Xilinx, Inc. Earnings Cheat Sheet: Revenue Falls After Four Straight Increases, Net Income Drops

S&P 500 (NYSE:SPY) component Xilinx, Inc. (NASDAQ:XLNX) reported its results for the second quarter. Xilinx designs, develops and markets programmable platforms and predefined system functions delivered as intellectual property cores.

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Xilinx Earnings Cheat Sheet for the Second Quarter

Results: Net income for Xilinx, Inc. fell to $126.3 million (47 cents per share) vs. $170.9 million (65 cents per share) a year earlier. This is a decline of 26.1% from the year earlier quarter.

Revenue: Fell 10.4% to $555.2 million from the year earlier quarter.

Actual vs. Wall St. Expectations: XLNX beat the mean analyst estimate of 44 cents per share. Analysts were expecting revenue of $562.8 million.

Quoting Management: “Sales growth during the September quarter was impacted by weaker than expected business conditions particularly in the Communications and Industrial and Other categories. In spite of declining sales, operating margin for the quarter was 28% as a result of higher-than-expected gross margin and a commensurate slow down of spending in recognition of the environment,” said Moshe Gavrielov, Xilinx President and Chief Executive Officer. “Additionally, we continued to demonstrate leadership on the 28-nm node by recently taping out our sixth device, achieving to date over 200 design wins, and shipping parts to 50 discrete customers.”

Key Stats:

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the second quarter of the last fiscal year, which saw revenue rise 49.3%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the first quarter, by 8 cents in the fourth quarter of the last fiscal year, and by 7 cents in the third quarter of the last fiscal year.

The company has now seen net income fall in each of the last two quarters. In the first quarter, net income fell 2.7% from the year earlier quarter.

The company’s cost of sales fell 6% from a year earlier to $200.6 million. Last quarter, cost of sales was 36.1% or revenue versus 34.4% a year earlier.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the third quarter is 46 cents per share, down from 55 cents ninety days ago. For the fiscal year, the average estimate has moved down from $2.18 a share to $1.95 over the last ninety days.

Competitors to Watch: Altera Corporation (NASDAQ:ALTR), Lattice Semiconductor (NASDAQ:LSCC), QuickLogic Corporation (NASDAQ:QUIK), Cypress Semicond. Corp. (NASDAQ:CY), Microsemi Corporation (NASDAQ:MSCC), Atmel Corporation (NASDAQ:ATML), ON Semiconductor Corp. (NASDAQ:ONNN), Sajan, Inc. (SAJA), Texas Instruments Inc. (NYSE:TXN), and TranSwitch Corporation (NASDAQ:TXCC).

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(Source: Xignite Financials)

 

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