Xilinx Inc. reported a 2 percent sequential decline in revenue during the March quarter, a result not unexpected in light of declines in demand from customers in the wireless, consumer, and defense markets.
The good news, said CEO Wim Roelandts, is that the telecommunications end market appears to have pulled itself out of its two-quarters-long nosedive, and sales to that sector were up slightly in Xilinx's fiscal fourth quarter of 2007.
"I view this as an optimistic sign that some stabilization in customer ordering patterns may be returning to this sector," Roelandts said.
Xilinx reported revenue for the fiscal fourth quarter of $443.5 million, which was down 6 percent compared to the same quarter a year ago. Net income was $87.6 million, including a stock-based compensation expense of $20.1 million.
For the full 2007 fiscal year, the San Jose-based programmable logic supplier had revenue of $1.84 billion, a 7 percent increase from the 2006 fiscal year. Net income for the year was $350.7 million, including a $92.5 million stock-based compensation expense.
Despite an inventory correction that has reverberated throughout the electronics industry, Xilinx managed to keep its inventory levels in check with total distribution days at 120, up from 118 in the prior quarter.