SAN FRANCISCO, April 22 (Reuters) - Chip maker Xilinx Inc posted a 27 percent drop in net income in its fiscal fourth quarter but results exceeded Wall Street expectations and the company gave a better-than-expected sales forecast.
The San Jose, California-based company said on Wednesday that it earned $70.5 million, or 26 cents a share, in its fiscal fourth quarter compared with net income of $96.5 million, or 34 cents a share at this time last year.
Excluding special items Xilinx earned 20 cents, versus the 18 cents average analyst expectation according to Reuters Estimates.
Revenue in the three months ended March 28 was $395 million, down 17 percent year-over-year but ahead of the $386.1 million expected by analysts, according to Reuters Estimates.
Xilinx said economic conditions remained challenging, but that the company is benefiting from increased participation in markets for next-generation wireless technology and defense.
Sales declined on a sequential and year-over-year basis in each of the company's four major end-markets, with revenue from the consumer and automotive group posting the steepest drop as sales declined 33 percent from the same time last year.
Xilinx posted a gross profit margin of 62.1 percent of revenue, at the midpoint of its guidance. But the company said its operating expenses in the fiscal fourth quarter were lower than expected thanks to continued cost controls.
Xilinx makes programmable chips used in telecommunications and industrial gear as well as consumer products.
On Tuesday, Xilinx competitor Altera Corp reported a 21 percent revenue decline in the first three months of the year, although the results slightly exceeded Wall Street expectations thanks to growth in Asia's telecommunications markets.
Xilinx said it expects revenue in the current quarter to be up 4 percent sequentially to down 4 percent sequentially, suggesting a range of $379.2 million to $410.8 million.
The average analyst expectation called for revenue in the current quarter of $378.1 million.
Xilinx shares, which are off roughly 25 percent from their 52-week high of $28.21, traded as high as $21.99 after-hours on Wednesday, up from its close of $20.93.
(Reporting by Alexei Oreskovic; editing by Carol Bishopric) Keywords: XILINX/ (alexei.oreskovic@thomsonreuters.com; +1 415 677 2511; alexei.oreskovic.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The San Jose, California-based company said on Wednesday that it earned $70.5 million, or 26 cents a share, in its fiscal fourth quarter compared with net income of $96.5 million, or 34 cents a share at this time last year.
Excluding special items Xilinx earned 20 cents, versus the 18 cents average analyst expectation according to Reuters Estimates.
Revenue in the three months ended March 28 was $395 million, down 17 percent year-over-year but ahead of the $386.1 million expected by analysts, according to Reuters Estimates.
Xilinx said economic conditions remained challenging, but that the company is benefiting from increased participation in markets for next-generation wireless technology and defense.
Sales declined on a sequential and year-over-year basis in each of the company's four major end-markets, with revenue from the consumer and automotive group posting the steepest drop as sales declined 33 percent from the same time last year.
Xilinx posted a gross profit margin of 62.1 percent of revenue, at the midpoint of its guidance. But the company said its operating expenses in the fiscal fourth quarter were lower than expected thanks to continued cost controls.
Xilinx makes programmable chips used in telecommunications and industrial gear as well as consumer products.
On Tuesday, Xilinx competitor Altera Corp reported a 21 percent revenue decline in the first three months of the year, although the results slightly exceeded Wall Street expectations thanks to growth in Asia's telecommunications markets.
Xilinx said it expects revenue in the current quarter to be up 4 percent sequentially to down 4 percent sequentially, suggesting a range of $379.2 million to $410.8 million.
The average analyst expectation called for revenue in the current quarter of $378.1 million.
Xilinx shares, which are off roughly 25 percent from their 52-week high of $28.21, traded as high as $21.99 after-hours on Wednesday, up from its close of $20.93.
(Reporting by Alexei Oreskovic; editing by Carol Bishopric) Keywords: XILINX/ (alexei.oreskovic@thomsonreuters.com; +1 415 677 2511; alexei.oreskovic.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.