New product sales overcome soft telecomms market

Xilinx has announced net revenues of US $450.7 million in the third quarter of fiscal 2007, down 4% sequentially from the prior quarter and flat with the same quarter a year ago.

Xilinx has announced net revenues of US $450.7 million in the third quarter of fiscal 2007, down 4% sequentially from the prior quarter and flat with the same quarter a year ago.

Third quarter net income of $87.5 million, or $0.26 per diluted share, decreased 6% from the prior quarter, and included stock-based compensation of $21.4 million.

Third quarter net income also included a tax benefit of approximately $0.02 per diluted share related to the reinstatement of the R and D tax credit and a reduction in the fiscal 2006 income tax provision.

The Xilinx Board of Directors has declared a quarterly cash dividend of $0.09 per outstanding share of common stock, payable on 28th February 2007 to all stockholders of record at the close of business on 7th February 2007.

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

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

"Sales from mainstream and base products declined during the quarter", said Wim Roelandts, Xilinx Chief Executive Officer.

"However, Xilinx experienced solid growth from new products, which increased 12% sequentially and represented 26% of total sales, up from 13% of sales in the same quarter a year ago".

"Sales from the Spartan-3E and Virtex-4 FX families were particularly strong during the quarter driven by a broad base of customers and applications".

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