UPDATE 2-Altera sees quarterly revs up 3 to 6 pct

* Chipmaker sees Q4 revs up 3 to 6 pct sequentially

* Q4 guidance unchanged from report in Oct

* Company plans higher 2011 R&D spending
(Recasts, adds detail, quote)

SAN FRANCISCO, Nov 29 (BestGrowthStock) – Programmable chip maker
Altera Corp (ALTR.O: ) forecast fourth-quarter revenue up between
3 percent and 6 percent sequentially, in line with analysts’
expectations, and said it would boost R&D spending next year.

Analysts polled by Thomson Reuters I/B/E/S on average had
expected Altera, which along with competitor Xilinx (XLNX.O: )
dominates the programmable logic chips market, to increase its
fourth-quarter revenue by 3.5 percent from the prior quarter.

Its quarterly revenue guidance was unchanged from its
previous forecast issued in October in its third-quarter
report.

Altera said its gross margin next year would be 70 percent,
plus or minus 1 percentage point. Its gross margin in the third
quarter of 2010 was 70 percent.

Altera also said it would increase its 2011 research and
development spending by 26 percent to $330 million as it
introduces 28-nanometer microchips.

“They’re investing in new products next year, spending a
lot on R&D, which could take out some of the earnings leverage.
But helping offset that, keeping gross margins roughly intact
at 70 percent is also a positive.” said Ian Ing, an analyst at
Gleacher & Company.

Shares of San Jose, California-based Altera, which makes
chips used in wireless base stations, cars and radar, fell 0.9
percent in after hours trading to $35, after ending down 2
cents at $35.47 in the regular session on Nasdaq.
(Reporting by Noel Randewich; Editing by Tim Dobbyn and Gunna
Dickson)

UPDATE 2-Altera sees quarterly revs up 3 to 6 pct