Altera (ALTR) reported Q1 revenue of $336.1 million and EPS of 27 cents a share, ahead of Street expectations of $326.5 million and 23 cents. The company said revenue growth was better than expected “as new products grew strongly.”

Altera sees Q2 revenue up 1%-4% sequentially, which suggests $339.5 million to $349.5 million; the Street had been looking for $336.6 million. The company is looking for gross margin in the quarter of 65%, plus-or-minus half a point; that is similar to the 65.1% reported in Q1.

The company also raised its quarterly cash dividend to 5 cents from 4 cents.

In after hours trading, ALTR is up $1.40, or 7.3%, to $20.60; the stock had gained $1.09 in the regular session.