2011-07-20

Programmable Logic, Altera, Sales, Million Altera beats Q2 targets, resumes growth

SAN FRANCISCO—Programmable logic vendor Altera Corp. Tuesday (July 19) reported sales for the second quarter that handily beat consensus analysts' expectations, returning to sequential growth after what the company's CEO called a mild first quarter correction.

Altera (San Jose, Calif.) reported second quarter sales of $584.4 million, up 2 percent compared to the first quarter and up 17 percent compared to the second quarter of 2010. The company reported a net income for the quarter of $214.6 million, or 65 cents per diluted share, down 4 percent from the previous quarter, but up 19 percent compared with the year ago quarter.

Consensus analysts' expectations called for Altera to report sales for the second quarter of about $549 million, according to Yahoo Finance.

Altera said its board of directors increased the company's quarterly cash dividend to 8 cents per share, up from the previous dividend of 6 cents per share. The board declared that the next quarterly dividend will be paid Sept. 1 to stockholders of record on Aug. 11.

"This quarter marks a return to sequential growth following the mild correction we experienced in the first quarter," said John Daane, president, chairman and CEO of Altera, in a statement. "We expect more sales gains in the third quarter."

Altera began shipping its Stratix V family of high-end, 28-nm FPGAs early in the third quarter, Daane said.

Altera said it expects third quarter sales to grow 2 to 6 percent sequentially to between $596.3 million and $619.5 million. The company said it expects its gross margin for the third quarter to be 69 to 70 percent. Altera also expects to invest $87 million to $89 million in R&D during the third quarter, the company said.

Altera's third quarter sales target exceeded consensus analysts' expectations of about $550 million for the quarter, according to Yahoo Finance.
Programmable Logic, Altera, Sales, Million Altera beats Q2 targets, resumes growth

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