Altera Takes Loan for Buyback; Reiterates Q3 Guidance

Programmable chip manufacturer Altera said Wednesday it has entered into a five-year, $750 million unsecured credit facility to finance a $500 million share buyback scheduled to be completed in H1 2008. The company also affirmed its Q3 outlook of flat-to-3% revenue growth. The $500 million buyback will be additional to a previously announced $1 billion repurchase. Altera has spent $651 million on buybacks so far in 2007 and does not plan to take on additional debt. The company also reiterated its Q3 sales projection of $319.7-329.3 million.

Sources: AP, Bizjournal
Commentary: Altera Tops Estimates, Boosts Outlook • Semiconductor Pricing Appears To Be Bottoming • Cash-Rich Companies: Watch Out for the Siren’s Song
Stocks/ETFs to watch: ALTR. Competitors: ACTL, LSCC, XLNX. ETFs: SMH, XSD
Earnings call transcript: Altera Q2 2007

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