(RTTNews) - Monday, programmable Chip maker Altera Corp. (ALTR: News ), said it currently expects fourth quarter sales to grow in the range of 15% to 18% from the previous quarter, as compared to its earlier guidance that indicated sales growht of 6% to 10% sequentially. The company said it raised its outlook based on the quarter-to-date results.

On average, seventeen analysts polled by Thomson Reuters currently expect the company to generate revenues of $310.29 million for the fourth quarter.

San Jose, California-based Altera's third quarter sales dropped 20% to $286.61 million from $356.76 million in the year-ago period. Nevertheless, revenues came in above Street estimates of $284.48 million for the quarter.

Geographically, for the third quarter, sales from North American segment was 23% of total sales, while Asia Pacific sales was 38% of total revenue, down significantly from 43% in the year-earlier quarter. Europe shared 21% of the total sales and revenues from Japan were 18% of the total sales.

For the fourth quarter the company expects sales from all its vertical segments to sequentially increase, helped by a strong new product cycle as well as improving end market trends and customer desire for appropriate inventory to support sales levels.

Specifically, the company noted that due to steady increase in demand for Chinese and Indian deployments, wireline and wireless telecommunications segment would contribute significantly in the rise in the revenue.
Still, during the third quarter, while the telecom and wireless industrial automation segment contribution to the total sales had slipped by 8% to 48%, revenues from Military & Automation and Networking, Computer & Storage increased to 23% and 16%, respectively.

On October 14, Credit Suisse raised its price target of Altera shares to $23 from its earlier price target of $21. However, Credit Suisse had maintained its "neutral rating".

While raising its price target on Altera, Credit Suisse had increased the company's fourth quarter earnings per share estimate to $0.24 from $0.90 and also raised its revenue estimate to $310 million from its earlier estimate of $288 million.

Altera is scheduled to announce its fourth quarter results after on January 26.

Monday, ALTR closed at $21.03, up $0.12 or 0.57%, on the Nasdaq. In after hours, the shares rose 3.66% or $0.77, to trade at $21.80.

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by RTT Staff Writer

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