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goafrit
Also, Xilinx should be considered in Asia. Altera leads there.
goafrit
Xilix has a premium brand recognition though we must point out that they are not ...
Analysts high on Xilinx amid margin concern
Dylan McGrath
7/21/2011 1:55 PM EDT
New product sales soar, but others slide
Revenue from new products—including the Virtex-6, Virtex-5, Spartan-6, Spartan-3A and Spartan-3E FPGA product families—grew 17 percent in the quarter, accounting for 51 percent of the company's total revenue, up from 46 percent in the previous quarter, Xilinx said.
Sales of base products—including Virtex, Virtex-E, Virtex-II, Spartan, XC4000, CoolRunner and XC9500 product families—declined 5 percent sequentially and 18 percent year-to-year, according to Xilinx. Sales of mainstream products—including the Virtex-4, Spartan-3, Spartan-II and CoolRunner-II product families—declined 6 percent sequentially and 19 percent year-to-year, according to the company. Olson said Xilinx had never before experienced such a large drop in terms of percentage of sales from both product types at the same time.
"I think it was just a little bit of bigger impact than we thought for the last time buy in the previous quarter and then just a customer product mix issue," Olson said.
Olson said Xilinx is confident it will improve its overall margins in the second half of its fiscal year because of a variety of cost reduction programs and higher production volumes—along with corresponding yield improvements.
Christopher Danely, an analyst at JP Morgan, said Xilinx has now outgrown rival Altera Corp. for two quarters in a row for the first time since 2009. Danely, who maintains a rating of "overweight" on Xilinx' stock, said his firm continues to expect that Xilinx should gain back market share from Altera at the 28-nm node.
Danely said Xilinx' gross margins decreased to 63.7 percent in the quarter from 65.3 percent in the previous quarter due to a higher percentage of lower margin product sales. He said he expects Xilinx's gross margins to further decrease to 63 percent in the current quarter, but rebound to 64 percent in the following quarter.
Danely increased JP Morgan's revenue estimate for Xilinx' current fiscal year to $2.49 billion from $2.47 billion, but lowered his firm's earnings per share estimate for Xilinx for the fiscal year to $2.18 from $2.20 due to higher revenue but lower margins.
Revenue from new products—including the Virtex-6, Virtex-5, Spartan-6, Spartan-3A and Spartan-3E FPGA product families—grew 17 percent in the quarter, accounting for 51 percent of the company's total revenue, up from 46 percent in the previous quarter, Xilinx said.
Sales of base products—including Virtex, Virtex-E, Virtex-II, Spartan, XC4000, CoolRunner and XC9500 product families—declined 5 percent sequentially and 18 percent year-to-year, according to Xilinx. Sales of mainstream products—including the Virtex-4, Spartan-3, Spartan-II and CoolRunner-II product families—declined 6 percent sequentially and 19 percent year-to-year, according to the company. Olson said Xilinx had never before experienced such a large drop in terms of percentage of sales from both product types at the same time.
"I think it was just a little bit of bigger impact than we thought for the last time buy in the previous quarter and then just a customer product mix issue," Olson said.
Olson said Xilinx is confident it will improve its overall margins in the second half of its fiscal year because of a variety of cost reduction programs and higher production volumes—along with corresponding yield improvements.
Christopher Danely, an analyst at JP Morgan, said Xilinx has now outgrown rival Altera Corp. for two quarters in a row for the first time since 2009. Danely, who maintains a rating of "overweight" on Xilinx' stock, said his firm continues to expect that Xilinx should gain back market share from Altera at the 28-nm node.
Danely said Xilinx' gross margins decreased to 63.7 percent in the quarter from 65.3 percent in the previous quarter due to a higher percentage of lower margin product sales. He said he expects Xilinx's gross margins to further decrease to 63 percent in the current quarter, but rebound to 64 percent in the following quarter.
Danely increased JP Morgan's revenue estimate for Xilinx' current fiscal year to $2.49 billion from $2.47 billion, but lowered his firm's earnings per share estimate for Xilinx for the fiscal year to $2.18 from $2.20 due to higher revenue but lower margins.
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goafrit
7/22/2011 10:09 AM EDT
Xilix has a premium brand recognition though we must point out that they are not price competitive. But in terms of IP, Xilinx has it. It is a company to invest for the long haul until Achronix comes and disrupts all
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goafrit
7/23/2011 1:34 PM EDT
Also, Xilinx should be considered in Asia. Altera leads there.
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