Programmable Logic Devices (
) posted a net income of $127.0 million or $0.47 per share in the
third quarter of fiscal 2012 compared to a net income of $126.3
million or $0.47 per diluted share in the second quarter of fiscal
2012 and a net income of $152.3 million or $0.58 per share in the
However, the result easily beats the Zacks Consensus Estimate of
$0.37 per share.
Sales of $511.1 million were down 10% year over year and 8%
sequentially, better than management's revised guidance range of
$510.8 million to $538.5 million. The top line was impacted by
particularly weak business from large communications customers, but
came in better than management's expectation primarily due to
increased business from large communication customers in
Asia-Pacific and North America during the last two weeks of the
Mainstream products decreased 1% sequentially and base products
were flat sequentially. New Product sales decreased 13%
sequentially but increased 5% on a year-over-year basis. This
category was impacted by declines from Virtex-5 customers in the
wireless segment. Virtex-6, Spartan-6 and 28-nanometer product
families all posted solid sales growth during the quarter.
Gross margin increased to 65.8% from 63.9% in the prior quarter
and was better-than-management's expectations primarily due to
favourable customer mix and and continued overall cost
Operating margin decreased to 26.8% from 27.8% in the previous
quarter and from 32.3% in the year-ago quarter.
During the quarter, Xilinx generated $181 million of cash from
operations and used $19 million in capital expenditures. Xilinx
paid $50 million in cash dividends and repurchased 1.1 million
shares for $32.5 million.
Xilinx ended the quarter with cash, equivalents and short-term
investments of $1.7 billion, down from $2.8 billion at the end of
the previous quarter. Days sales outstanding increased by 3 days to
38 days. Inventory declined by $2.2 million sequentially.
Xilinx, which competes with Altera Corporation (
), expects strong growth from 28-nanometer and 40-nanometer product
families in the March quarter. Consequently, Xilinx expects sales
to be up 2% to up 6% sequentially. Sales from Europe are expected
to increase, sales from Asia-Pacific expected to decrease and sales
from North America and Japan to be approximately flat.
Gross margin is forecasted around 64% - 65% as the company
absorbs new product ramp costs and customer mix returns to
normal historical level. Operating expenses in the March quarter
are expected to be approximately $207 million, including
approximately $2 million of amortization of acquisition-related
The better-than-expected results and upbeat guidance drove a
7.17% increase in the share price in after market hours trading to
close at $37.83. The stock, earlier, gained 5.85% to close at
$35.30 in regular trading.
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