DOW JONES NEWSWIRES
Altera Corp.'s (ALTR) first-quarter net income fell 47%, but the
company said the quarter shaped up better than it originally
expected.
The semiconductor maker indicated that strength, first hinted at
in a revision to revenue guidance in January, continued into the
fiscal second quarter, with a fresh outlook for the quarter that
easily tops Wall Street estimates.
However, Altera's shares fell 3% to $17 in after-hours trading.
The stock price is off more than a quarter since August, even after
rebounding by a third since December.
"With double-digit sequential growth, sales to wireless
equipment customers, including those targeting new 3G deployments
in China, were a bright spot in the quarter," said President, Chief
Executive and Chairman John Daane.
Altera has continued to do well as demand for its
semiconductors, which are used in products such as televisions and
Internet routers, has remained strong. However, in March, the
company announced a small round of job cuts as part of a
restructuring expected to result in $6 million of charges.
The company reported net income of $44 million, or 15 cents a
share, down from $83.9 million, or 27 cents a share, a year
earlier. The latest quarter included a 2-cent-a-share hit from
restructuring charges and a change in California tax law.
Analysts expected per-share earnings of 16 cents, according to a
poll by Thomson Reuters. Analyst estimates typically exclude
unusual items.
Revenue fell 21% to $264.6 million.
In January, stronger-than-expected demand from makers of
equipment for Chinese 3G wireless networks prompted Altera to raise
the bottom end of its revenue outlook, resulting in a range of
$251.6 million to $267.4 million.
Gross margin narrowed to 64.5% from 65.1%.
For the second quarter, Altera expects sequential revenue growth
of 2% to 7%, which would result in a range of $269.9 million to
$283.1 million. Wall Street expects revenue of $259.5 million.
The company expects gross margin to come in within a
half-percentage point of 64.5%.
-By Jay Miller, Dow Jones Newswires; 201-938-2331;
jay.miller@dowjones.com