Altera profit falls 52 percent but meets estimates

SAN JOSE, Calif. (AP) — Chipmaker Altera Corp. said Tuesday its profit dropped 52 percent in the second quarter as sales fell and taxes increased.

For the quarter ended June 26, Altera said its net income decreased to $47.4 million, or 16 cents per share, compared with $98 million, or 32 cents per share, a year ago. The company said a court ruling increased its tax costs by 4 cents per share. Revenue fell 22 percent to $279.2 million from $359.9 million.

According to Thomson Reuters, analysts expected a profit of 16 cents per share and $277.6 million in revenue. In aftermarket trading, Altera shares rose 70 cents, or 3.1 percent, to $17.07, having closed the regular session at $16.56.

The court ruling was related to worldwide equity compensation cost sharing. Altera wasn't involved in the case, but the company said the decision increased its tax responsibilities.

Sales of new products grew 16 percent in the quarter.

In the third quarter, Altera said sales will decreased 1 percent to 5 percent from the second quarter. That implies revenue of $265.2 million to $276.4 million, while analysts expect $279.2 million.