Xilinx Cuts 3Q Sales Guidance On Weakness In Communications Segment

Xilinx Inc. (XLNX) lowered its fiscal third-quarter sales guidance, citing a decline in large customer business in its communications segment.

The maker of programmable chips used on cellphone base stations, network routers, DVD players and cable modems now expects a 9% to 12% sales decline from the fiscal second quarter, down from its October estimate of a 3% to 8% sequential drop.

The latest cut indicates continued weakness in the semiconductor sector. Last week, chip maker Intel Corp. (INTC) warned its fourth-quarter revenue will fall about $1 billion short of its previous guidance as shortages of hard-disk drives are expected to hurt its core personal computer market for the next few months.

Xilinx saw its fiscal second-quarter profit fall 26% as sales declines in its communications and industrial segments contributed to a 10% revenue decrease.

Shares of Xilinx recently were trading at $30.72 premarket, down 1.6%.

-By Melodie Warner, Dow Jones Newswires; 212-416-2283; [e-mail]