Xilinx slump after estimate of profit, Chip Company buys Solarflare



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Shares of semiconductor maker Xilinx (XLNX – Get Report) fell sharply on Thursday after the company posted fourth-quarter revenue higher than analysts' estimates, as earnings were in line with expectations.

The San Jose-based company announced earnings per share of 94 cents on a $ 828.4 million business figure. Analysts surveyed by FactSet were expecting the company to announce a profit of 94 cents on a turnover of $ 826.9 million.

For the current quarter, the company expects revenues of between $ 835 million and $ 865 million, with a mid-point ahead of analysts' estimates of $ 841.3 million.

"The 2019 financial year was truly exceptional for Xilinx. For the year, we exceeded $ 3 billion in annual sales and grew 24% over the previous year, driven by advanced products, which grew by 40%. In addition, we have demonstrated strong profitability with more than 30% growth in non-GAAP operating income and non-GAAP diluted earnings per share, "said General Manager Victor Peng.

In addition, the company announced the acquisition of the network solution company Solarflare Communications.

Although the company said it was expecting the closing of the acquisition in the second quarter of fiscal year 2020, it did not provide a price for the transaction.

Investment firms were mixed after publication.

Analysts at Deutsche Bank lowered their price target from $ 125 to $ 120 while maintaining a sustainment rating. Goldman Sachs has reduced the stock to neutral, from buying to a target price of $ 122.

Meanwhile, Credit Suisse raised its price target from $ 110 to $ 135 and Jefferies maintained its purchase index and price target of $ 156.

Xilinx shares fell 15.9% to $ 117.47 in trading on Thursday.

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