|
Altera warns of shortfall
|
 |
May 31, 2001: 5:17 p.m. ET
Chipmaker sees 25 percent decline in sales amid flagging demand
|
NEW YORK (CNNfn) - Altera Corp., a semiconductor maker specializing in programmable logic devices, or PLDs, warned investors Thursday that its second-quarter sales will fall below previous expectations.
The San Jose, Calif.-based company said it expects sales to decline 25 percent from the $287.4 million it reported in the first quarter. Previously, executives had forecast a sequential revenue decline of 20 percent.
The consensus estimate of five analysts polled by earnings tracker First Call had been for Altera to log second-quarter sales of $237.8 million, suggesting a 17.3 percent decline.
The Street's most recent consensus earnings estimate was for Altera to log a profit of 10 cents per share during the quarter, according to First Call's survey. Altera did not provide a revised earnings forecast Thursday.
The company plans to release its financial results for the second quarter, which ends June 30, after the stock market closes on July 23.
Altera, which supplies PLDs to more than 13,000 manufacturers who use them to make communications, computer, and industrial equipment, said sales in North America are tracking within their previous forecasts.
Executives pinned the blame for the quarterly shortfall on larger-than-expected declines in the company's sales outside North America. They pointed out, however, that despite the reduced revenue outlook, inventories at Altera and its distributors will decline in the quarter.
"In our international channels we are experiencing a sharper decline in demand than we had forecasted and therefore, we have modified our second quarter revenue guidance," John Daane, Altera's president and chief executive, said in a statement.
"Looking beyond these near term challenges, we are seeing excellent customer response to our growing list of new products and our design win momentum is continuing," Daane added. "We will be in a strong position when growth resumes in the markets we serve."
Click here to check on chip stocks
Earlier Thursday, Merrill Lynch analyst Christopher Danely raised a red flag on Altera, cutting his revenue and earnings estimates on the company for this year and next and warning that the firm's surveys indicate order delays and low bookings for PLDs.
Even so, shares of Altera (ALTR: Research, Estimates) rose 75 cents to $24 on Nasdaq ahead of the company's revised guidance, which it released after the closing bell. They were up another 31 cents at $24.31 in extended-hours trade. 
|
|
|
|
|
 |
|
