<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
/X/ Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended March 31, 1996 or
/ / Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from to
---------- ----------
Commission file number 0-16617
ALTERA CORPORATION
(Exact name of registrant as specified in its charter)
California 77-0016691
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2610 Orchard Parkway, San Jose, California 95134
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (408) 894-7000
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been subject
to such filing requirements for at least the past 90 days.
Yes X No
------ -----
Number of shares of common stock outstanding at March 31, 1996: 43,688,474
<PAGE> 2
ALTERA CORPORATION
FORM 10-Q
FOR THE QUARTER ENDED
MARCH 31, 1996
PART I
FINANCIAL INFORMATION AND
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
2
<PAGE> 3
ALTERA CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
<TABLE>
<CAPTION>
March 31, Dec.31,
1996 1995
----------- --------
ASSETS (Unaudited)
<S> <C> <C>
Current assets:
Cash, cash equivalents $102,479 $ 79,409
Short-term investments 247,187 285,810
-------- --------
Total cash, cash equivalents, and
short-term investments 349,666 365,219
Accounts receivable, less allowance
for doubtful accounts of $1,460 and $1,005 60,362 54,518
Inventories 75,146 55,421
Deferred income taxes 43,339 37,339
Other current assets 5,621 5,510
-------- --------
Total current assets 534,134 518,007
Property and equipment, net 57,935 54,846
Investments and other assets 143,237 142,701
-------- --------
$735,306 $715,554
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 24,039 $ 17,049
Accrued liabilities 92,932 72,209
Notes payable 53,800 61,920
Accrued compensation 8,444 16,347
Income taxes payable 26,490 4,240
-------- --------
Total current liabilities 205,705 171,765
Notes payable 9,600
58,600
Convertible notes 230,000 230,000
-------- --------
Total liabilities 445,305 460,365
-------- --------
Shareholders' equity:
Common stock; no par value: 80,000,000
shares authorized, 43,688,474 and 43,558,321
shares issued and outstanding 86,817 83,445
Retained earnings 203,184 171,744
-------- --------
290,001 255,189
-------- --------
$735,306 $715,554
======== ========
</TABLE>
3
<PAGE> 4
ALTERA CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
March 31, March 31,
1996 1995
-------- -------
<S> <C> <C>
Sales $137,098 $75,038
-------- -------
Costs and expenses:
Cost of sales 53,054 30,051
Research and development 12,523 6,586
Selling, general, and administrative 23,320 15,382
-------- -------
Total costs and expenses 88,897 52,019
-------- -------
Operating income 48,201 23,019
Interest and other income 923 945
-------- -------
Income before taxes 49,124 23,964
Provision for income taxes 17,684 8,867
-------- -------
Net income $ 31,440 $15,097
======== =======
Income per share:
Primary $ 0.68 $ 0.34
======== =======
Fully diluted $ 0.66 $ 0.34
======== =======
Shares and equivalents used in
calculation of income per share:
Primary 45,968 45,062
======== =======
Fully diluted 50,463 45,062
======== =======
</TABLE>
4
<PAGE> 5
ALTERA CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
March 31, March 31,
1996 1995
--------- --------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 31,440 $ 15,097
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 4,603 2,666
Changes in assets and liabilities:
Accounts receivable, net (5,844) (12,242)
Inventories (19,725) 1,074
Deferred income taxes (6,000) --
Other current and non-current assets (111) (1,139)
Accounts payable 6,990 2,802
Accrued liabilities 20,723 6,011
Accrued compensation (7,903) (3,187)
Income taxes payable 22,250 7,948
--------- --------
Cash provided by operating activities 46,423 19,030
--------- --------
Cash flows from investing activities:
Purchases of property and equipment (6,228) (5,280)
Net change in short-term investments 38,623 245
Long-term investments (2,000) --
--------- --------
Cash provided by (used for) investing activities 30,395 (5,035)
--------- --------
Cash flows from financing activities:
Net proceeds from issuance of common stock 3,372 1,811
Payment on notes payable (57,120) --
--------- --------
Cash provided by (used for) financing activities (53,748) 1,811
--------- --------
Net increase in cash and cash equivalents 23,070 15,806
Cash and cash equivalents at beginning of period 79,409 41,639
--------- --------
Cash and cash equivalents at end of period $ 102,479 $ 57,445
========= ========
Supplemental disclosure of cash flow information:
Cash paid during the period for income taxes $ 1,320 $ 910
</TABLE>
5
<PAGE> 6
ALTERA CORPORATION
NOTES TO FINANCIAL INFORMATION
(Unaudited)
Note 1 - Interim Statements:
In the opinion of the Company, the accompanying unaudited financial data contain
all adjustments, consisting only of normal, recurring adjustments, necessary to
present fairly the financial information included therein. This financial data
should be read in conjunction with the audited financial statements and notes
thereto included in the Company's Annual Report to Shareholders for the year
ended December 31, 1995. Results for the interim period presented are not
necessarily indicative of results for the entire year.
