Altera Corporation (ALTR) recently reiterated its sales guidance for the second quarter.
Altera continues to expect sales will be flat to up 5% in the second quarter. This implies a revenue guidance of $535.8 million – $562.6 million.
Altera expects that the Telecom and Wireless vertical market will be up sequentially driven by growth in wireless. However, revenues from other vertical markets such as automotive, industrial, military, computer, networking and other verticals are expected to be flat to slightly down sequentially.
On the first quarterly conference call, Altera stated that the earthquake in Japan (accounting for 15% of total revenues) will not impact results for the quarter. Gross margin is expected to come around 71%-72%, slightly lower than 72.6% reported in the first quarter due to a negative vertical mix. R&D expenditure is projected at $84 million-$85 million, up from the first quarter as Altera continues to expect a multi-period of 28-nanometer introductions.
SG&A expenditure is targeted at $70 million-$71 million. The company expects full-year SG&A to be $280 million, up from the previous estimate of $265 million, due to legal expenses, Avalon acquisition and other miscellaneous items.
Altera expects to continue to see significant 40-nanometer growth throughout FY11. In 2010, Altera focused on 28-nm development and will introduce more products in 28-nm than any previous process node in the coming years. We believe the company gained market share in 2010 vis-à-vis its rival Xilinx Corporation (XLNX).
Altera is expected to report second quarter results on July 19, 2011.
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