SAN FRANCISCO—Following in the footsteps of rival programmable logic vendor Altera Corp., Xilinx Inc. Monday (Dec. 19) cut its sales target for the December quarter, citing primarily a decline in larger customer business in the communications end market.
Xilinx (San Jose, Calif.) said it now expects sales for its fiscal third quarter to be between $488.6 million and $505.2 million, a decline of 9 to 12 percent compared to the fiscal second quarter. The company had earlier said it expected sales to decline 3 to 8 percent sequentially.
Xilinx said it expects its gross margin to be about 65 percent for the quarter, better than previous guidance of about 64 percent.
Earlier this month, Altera (San Jose) cut its sales target for the fourth quarter to between $438.9 million and $452.8 million.
CJ Muse, an analyst with Barclays Capital, said Xilinx' announcement Monday was expected after Altera cut its guidance. "Xilinx highlighted weakness in communications and industrial and we do not see this picking up until 2Q12," Muse said in a report circulated Monday.