Xilinx sales rise but profits tumble by 8.8%

DUBLIN-based technology firm Xilinx said second-quarter profit fell 8.8% while revenue was up 9% to $483 million (€360m).

Year-on-year operating income rose 32% to $125m (€93m) and sales advanced 8.7% to $483.5m.

Xilinx employs 400 at its European headquarters and R&D centre in Dublin. It sold more chips for wireless equipment in countries such as China, making up for a loss of North American market share to its closest rival Altera Corp.

Chief executive Moshe Gavrielov cut 250 jobs in June and is trying to sell more in emerging markets.

“There’s no such thing as a recession-proof semiconductor company; Xilinx is no exception,” Mr Gavrielov said. “Still we’re experiencing pockets of demand in emerging markets.”

Xilinx recorded $31.5m of costs from investments and restructuring last quarter. Excluding those costs, profit was 38 cents a share.

It said sales this quarter will drop up to 2% from the previous period, or increase by that amount.

That implies sales of as much as $493m, matching the average analyst estimate.

The company said North American sales fell 6% from the previous quarter, while European sales ticked up 2%, and Asia Pacific sales rose 1%, driven by strong sales to wireless customers. The decline in sales from North America was primarily due to weakening sales from defence and wired communications applications.