Xilinx Posts Sharp Jump in Profit - TheStreet

A rise in sales and a shift to more efficient manufacturing technology helped chipmaker

Xilinx

(XLNX) - Get Report

post a sharp increase in profit during the fiscal second quarter, the company said after the close on Thursday.

Xilinx, which said last month that sales would likely be flat to up slightly from the first quarter, posted second-quarter revenue of $315.5 million, an increase of 1% from that last quarter and up 14% from the same quarter last year.

Net income for the quarter ended Sept. 27 rose to $56.4 million, or 16 cents a diluted share, from $38.7 million, or 11 cents a share, a year earlier.

Analysts polled by Thomson First Call had expected revenue of $316.6 million and earnings of 15 cents a share.

The company's gross margin of 61% was better than expected and up from 60% in the prior quarter.

"Much of this improvement has been driven by the shift to 300mm wafer production, which enables significant cost reductions," said CEO Wim Roelandts in a prepared statement.

The San Jose, Calif.-based company said it expects third-quarter sales to rise about 4% from its second quarter, which ended in September.

Nonetheless, shares were off 96 cents, or 3%, at $29.19 in after-hours trading.