More of what’s going on in tech earnings this evening:
Programmable chip maker Xilinx (XLNX) this afternoon reported fiscal Q4 results that easily beat consensus, reporting $559 million, up 9%, year over year, and 49 cents a share versus the average estimate of $531.6 million and 51 cents.
For Q1, the company sees revenue rising 1% to 5% from Q4′s level, which would equate to $565 million to $587 million, easily beating the average $556 million estimate. CEO Moshe Gavrielov said Xilinx continues to enjoy “design win momentum” for its 40-nanometer and 28-nanometer chip designs.
The shares rose $2.70, or almost 8%, at $37.03 in late trading.
The Xilinx report is in contrast to weaker-than-expected results last thursday from competitor Altera (ALTR), which missed Q1 revenue and EPS estimates, and offered a weaker-than-expected forecast, sending its shares sliding.
Shares of wireless chip vendor TriQuint Semiconductor (TQNT) are down 75 cents, or almost 14%, at $4.77, after the company this afternoon reported Q1 results that were more or less in line but forecast this quarter’s results well below consensus and said it expects to return to a normal revenue level later this year.
Revenue in the three months ended in March fell 3%, year over year, and fell 5% from Q4′s level, to $216.7 million, yielding EPS of 2 cents a share. Analysts had been modeling $214.5 million and 2 cents a share.
CEO Ralph Quinsey remarked that while the company saw improvement in the networking infrastructure equipment market it serves, with its revenue rising 10% in that segment from Q4′s level. However, “We anticipate a challenging second quarter in the mobile devices market, specifically with our largest customer.”
This quarter, The company sees revenue of $170 million to $185 million, and a net loss per share of 10 cents to 15 cents compared to the consensus for $223.5 million and 5 cents a share.
That single large customer, as Quinsey pointed out on a conference call following the report, is Chinese contract manufacturer Foxconn, which made up 37% of revenue in the quarter :
The Q2 revenue reduction is largely driven by lower demand from our largest customer, Foxconn. The lower revenue will reduce utilization and our factories causing lower gross margin. I believe the Q2 demand is temporary and I expect to return to more normal revenue levels in Q3.
The smartphone market for the company’s chips remains remains healthy, management said, despite the shortfall at Foxconn:
Our cellular revenue growth independent of our largest customer did quite well in Q1 where typically Q1 is seasonally down, 10 to 15%, cellular revenue was up 8% sequentially. Just to be clear, our combined 2 G, 3G, and 40 revenue from customers excluding Foxconn was up nicely in what is normally a down quarter.