Specialty communications chip maker
said Tuesday that revenue in the quarter ending this month will be lower than it expected because of a weak June.
Xilinx, which makes programmable logic devices, or chips that customers can program themselves, said revenue will fall 32% in the June quarter from the top line of $407 million in the fourth fiscal quarter. That implies revenue of $277 million for the first quarter. According to
Thomson Financial/First Call
, analysts had expected revenue to decline 21% to $321 million.
In a statement, Xilinx said that turns, or orders that are booked and shipped in the same quarter, declined during the first three weeks of June. And the company said that a greater percentage of its revenue during the downturn in the semiconductor cycle has come from turns.
Earlier this month, Xilinx said revenue would sequentially decline 15% to 25% in the fiscal first quarter. That guidance reaffirmed the company's earlier forecast for the period.
Xilinx's warning is the second for the communications sector of the semiconductor business in as many days. Last night, communications chip maker
Applied Micro Circuits
also warned of sharply lower sales for the June quarter. The communications sector has been weighed on by a slowdown in telecommunication spending. That affects Xilinx's telecommunication equipment customers directly and Xilinx indirectly.