SAN FRANCISCO—Programmable logic supplier Xilinx Inc. Wednesday (Oct. 20) reported record revenue for the fourth consecutive quarter, but sales fell just slightly short of consensus analysts' expectations.
Xilinx (San Jose, Calif.) reported sales of $619.7 million for the quarter ended Oct. 2, up 4 percent from the previous quarter and up 40 percent from the year-ago quarter. The company reported a net income for the quarter of $170.9 million, or 65 cents per diluted share, up 8 percent from the previous quarter and up 171 percent year-to-year.
Consensus analyst expectations called for Xilinx to report sales of about $626 million and earnings per share of 65 cents, according to Yahoo Finance.
Xilinx 44 percent of its revenue for the quarter was derived from new products, including the Virtex-6, Virtex-5, Spartan-6, Spartan-3A and Spartan-3E product families. Twenty-seven percent of revenue for the quarter was derived from mainstream products, including the Virtex-4, Spartan-3, Spartan-II and CoolRunner-II product families, Xilinx said.
Moshe Gavrielov, Xilinx president and CEO, said combined sales of Virtex-6 and Spartan-6 more
than doubled sequentially in the third quarter, driven by customer
adoption in applications such as 3-D digital video displays, high
performance computing and wireless infrastructure.
During an analyst conference call following Xilinx' quarterly report, analysts pressed Xilinx executives on lead times and inventory balance. Executives described a stable situation where inventories and lead times are gradually returning to historical norms.
Jon Olson, Xilinx' chief financial officer, said average lead times for parts declined from about 12 weeks to about nine weeks during the quarter ended Oct. 2. By the end of the current quarter, which will close in late December or early January, lead times for Xilinx parts are expected to be back to four weeks, the company's historical normal lead times, Olson said.
Olson said the company was seeing the beginning of customers flushing out excess inventory and restoring a balance between supply and demand after several months of excessive lead times.
"We believe we are experiencing stabilization in end market demand," Gavrielov said. While the company expects average lead times to continue to decline, Gavrielov emphasized that demand for Virtex-6 and Spartan-6, Xilinx' newest products, remains strong.
Gavrielov said the ramp of Xilinx' 28-nm Series 7 products is going well with new foundry partner Taiwan Semiconductor Manufacturing Co. Gavrielov said Xilinx is on track to deliver samples of 28-nm parts by the first quarter of 2011.
Xilinx said it expects sales for the current quarter to be between $595 million and $620 million, flat to down four percent sequentially.
Xilinx' board of directors announced a cash dividend of 16 cents per
outstanding share, payable Dec. 1, to shareholders of record as of Nov.