Note 2 - Balance Sheet Detail:
<TABLE>
<CAPTION>
(In Thousands)
March 31, Dec. 31,
1996 1995
--------- --------
(Unaudited)
<S> <C> <C>
Inventories:
Purchased parts and raw materials $ 1,715 $ 2,067
Work-in-process 50,112 38,617
Finished goods 23,319 14,737
--------- --------
$ 75,146 $ 55,421
========= ========
Property and equipment:
Land $ 19,925 $ 19,925
Building 2,028 1,605
Equipment 67,939 64,703
Office furniture and equipment 7,704 4,908
Leasehold improvements 3,261 3,512
--------- --------
100,857 94,653
Less accumulated depreciation and
amortization (42,922) (39,807)
--------- --------
$ 57,935 $ 54,846
========= ========
</TABLE>
Note 3 - Earnings per Share:
Primary income per share is computed using the weighted average number of common
and dilutive common equivalent shares outstanding during the period. Dilutive
common equivalent shares consist of the assumed net shares issuable upon the
exercise of dilutive stock options using the treasury stock method. The
Convertible Subordinated Notes issued in June 1995 are not common stock
equivalents and, therefore, have been excluded from the computation of primary
earnings per share.
Fully diluted net income per share is computed by adjusting the primary shares
outstanding and net income for the potential effect of the conversion of the
weighted convertible subordinated notes into shares of common stock outstanding
during the respective periods and the elimination of the related interest
requirements (net of income taxes).
6
<PAGE> 7
ALTERA CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations
Sales. First quarter 1996 sales of $137.1 million were 83% higher than
the $75.0 million reported for the same period last year, and were up 9% from
fourth quarter 1995 sales of $125.3 million. Sales were higher than the first
quarter of 1995 primarily as a result of higher sales of the Company's MAX 7000
and FLEX 8000 product lines. As compared to the same period last year, sales in
North America increased 101% and international sales increased 64%. As compared
to the prior quarter, sales growth was primarily driven by the MAX 7000 family.
Although sales growth was strongest in the Asia Pacific, all sales channels
reported growth compared to the fourth quarter of 1995, except for Japan where
sales declined approximately 10%. While overall orders exceeded shipments in the
first quarter, order rates declined significantly in the last several weeks of
the quarter and in the beginning weeks of the second quarter.
Two factors, improved availability of the Company's products and
slowing growth rates in end-markets, have resulted in a rapidly changing
business climate for the Company. First, as a result of increased wafer supply
from the Company's vendors, the delivery lead times for many of the Company's
products were reduced significantly over the course of the first quarter of
1996. This resulted in a change from 1995 when supplies were constrained and the
Company's customers held greater inventories and placed orders prior to
requested delivery dates by as much as six months in order to secure a supply of
the Company's products. Now that most of the Company's products have
significantly increased availability, end-customers are likely to reduce their
inventories by purchasing less product in the near term. Second, while
end-customer demand for the Company's products increased in the first quarter,
the growth rate of such demand declined as compared to recent quarters.
