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Altera warns on 4Q sales
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November 29, 2000: 5:03 p.m. ET
Says inventory reductions to leave sales 11 percent below target
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NEW YORK (CNNfn) - Semiconductor maker Altera Corp. warned late Wednesday that revenue for the current fourth quarter likely will come in more than 11 percent below forecasts, blaming inventory reductions by customers.
The San Jose, Calf.-based company, which makes computer chips known as programmable logic devices, said revenue should total about $395 million, flat with third-quarter revenue results. Analysts surveyed by earnings tracker First Call had forecast sales of $445.8 million for the October-December period.
Altera (ALTR: Research, Estimates) posted sales of $237.3 million in the year-ago quarter.
 The company said that customers in the DSL sector who overbought in the first three quarters of the year have pulled back on purchases.
Altera issued the sales warning after Wednesday's market close. In regular trading, shares edged up 3 cents to $25.94. In after-hours activity, the stock slid $6.44 to $19.50.
Shares of competitor Xilinx Inc. (XLNX: Research, Estimates) plunged $7.69 to $35.25 in after-hours trading, after finishing the regular session off $2.97 at $42.94.
The latest disappointing news on Altera's sales comes several weeks after the company said that fourth-quarter sales growth likely would come in at the low end of its previous guidance to analysts.
Programmable logic devices are one of the fastest growing types of semiconductors. Altera was the first supplier of Complementary Metal Oxide Semiconductor (CMOS) programmable logic devices and is a leader in that market. 
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Altera
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