Xilinx profit falls 9 pct, declares dividend

Associated Press — Wed, 15 Oct 2008 17:00:13 -0700

Xilinx Inc., which designs programmable chips, said Wednesday that its quarterly profit declined 9 percent as North American sales slumped. Overall sales rose 9 percent, however, and the results exceeded Wall Street's forecast, sending Xilinx's shares higher.

The San Jose, Calif.-based company — whose biggest customers include defense contractors, Internet networking equipment makers and telecommunications companies — said after the market closed that net income was $81.8 million, or 29 cents per share. That compares with profit of $89.7 million, or 30 cents per share, in the year-ago period.

Analysts surveyed by Thomson Reuters were expecting profit of 37 cents per share. Excluding one-time restructuring and investment impairment charges, Xilinx's profit would have been 9 cents per share higher, putting it at a penny per share higher than the average analyst estimate.

Analysts typically exclude one-time charges in their estimates.

Xilinx said revenues for the three months ended Sept. 27 — the company's fiscal second quarter — rose 9 percent over last year to $483.5 million. Analysts were expecting, on average, $482 million in revenues.

The company said North American sales, which make up about a third of the company's overall revenues, fell 5 percent from the year-ago period. The shortfall was caused by weakening sales to the defense sector and companies specializing in wired communications, Xilinx said.

Xilinx shares gained 27 cents, 1.4 percent, to $19.76 in after-hours trading after the results were posted. The stock had closed down $1.44, 6.9 percent, at $19.49 during the regular trading session.

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Xilinx profit falls 9 pct, declares dividend