Altera Posts Lower 3Q Profit, Revenue

SAN JOSE, Calif. (AP) — Chip maker Altera Corp. said Tuesday its third-quarter profit tumbled 40 percent as businesses remained cautious on technology spending, but noted that market conditions "improved steadily during the quarter."

The company earned $56.7 million, or 19 cents per share, in the three months ended Sept. 25, down from $94.7 million, or 31 cents per share, in the year-ago period. The latest period includes a $4.8 million pretax restructuring charge.

Revenue fell 20 percent to $286.6 million from $356.8 million a year ago, but edged up 3 percent from the second quarter.

Analysts, on average, were expecting a profit of 19 cents per share on sales of $283.3 million, according to a poll by Thomson Reuters.

"Compared to our initial expectations, business conditions improved steadily during the quarter," said John Daane, president, CEO and chairman, in a statement.

Altera ended the quarter with $1.4 billion in cash and short-term investments.

Looking ahead, Altera expects fourth-quarter revenue to grow by 6 percent to 10 percent sequentially, implying sales of $303.8 million to $315.3 million. Analysts are predicting sales of $290.1 million, a 1 percent increase, on average.

The strong forecast sent shares up 62 cents, or 2.9 percent, to $22.10 in after-hours trading. The stock had closed earlier up 9 cents at $21.43. Rival chipmaker Intel Corp. also reported lower earnings but an upbeat forecast Tuesday.