SAN JOSE -- Altera Corp. today (Feb. 27) joined the parade of chip companies reducing revenues estimates for the first quarter.
The supplier of programmable logic said sales through distribution channels have improved from the end of 2000 but not enough to hit its forecast. Furthermore, new orders "deteriorated" in February, raising the likelihood that resale revenues will fall at the end of the first quarter, Altera said.
Consequentially, Alerta's management said it now expects Q1 revenues to be 24% lower than $368 million in the fourth quarter of 2000.
"An industry-wide inventory correction began in the fourth quarter and now reduced end market consumption is exacerbating the impact of that correction," said John Daane, president and CEO of Altera. "We are seeing the effects of reduced capital spending by [Internet and telecom] service providers and other communications market end customers impact our customers' business and hence th eir purchases. The slowdown in end market activity is prolonging the inventory correction, but we believe that moderate sequential revenue growth will resume in the second half," he said.