Xilinx is the First Semi To Impress This Quarter

| About: Xilinx, Inc. (XLNX)
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Xilinx Announces Fourth Quarter and Fiscal Year 2007 Results:

Xilinx, Inc. (NASDAQ:XLNX) today announced net revenues of $443.5 million in the fourth quarter of fiscal 2007, down 2% sequentially from the prior quarter and down 6% compared to the same quarter a year ago. Fourth quarter net income was $87.6 million, or $0.27 per diluted share, and included stock-based compensation expense of $20.1 million.

Analysts were expecting the company to earn $0.23 on $441 million in sales. In our own preview we called it:

Altera (NASDAQ:ALTR) with more risk to the earnings target.

It turns out that risk was to the upside. The company also issued the following guidance:

Business Outlook

– June Quarter Fiscal 2008
– Revenues expected to be up 1% to 5% sequentially.
– Gross margin expected to be approximately 62%.
– Operating expenses are expected to be down approximately 4% to 5% sequentially.
– Other income including interest expense is expected to be approximately $15 million.
– Tax rate is expected to be approximately 21%.
– Fully diluted share count expected to decrease to approximately 302 million shares.

Let’s see… carry the three… looks to be about $0.29 on $457 million in sales, which compares favorably to the previous consensus guesstimate of $0.25 on $453 million. Xilinx thus becomes the first semiconductor company reporting this quarter (that we’ve noticed) to earn its likely strength in today's stock market. With both accounts receivable and inventories down sequentially, we even believe their comments that things are looking up for them.

XLNX 1-yr chart:

XLNX 1-yr chart