Management believes that this decline is being driven by slower growth rates in
the markets of the Company's end-customers as well as reductions in end-customer
inventories. Thus, management believes that the growth rate for sales of the
Company's products in the near term will be substantially lower than has been
experienced in the past twelve months.
7
<PAGE> 8
The Company expects to increase its supply of inventories on hand
during 1996 to support customers' desire to order on a shorter lead time basis.
During 1995, the Company entered into several agreements with Taiwan
Semiconductor Manufacturing Co., Ltd. (TSMC), whereby it agreed to make deposits
to TSMC for future wafer capacity allocations extending into 2001. The
prepayments under these agreements are generally nonrefundable if the Company
does not purchase the prepaid capacity or identifies an acceptable third-party
purchaser. These agreements may impair the Company's flexibility to reduce its
wafer supply should demand decrease below levels presently anticipated.
Historically, semiconductor prices decline as products mature. New
product introductions from competitors may also increase pricing pressure and
compete for overall unit sales. The Company has responded to these pricing
pressures with the introduction of new, higher margin products. In 1995 the
Company began shipping two new product families, the MAX 9000 and FLEX 10K
families. Future growth rates will be highly dependent on, among other things,
market acceptance of these new product lines. There can be no assurance that
these or other new products will be successful in securing broad market
acceptance or achieving higher margins, or that the average selling price
decline on existing products will not accelerate.
Gross Margin. Gross margin percentage in the first quarter of 61.3% was
essentially equal to the prior quarter, but up from 59.9% in the same period a
year ago. The gross margin improvement over the prior year was attributed to a
greater proportion of proprietary product shipments at higher margins and
improved manufacturing yields. Despite a reduction in book prices on the MAX
7000 and FLEX 8000 product lines in the first quarter of 1996, the gross margin
was maintained from the prior quarter as a result of lower manufacturing costs
resulting from improved yields and scale economies on higher manufacturing
volumes.
Although yields improved in the first quarter of 1996 as compared to
the prior quarter, there can be no assurances that recently achieved yield
improvements will continue or that yields will not deteriorate. The Company
continues to spend significant research and development resources to improve
production yields on its products. The need to improve production yields also
exists with the new products and fabrication processes used by the Company.
However, there can be no assurances that these cost reductions will be achieved.
Start-up difficulties often occur when beginning production of products on new
processes, and these difficulties could potentially result in higher costs and
reduced product availability. Management also expects to introduce products in
the future using other process technologies new to the Company and expects that
it may encounter similar difficulties at such times. Production throughput times
also vary considerably among the Company's wafer suppliers and the Company has
experienced delays from time to time in processing some of its products. In
addition, the slowed growth in demand during the first quarter of 1996 and high
inventory levels at distributors and end-customers is causing pricing pressures
on
8
<PAGE> 9
the Company's products. The Company has announced a price reduction on the FLEX
8000 product line effective in the second quarter. Management believes that cost
reductions stemming from recently improved manufacturing yields will offset the
effect of this price reduction on the margins, however, there can be no
assurance that such cost reductions will be achieved or maintained. Additional
price reductions may be implemented during 1996 for competitive reasons. Such
price reductions may result in the deterioration of gross margins.
Research and Development. Research and development expenditures were
$12.5 million for the quarter ended March 31, 1996, or $5.9 million higher than
the quarter ended a year ago, and up $2.0 million from the prior quarter. The
increase as compared to the previous year is the result of higher expenditures
related to prototype and development wafers, and pre-production processes for
the recently introduced MAX 9000 and FLEX 10K product families, as well as
general spending on development of process technology, development of software
to support new products and design environments, and development of new
packages. Management of the Company expects to continue to make significant
investments in research and development. The Company is focusing its research
and development efforts on the development of programmable logic chips, related
development software and hardware, and advanced semiconductor wafer fabrication
processes. However, even if the Company accomplishes its goals for the
development of new products and manufacturing processes, there is no assurance
that these products will achieve market acceptance or that the new manufacturing
processes will be successful, or that the suppliers will provide the Company
with the quality or quantity of wafers and materials that the Company requires.
