DOW JONES NEWSWIRES
Altera Corp.'s (ALTR) fourth-quarter net income climbed 27% as
cost-cutting more than offset a decline in sales, but the chip
maker forecast first-quarter revenue below Wall Street's
expectations.
"While we experienced the effects of a global economic-driven
slowdown in the fourth quarter, we increased our market share in
the programmable logic industry for the sixth year in a row," said
Chief Executive John Daane.
The semiconductor maker reported net income of $83 million, or
28 cents a share, up from $65.5 million, or 20 cents a share, a
year earlier.
Analysts' latest estimate was for per-share earnings of 27
cents, according to a poll by Thomson Reuters.
Revenue slid 2.7% to $314.5 million. Last month, Altera cut its
revenue forecast to a 9% to 12% decline sequentially, or a range of
$314 million to $322.7 million.
Total operating expenses fell 7.1%.
Gross margin rose to 69.3% from 64.1%. Altera, which designs
chips that customers can program for use in products such as
Internet routers, mobile-phone base stations, flat-panel
televisions and DVD players, last month raised its gross margin
forecast by one percentage point to 69%, plus or minus a
half-percentage point, reflecting cost-savings initiatives and a
change in market-segment mix.
Despite the dropoff in consumer demand for computers and other
electronic devices, Altera has continued to do well as demand for
its programmable logic integrated circuits remains strong and
margins continue to hold.
Looking ahead, Altera predicted first-quarter revenue would
decline 15% to 25% sequentially, to a range of $235.9 million to
$267.3 million. Analysts' estimate was for $287.9 million.
The company also predicted a gross margin of 67%, plus or minus
a half-percentage point.
Wireline telecoms, which represent about 15% of Altera's
revenue, have been reducing capital spending plans for 2009.
However, wireless infrastructure spending is expected to remain
stable this year and to increase in China, where Altera is
well-positioned to benefit from that growth.
Altera's shares were at $16.50, down 0.9%, in after-hours
trading. The stock price has fallen 32% since August.
-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975;
Kathy.Shwiff@dowjones.com
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