DOW JONES NEWSWIRES
Altera Corp.'s (ALTR) third-quarter earnings dropped 40% on
lower sales and a restructuring charge, but the logic-chip maker
experienced steadily improving business conditions.
The company predicted fourth-quarter revenue above Wall Street's
expectations.
"Sales of 40-nm devices tripled sequentially. Our
first-to-market position and technology advantages at 40-nm
continue to drive record design-win results," said Chief Executive
John Daane.
Altera, which designs chips that customers can program for use
in such products as Internet routers, mobile-phone base stations,
flat-panel televisions and DVD players, has seen demand fall amid
the recession.
The company reported earnings of $56.7 million, or 19 cents a
share, down from $94.7 million, or 31 cents a share, a year
earlier. The latest quarter included a $4.8 million pretax
restructuring charge.
Net sales fell 20% to $286.6 million.
Analysts estimated earnings of 19 cents on revenue of $283.3
million, according to a poll by Thomson Reuters.
Gross margin rose to 67.3% from 67.1% a year earlier.
Sales of new products rose 7% from the previous quarter.
For the fourth quarter, the company expects sequential sales
growth of 6% to 10%, which would translate to a range of $303.8
million to $315.3 million. Analysts estimated $292 million.
Altera also expects gross margin of 67% to 68%.
Shares rose 1.6% to $21.77 in after-hours trading. The stock has
gained nearly 25% in the past year.
-By Jay Miller, Dow Jones Newswires; 201-938-2331;
jay.miller@dowjones.com