Xilinx Inc. (XLNX) lowered its fiscal third-quarter sales
guidance, citing a decline in large customer business in its
communications segment.
The maker of programmable chips used on cellphone base stations,
network routers, DVD players and cable modems now expects a 9% to
12% sales decline from the fiscal second quarter, down from its
October estimate of a 3% to 8% sequential drop.
The latest cut indicates continued weakness in the semiconductor
sector. Last week, chip maker Intel Corp. (INTC) warned its
fourth-quarter revenue will fall about $1 billion short of its
previous guidance as shortages of hard-disk drives are expected to
hurt its core personal computer market for the next few months.
Xilinx saw its fiscal second-quarter profit fall 26% as sales
declines in its communications and industrial segments contributed
to a 10% revenue decrease.
Shares of Xilinx recently were trading at $30.72 premarket, down
1.6%.
-By Melodie Warner, Dow Jones Newswires; 212-416-2283;
melodie.warner@dowjones.com