* Q2 sales $464.8 mln vs $445.2 mln
* Q2 EPS $0.50 vs est $0.39
* Sees Q3 sales up 2-6 pct over Q2
* Shares up 10 pct
July 24 (Reuters) - Altera Corp reported second-quarter results that blew past expectations and the company projected a strong third-quarter on sales of its new smaller chips.
The company raised its quarterly dividend to 10 cents per share from 8 cents and added another $10 million to its existing share repurchase program.
Shares of the company rose 10 percent in extended trade. They closed at $30.67 on Tuesday on the Nasdaq.
Altera projected a 2-6 percent sequential sales growth for the third quarter, translating to about $474.1 million to $492.7 million in revenue.
Analysts were expecting about $470.7 million in sales for the current quarter, according to Thomson Reuters I/B/E/S.
Altera's strong results and outlook contrast with rival Xilinx Corp, which has been slow in catching up on the ramp up to smaller, cutting edge 28-nanometer chips.
The programmable chipmaker posted a profit of 50 cents per share on revenue of $464.8 million in the second quarter. Analysts on average had expected a profit of 39 cents per share on revenue of $445.2 million.