SAN JOSE -- Altera Corp. here today cut its forecast for second-quarter revenues, warning that sales will drop 25% from $287.4 million in Q1.
The San Jose-based programmable logic supplier said the problem this time is international sales. Altera had been forecasting a 20% drop in revenues from the prior quarter after its sales declined 22% sequentially in Q1 (see April 18 story).
Altera said resale of products in North America by chip distributors remained in line with prior expectations, but weakness in international channels has been greater than expected in the second quarter. Altera said its overall book-to-bill ratio in all sales channels remains below 1.0 despite recent improvements in orders. The company predicted that chip inventories at distributors and its own operations will decline in the current Q2 period.
"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," said John Daane, president and CEO of Altera. "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," he added.
Altera is scheduled to post its second quarter results on July 23.