It's not getting any easier for makers of specialty communications chips. But it may not be getting much worse either.
Programmable logic device maker
on Monday added itself to the list of companies that is standing by their revenue guidance for June quarter. The maker of PLDs, which customers can program themselves, said in a scheduled business update Monday that it still expects revenue to decline 15% to 25% in the fiscal first quarter, which ends this month, from the fiscal fourth quarter. Xilinx reported revenue of $407 million in the fourth quarter ended March 31.
The company also said that order cancellations and delays have slowed considerably. And international revenue may exceed North American revenue in the June quarter, it said. But Xilinx added that gross profit margins will come in at the low end of its guidance of 58% to 60%.
The guidance is a bit surprising in that it comes just a few days after competitor
lowered its revenue outlook. For the quarter ending June 30, Altera expects revenue to decline about 25% from the first quarter's top line of $287.4 million. Altera previously expected a sequential decline of 20%. The new forecast would imply revenue of about $215.5 million for the second quarter.
Xilinx now is on the list of companies cautiously optimistic about how the historically slow second quarter is shaping up. It's also in the company of chip equipment maker
last Thursday stuck by its numbers while giving a much more skeptical take on the possibility of a second-half recovery in the semiconductor market.
Programmable logic devices have had a tough year as their primary-end markets have come under pressure. The slowdown in the networking sector and the resulting ballooning of inventories among networkers have made it difficult for Xilinx and Altera to sell their products. Indeed, Xilinx took a writedown for excess inventory during its March quarter.