Altera Corp. (ALTR) on Thursday narrowed the more optimistic end
of its first-quarter sales forecast, citing expectations of weaker
sales from its military and wireless customers.
The company, which makes programmable logic chips used in a
range of electronics and industrial equipment, now expects revenue
to fall 7% to 9% from the previous quarter, which would generate
sales between $416.6 million and $425.8 million. Its downbeat view
in January projected a sequential decline of 5% to 9%.
Semiconductor companies' results have weakened in recent
quarters because of wilting demand, although some optimistic market
observers have already started anticipating the end of the
retrenchment.
Altera warned late last year that its outlook had deteriorated
across all its major vertical markets, with conditions also
weakening in every region except North America, where military
sales were lifting its top line.
On Thursday, Alera said the timing of programs in the military
market and weak demand from wireless customers forced it to temper
the higher end of its sales view.
Shares closed at $37.42 and were inactive after hours. The stock
is off 14% over the past year.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com