Xilinx Rises on Street Beat - TheStreet

Xilinx Rises on Street Beat

The semiconductor spikes 6% on EPS beat, and sales and outlook that are in line with the Street.
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Xilinx

(XLNX) - Get Report

saw its profit tumble 20% in its fiscal third quarter, but the company handily beat Wall Street EPS expectations.

Shares of Xilinx jumped 6.2%, or $1.81, to $31.01 on the EPS upside news as well as on its bullish outlook for the current quarter.

The San Jose, Calif., maker of programmable chips said revenue in the three months ended March 31 fell 6% year over year to $443.5 million, in line with Wall Street estimates.

The weakening sales were the result of declines in the defense, wireless and consumer applications markets, Xilinx said.

Sales from wired communications were up slightly in the quarter, after suffering from consolidation in the telecommunications end-market.

"I view this as an optimistic sign that some stabilization in customer ordering patterns may be returning to this sector," CEO Wim Roelandts said in a statement.

Net income was $87.6 million, or 27 cents a share, vs. $110.7 million, or 32 cents a share, at this time last year. Analysts polled by Thomson Financial had expected only 23 cents EPS.

Xilinx's gross margin was 62%, 1 percentage point higher than its guidance.

Looking ahead, Xilinx projected that revenue would be up 1% to 5% sequentially in the current quarter. That suggests a range of $448 million to $465.5 million. Analysts polled by Thomson Financial were looking for $453.5 million in sales.