Hot Growth Special Report 2006 >



Altera (ALTR)

Altera is a comeback story. In 2000, when demand for the Silicon Valley company's integrated circuits was hot, Altera posted record sales of $1.38 billion and profits of $496.9 million. The next year, it lost $39.8 million as it laid off more than 150 employees amid a 40% plunge in sales as the dot-com bubble burst. Since 2002, its numbers have been rebounding. Sales are up 58% to $1.12 billion in 2005, while net income has tripled to $278.8 million. The San Jose (Calif.) company was founded in 1983.

Company Info

2005 Rank


Market Value*
($ Millions)


($ Millions)


Sales Growth
(3-yr. avg. annual)

17.1 %

($ Millions)


Profit Growth
(3-yr. avg. annual)

48.0 %

Return on Inv. Capital (3-yr.)

19.2 %

Share Price
12-Mo. Hi/Lo


Share Price
As of 4/28/06


Return on Equity

20.7 %

P/E Ratio


No. of Employees


Industry Semiconductors


Location San Jose, Calif.
Phone 408 544-7000
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat

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Company Snapshot

Altera Corp. engages in the design, manufacture, and marketing of programmable logic devices (PLD); structured application-specific integrated circuit devices; predefined design building blocks or intellectual property cores; and associated development tools. Its PLDs, which consist of field-programmable gate arrays (FPGAs) and complex programmable logic devices (CPLDs) are semiconductor integrated circuits manufactured as standard chips that are programmed by electronic equipment manufacturers to perform desired logic functions within their electronic systems. The company's FPGAs consist of its Stratix, Stratix GX, Stratix II, Cyclone, Cyclone II, APEX, APEX II, FLEX, ACEX, Excalibur, and Mercury families; and CPLDs consist of its MAX, MAX II, and Classic families. Altera also provides HardCopy, HardCopy II, and other masked programmed logic devices; configuration devices; development software, consisting primarily of the Quartus II software; and other tools and intellectual property cores for implementing standard functions in PLD designs. The company's products serve a range of customers within the communications, computer and storage, consumer, and industrial market segments. It markets its products through a network of distributors, independent sales representatives, and direct sales personnel worldwide. Altera was co-founded by Robert Hartmann, Michael Magranet, Paul Newhagen, and Jim Sansbury in 1983. The company has its headquarters in San Jose, Calif.

Data provided by Capital IQ
John P. Daane

John P. Daane, 42

Chairman, Chief Executive Officer and President

Total Compensation*

$ 3,739,197

Total Options Value*

$ 2,310,000

* Fiscal Year 2005

University of California Berkeley

Executive Bio

John Daane is chairman of the board of Altera. He has served as Altera's president and CEO since November, 2000, and as one of Altera's directors since December, 2000. Daane spent 15 years at LSI Logic, a semiconductor manufacturer, most recently as executive vice-president, Communications Products Group, with responsibility for ASIC technology development, and the Computer, Consumer, & Communications Divs. Daane earned his bachelor's degree from the University of California at Berkeley in 1986.

Management Team

Key Executives

John P. Daane; Denis M. Berlan; Jordan S. Plofsky; John R. Fitzhenry; Lance M. Lissner; George A. Papa; Nathan M. Sarkisian;

Board Directors

John P. Daane; Robert W. Reed; Robert J. Finocchio; Kevin McGarity; Paul Newhagen; William E. Terry; Susan Wang;

Executive Data provided by Capital IQ