Xilinx Lowers Quarterly Sales Forecast
FPGA vendor Xilinx Inc., in a revised sales forecast for the September quarter, said sales are now expected to decline 7 to 10 percent sequentially. This is a revision from previous guidance that called for sales to be up 1 percent to down 3 percent sequentially, according to Xilinx.
“Weaker than expected sales growth during the quarter is driven primarily by the communications and industrial and other categories,” according to the San Jose, Calif.-based chip maker.
Hans Mosesmann, an analyst with Raymond James & Associates, said “while the revised outlook is consistent with a number of competitors (including fellow PLD supplier Altera), the magnitude of the reduction was more pronounced than we expected.”
“We believe the company will still benefit from displacement of ASICs with PLDs and should outgrow the overall semi industry over the next several years,’’ he said in a report issued to investors.
Jordan Selburn, who tracks the programmable logic market for market research firm IHS Inc., said the programmable logic market retains its core strengths.
“Even though 2011 may not match 2010, we still see signs of a vibrant market,” Selburn said. After taking a decade to finally exceed the PLD revenue mark set in 2000, Selburn said PLDs will only need another 12 months to establish a new high-water mark.
“We see PLDs growing another 6.4 percent in 2011 to top $5 billion for the very first time,” he said. Three years from now, PLDs will exceed $6 billion in revenues, and by 2015, IHS forecasts PLDs reaching $6.4 billion in revenue.
“These advantages will grow even more important as PLDs improve on performance, power and manufacturing costs with each new process generation,” he said.
Tags: 40nm, FPGA, Semiconductor, Xilinx