Updated from Dec. 8
took a tumble early Thursday after the company said that its fiscal third-quarter sales are running below expectations.
In premarket trading, the company's stock was off $2.41, or 7.8%, to $28.32.
Although the chipmaker saw "strong" sales in October, bookings in November came in weaker than expected, the company said Wednesday in its midquarter update. While bookings picked up in the first week of December, Xilinx expects them to tail off due to holiday seasonality.
As a result, the company now expects its revenue to fall 5% to 8% from what it posted in its fiscal second quarter. That forecast implies revenues ranging from $371.02 million to $383.12 million in the current quarter.
In October, Xilinx forecast that its revenue would be down 2% to 6% sequentially in its fiscal third quarter. Because the company posted $403.28 million in revenue in its fiscal second quarter, its previous forecast implied revenue of $379.08 million to $395.21 million in the current quarter.
The company has not given any specific earnings guidance, only saying in October that it expected its operating expenses to be flat compared with its fiscal second quarter. In its update today, the company reiterated its prediction that its gross profit margin will come in at 64% of sales.
Analysts are expecting the company to earn 22 cents a share in the current quarter on sales of $387.38 million.
Because of the lower-than-expected revenue, inventory at Xilinx and its distributors will be higher than expected at the end of the quarter, the company said in its update. The company now expects that it and its distributors combined will have 170 days worth of inventory on hand at the end of the quarter. Previously, the company had predicted that it would have 156 days worth of inventory in its channel at quarter end.