NEW YORK ( TheStreet) -- Xilinx ( XLNX) said late Tuesday 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 San Jose, Calif.-based maker of programmable logic chips said it 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. The current average estimate of analysts polled by Thomson Reuters is for a profit of 58 cents a share on revenue of $604.7 million in the quarter.

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."

Shares of Xilinx closed Tuesday's regular session up 1% at $28.39. Year-to-date, the stock has risen around 12.2% based on that finish, although it's well off a 52-week high of $29.40 reached in late July. In after-hours action, the shares were last quoted at $26.91, down 5.2%, on volume of roughly 165,000, according to Nasdaq.com.

The news was already weighing on shares of other chip makers including Xilinx's main competitor Altera ( ALTR), which was off almost 4% in extended action to $34.52 on volume of more than 250,000, and NetLogic Microsystems ( NETL), which slumped 3.3% to $31 on volume of around 12,000 in late trades.

-- Written by Michael Baron in New York.

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