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Altera Updates Fourth Quarter Guidance
Fourth quarter sales are now expected to be down 9 to 12 percent compared to the third quarter of 2008. Prior guidance for fourth quarter sales was a range of up 1 percent to down 3 percent compared to third quarter of 2008. The company is experiencing slower than anticipated sales across all market segments, with particular weakness in the Computer & Storage and Consumer market segments. Inventory reductions by a broad range of end customers are occurring across all market segments.
Fourth quarter gross margin is now expected to be 69 percent +/- .5%, an increase from prior guidance of 68 percent +/- .5%. The expected gross margin increase is due to the company's ongoing cost savings initiatives and expected market segment mix. As a result of additional ongoing cost savings initiatives, the company now expects that fourth quarter operating expense will be in the range of $134 to $135 million versus prior guidance of $137 to $140 million.
As previously scheduled, the company plans to make initial shipments of 40-nm Stratix IV devices to customers during this quarter.
The company will announce fourth quarter results after market close on January 27, 2009.
About Altera
Altera's programmable solutions enable system and semiconductor companies to rapidly and cost-effectively innovate, differentiate and win in their markets. Find out more at http://www.altera.com.
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