Xilinx ( XLNX) painted a bleak picture of its business, reporting flat performance in its most recently ended quarter and predicting financial results for the current quarter that lagged Wall Street expectations. The San Jose, Calif., company, among the first semiconductor companies to deliver results this earnings season, added to disappointing reports by Intel ( INTC) and chip-equipment maker Lam Research ( LRCX). Xilinx, which makes programmable logic chips, warned in December that sales in its fiscal third quarter were slowing down. But the company signaled continuing hardships after Thursday's market close. According to Xilinx, sales in the current quarter will be flat to down 5% sequentially. Analysts polled by Thomson Financial had been expecting a 4.5% uptick in sales during the current quarter. Still, investors bid shares up 33 cents in extended trading to $23.30; they closed the regular session down 2%, or 48 cents, at $22.97. In the three months ended Dec. 30, 2006, Xilinx said sales were weaker than expected in all of its end-markets, except for industrial and other. The communications end market experienced a 7% decrease in revenue compared with the previous quarter driven by softness in telecommunications. And revenue in the data processing end market tumbled 11%. Revenue came in at $450.7 million, down 4% sequentially. Xilinx had initially projected a 2% to 5% sequential increase in third-quarter sales, but revised its expectations last month.