Jan 25, 2011 / 09:45PM GMT, ALTR - Q4 2010 Altera Corporation Earnings Conference Call
Good day everyone and welcome to the Altera fourth-quarter 2010 earnings results conference call. Today's call is being recorded. At this time I would like to turn the call over to Mr. Scott Wylie, Vice President of Investor Relations for Altera Corporation. Mr. Wylie, please go ahead.
Scott Wylie - Altera Corporation - VP IR
Good afternoon. Thank you for joining this conference call, which will be available for replay telephonically and on Altera's website shortly after we conclude this afternoon.
To listen to the webcast replay please visit Altera's Investor Relations webpage where you will find complete instructions. The telephone replay will be available at area code 719-457-0820, and use code 258712.
During today's prepared remarks we will be making some forward-looking statements. In addition, management may make additional forward-looking statements in response to questions. In light of the Private Securities Litigation Reform Act, I would like to remind you that these statements must be considered in conjunction with the cautionary warnings that appear in our SEC filings.
Investors are cautioned that all forward-looking statements in this call involve risks and uncertainty, and that future events may differ from the statements made. For additional information, please refer to the Company's Securities and Exchange Commission filings, which are posted on our website or available from the Company without charge.
With me today are John Daane, our CEO, and Ron Pasek, Chief Financial Officer. Ron will open the call with a financial overview before turning the call over to John. After John concludes his remarks we will take your questions. Prior to the Q&A session the operator will be giving instructions on how you can access the conference call with your questions.
I would know like to turn the call over to Ron.
Ron Pasek - Altera Corporation - CFO
Thank you, Scott. Revenue for the fourth quarter 2010 was a record $555 million, representing a sequential increase of 5%, and slightly above the midpoint of our guidance. Our large customers were the growth leaders in Q4 with a collective growth rate well above the overall average.
On the product side we achieved a 26% sequential growth for new products, while our mainstream and mature product categories were down versus Q3. This sequential decrease in mainstream and mature products appears to be customer inventory fine-tuning and is not a surprise.
Sequential growth within new products included Stratix IV increasing 25%, Cyclone III up 23%, Arria II up 22%, MAX II down 4%, Stratix III up 34%, Cyclone IV up strongly at $2 million, and HardCopy III and IV up 378% at $10 million.
Stepping back for 2010 we experienced a nearly 200% increase in new products, with most of this dollar increase coming from 65 nanometer. Mainstream products produced growth of 12% and mature products decreased 7%, as one would expect.
In Q4 40 nanometer revenue increased sequentially 35%, and 65 nanometer revenue showed sequential growth of 28%. For Q4 40 and 65 nanometer revenue represented 17% and 31%, respectively, of total revenue. 40 nanometer revenue on a cumulative basis is over $260 million to date.
Q4 turns were in the mid-20s range, consistent with our guidance. Book to bill for the quarter was below 1, which is to be expected as our leadtimes returned to normal levels for essentially all products. In Q4 we did not see an unusual number of cancellations.
Gross margin at 71% was up 90 basis points from Q3, and at the high-end of guidance. Improved yields and material cost
The following information was filed by Altera Corp on Thursday, January 27, 2011 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.