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, the Silicon Valley chipmaker, gave a mid-quarter guidance update today, repeating its prior revenue forecast. In a release after the market close, the company again said it expects second-quarter sales to be up 2% to 7% from the first quarter.

During that quarter, the company reported $264.6 million in sales, which was a 21% drop from the year-ago period. It also reported earnings of $44 million, or 15 cents per share.

The company also said today that revenue from its 65-nanometer and 40-nanometer devices are up, with sales from the 40-nanometer devices set to double from the first quarter. "As expected, demand from the OEMs providing equipment for Asian 2G and 3G wireless networks remains strong," the company said in a statement.

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Analysts are expecting EPS of 16 cents in the second quarter.

Earlier in the day, the company announced the creation of "the industry's highest density, highest system-bandwidth" field-programmable gate array chip, meant to deal with increasing bandwidth demands from applications like online HD video.

Last week, shares surged after Citigroup analyst Glen Yeung bumped up his earnings estimates on the expectation that Altera would increase its second-quarter forecast today. Yeung said that because Chinese demand would bump up revenue, he expected sales to increase 6.1% in the second quarter, coming in on the upper end of Altera's projection.

Since last Tuesday, Altera shares have gained more than 12%. On the day, the stock soared before the announcement, shooting up nearly 4% to $17.66 by the closing bell. But in the first few minutes of after-hours trading, Altera shares had given up nearly all their gains.

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