Boston, MA 04/28/2014 (wallstreetpr) – After moving up for about 4%, the shares of Altera Corporation (NASDAQ:ALTR) fell by nearly 3% after the programmable chip maker released its first quarter earnings per share and revenue report.
First-Quarter Review
Altera Corporation (NASDAQ:ALTR)’s revenue for the period of three months ended on March 31, 2014, increased 12% over the last year to $461 million, as the earnings per share came in at $0.37 per share. The market consensus for the numbers was at revenues of $438 million and earnings per share of $0.32. The company’s CEO John Danne noted that stronger than expected results of the company is accredited to its solid than expected Chinese LTE deployments.
Additionally, its revenue is divided among various segments, where Telecom & Wireless segment contributed 45% towards sales and grew 23% year-over-year. Industrial, military, automotive segments indicated areas of strength. However, the Networking, Computer and Storage segments witnessed weakness during this period, majorly due to softer-than-expected demand for computers and an equally weak demand from suppliers for flash storage systems. On the basis of regions revenues, AsiaPacific recorded highest growth of 24% year-over year, followed by Japan and EMEA, which accounted for 18% and 11% growth respectively. On the contrary, America showed a languished growth recording a decline of 13%.
Better Guidance
Altera anticipated the second quarter revenue to be in the range of 2-6% from that of the first quarter level of $461.1 million. This means a growth in between $470-$488.8 million, which is higher than the analyst estimate of $461.3 million consensus. For the June quarter, Altera expects revenue to grow at a pace of 13.7% year-over-year, which is the midpoint of its guidance. Altera forecasts gross margin of approximately 67.0% in the second quarter. In terms of expenses, Altera Corporation (NASDAQ:ALTR) expects Research and development expenses to be in between $104.0-$106.0 million, while selling, general and administrative expenses are likely to be in the range of $78.0 million and $80.0 million.
