Altera Reiterates Latest Revenue Guidance, Cuts 7% of Jobs
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.