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Strategies & Market Trends : Guidance II -- Ignore unavailable to you. Want to Upgrade?

To: 2MAR$ who wrote (8)	6/27/2001 5:29:51 PM
From: 2MAR$	Read Replies (1) \| Respond to of 2077

ALTR ($27.80) Provides Business and Financial Update SAN JOSE, Calif., Jun 27, 2001 (BUSINESS WIRE) -- Altera Corporation (Nasdaq:ALTR) today reaffirmed prior revenue guidance for the second quarter of 2001. The company also summarized certain actions it is taking to address current business conditions. The company said that it continues to expect second quarter revenues to be down approximately 25% from the first quarter. While the company continues to see signs of stability in North America, international business has remained soft. "Despite these short-term cyclical challenges, our long term growth outlook remains strong," said John Daane, president and CEO of Altera. "As we continue to execute on our business strategy, the current business environment requires us to be cautious and make some pragmatic, yet difficult decisions." The company plans to record a one-time excess inventory charge this quarter in the range of $115 million, pre-tax. Excluding this charge, gross margins are expected to remain above 64% in the second quarter, consistent with prior guidance. Additionally, the company plans to record an approximately $10 million charge in connection with specific steps it is taking to align its organization with current and projected revenues. Combined, the inventory and restructuring charges are $105 million on an after-tax basis. The company is reducing its worldwide headcount by 152 people, approximately 7% of its current workforce, consolidating certain offices, and writing down various intangible assets. Altera has reduced executive officer pay 10% and postponed employee merit increases. As a result of these and other recently implemented actions, cost savings are estimated to be in the range of $6 million per quarter, beginning in the third quarter of 2001. "In addition to implementing a wide variety of measures to reduce spending, the unfortunate and painful decision of headcount reduction had to be made," said Daane. "Our R&D commitment remains substantial and we will continue to deliver on our commitment of excellent customer support. We intend to extend the design win momentum we have seen in the past months and we are going full speed ahead with the introduction of new products. This strategy, we believe, will allow Altera to further establish its leadership position in the programmable logic market." Altera will announce its complete second quarter results after the market close on July 23, 2001. Conference Call