Altera Corp. said third-quarter profit climbed 37 percent, topping Wall Street targets and sending its shares up nearly 9 percent.

The company said sales were also at the high end of its own target range and that its next generation of chips was on schedule to ship in the current quarter. Programmable chips are found in a wide range of products, including consumer electronics, computers and GPS systems.

Net earnings rose to $94.7 million, or 31 cents a share, from $69 million, or 20 cents a share, in the year-ago period, and topped Wall Street targets by a penny per share, according to Reuters Estimates.

Altera's shares have been beaten down alongside other technology issues in recent weeks on fears orders with soften as part of the broader economic slowdown.

Revenue rose 13 percent to $356.8 million, while gross margin rose to 67.1 percent from 63.8 percent last year.

Altera also reported cash and short-term investments of $1.28 billion.

The company forecast fourth-quarter sales in a range of up 1 percent to down 3 percent from the third quarter. That would be a range of $346.1 million to $360.4 million, while analysts expect revenue of $360.4 million.

Gross margins are expected in a range of 67.5 percent to 68.5 percent, the company said.

By: DocMemory
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