Altera Corp Earnings Cheat Sheet: Double-Digit Growth Again

S&P 500 (NYSE:SPY) component Altera Corporation (NASDAQ:ALTR) reported its results for the second quarter. Altera Corp. designs and manufactures programmable logic devices, HardCopy ASIC devices, pre-defined design building blocks, cores and associated development tools.

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Altera Earnings Cheat Sheet for the Second Quarter

Results: Net income for Altera Corporation rose to $214.6 million (65 cents per share) vs. $180.6 million (58 cents per share) in the same quarter a year earlier. This marks a rise of 18.8% from the year earlier quarter.

Revenue: Rose 16.9% to $548.4 million from the year earlier quarter.

Actual vs. Wall St. Expectations: ALTR beat the mean analyst estimate of 64 cents per share. Analysts were expecting revenue of $548.8 million.

Quoting Management: “This quarter marks a return to sequential growth following the mild correction we experienced in the first quarter. We expect more sales gains in the third quarter,” said John Daane, president, chief executive officer, and chairman of the board. “Early in the quarter we began shipping our Stratix V FPGA family, the industry’s first high-end 28-nm FPGA. Our 28-nm FPGA families combine a tailored architecture, an optimal manufacturing process, and specific product features to give us continuing technology leadership that builds on the technology leadership and strong competitive position we established at 40 nm.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 50.9%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 84% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 46.3% and in the fourth quarter of the last fiscal year, the figure rose more than twofold.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the first quarter, by one cent in the fourth quarter of the last fiscal year, and by 4 cents in the third quarter of the last fiscal year.

Gross margin shrank 0.8 percentage point to 70.9%. The contraction appeared to be driven by increased costs, which rose 20.3% from the year earlier quarter while revenue rose 16.9%.

Competitors to Watch: Lattice Semiconductor (NASDAQ:LSCC), Xilinx, Inc. (NASDAQ:XLNX), QuickLogic Corporation (NASDAQ:QUIK), Texas Instruments Inc. (NYSE:TXN), Microsemi Corporation (NASDAQ:MSCC), Cypress Semicond. Corp. (NASDAQ:CY), ON Semiconductor Corp. (NASDAQ:ONNN), Broadcom Corporation (NASDAQ:BRCM), TranSwitch Corporation (NASDAQ:TXCC), and Aeroflex Holding Corp. (NYSE:ARX).

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(Source: Xignite Financials)