SAN JOSE (dpa-AFX) - Xilinx Inc. (XLNX) on Wednesday said its third-quarter profit dropped four percent, hurt mainly by higher operating costs, with both earnings and revenues falling short of Wall Street estimates.
Moving ahead, the company detailed a weak outlook for the fourth quarter. Shares of Xilinx slipped six percent in the extended trading, following the announcement of results.
San Jose, California-based Xilinx' third-quarter profit dropped to $168.5 million or $0.62 per share from last year's profit of $175.9 million or $0.61 per share. Earnings for the quarter includes a $0.02 per share benefit related to the reinstatement of R&D tax credit.
Analysts polled by Thomson Reuters expected earnings of $0.61 per share for the quarter. Analysts' estimates typically exclude special items.
The programmable chip maker's third-quarter revenues rose 1 percent to $593.55 million from $586.82 million a year ago. Analysts had a consensus revenue estimate of $616.59 million for the quarter.
'Solid profitability during the quarter was tempered by disappointing sales from broadcast and communications end markets,' said Moshe Gavrielov, Xilinx President and Chief Executive Officer.
Operating expenses rose to $223.9 million from $203.3 million last year.
Looking forward to the fourth quarter, the company expects sales to be down 2 to 6 percent sequentially, indicating revenues of about $581.7 million to $557.9 million. Fourth-quarter gross margins are expected at about 68 to 69 percent. Analysts currently expect revenues of $635.37 million for the fourth quarter.
XLNX closed Wednesday's trading at $41.51, up $0.45 or 1.10%, on the Nasdaq. The stock, however, dropped $2.51 or 6.05%, in the after-hours trade.
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