Back to top

Analyst Blog

Leading manufacturer of a high-performance, high-density programmable logic device (PLDs) Xilinx, Inc. (XLNX - Analyst Report) recently declared its integration with Barco Silex, a Certified Xilinx Alliance Program Member at IBC 2012. The companies will be jointly involved in augmenting the overall video-based IP solutions process through introducing a range of all programmable solutions and design services.

Under the collaboration, Xilinxand Barco Silex will be engaged in controlling the company’s All Programmable FPGAs and SoCs through assembling various hardware-validated IP solutions, reference designs and several systems integration services. In addition, with the launch of the latest services, the broadcast equipment OEMs including video over IP solutions in their product portfolio will be able to improve their overall product offerings. Management stated that, these latest services will be extremely advantageous for manufacturers who would improve their IP video solutions.     

Earlier, in the first quarter of fiscal 2013, the company’s total sales amounted to $582.8 million, down 5% year over year, but up 4% sequentially, in line with management’s guidance. The sequential growth was led by strength in the Asia Pacific region, particularly in communications applications. As expected, North America was weak due to softness in defense and industrial, scientific and medical. Gross margin decreased to 66.0% from 66.4% in the prior quarter but increased from 63.7% in the year-ago quarter, primarily due to a continued focus on yield improvement and cost reduction.

Earnings estimates for the company have declined significantly following a disappointing guidance for the second quarter of fiscal 2013, offsetting the better-than-expected results in the reported quarter. The company also stated that the backlog entering into the September quarter declined sequentially, which adversely affected the top line by $25 million. Consequently, management is highly cautious about the prevailing clouded fiscal scenario.

Since the company pertains to an industry where ominous competition is prevalent, it should stay wary of big players such as Lattice Semiconductor Corporation (LSCC - Snapshot Report) and Altera Corp. (ALTR - Analyst Report) as it traverses through 2012.

The current Zacks Consensus EPS Estimates for Xilinx are 41 cents and $1.81 for the second quarter of fiscal 2013 and for the full year of fiscal 2013, respectively. The estimates represent a year-over-year growth of (12.8%) for the fiscal second quarter and (6.7%) for fiscal 2013.  The company currently carries a Zacks #3 Rank, which denotes a short-term (1-3 months) ‘Hold’ rating. We currently maintain an ‘Underperform’ recommendation on the stock.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.80 +7.04%
BANCO DO BR… BDORY 14.74 +5.66%
AIR INDUSTR… AIRI 9.99 +4.15%
EQT MIDSTRE… EQM 98.14 +3.38%
WEATHERFORD… WFT 23.64 +3.10%