The Company must continue to develop and introduce new products in a timely
manner to counter the industry's historical trend of prices declining as
products mature.
Selling, General, and Administrative. First quarter selling, general,
and administrative expenses of $23.3 million increased $7.9 million from a year
ago, and $1.4 million from the prior quarter. The increase as compared to the
prior year was due to increased commission and incentive expenses (on the
increased sales volume), increased advertising and promotional expenditures, and
increased salary expenses due to increased field sales, marketing, and
administrative headcounts. Increased commission and incentive expenses and
increased administrative expenses were the primary reasons for the increase
compared to the prior quarter. As a percentage of revenue, first quarter
selling, general, and administrative expenses at 17.0% were down from the prior
year due to revenues increasing at a faster rate than expenses and were
approximately at the same level as the fourth quarter of 1995.
Selling expenses have increased compared to both last year and last
quarter, driven by increased advertising and merchandising expenditures, higher
commissions and incentives (on increased sales), and increased marketing and
field sales headcounts. The Company uses three methods to market its products:
sales through licensed domestic and foreign distributors, direct
9
<PAGE> 10
sales to electronics manufacturers via independent sales representatives, and
direct sales to customers by Altera sales department personnel. The Company has
approximately twenty field sales offices. Approximately 80% percent of the
Company's current worldwide sales are made through distributors. As a percentage
of revenue, selling expenses were lower than they were in the prior quarter and
in the quarter ended one year ago.
Operating Income. First quarter 1996 operating income of $31.4 million,
representing 22.9% of sales, was higher than the first quarter of 1995 and
approximately the same as the most recent prior quarter on a percentage of
revenue basis. The improvement compared to the first quarter of 1995 is
attributed to the growth in revenues, which have grown faster than operating
expenses.
Interest and Other Income. Interest income decreased over last quarter
and prior year as a result of decreased cash balances because of a $57.1 million
payment made in January 1996 on a note payable to TSMC. Further, interest income
was partially offset by interest expense of $3.0 million during the quarter
related to the convertible notes issued in June 1995.
Income Taxes. The Company's provision for income taxes was 36% in 1996
compared to 37% in 1995. The decrease in the income tax rate is primarily due to
an increased amount of earned interest from tax exempt investments.
Future Results. Future operating results depend on the Company's
ability to develop, manufacture, and sell complicated semiconductor components
and complex software that offer customers greater value than competing vendors.
The Company's efforts in this regard may not be successful. Also, a number of
factors outside of the Company's control, including general economic conditions
and cycles in world markets, exchange rate fluctuations, or a lack of growth in
the Company's end markets could impact future results. The Company is highly
dependent upon subcontractors to manufacture silicon wafers and perform assembly
and testing services. Disruptions or adverse supply conditions arising from
market conditions, political strife, labor disruptions, natural or man-made
disasters, other factors, and normal process variations could have a material
adverse effect on the Company's future operating results. Competitive
break-throughs, and particularly competitive pricing could also impact future
operating results. Additionally, litigation relating to competitive patents and
intellectual property could have an adverse impact on the Company's financial
condition or operating results.
The Company owns more than 50 United States patents and has additional
pending United States patent applications on its semiconductor products. The
Company also has technology licensing agreements with AMD, Cypress, Intel, and
Texas Instruments giving the Company royalty-free rights to design, manufacture,
and package products using certain patents they control. Other
10
<PAGE> 11
companies have filed applications for, or have been issued, other patents and
may develop, or obtain proprietary rights relating to, products or processes
competitive with those of the Company. From time to time the Company may find it
desirable to obtain additional licenses from the holders of patents relating to
products or processes competitive with those of the Company. Although its
patents and patent applications may have value in discouraging competitive entry
into the Company's market segment and the Company believes that its current
licenses will assist it in developing additional products, there can be no
assurance that any additional patents will be granted to the Company, that the
Company's patents will provide meaningful protection from competition, or that
any additional products will be developed based on any of the licenses that the
Company currently holds. The Company believes that its future success will
depend primarily upon the technical competence and creative skills of its
personnel, rather than on its patents, licenses, or other proprietary rights.
