Altera: Less Bad May Actually Be Good Enough (ALTR)

Altera Corporation (NASDAQ: ALTR) issued a mid-quarter update after the close of trading today.  What is interesting is that things might not be quite as bad as the company rxoected  The news is far away from being good news, but sometimes “less bad is good enough.”

The company had forecasted that first quarter revenue would fall sequentially between 15% to 25%.  The company now expects sequential revenues  to be down 15% to 20%.  Five percent won’t exactly merit an excuse to storm the beaches, but it is far better than what could have been an even worse decline.  This also sounds as though it may be a company specific news rather than an indication that the sector’s fortunes are improving.

Altera cited that its “improved outlook” is largely attributable to better-than-expected demand from OEMs for Chinese 3G wireless networks.   The company pointed out that its first quarter sales outlook remains muted due to slowing global business conditions.

Analysts expect revenue of $253.8 million for this quarter ending March 31.  The lowest estimate is $245 million, so it looks as though some analysts may ratchet up their forecasts.  Altera closed down 5% at $14.56 today.  Shares are up marginally after the close.

Jon C. Ogg
March 2, 2009