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Profits up as sales dip at Xilinx, further drops forecast

Posted: 27 Oct 2004 ?? ?Print Version ?Bookmark and Share

Keywords:fpga? xilinx?

Sales revenue was down sequentially at FPGA vendor Xilinx Inc. in the second quarter of its fiscal 2005 year, the company reported on Thursday (Oct. 21). It also predicted a further drop next quarter from between 2 and 6 percent.

Inventory problems at a few customers in the Asia-Pacific region more than offset unexpected strength in the European market, the company said.

The company announced revenues of $403 million in its second quarter, a sequential decrease of 5 percent from the prior quarter and an increase of 28 percent from the same quarter a year ago. Net income was $86 million compared to $56 million. European revenues, which are typically seasonally slow in the September quarter, were better than expected, increasing 3 percent sequentially and 45 percent versus the same quarter a year ago. Much of this increase was driven by strength in the communications, industrial and automotive sectors. However, sales to the Asia-Pacific were weak during the quarter, declining 15 percent sequentially. Much of this weakness was attributable to excess inventories at a few U.S.-based customers with manufacturing operations in the Asia-Pacific and a slowdown within the China market for technology products.

"New product sales increased 44 percent sequentially and represented 17 percent of total Xilinx sales, up from 6 percent a year ago. This is a strong testament to the customer acceptance and design win momentum of these products," said Wim Roelandts, Xilinx's chairman and chief executive officer, in a statement.

Roelandts added that Virtex-II Pro FPGA sales increased nearly 70 percent sequentially as customer design wins began moving into volume production; and that CoolRunner-II CPLD sales nearly doubled sequentially. Additionally, sales from the Spartan family of FPGAs increased to nearly 22 percent of total Xilinx revenues, up from 19 percent in the same quarter a year ago with most of this growth driven by Spartan-IIE and Spartan-3 products, which are found in wide-ranging applications such as digital television, media servers, automotive telematics and multi-function printers, Roelandts said.

- Peter Clarke

Silicon Strategies

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