The Scoop...

A leader of PLDs

If the Internet relies on device manufacturers such as Lucent and Cisco Systems to supply technological components, these companies rely upon Altera to keep the components humming along. Altera is today one of the largest producers of specialized computer chips used by companies in the networking, telecommunications, and industrial machinery fields. The company currently provides eight families of PLDs, or "programmable logic devices," making it easy to meet varying needs of its consumers. Because Altera's logic devices are programmable, Altera's clients can craft the chips to meet their own needs, using Altera software. Pricey but manufactured under precise standards, PLD generally lets companies program their products quicker than custom logic chips.

Chips get smaller, company gets bigger

Founded in 1983, Altera has grown rapidly in the last decade, going public in 1988, and introducing new generations of chips in 1988, 1991, and 1992. In 1994, it acquired Intel's PLD line and increased its market share to 20 percent. In 1995, its sales more than doubled from $199 million to $402 million, and its stock price jumped from about $10 per share to $25 per share. The year 1997 proved so profitable that the company handed out $10.1 million in profit shares and bonuses. The next year, however, Wall Street analysts reduced earning estimates, fearing a slowdown attributed to the Asian slump.

During a year in which the overall PLD industry slumped, Altera still managed its sixth-straight profitable year, earning $654.3 million in revenue. Industry watchdogs expect the PLD market to grow to a $7.4 billion market by 2001. Within this market, Altera provides the fastest high-density chips, which boast in-system speeds over 100 MHz.

Over the last several months, Altera has been busy with acquisitions, obtaining Boulder Creek Engineering, Hammercores, Inc., DesignPRO Inc., and most recently, Right Trak CAD corportation in May 2000. In October 1999, Altera signed over its MAX(R) 5000 product line over to Cypress Semiconductor Corporation in return for an estimated $9 million dollar gain.

Go overseas, young company

A little more than half of Altera's sales are in the U.S.; Japanese and European companies make up the bulk of the rest. Its customers are primarily makers of communications, computer, and industrial equipment, with the communications industry accounting for close to 60 percent of sales.

Altera announced expansion of its European Technology Center this February to meet the growing needs of its European clients. The company has been actively recruiting employees for this further development and plans to hire through the rest of the year. Altera has a highly operational referral program that supplies almost 25 percent of its hires. There is even an annual $10,000 grand prize drawing for a lucky employee who referrs a successful hire.