The Company, in the normal course of business, from time-to-time
receives and makes inquiries with respect to possible patent infringements. As a
result of inquiries received from companies, it may be necessary or desirable
for the Company to obtain additional licenses relating to one or more of its
current or future products. There can be no assurance that such additional
licenses could be obtained, and, if obtainable, could be obtained on conditions
that would not have a material adverse effect on the Company's operating
results. If the inquiring companies were to allege infringement of their
patents, as is the case in the Company's current litigation with two of its
competitors, there can be no assurance that any necessary licenses could be
obtained, and, if obtainable, that such licenses would be on terms or conditions
that would not have a material adverse effect on the Company. In addition, if
litigation ensued, there can be no assurance that these companies would not
succeed in obtaining significant monetary damages or an injunction against the
manufacture and sale of one or more of the Company's product families. It may be
necessary or desirable for the Company to incur significant litigation expenses
to enforce its intellectual property rights.
Liquidity and Capital Resources
The Company's cash and investments increased by $15.5 million in the
first quarter, from $365.2 million at the end of the fourth quarter of 1995 to
$349.7 million at March 31, 1996. During the first quarter of 1996, in
accordance with a note payable entered into in 1995, the Company paid a $57.1
million deposit to TSMC for future wafer capacity. In addition, the Company
invested approximately $6.2 million in capital, mainly consisting of furniture
and test equipment. The Company expects to invest approximately $65-70 million
of additional capital during the remainder of 1996, including approximately
$35-40 million for the construction of its corporate headquarters. Payments
related to a joint venture currently under negotiation with TSMC are expected to
aggregate $125 million, of which $75 million will likely be due in 1996 and the
remainder in 1997.
11
<PAGE> 12
The Company believes that its cash, cash equivalents, and short-term
investments, combined with cash generated from ongoing operations, will be
adequate to finance the Company's operations, notes payable, and capital
investment needs for at least the next year.
Impact of Currency and Inflation. The Company purchases the majority of
its materials and services in U.S. Dollars, and most of its foreign sales are
transacted in U.S. dollars. However, Altera does have Yen denominated purchase
contracts with Sharp Corporation of Japan for processed silicon wafers. The
Company historically has engaged in a variety of foreign exchange hedging
strategies to mitigate the exposure from these Yen denominated purchases. This
hedging has included the purchase of forward contracts and the use of offsetting
Yen receipts. During 1996, the Company held no forward Yen contracts. Effects of
inflation on Altera's financial results have not been significant.
Safe Harbor Notice
This report contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Actual results could differ materially from those
projected in the forward-looking statements as a result of the risk factors
described in this report and in the Company's Annual Report on Form 10-K on file
with the Securities and Exchange Commission.
12
<PAGE> 13
ALTERA CORPORATION
FORM 10-Q
FOR THE QUARTER ENDED
MARCH 31, 1996
PART II
OTHER INFORMATION
13
<PAGE> 14
ITEM 3. LEGAL PROCEEDINGS.
In June 1993, Xilinx, Inc. ("Xilinx") brought suit against the Company
seeking monetary damages and injunctive relief based on the Company's alleged
infringement of certain patents held by Xilinx. In June 1993, the Company
brought suit against Xilinx, seeking monetary damages and injunctive relief
based on Xilinx's alleged infringement of certain patents held by the Company.
In April 1995, the Company filed a separate lawsuit against Xilinx in Delaware,
Xilinx's state of incorporation, seeking monetary damages and injunctive relief
based on Xilinx's alleged infringement of one of the Company's patents. In May
1995, Xilinx counterclaimed against the Company in Delaware, asserting defenses
and seeking monetary damages and injunctive relief based on the Company's
alleged infringement of certain patents held by Xilinx. A motion by Xilinx to
transfer the Delaware cases to California has been granted. The California
litigation is presently the subject of court-ordered mediation. Due to the
nature of the litigation with Xilinx and because the lawsuits are still in the
pre-trial stage, the Company's management cannot estimate the total expense, the
possible loss, if any, or the range of loss that may ultimately be incurred in
connection with the allegations. Management cannot ensure that Xilinx will not
succeed in obtaining significant monetary damages or an injunction against the
manufacture and sale of the Company's MAX 5000, MAX 7000, FLEX 8000, or MAX 9000
families of products, or succeed in invalidating any of the Company's patents.
