Xilinx sees weak outlook

Xilinx Inc. announced net revenues of $450.7 million in Q3 of fiscal 2007, down 4 percent sequentially from the prior quarter and flat with the same quarter a year ago.

Third quarter net income of $87.5 million, or 26 cents per diluted share, decreased 6 percent from the prior quarter, and included stock-based compensation of $21.4 million. Net income also included a tax benefit of approximately 2 cents per diluted share related to the reinstatement of the R&D tax credit and a reduction in the fiscal 2006 income tax provision.

Sales from all end markets were weaker than anticipated with the exception of the industrial and other end market, which increased 3 percent sequentially as strong sales from defense and test and measurement applications were offset by a decline in sales from industrial, scientific and medical applications, according to Xilinx.

Sales from the communications end market decreased 7 percent sequentially, driven by softness in telecommunications.

For the March quarter, revenues expected to be flat to down 5 percent sequentially.

- Mark LaPedus BR>EE Times