Altera's ( ALTR) bottom line fell by a third in the fourth quarter, but the company managed to outpace Wall Street expectations.

Shares of Altera were up 4.5%, or 76 cents, at $17.65 in extended trading Thursday.

The programmable chipmaker posted a net income of $65.5 million, or 20 cents a share, vs. $99.9 million, or 27 cents a share, at this time last year.

The average analyst expectation called for Altera to earn 17 cents a share, according to Thomson Financial.

Altera's results included $5.2 million in restructuring charges, related to its announcement last month that it will terminate leases on certain facilities and eliminate about 65 jobs in order to cut costs.

Altera beat the Street's sales expectations as well, delivering $323.2 million in revenue, vs. the $309.9 million expected by analysts.

At this time last year, Altera had sales of $317.4 million.

Altera's full year revenue of $1.26 billion was down 1.7% from 2006.

Chief Executive John Daane said in a statement that the company experienced a disappointing sales year in 2007, as demand proved soft. But he said the company's new generation of 65-nanometer programmable chips are currently shipping and being well received by customers.

Daane said the company would continue to take steps to lower its operating expenses in 2008.

Looking ahead, Altera projected that sales would be flat to up 2% sequentially, implying a range of $323.2 million to $329.6 million. Analysts were looking for $319.9 million.

The company said gross margin in the current quarter will range between 64% and 65%.