Programmable chip maker Altera Corp. (ALTR) said Thursday after the markets closed that its first quarter profit rose from last year, helped by higher sales and an income tax benefit.
The company's quarterly earnings per share came in above analysts' expectations, but its quarterly sales fell short of analysts' forecast. At the same time, the company gave a weak sales forecast for the current quarter.
"The quarter's overall sales were roughly as expected and represent the low point in the recent communications equipment and industrial cycles. We expect second quarter growth in these markets," said John Daane, president, chief executive officer, and chairman of the board.
Altera shares are currently losing 3.13% in after hours trading after closing the day's regular trading session at $32.93, up $1.26 or 3.98%. The shares trade in a 52-week range of $29.59 to $38.80.
Thirty-eight percent of the company's first quarter sales came from the Asia-Pacific region, which saw sales decline of 3%. Sales in the Americas and the EMEA region surged 20% and 222%, respectively, while sales in Japan fell 3%.
For the first quarter ended March 29, 2013, the San Jose, California-based company reported net income of $120.2 million or $0.37 per share, compared to $115.8 million or $0.35 per share for the year-ago quarter.
On average, 29 analysts polled by Thomson Reuters expected the company to earn $0.33 per share for the first quarter.
Gross margin for the quarter narrowed to 69.3% from 70.1% a year ago, while operating margin shrank to $28.7% from 30.4% last year.
First quarter sales rose 7% to of $410.50 million from $383.75 million in the same quarter last year. Twenty-eight analysts had a consensus revenue estimate of $413.75 million for the first quarter.
Altera also declared a quarterly cash dividend of $0.10 per share, payable on June 3 to shareholders of record on May 10.
Looking forward, the company said it expects second quarter sales to be flat to up 4% sequentially, implying sales of $410.50 million to $426.92 million. Analysts currently expect the company to post revenue of $449.28 million for the second quarter.
Gross margin for the second quarter is expected to be 69% +/- .5%.
Another programmable chip maker Xilinx Inc. (XLNX) on Wednesday reported fourth quarter profit that increased 7% from last year, as better expense control helped offset a 5% decline in revenue. The company's quarterly earnings per share also came in above analysts' expectations as did its quarterly revenue. At the same time, the company gave a down-beat revenue forecast for the current quarter.
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