Altera Corp. today reduced its revenue guidance for the second quarter ending June 30, saying it now expects that revenues inquarter are likely to decline in the range of 25% from first quarter revenues of $287.4 million compared with earlier guidance for a 20% sequential decline.
Quarter-to-date resales in North America are in line with prior expectations but declines in the company's international channels are greater than anticipated, the company said. Although the ratio of incoming orders to resales has improved somewhat in the past several weeks, the overall ratio remains below 1.0 in all channels, according to Altera.
Despite the reduced revenue outlook, inventories at Altera and its distributors will decline in the quarter, it added.
John Daane, president and CEO said in a prepared statement that, "In our international channels we are experiencing a sharper decline in demand than we had forecasted and therefore, we have modified our second quarter revenue guidance.
"Looking beyond these near term challenges, we are seeing excellent customer response to our growing list of new products and our design win momentum is continuing. We will be in a strong position when growth resumes in the markets we serve."
Altera will announce its complete second quarter results after the market closes on July 23, 2001.