Xilinx Meets Estimates

Shares move higher as guidance is in line.
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Xilinx

(XLNX) - Get Report

met its financial targets for its fiscal first quarter, the programmable-microchip maker announced late Thursday.

Xilinx reported net income of $76.8 million, or 21 cents a share, on sales of $405.4 million. During the same quarter last year, the company earned $95.3 million, or 26 cents a share, on sales of $423.6 million.

Analysts expected earnings of 21 cents a share on sales of $401 million, on average, according to Thomson First Call.

At the quarter's start and again during a midquarter update, Xilinx predicted sales between $391 million and $406.6 million. Gross margins were initially targeted at 62% and then tweaked lower at midquarter to 61%.

Actual gross margin was 60.9% compared with 61.1% in the previous quarter and 66% in the same quarter last year.

For the second quarter, Xilinx predicted revenue flat to up 4% sequentially, for a targeted range of $405.4 million to $421.6 million, and gross margin between 61% and 62%. Analysts had predicted sales of $409 million and earnings of 22 cents a share.

Xilinx shares rose 2.2% to $27.60 on Island ECN after ending the regular session down 3.9% to $27. The report also helped shares of

Altera

(ALTR) - Get Report

, Xilinx's primary rival in the market for programmable microchips. Altera shares added 1% to $22.32 in late trading. Altera will report financial results July 25.