Xilinx Q2 Profit Beats Views, Shares Rise

Shares of

surged around 3 percent in after-hours trading after the company reported better-than-expected earnings for its fiscal second quarter. The San Jose, California-based company posted quarterly net income of $127 million, or $0.48 per share, compared to $172 million, or $0.62 per share, in the year-earlier period. Its revenue slipped 13 percent to $528 million. However, analysts were expecting a profit of $0.47 per share on revenue of $529.58 billion. The average estimate among 41 Estimize users was for earnings of $0.47 per share and revenue of $528.34 million. Its operating income slipped to $153 million in the latest quarter, versus $200 million in the year-ago quarter. The company's board announced a quarterly cash dividend of $0.31 per share. "The quarter was characterized by solid profitability and strong new product growth. Sales performed as expected with increases from wired and wireless communications offsetting expected declines from defense," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "From a product perspective, we experienced a recovery in our 7 series products driven by exceptional strength from our Zynq®-7000 family and better-than-expected sales from our 20-nm UltraScale™ family. In addition, I am pleased with our continued technology leadership which has allowed us to ship our 16-nm UltraScale+™ family sooner than anticipated." For the third quarter, Xilinx expects sales growth of 3 percent to 7 percent sequentially. Xilinx shares gained 2.95 percent to $46.72 in the after-hours trading session.