| Balance Sheet
Exiting 3Q10, Altera had cash and cash equivalents of $2,414.4 million versus $2,067.2 million in 2Q10. Accounts receivable were $346.8 million versus $358.0 million in 2Q10. Inventories were $108.1 million versus $69.7 million in 2Q10. TTM cash conversion cycle was 68 days versus 77 days in 2Q10.
In 3Q10, distributor inventory remained flat at 0.8 months. Total inventory (Altera + distributors) was 2.9 months at the end of 3Q10, down from 3.2 months at the end of the previous quarter. In 3Q10, inventory turns were in mid-20’s (as expected by the management) and the book-to-bill ratio was above 1.0x but not as robust as in the past quarter.
Altera’s liquidity position remained the same sequentially with current ratio being 4:1 and liabilities/equity ratio being 1:1. TTM return on equity was 48.0% in 3Q10 versus 42% in 2Q10.
Cash Flow
Cash flow from operations in 3Q10 was $268.0 million versus $246.0 million in 2Q10 and capital expenditure was $3.5 million in 3Q10 versus $2.8 million in 2Q10.
Share Repurchases and Dividend
Altera’s Board of Directors declared a quarterly cash dividend of $0.06 per share payable on December 1, 2010 to stockholders of record as of November 10, 2010. During 2Q10, Altera announced a 20% increase in its quarterly dividend resulting in a quarterly dividend of $0.06 per share, up from the earlier figure of $0.05 per share. This is the second dividend increase since 2007 when the company initiated quarterly dividends. Altera did not repurchase any of its outstanding shares during 3Q10.
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