ALTR ( $30--$28) P/E 25 posts 2nd-qtr loss
(UPDATE: Adds guidance, CEO comments from conference call)
SAN FRANCISCO, July 23 (Reuters) - Specialty chip maker Altera Corp. (NasdaqNM:ALTR - news) on Monday reported a second-quarter net loss compared to a year-ago profit as the continuing chip slump crimped sales.
For the quarter, the company said it had a loss of $89.2 million, or 23 cents a share, compared with a profit of $98.3 million, or 23 cents, a year ago. Sales fell 37 percent to $215.3 million from $340.7 million.
Excluding restructuring and other charges, Altera had a profit of $35.9 million, or 9 cents a share.
The analysts' forecasts was in a range of a profit of 4 cents to 10 cents a share, and the mean estimate was 8 cents, according to Thomson Financial/First Call.
Sales in the third quarter will likely decline 15 percent to 20 percent from the $215.3 million it had in the second quarter, company executives said on a conference call with analysts held on Monday.
The company also expects its gross margin percentage to be 63 percent to 64 percent in the third quarter, it said.
In its overseas markets, Altera said Europe was particularly weak, where sales declined 26 percent from the first quarter, and even further declines are predicted.
Despite the weak results, Altera's President and Chief Executive John Daane said the company's products are being well received, and it's achieving high numbers of design wins, where companies decide to use Altera chips in their products.
``Altera is taking market share,'' Daane said on the call.
Shares of Altera fell 58 cents to $28.76 on Monday before the results were released. Shares of Altera have risen about 12 percent this year, while the Philadelphia Semiconductor Index is little changed.
Altera's programmable logic devices, or PLD chips, are used in communications, computer and industrial equipment. |
