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Xilinx forecasts current-quarter revenue below estimates

Credit: REUTERS/ALY SONG

Xilinx Inc on Wednesday forecast current-quarter and full-year revenue below Wall Street estimates, the second major chipmaker this week to flag the impact of a prolonged U.S.-China trade dispute on its business.

Adds share movement, estimates

Oct 23 (Reuters) - Xilinx Inc XLNX.O on Wednesday forecast current-quarter and full-year revenue below Wall Street estimates, the second major chipmaker this week to flag the impact of a prolonged U.S.-China trade dispute on its business.

The company has earlier warned of the impact from U.S. restrictions on selling to Huawei Technologies Co Ltd HWT.UL, despite resuming some sales to the Chinese telecommunications firm.

"Xilinx's ... guidance takes into account the impact from the U.S. government's announced export restriction to one of our customers in China and assumes no revenues from that customer," the company said on Wednesday.

Shares of the company were down 2% in extended trading.

On Tuesday, chipmaker Texas Instruments Inc's TXN.O current-quarter revenue forecast also missed Wall Street targets, as it blamed trade tensions.

Xilinx said it expects third-quarter revenue of between $710 million and $740 million, well below analysts' average estimate of $844.9 million, according to IBES data from Refinitiv.

It expects fiscal year 2020 revenue of between $3.21 billion and $3.28 billion, below estimates of $3.4 billion.

Xilinx's board on Wednesday approved a share buyback plan of up to $1 billion.

Net income rose to $227 million, or 89 cents per share, in the second quarter ended Sept. 28, from $215.7 million, or 84 cents per share, a year earlier.

Excluding items, the company earned 94 cents per share, above estimates of 89 cents.

Net revenue increased to $833.37 million from $746.25 million, beating estimates of $824.8 million.

(Reporting by Munsif Vengattil in Bengaluru; Editing by Maju Samuel)

((Munsif.Vengattil@thomsonreuters.com; Twitter: @MunsifV; Phone: 646-223-8780;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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