Saturday, January 15, 2011

Xilinx (NASDAQ: XLNX): Q3 Earnings Preview 2011

Xilinx Inc. (NASDAQ: XLNX) is scheduled to release its fiscal third-quarter earnings after the closing bell on Wednesday, January 19, 2011. Analysts, on average, expect the company to report earnings of 52 cents per share on revenue of $569.46 million. In the year-ago quarter, the company reported earnings of 38 cents per share on revenue of $513.35 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. In addition to its programmable platforms, Xilinx provides design services, customer training, field engineering and technical support.

In the preceding second-quarter, the San Jose, California-based company's net income was $170.9 million, or 65 cents a share, compared to $64 million, or 23 cents a share, in the comparable quarter last year. Revenue surged 49% to $619.7 million from $414.95 million. Analysts, on average, expected the company to report earnings of 65 cents per share on revenue of $626.32 million. Gross margin for the quarter improved to 65.6% from 61.9% a year ago. 

Late in December, Xilinx said that it expects a sequential sales decline in the current quarter to be deeper than previously anticipated because of weak demand from some of its large wireless communications customers. The company now expects sales for its fiscal third quarter ending Dec. 31 to fall between 7% and 9% from its total of $619.7 million in the September-ended period. Its prior sales outlook was for between a flat performance and a sequential decline of 4%. Using the 7-9% range, the company's projection works out to quarterly sales of roughly $563.9 million and $576.3 million for the December-ending period. Xilinx added that its gross margin is still expected to come in at 65% for the current quarter, in line with its prior view, and that it believes it will start growing sales in its communications business in the March quarter "based on on current backlog and forecasts from its large customers."

In terms of stock performance, Xilinx shares have gained nearly 24 percent over the past year.

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