Altera Slips: Cuts Q3 View On Broad Weakness
By Tiernan Ray
September 6, 2011, 4:36 PM ET
Shares of chip maker Altera ( ALTR) are down $1.05, or 3%, at $33.81 in late trading after the company cut its outlook for the current quarter ending next month, the first of two key chip updates this week, with the other being Texas Instruments ( TXN), expected Thursday afternoon.
Altera expects the current quarter’s sales to range from a decline of 3% to an increase of 1%, lower than its prior estimate of a 2% to 6% increase.
The company said global macroeconomic worries are weighing on the market:
demand is weaker in several vertical markets including Telecom and Wireless, particularly outside Asia, as well as IndustrialAutomation, Military, and Test as customers are moderating their purchases in light of macroeconomic uncertainty and other near term changes to their business environment. Despite this broader trend, Altera’s new products will be up sequentially.
Altera plans to offer full financials for the quarter on October 20th.
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