Xilinx Cuts Sales Forecast - TheStreet

Xilinx Cuts Sales Forecast

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Updated from 5:09 p.m. ET

Another semiconductor company fessed up Monday to slowing demand.

Xilinx

(XLNX) - Get Report

, a maker of logic devices that customers can program themselves, said Monday in its monthly update that November was weaker than anticipated, so it expects revenue will rise only 5% to 7% this quarter from the previous quarter's $437.4 million -- not the 12% it had initially anticipated.

Semiconductor companies like Xilinx are suffering because of inventory build-up along the supply chain to their end customers, which are typically large telecommunications companies. Other kinds of chip companies also are feeling the squeeze from declining personal computer sales. And there are concerns that overall demand across the industry is waning.

Xilinx¿s lowered expectation isn't quite as steep a reversal as that of competitor

Altera

(ALTR) - Get Report

, which last Wednesday

said revenue during the December quarter would be unchanged from the September quarter. Shares of Altera and Xilinx fell sharply last week on that lowered guidance, as Xilinx investors extrapolated that a slower quarter was under way for Xilinx as well and analysts cut earnings estimates.

Altera and Xilinx had largely recovered by Monday. Xilinx finished regular trading Monday up $1.69, or 4%, at $41.69. But in after-hours trading on

Island

, it fell to $37.38.

Xilinx still expects to post a revenue increase apparently because its orders in Europe, Japan and Southeast Asia didn't suffer as much as they did in North America during November. Altera had said it suffered global declines.