San Jose, CA - November 29, 2000 - Altera Corp. announced that it is reducing its guidance forsequential revenue growth for the fourth quarter ending December 31, 2000. Management now expects fourth quarter revenues to approximate the $395 million reported in the third quarter.
The company said that November resales were less than management's previous expectations in all geographies. Low book-to-bill on distributors (Orders to Resales) indicate December resales will also be lower than previously anticipated, the company said. November resales were lower than August, the corresponding period of last quarter, with almost all of the reduction occurring in North America. On a quarter-to-date basis, overall resales are ahead of the first two months of last quarter but management expects that December resales will be lower than those of September.
Nathan Sarkisian, Altera's chief financial officer said, "Throughout the last three weeks of November we have seen sluggish resales and low turns orders from end-customers. With the benefit of hindsight we believe we had customers participating in the DSL business that overbought in the first three quarters of the year,and are now pulling back.
"A more important factor, however, is the inventory accumulation at contract manufacturers. Now that our lead-times are short and product availability is good across our entire product portfolio, contract manufacturers are taking the opportunity to reduce their own inventories, resulting in reduced resales."
San Jose, CA
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