(ALTR) - Get Report

second quarter is proceeding largely as expected, as the chipmaker didn't markedly change its sales forecast during a scheduled midquarter update.

Shares slipped 0.9% to $21.98 in late trading on Tuesday after a scheduled press release.

Altera predicted a month ago that revenue would increase sequentially 4% to 5% during the current quarter, for a target range of $275.4 million to $278 million. On Tuesday, Altera said sales would be at the "higher end" of that range.

Analysts had expected sales of $276 million and earnings of 17 cents a share, on average, according to Thomson First Call.

The San Jose, Calif.-based company also said it would record a tax benefit of $15 million to $20 million because of two previously announced tax audits.

In addition, Altera will book a $21 million tax charge to repatriate $400 million in foreign-based earnings as part of the American Jobs Creation Act of 2004, which allows corporations a one-time reduced tax rate if they bring foreign-based earnings back to the U.S.

Altera makes programmable microchips used in a wide variety of end products such as communications, storage and servers, and consumer and industrial products.