORPORATE HEADQUARTERS
101 Innovation Drive
San Jose, California 95134
(408) 544-7000
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
San Jose, California
STOCK LISTING
For the past two years, the quarterly high and low closing sales prices for the
common stock, retroactively adjusted for 2-for-1 splits in 1999 and 2000, were:
2000 1999
-------------------- -------------------
Quarter High Low High Low
- ------- -------- -------- ------- -------
First 48 1/2 24 17 1/4 12 5/32
Second 57 5/16 36 9/32 20 5/32 16 1/32
Third 64 13/16 43 31/32 27 5/8 17 9/16
Fourth 51 1/16 23 15/16 33 7/8 20 7/8
REGISTRAR/TRANSFER AGENT
Fleet National Bank
c/o EquiServe
P.O. Box 43010
Providence, Rhode Island 02940
(781) 575-3120
http://www.EquiServe.com
WEB SITE
For current information on Altera Corporation, visit our web site at
http://www.altera.com.
ADDITIONAL INFORMATION
Please direct all requests to:
Investor Relations
101 Innovation Drive
San Jose, California 95134
(408) 544-7707
Business releases may be requested from our Fax-on-Demand service at
(800) 789-2587 in the United States and Canada, and at (408) 894-0466 from other
international locations.