) has entered into a multi-year license agreement with IC Manage,
Inc. for augmenting its design management services. According to
the agreement, Altera will adopt IC Manage's Global Design Platform
(GDP) along with IP Central solutions for improving the efficiency
of the company's development sites across the world. The terms
and conditions of the agreement have not yet been disclosed.
The company has selected IC Manage's design management platform
to minimize its design timing through effectively controlling its
design data, ameliorating IP reuse, tracing bug interdependencies
more efficiently and increasing the multi-site association.
Management expressed its ebullience on the association by stating
that IC Manage's GDP and IP Central solutions will boost the
company's design management services and increase its productivity
through its customized features.
Altera Corporation recently reported revenues of $465 million in
the second quarter of 2012, which dropped around 15% annually but
surged 21% sequentially. Reported revenues were better than
management's guidance of $437.5 million to $452.9 million. Altera
returned to sequential quarterly growth after three quarters of
slowdown in customer inventory. Operating margin in the quarter was
34.3%; increasing from 30.4% in the previous quarter but declining
substantially from 43.7% in the year-ago quarter. During the
quarter, the company also repurchased 3.5 million shares worth
Also recently, the company's Board of Directors authorized an
increase in its quarterly dividend to 10 cents per share from 8
cents per share, which will be paid on September 4, 2012 to
stockholders of record as of August 10, 2012.
The company projects a sequential revenue growth of 14%-18% in
the third quarter of 2012. The reiterated guidance implies a
revenue guidance of $437.5 million to $452.9 million. Management
stated that the company's 40-nm and 28-nm products will deliver a
strong sequential growth in the upcoming quarters. Growth is also
projected to be broad based across the company's vertical
The company pertains to an industry where ominous competition is
prevalent. It should stay cautious of big players such as
Lattice Semiconductor Corporation
) as it traverses through 2012.
The current Zacks Consensus Estimates for Altera are 46 cents
per share and $1.79 per share for the third quarter of 2012 and for
2012, respectively. We currently have a long-term recommendation of
'Neutral' on Altera. The stock also bears a Zacks #3 Rank, which
translates into a short-term rating of 'Hold'.
ALTERA CORP (ALTR): Free Stock Analysis Report
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