Altera Reiterates Latest Revenue Guidance, Cuts 7% of Jobs

By TSC Staff ,

Altera

(ALTR) - Get Report

still expects second-quarter revenue to fall about 25% from the prior period, and though the company continues to see signs of stability in North America, international business has remained soft.

The company, a maker of programmable logic devices, also disclosed plans to cut 152 jobs, or 7% of its workforce, while consolidating certain offices and writing down various intangible assets.

Altera plans to record a pretax excess inventory charge in the current quarter totaling around $115 million. Excluding the charge, the chipmaker expects gross margins to remain above 64% in the second quarter. Additionally, the company plans to record a restructuring charge of about $10 million.

The company has also reduced executive officer pay by 10% and postponed employee merit increases. As a result of these and other recent actions, the company expects to save about $6 million a quarter, beginning in the third quarter of 2001.

Earlier this week,

Vitesse Semiconductor

(VTSS)

,

Xilinx

(XLNX) - Get Report

and

Applied Micro Circuits

(AMCC)

lowered their guidance. Altera previously expected revenue to decline about 20% sequentially in the second quarter, before lowering that guidance to the current range May 31.

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