Xilinx Rises on Solid Holiday Quarter
Chipmaker Xilinx reported its fiscal third-quarter financial results after the markets closed on Wednesday.
Chipmaker Xilinx Inc. (NASDAQ: XLNX) reported its fiscal third-quarter financial results after the markets closed on Wednesday. The company said it had $0.49 in earnings per share on $566.2 million in revenue. That compared to consensus estimates for $0.49 in EPS on revenue of $554.2 million.
Net sales jumped this quarter 7% sequentially, however they were down 5% when compared to the same quarter from fiscal 2015.
The board of directors announced a quarterly cash dividend of $0.31 that will be payable on March 16, to all shareholders of record on March 2. On an annualized basis, the dividend yield comes out to 2.6%.
In this quarter, Xilinx and IBM announced a strategic collaboration to accelerate data center applications. This collaboration is expected to enable higher performance and energy-efficient data center applications through Xilinx FPGA-enabled workload acceleration on IBM POWER-based systems.
Moshe Gavrielov, president and CEO of Xilinx, commented on earnings:
New product sales were exceptionally strong during the quarter increasing 18% sequentially, enabling Xilinx to reach the high-end of our sales guidance. Both our 7-series and UltraScale families reached new sales records during the quarter, driven by a very broad base of end markets. During the quarter we continued to execute on the delivery of our next-generation UltraScale+ family by launching public access development support for these families. This closely follows the first shipment of the Zynq UltraScale+ MPSoc last quarter, which was ahead of schedule. The capabilities of the UltraScale+ product family, coupled with its first-mover advantage, make it uniquely suited for applications ranging from next generation ADAS and Industrial Internet-of-Things to 5G wireless.
Shares of Xilinx were trading up 9.4% to $47.13 on Thursday, with a consensus analyst price target of $47.07 and a 52-week trading range of $37.20 to $50.72.
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