Leading manufacturer of a high-performance, high-density
programmable logic device (PLDs)
) recently declared its integration with Barco Silex, a Certified
Xilinx Alliance Program Member at IBC 2012. The companies will be
jointly involved in augmenting the overall video-based IP solutions
process through introducing a range of all programmable solutions
and design services.
Under the collaboration, Xilinxand Barco Silex will be engaged
in controlling the company's All Programmable FPGAs and SoCs
through assembling various hardware-validated IP solutions,
reference designs and several systems integration services. In
addition, with the launch of the latest services, the broadcast
equipment OEMs including video over IP solutions in their product
portfolio will be able to improve their overall product offerings.
Management stated that, these latest services will be extremely
advantageous for manufacturers who would improve their IP video
Earlier, in the first quarter of fiscal 2013, the company's
total sales amounted to $582.8 million, down 5% year over year, but
up 4% sequentially, in line with management's guidance. The
sequential growth was led by strength in the Asia Pacific region,
particularly in communications applications. As expected, North
America was weak due to softness in defense and industrial,
scientific and medical. Gross margin decreased to 66.0% from 66.4%
in the prior quarter but increased from 63.7% in the year-ago
quarter, primarily due to a continued focus on yield improvement
and cost reduction.
Earnings estimates for the company have declined significantly
following a disappointing guidance for the second quarter of fiscal
2013, offsetting the better-than-expected results in the reported
quarter. The company also stated that the backlog entering into the
September quarter declined sequentially, which adversely affected
the top line by $25 million. Consequently, management is highly
cautious about the prevailing clouded fiscal scenario.
Since the company pertains to an industry where ominous
competition is prevalent, it should stay wary of big players such
Lattice Semiconductor Corporation
) as it traverses through 2012.
The current Zacks Consensus EPS Estimates for Xilinx are 41
cents and $1.81 for the second quarter of fiscal 2013 and for the
full year of fiscal 2013, respectively. The estimates represent a
year-over-year growth of (12.8%) for the fiscal second quarter and
(6.7%) for fiscal 2013. The company currently carries a Zacks
#3 Rank, which denotes a short-term (1-3 months) 'Hold' rating. We
currently maintain an 'Underperform' recommendation on the
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