Boston, MA 05/09/2014 (wallstreetpr) – Altera Corporation (NASDAQ:ALTR) reported positive 1Q14 results. The huge rush for programmable logic devices from the 4G LTE wireless infrastructure in China propelled the company’s the strong first-quarter results. Revenue stood at $461 million up by 1% from the fourth quarter, and an increase can be clearly noticed when compared to $411 million in prior-year period.
Huge Chinese spending on strong wireless telecom required for 4G LTE infrastructure expansions helped the company’s first-quarter sales. The sales surpassed the firm’s January expectancy of down 2% to 6% sequentially. The firm’s telecom and wireless sector experience 14% growth quarter over quarter due to the 4G LTE buildouts in China which improved PLD sales. Altera’s largest end market is telecom and wireless segment which account for 49% of total sales in the quarter. Other segments like industrial, military, and automotive customers reported a growth by 1%.
Altera Corporation (NASDAQ:ALTR) attained a gross profit of 67.1% due to product mix integrated with growing telecom and wireless PLD sales. But it is a marginal downfall when compared to gross margin of 68.3% in the fourth quarter. Operating revenues stood at $135 million compared to $117 million in the last quarter. Revenues recorded a quarter over quarter downfall by 20% in the networking, computer, and storage segment and 3% in other segments.
Outlook
The firm is targeting 2%-6% sequential growth during the second growth .It expects huge demand in the telecom and wireless divisions, as well as the computers and storage end of the market, to act as propellants in company’s future growth. PLD sales from the 4G LTE infrastructure buildouts in China will be a Key component of the firm’s prospects. The share value is trading at an attractive price for the investor currently. Altera’s forecast has better prospects when compared to flat revenues projected by rivals like Xilinx (XLNX).
Altera Corporation (NASDAQ:ALTR), however, predicts the decline in revenue from industrial, military, and automotive segments while it expects other segments to remain flat.
But the overall future looks bright due to a foreseeable demand in Chinese telecom and wireless segment due to 4G LTE infrastructure build outs.
