Xilinx reports fab-less third quarter

22 Jan 2004

Fab-less semiconductor maker Xilinx, which employs 500 people in Ireland, reported a swing to profit from a loss a year ago as revenue rose 16pc sequentially amidst improving conditions in the communications industry.

Xilinx also laid out a fourth-quarter revenue forecast that exceeds Wall Street’s current estimate. The company said it expects its top line will grow 7pc to 10pc sequentially, suggesting revenue of US$391.2m to US$402.2m. Wall Street had been looking for revenue of US$361m.

The semiconductor maker said that net income for the quarter ended totalled US$69.4m, or 19 cents a diluted share, compared with a loss of US$3.4m, or 1 cent a share, a year earlier. The most recent quarter included a US$3.4m building-impairment charge.

Revenue rose to US$365.6m from US$315.5m a year earlier and increased 16pc sequentially. The company credited “broad-based strength” across all products, geographies and end markets with driving better-than-expected sales in the quarter.

Xilinx saw sales of communications products, which it said had been essentially flat in the three preceding quarters, rise 20pc sequentially on strength in both telecom and networking applications.

Gross margins improved to 62pc from 59pc a year earlier. The company noted that operating and profit margins of 23pc and 19pc, respectively, were at their highest levels in 13 quarters.

For the fourth quarter, Xilinx also predicted that gross margins will total about 63pc and that operating costs will remain roughly flat.

“During the December quarter, Xilinx continued to benefit from solid customer adoption of new products as well as improving economic conditions, particularly in the communications sector,” said Wim Roelandts, chairman and chief executive officer.

By John Kennedy