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Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:

Altera Posts Higher Profit as Sales Rise [Reuters]

Summary: Altera Corp. earnings rose 12% this quarter due to strong demand for new products and record sales of its HardCopy series of products. The company announced it earned $0.24/share ($87.4M); $0.27/share excluding stock-option expenses, beating the Street's forecast of $0.25. Sales of new products were up 26% on the quarter, and 142% from this time last year. The strongest growth, however, was in computer/storage chips (+27%), while communications chips, which are the bulk of ALTR's income, declined 3% q/q. Forth-quarter sales Altera Chart 7 11 06guidance of -2 to -5% was weaker than expected; accumulating FPGA chip inventory is expected to put pressure on prices. Altera is one of over 100 companies being investigated by the SEC for options backdating, and the company had previously announced it would book $47.6M in charges because of dating discrepancies. Altera shares were up 4% during regular hours, and another 2.5% in after-hours trading.
Related links: Altera Q3 2006 Earnings Call Transcript • Altera was one of 54 companies threatened with delisting by Nasdaq for not filing its Q3 financial reports on time • KLA and Altera Execs Fall to Backdating FluWSJ Options Scandal Scorecard
Potentially impacted stocks and ETFs: Altera Corp. (NASDAQ:ALTR) • Altera's main competitor is Xilinx Inc. (NASDAQ:XLNX), also Lattice Semiconductor Corp. (NASDAQ:LSCC) • ETFs: SPDR Semiconductor (NYSEARCA:XSD), iShares Goldman Sachs Semiconductor (IGW), PowerShares Dynamic Semiconductors (NYSEARCA:PSI), Semiconductor HOLDRs (NYSEARCA:SMH)

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Source: Altera Shares Rise on Earnings Beat, Despite Lowered Guidance