Altera earnings warning prompts stock slide

Altera earnings warning prompts stock slide
Simon Parry
Altera has warned that sales for the third quarter will be lower than expected because of a depressed North American market. The warnings sparked a wave of sales in semiconductor company shares on Wall Street as analysts worried about earnings for other chip makers.
Altera said that third quarter revenues will be flat or slightly down. “We believe that this is a temporary situation after several quarters of very strong growth,” said Altera CEO Rodney Smith. “Our year over year growth for the third quarter will approach 40 per cent, and we anticipate that we will resume solid growth in the fourth quarter,” he added.
The company was recently celebrating after overtaking Xilinx in quarterly revenues for the first time. Altera, traditionally second fiddle to Xilinx in the programmable logic market, posted revenues for its second quarter of $164.1m versus $160.8m for Xilinx in the same period. However, it warned in July that growth for the remainder of the year would be difficult.

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