Xilinx Lowers Q3 Guidance

Xilinx, Inc. (Nasdaq: XLNX) today provided updated sales guidance for the December quarter of fiscal 2011.

December quarter sales are expected to be down approximately 7% to 9% sequentially. This is a revision from previous sales guidance of flat to down 4% sequentially. The decreased sales guidance is primarily related to weaker than anticipated sales to a few large communications customers, specifically in the wireless segment.

Co. expects sales growth to return to the communications segment in the March quarter based on current backlog and forecasts from its large customers.

Gross margin is expected to be approximately 65%, in line with previous guidance. Additional commentary pertaining to the March quarter will be provided when the company reports its third quarter financial results on January 19, 2011.

At last check, Xilinx was down $1.50, to $26.61.

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