Although no assurances can be given as to the results of these cases, based on
the present status, management does not believe that such results will have a
material adverse effect on the Company's financial condition or results of
operations.
In August 1994, Advanced Micro Devices ("AMD") brought suit against the
Company seeking monetary damages and injunctive relief based on the Company's
alleged infringement of certain patents held by AMD. In September 1994, Altera
answered the complaint asserting that it is licensed to use the patents which
AMD claims are infringed and filed a counterclaim against AMD alleging
infringement of certain patents held by the Company. The case has been
bifurcated to provide that a separate trial on the issue of the scope of the
existing cross license agreement between the parties will precede the trial on
the infringement claims. Due to the nature of the litigation with AMD, and
because the lawsuit is still in the pre-trial stage, the Company's management
cannot estimate the total expense, the possible loss, if any, or the range of
loss that may ultimately be incurred in connection with the allegations.
Management cannot ensure that AMD will not succeed in obtaining significant
monetary damages or an injunction against the manufacture and sale of the
Classic, MAX 5000, MAX 7000, FLEX 8000, MAX 9000, FLEX 10K, and FLASHlogic
product families, or succeed in invalidating any of the Company's patents.
Although no assurances can be given as to the results of this case, based on its
present status, management does not believe that such results will have a
material adverse effect on the Company's financial condition or results of
operations.
14
<PAGE> 15
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
11.1 Computation of earnings per share
27. Financial Data Schedule
(b) Reports on Form 8-K
None.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ALTERA CORPORATION
/s/Nathan Sarkisian
--------------------------------------
Nathan Sarkisian, Vice President
(duly authorized officer), and Chief
Financial Officer (principal financial
officer)
Date: May 6, 1996
15
<PAGE> 1
EXHIBIT 11
ALTERA CORPORATION
COMPUTATION OF EARNINGS PER SHARE
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
March 31, March 31,
1996 1995
------- -------
<S> <C> <C>
PRIMARY:
Weighted average shares outstanding 43,629 43,097
Net effect of dilutive stock options 2,339 1,965
------- -------
Total 45,968 45,062
======= =======
Net income $31,440 $15,097
======= =======
Income per share $ 0.68 $ 0.34
======= =======
FULLY DILUTED:
Weighted average shares outstanding 43,629 43,097
Net effect of dilutive stock options 2,339 1,965
Assumed conversion of convertible subordinated notes 4,495 --
------- -------
Total 50,463 45,062
======= =======
Net income $31,440 $15,097
Add:
Convertible subordinated notes interest, net of income 1,920 --
taxes ------- -------
Adjusted net income $33,360 $15,097
======= =======
Income per share $ 0.66 $ 0.34
======= =======
</TABLE>
16
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 102479
<SECURITIES> 247187
<RECEIVABLES> 60362
<ALLOWANCES> 1460
<INVENTORY> 75146
<CURRENT-ASSETS> 534134
<PP&E> 100857
<DEPRECIATION> 42922
<TOTAL-ASSETS> 735306
<CURRENT-LIABILITIES> 205705
<BONDS> 239600
0
0
<COMMON> 86817
<OTHER-SE> 203184
<TOTAL-LIABILITY-AND-EQUITY> 735306
<SALES> 137098
<TOTAL-REVENUES> 137098
<CGS> 53054
<TOTAL-COSTS> 53054
<OTHER-EXPENSES> 35843
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1920
<INCOME-PRETAX> 49124
<INCOME-TAX> 17684
<INCOME-CONTINUING> 31440
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 31440
<EPS-PRIMARY> 0.68
<EPS-DILUTED> 0.66
</TABLE>
