Altera (ALTR) - Get Report warned after the bell that first-quarter revenue will fall 20% sequentially, but like countless other companies, the programmable chip maker is holding on to the hope of a second-half turnaround.
The company said resale rates, though improved from the end of last year, haven't accelerated. Altera said incoming orders deteriorated in February, leading the company to believe that resale rates will decline toward the end of the current quarter, which ends March 31. As a result, the company expects revenue to fall 20% from the top line of $368 million reported in the fourth quarter.
Analysts expect the company to earn 22 cents a share on revenue of $412.6 million in the first quarter, according to
First Call/Thomson Financial
"An industry-wide inventory correction began in the fourth quarter, and now reduced end-market consumption is exacerbating the impact of that correction," Altera said in a press release. "The slowdown in end-market activity is prolonging the inventory correction, but we believe that moderate sequential revenue growth will resume in the second half."
Shares of Altera ended
regular-session trading at $23.38, down $2.06 on the day, and were halted after the market closed.