Chip maker Xilinx revises forecast, shares down
Semiconductor maker Xilinx (NASDAQ:XLNX) reported on Tuesday that it has revised its second quarter forecasts due to weaker than expected growth in the communications and industrial categories, shares plunge.
The San Jose, California-based company's stock dove $1.27, or 4.04%, to $30.18 Monday afternoon on the Nasdaq market.
Xilinx said it now expects a drop in sales of 7% to 10% sequentially. This is a revision from its previous outlook that called for sales to be up 1% to down 3%.
The company attributes the change to weaker than expected sales growth during the quarter driven by the communications, industrial and other categories.
Gross margin forecast remains unchanged at roughly 63%.
However, for the second-quarter Xilinx expects operating expenses to be around $208 million and includes roughly $2 million due to acquisition related costs in addition to $4 million in restructuring charges. That is down from its initial guidance of $218 million.
Meanwhile, analysts expect earnings of 49 cents on revenues of $603 million for Xilinx's second quarter.
Xilinx is slated to release its second-quarter financial results on Oct. 19.
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