Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: StanX Long who wrote (58522)	1/8/2002 4:00:26 AM
From: StanX Long	Read Replies (1) \| Respond to of 70976

RtS, Altera had a P/E of 31.15. So much for good P/Es. Stan Altera to write off excess inventory, expects 7% sequential drop in Q4 sales Semiconductor Business News (01/07/02 17:11 p.m. EST) siliconstrategies.com SAN JOSE -- Altera Corp. today said it now expects to report a 7% sequential drop in revenues for the fourth quarter of 2001, which is about in the middle of a previous guidance range that called for a 5-to-10% decline. In Q3 of 2001, Altera posted revenues of $174.2 million. Altera also today announced plans to take charges for asset write-downs and inventory adjustments in the fourth-quarter period. The company said it will take $18 million in charges for asset write-downs and impairment in the period, ended Dec. 31. These charges are related to the divestiture of Altera's Northwest Logic design services subsidiary as well as a write-down of surplus manufacturing assets and a write-off of a minority investment. Additionally, Altera said it will record an inventory charge of approximately $35 million for excess inventories. "Continued softness in demand in the second half of the year has further reduced the anticipated life-time demand of certain products, especially in the mainstream product category," said Nathan Sarkisian, chief financial officer at Altera. "This write-down reflects our current best estimates of the ultimate disposition of our inventories." But looking ahead, Altera expects to see sequential growth in the next year. "It appears that we have seen the bottom of this cycle," said John Daane, president and CEO of the San Jose-based programmable logic supplier. "We built end-customer backlog in the quarter, with orders-to-resales exceeding 1.0 in both November and December. We look forward to modest growth in the March quarter," he added.