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One of the factors in the company's success is its manufacture of programmable logic devices (PLDs), which allow customers, not chip makers, to customize functionality. In 2012, Xilinx held 49% of the growing PLD market, compared with 39% market share for its closest competitor Altera (ALTR).
Xilinx reported first-quarter sales for the period ended June 29 increased 9% year-over-year to $579 million. Net income was $157 million or 56 cents a share. Xilinx is due to release second-quarter results after market close on October 16.
"Strong cash flows, continued margin increases and dividend increases should continue to propel the shares higher," wrote Trifecta Stocks' Bryan Ashenberg and Bob Lang in their latest analysis.
Xilinx shares gained 2.4% to close at $46.78, outpacing the S&P 500 which gained 2.18%. Year to date, shares have climbed 30.5%.
TheStreet Ratings team rates Xilinx Inc as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate Xilinx Inc (XLNX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, notable return on equity, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow."