SAN JOSE (dpa-AFX) - Shares of Xilinx Inc. (XLNX) declined more than 9 percent in extended trades Tuesday after the programmable chipmaker's revenue for the first quarter missed analysts' expectations and the company forecast revenue for the second quarter also below estimates.
Xilinx said its revenues for the first quarter were impacted by weaker than anticipated sales from its defense and wireless businesses. However, the company's profit for the first quarter increased 11 percent and beat Street expectations by a penny.
Moshe Gavrielov, Xilinx President and Chief Executive Officer said, 'June quarter revenues were impacted by weaker than anticipated sales from our defense and wireless businesses. However, I am pleased by our continued focus on supply chain efficiencies and cost reduction efforts, which resulted in gross and operating margins of 69.1% and 33.7%, respectively.'
The San Jose, California-based company reported net income for the first quarter of $173.61 million or $0.62 per share, up from $157.02 million or $0.56 per share for the year-ago quarter.
On average, 21 analysts polled by Thomson Reuters expected the company to earn $0.61 per share for the quarter. Analysts' estimates typically exclude special items.
Net revenue for the quarter rose 6 percent to $612.63 million from $578.96 million in the same quarter last year. Analysts had a consensus revenue estimate of $631.55 million for the quarter.
Xilinx noted that 43 percent of its quarterly revenue came from the Asia-Pacific region, which saw revenue growth of 26 percent. Japan revenue grew 21 percent. Meanwhile, North America revenue declined 12 percent from last year and constituted 26 percent of total revenue. The company also saw a 7 percent decline in Europe revenue.
Further, Xilinx board of directors announced a quarterly cash dividend of $0.29 per outstanding share of common stock, payable on August 27, 2014 to all stockholders of record at the close of business on August 6, 2014.
Looking ahead to the second quarter, Xilinx forecast sales to be flat to down 4 percent sequentially, implying revenue of $588.12 million to $612.63 million. Analysts currently expect the company to post revenue of $644.48 million for the first quarter.
The company projects gross margin for the second quarter to be about 70 percent.
Gavrielov said, 'Looking ahead to the second half of our fiscal year, I believe Xilinx is positioned to benefit from a recovery in wireless and defense programs as well as improved business conditions in wired communications and industrial applications.'
XLNX closed Tuesday's regular trading session at $48.15, down $0.18 or 0.37 percent on a volume of 3.80 million shares. In after-hours, the stock further declined $4.40 or 9.14 percent to $43.75.
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