Altera Business Outlook Remains Negative For The June Quarter.SAN JOSE, Calif.--(BUSINESS WIRE)--June 4, 1996--Altera Corporation (Nasdaq: ALTR) today indicated that end consumption in North America, quarter-to-date, is well below management expectations. The Company now believes that end consumption will decline sequentially in North America, as well as in Europe and Japan. As a result, quarter ending June, 1996 revenues are expected to decline approximately 15% from the prior quarter. Management believes that this decline is being caused by an oversupply of inventory at end customers. The Company expects that gross margin as a percentage of revenue should be constant or improve from the prior quarter, and that operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. should decline in absolute terms from the prior quarter. The Company is confident that its business fundamentals business fundamentals The general background within which an economy operates including earnings, sales, wage rates, taxes, and inflation. Improving business fundamentals are generally viewed as bullish for stocks, although stock prices at any given point are on track toward regaining momentum in the long term. The current situation is the result of a rapid improvement in availability on Altera's mainstream products, the MAX 7000 and FLEX 8000 families. While the present transition to off-the-shelf availability is disruptive in the short term, it responds to customers' time-to-market requirements and will drive design wins in the long term. Additionally, FLEX 10K, Altera's newest product family, is being well received in the marketplace. The FLEX 10K advantages of density, price, performance, and delivery cannot be matched by any other programmable logic supplier. Forward-looking statements in this release are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation risks of dependence on third-party wafer suppliers, intellectual property rights and litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , market acceptance of and demand for the Company's products as well as general market conditions, competition and pricing, and development of technology and manufacturing capabilities. Please refer to the Company's Securities and Exchange Commission filings, copies of which are available from the Company without charge, for further information. Fax on Demand Copies of Altera's announcement are available from its fax-on-demand service. In the U.S. and Canada to request a copy call 1-800-789-ALTR. International users can dial their local International Access Code followed by 1-408-894-0466. Altera Corporation, founded in 1983, is a world-wide leader in high-performance, high-density programmable logic devices and associated computer aided engineering (application) Computer Aided Engineering - (CAE) Use of computers to help with all phases of engineering design work. Like computer aided design, but also involving the conceptual and analytical design steps. (CAE (1) (Computer-Aided Engineering) Software that analyzes designs which have been created in the computer or that have been created elsewhere and entered into the computer. ) logic development tools. Programmable logic devices are semiconductor chips that offer on-site programmability to customers. The chips are programmed with tools that run on personal computers or engineering workstations. User benefits include ease of use, lower risk, and fast time-to-market. The Company offers the broadest line of CMOS (Complementary Metal Oxide Semiconductor) Pronounced "c-moss." The most widely used integrated circuit design. It is found in almost every electronic product from handheld devices to mainframes. programmable logic devices that address high-speed, high density, and lower power applications. Altera products serve a broad range of market areas, including telecommunications, data communications, computers, and industrial applications. Altera common stock is traded on The Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. using the symbol ALTR. CONTACT: Altera Corporation, San Jose Thomas J. Nicoletti, 408/894-7000 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion