Chipmaker Xilinx has predicted current-quarter revenue below what the cocaine nose jobs of Wall Street have predicted.
The reason is because sales to its aerospace, defence and wired telecom customers were flat and Xilinx said it expected first-quarter revenue to stay flat or rise up to 4 percent sequentially.
This means that the company will make $617.8 million-$642.5 million for the quarter ending June. Analysts on average were expecting revenue of $638.4 million.
The company, which gets nearly half its revenue from telecom customers, expects fourth-quarter gross margins of about 68 percent.
Xilinx’s chips are used by the US Air Force and the European Organisation for Nuclear Research (CERN), as well as by Wall Street investors.
Xilinx’s net income rose to $156 million in the fourth quarter, compared with $130.6 million a year earlier.
Xilinx expects revenue from its wired communications business, part of its largest end market to be flat in the current quarter due to declining orders from a couple of large customers.
Sales at Xilinx’s industrial, aerospace and defence business decreased three percent from the previous quarter.