Xilinx shares slip after weak outlook, new buyback plan
Xilinx Inc. shares declined in the extended session Wednesday after the chip maker forecast weaker-than-expected revenue but issued a big stock buyback program. Xilinx shares declined 1.5% after hours, following a 2.2% fall in the regular session to close at $93.83. Xilinx expects revenue of $710 million to $740 million for the fiscal third quarter, and $3.21 billion to $3.28 billion for the year. Analysts had forecast on revenue of $844.9 million for the third quarter, and $3.4 billion for the year. In a statement, Victor Peng, Xilinx president and chief executive, said "we are seeing a combination of headwinds in the second half related to continuing business restrictions, weaker demand for communications products and macro-related weakness offsetting strong overall growth in data center and improvement across our core vertical markets." Peng said he sees the third quarter as a low point with sequential revenue growth returning in the fourth quarter. The company also said its board approved a share-repurchase program of up to $1 billion. Xilinx reported fiscal second-quarter net income of $227 million, or 89 cents a share, compared with $215.7 million, or 84 cents a share, in the year-ago period. Adjusted earnings were 94 cents a share. Revenue rose to $833.4 million from $746.3 million in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of 90 cents on revenue of $824.8 million.
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