Xilinx Inc. Earnings: Profit Southbound for Fourth Straight Quarter, but Beats Expectations

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

Investing Insights: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

Xilinx Earnings Cheat Sheet for the Third Quarter.

Results: Net income for the semiconductor company fell to $127 million (47 cents per share) vs. $152.3 million (58 cents per share) a year earlier. This is a decline of 16.6% from the year earlier quarter.

Revenue: Fell 9.9% to $511.1 million from the year earlier quarter.

Actual vs. Wall St. Expectations: XLNX beat the mean analyst estimate of 37 cents per share. It beat the average revenue estimate of $500.4 million.

Quoting Management: “We experienced strong growth in our Virtex-6 and Spartan-6 product families and achieved significant milestones in our 28-nm rollout, in spite of challenging industry conditions. During the quarter, we commenced shipments of the PLD industry’s first Stacked Silicon Interconnect (NYSE:SSI) product as well as the industry’s first embedded systems platform, the Zynq-7000 product family,” said Moshe Gavrielov, Xilinx President and Chief Executive Officer. “Xilinx is not only expanding its addressable market but also paving the way for the entire semiconductor industry with these innovative new offerings.”

Key Stats:

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

The company has now seen net income fall in each of the last three quarters. In the second quarter, net income fell 26.1% from the year earlier, while the figure fell 2.7% in the first quarter.

Revenue has fallen in the past two quarters. In the second quarter, revenue declined 10.4% to $555.2 million from the year earlier quarter.

The company’s cost of sales fell 10.1% from a year earlier to $174.8 million. Last quarter, cost of sales was 34.2% of revenue versus 34.3% a year earlier.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 35 cents per share, down from 49 cents ninety days ago. The average estimate for the fiscal year is $1.74 per share, down from $1.94 ninety days ago.

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).

Investing Insights: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com