Altera Up on Job Cuts
Altera (ALTR) - Get Report was up 5.3% in preopen Island trading after the company said late Wednesday it will lay off 152 employees, or 7% of its workforce.
The specialty chipmaker reaffirmed its lowered estimates for the first quarter, saying sales will fall about 25%.
The company said U.S. markets are firming but overseas markets remain soft.
Altera said it cut executive salaries by 10% and has put off merit increases, in addition to other cost-cutting measures.
The news follows a warning Tuesday by Altera's rival, programmable chipmaker
Xilinx
(XLNX) - Get Report
that revenue for the first quarter would fall 32% from the fourth quarter. Xilinx was up 2%.
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