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Why Xilinx Shares Got Clobbered Today

By Evan Niu, CFA - Apr 28, 2016 at 12:30PM

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June quarter guidance left a little to be desired.

Image source: Xilinx.

What: Shares of programmable technology specialist Xilinx (XLNX) got clobbered today, down by 8% as of 12:07 p.m. ET, after the company reported fiscal fourth-quarter results.

So what: Revenue in the fiscal fourth quarter came in at $571 million, essentially flat sequentially and year over year. Net income was $145 million, or $0.54 per share. Both top- and bottom-line results bested consensus estimates, which called for $566 million in revenue and $0.52 per share in adjusted profit. The company declared an increased quarterly dividend of $0.33 per share.

Now what: CEO Moshe Gavrielov said this fiscal year has seen volatility in the company's wireless communication segment, but new products are driving momentum in both 20-nanometer and 28-nanometer products. Guidance was the real kicker: Sales in the current quarter are expected to be flat sequentially, with gross margin of 69% to 70%. Operating expenses should be about $220 million. The Street was expecting sales to increase sequentially to $579 million.

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