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Altera Reaffirms Sales Guidance

The company continues to see sequential growth of 4% to 7%.
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Altera (ALTR) - Get Altair Engineering Inc. Class A Report reaffirmed that first-quarter sales will be in line with prior guidance for 4% to 7% sequential growth, while gross margin will meet expectations of 65.5% to 67.5%.

A survey of analysts by Thomson First Call produced a consensus sales estimate of $297.8 million for the first quarter.

The chipmaker said that as a result of a previously disclosed fourth-quarter manufacturing issue, device lead times lengthened on certain products. The company believes that this supply issue will be largely resolved early in the second quarter. Additionally, manufacturing constraints are preventing the company from meeting demand for other products -- its Stratix and selected Stratix II FPGA devices. Altera expects Stratix and Stratix II lead times to return to normal in the second quarter.

Altera also announced that Chief Financial Officer Nathan M. Sarkisian intends to retire by the end of the year. His replacement hasn't been named. Sarkisian will continue in his current position until a new chief financial officer is named and will remain with the company for some time thereafter to assist in the transition.

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Shares of Altera fell 40 cents, or 2%, in after-hours trading to $19.87 on Instinet.