Stock under pressure: Xilinx, Inc. (NASDAQ: XLNX)

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Xilinx, Inc. (NASDAQ: XLNX) stock fell over 2.5% on 23rd April, 2020 (as of 11:17 am GMT-4; Source: Google finance) after the company posted lower than expected results for the fourth quarter of FY 19. The company had expected Wired revenues to fall but the market grew due to some strength in optical transport networks and access. Wireless revenues performed better than expected due to stronger radio shipments.

Xilinx Inc forecast first-quarter revenue below estimates and refrained from providing an annual outlook, citing the uncertainty caused by the coronavirus outbreak. Xilinx expects first-quarter revenue in the range of between $660 million and $720 million, below analysts’ average estimate of $738.8 million, according to IBES data from Refinitiv.

Moreover, the company has started seeing COVID-19 demand related impact midway through the fourth quarter with weakness in the Automotive, Broadcast and Consumer business. The weakness was more pronounced in the automotive business as car sales in China and around the globe had fallen significantly.

Additionally, in the communications market, the company has recently announced a strategic engagement with Samsung for their second-generation 5G radio design that includes beamforming based on the 7-nanometer Versal ACAP. Telefonica, which is a multinational telecoms carrier has announced its plan to build next generation wireless radio networks using O-RAN collaborating with Xilinx and other leading companies. In the Data Center, the company had announced its first comprehensive SmartNIC platform, the Alveo U25. On the software front, the company had over 20,000 Vitis downloads since the company announced Vitis this past November.

Meanwhile, in late January, the company has supported China’s largest medical equipment maker Mindray with thousands of Spartan-7 FPGAs to power patient monitoring systems. The company is currently working to support some of the largest medical suppliers in the U.S., such as GE Healthcare as well as companies in Europe and Asia for supplying the products for testing and treating COVID-19. In FY 20, the company has generated $1.2 billion in cash flow from operations and returned significant value back to shareholders with $372 million in dividends paid and spending over $1.2 billion to buyback 12.9 million shares.

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