Xilinx Beats Estimates

Profit rises 65%.
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Xilinx

(XLNX) - Get Report

posted a better-than-expected quarterly profit Wednesday, thanks to healthy demand for the company's new chips and strong growth in European markets.

The San Jose, Calif. maker of programmable logic chips said it earned $110.7 million in its fiscal fourth quarter, or 32 cents a share, up 65% from the $67.2 million net income in the fourth quarter of 2005.

Sales of $472.3 million came in at the high end of the company's guidance, which had set a range of $454.5 million to $472.5 million for the three months ended April 1, 2006.

Analysts polled by Thomson First Call had expected LSI to report $465 million in revenue with EPS of 28 cents.

The company's earnings included a $4.5 million acquisition-related charge.

According to Xilinx, European sales jumped 24% year over year, with particular strength in the communications market.

Sales of the company's newest chips were also very strong, with the Virtex-4 product growing by more than 70% sequentially.

The company projected that sales would increase 1% to 5% sequentially in the current quarter, putting revenue between $477 million and $495.9 million.

Analysts expected the company to record $479.2 million in revenue in the current quarter, with EPS of 29 cents.

Xilinx also announced that it will increase its cash dividend from 7 cents a share to 9 cents a share to all stockholders of record at the close of business on May 10.

Shares of Xilinx were up 1.8%, or 47 cents, at $27.04 in extended trading.