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Wednesday, September 13, 2006

Xilinx Guides Chip Revenues Slightly Lower

Xilinx Inc. (XLNX) has issued its mid-quarter business update for the quarter ending September 30, 2006 to the investor community. This is somewhat similar to the company’s prior guidance, but it does show a slight erosion. The company is now forecasting a sequential decline in revenues of -4% to -7%. Previously it showed a flat to -5% projected drop.

The company is signaling lower sales from the Asia Pacific region.

The company posted revenues of $481.3 million last quarter, so you can interpolate the numbers with a range instead of $457.23 million to $481.3 million to a new range of $447.6 million to $462.05 million. Analysts expect $472.55 million for this quarter, with the lowest seen estimate at $460 million for the quarter.

This company has been trading in a $20.00 to $25.00 trading range for most of the last 3-months, and that is down from a prior $25.00 to $30.00 trading range for about 9 months before that.

XLNX closed down 1% ahead of the mid-quarter update at $21.54. The stock initially fell another 1% right after this update, but shares are now only down about $0.03 from the $21.54 close. Because of the current valuations and because the chip stocks have been battered and tattered, it looks like the street is trying to give the company a pass on this piece of news. We’ll see how they treat it in the morning after all the research notes are released.

Jon C. Ogg
September 13, 2006
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