Altera Q1 Results Miss Estimates; Sees Q2 Revenue Below View

(RTTNews) - Shares of programmable chip maker Altera Corp. (ALTR) declined almost 3 percent in extended trades Thursday after the company's profit for the first quarter declined from last year and results missed analysts' expectations. The company also gave a revenue outlook for the second quarter below Street estimates.

John Daane, president and CEO, said: "While we had anticipated a weak start to the year, the first quarter was more challenging than expected. There continues to be solid market acceptance of our Generation 10 devices, with record opportunities for our high-end 14 nm FinFET Stratix 10 FPGAs."

San Jose, California-based Altera posted net income for the first quarter of $94.85 million or $0.31 per share, down from $116.51 million or $0.37 per share in the prior-year quarter.

On average, 25 analysts polled by Thomson Reuters expected the company to report earnings of $0.32 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter declined 6 percent to $435.49 million from $461.09 million in the same quarter last year, and missed analysts' consensus estimate of $471.00 million.

New product sales climbed 15 percent year-over-year, while mainstream product sales declined 20 percent. Mature and other product line sales decreased 29 percent.

Looking ahead to the second quarter, Altera expects sales to decline 4 percent to 8 percent sequentially, implying a range of $400.65 million to $418.07 million. Street is currently looking for revenues of $492.14 million for the quarter.

Altera said its board of directors declared a quarterly cash dividend of $0.18 per share, payable on June 1 to stockholders of record on May 11, 2015.

ALTR closed Thursday's regular trading at $42.09, down $0.69 or 1.60 percent on a volume of 9.20 million shares. In after-hours, the stock further declined $1.19 or 2.83 percent to $40.90.