(By Salman - iStockAnalyst Writer)Xilinx Inc. (
) is scheduled to report its first-quarter results after the market closes on July 15. Analysts currently expect the company to report earnings of 19 cents a share on revenue of $381.44 million. In the prior-year period, the company earned $0.30 per share on net revenue of $488.2 million.
Xilinx, Inc. engages in the design, development, and marketing of programmable logic solutions. It offers advanced integrated circuits in the form of programmable logic devices (PLDs); software design tools to program the PLDs; predefined system functions as intellectual property (IP) cores; design services; customer training; and field engineering and technical support solutions. About 40% of its business comes from the communications market, and about 30% stems from the industrial segment.
The company is not immune to the current recessionary environment, it has benefited from exposure to defense applications, next-generation China wireless applications, and strong Virtex-5 sales momentum which has enabled it to significantly outperform the semiconductor industry.
The company
is not immune to the current recessionary environment, it has benefited from exposure to defense applications, next-generation China wireless applications, and strong Virtex-5 sales momentum which has enabled it to significantly outperform the semiconductor industry. Xilinx expects China wireless to be contribute significantly in the June quarter results.
Early this month,
Xilinx trimmed June quarter sales guidance. The company blamed supply constraints for certain Virtex-5 devices that are in high demand, a situation it expects will be resolved next quarter. Virtex-5 lines are programmable chips for high-speed networking applications. Xilinx said sales for the June quarter would be down 5 percent from the previous quarter's $395 million, indicating sales of about $375 million. It had previously said the change in sales would range from a drop of 4 percent to an increase of 4 percent. However, Xilinx maintained its gross margin guidance of 61% to 63% and operating expense guidance of flat to slightly down on sequential basis.
The San Jose California-based company has reported revenue drops in each of its last four quarters. In the first quarter, Xilinx reported a fourth-quarter profit of $70.5 million, or 26 cents a share, down from $96.5 million, or 34 cents a share, a year earlier. "On an adjusted basis, the company earned 20 cents a share. Sales slipped 17% to $395 million. Analysts on average were looking for earnings of 18 cents a share on revenue of $385 million.
The company has intiated various cost-cutting measures. In April Xilinx announced that it would cut about 6% of its staff, freeze salaries and work to improve efficiency. Though there are few signs of stabilization in semiconductor industry, overall picture still remains uncertain. According to the Semiconductor Industry Association, worldwide sales of semiconductors were $16.5 billion in May, 23.2 percent lower than the sales of $21.5 billion in May 2008..
In terms of stock performance, shares of the company are up 8% since the beginning of the year. On Tuesday Xilinx rose 19 cents or 0.96% to $19.88.
Disclosure: Author doesn’t own any of the stocks mentioned here.
