Xilinx lowers 2Q revenue outlook
Chip maker Xilinx Inc. lowered its revenue outlook for the fiscal second quarter on Tuesday, citing weaker than expected sales growth, mainly in the communications and industrial categories.
The company now expects revenue for the quarter ending this month to decline by 7 percent to 10 percent sequentially. Previously, the company had expected revenue to be in the range of up 1 percent to down 3 percent from the prior quarter.
Analysts, on average, are expecting revenue of $604.6 million, according to FactSet. That's a decline of less than 2 percent from first-quarter revenue of $615.5 million.
The company did not give a forecast for earnings per share. It said its forecast for gross profit margin is unchanged at about 63 percent.
Xilinx 's revised guidance comes less than a week after research firm Gartner Inc. cut its 2011 worldwide chip sales forecast. Gartner now expects worldwide semiconductor revenue of $299 billion this year, a decline of 0.1 percent from 2010. This is down from its previous outlook of a 5.1 percent increase.
Shares of Xilinx dropped 79 cents, or 2.5 percent, to $30.66 in morning trading.