Xilinx and Altera, which together control more than 85% of the programmable logic market, are poised to grow twice as fast as the broader semiconductor industry going forward, according to a Wall Street analyst.

Chipmaker Altera has cut about 3% of its 2,700 person work force, according to a filing Tuesday with the Securities and Exchange Commission.

Second-quarter net income was US$47.4 million, down from US$98.0 million in the second quarter of 2008.

Yahoo has named Altera's CFO as its finance chief, the latest move by the Internet company to rebuild itself in the image of its new chief executive. Analyst said the hiring of Morse suggested that Bartz wanted someone to focus on "no-frills financial management."

Logic-chip maker Xilinx said sales in its fourth quarter would decline less than forecast, helped by better-than-expected wireless-communications sales. The forecast comes a day after rival Altera presented a more optimistic -- though still muted -- view of first-quarter revenue than it had in January because of better-than-expected demand from manufacturers providing equipment for Chinese 3G wireless networks.

Programmable chipmaker Altera said on Monday first-quarter sales would decline by a more moderate percentage than it previously expected thanks to demand for next-generation wireless equipment in China.

Altera Corp will spend US$20-25 million this year on its worldwide operations to grow new technologies and products. The company is also looking to open R&D sites in its Penang plant (Malaysia).

Programmable chipmaker Altera has slashed its fourth-quarter outlook, citing weaker-than-expected sales across all market segments. The company said it now expects revenue to fall 9-12% from the third-quarter, implying a range of around US$312-323 million.