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Programmable logic device (PLD) maker Altera Corporation (ALTR - Analyst Report) recently revealed several key innovations planned for its next-generation 20-nanometer products. 

Based in San Jose, California, the company designs, manufactures, and markets a broad range of high-performance, high-density PLDs such as field-programmable gate arrays (FPGAs) and complex programmable logic devices (CPLDs).
 
Based on its 20nm products, Altera expects to offer customers a unique integration platform, which combines the hardware programmability of FPGAs with the software flexibility of digital signal processors and microprocessors as well as the efficiencies of application-specific hard intellectual property (IP).
 
This new node is projected to deliver new levels of performance, bandwidth, integration and power efficiency.
 
Altera continues to achieve great success for products in the 28-nanonmeter node. Altera believes that opportunities in the 28-nanometer segment is larger than any prior node. Hence, the company continues to explore further in the application-specific integrated circuit (ASIC) and Application-specific standard products (ASSP) markets for PLD.
 
In the second quarter, Altera registered growth both in the 28nm and 40nm products. 28nm products grew 166% sequentially. 40nm products accounting for 28% of revenue grew 42% sequentially. 
 
Altera continues to benefit from the growth in 65-nm and 40-nm FPGAs as customer designs move from prototyping to production. Altera has a pipeline of 28 nanometer products, which it believes will maintain the growth momentum in the upcoming quarters.
 
PLD is an integrated circuit that can be programmed to perform complex functions. Logic devices are used to direct signal traffic within a digital system. 
 
Last week, Altera updated its guidance for the third quarter of 2012. Altera expects revenue growth of 2% – 6% on a sequential basis, in line with the guidance provided with the second quarter results. This implies a revenue guidance of $437.5 million – $452.9 million. 
 
Altera continues to see traction in the 28-nanometer node and expects revenue from this node to exceed $20 million in the third quarter. Revenue from 40-nanometer node is also expected to grow sequentially.
 
We continue to maintain a Neutral recommendation on Altera Corporation. Nevertheless, we have a Zacks #2 Rank on the stock, which translates into a short-term rating of Buy. 

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