Xilinx Profit Tops Estimates, Sees Return to Growth
- Chipmaker declines to take questions on AMD’s acquisition bid
- CEO says data center unit on track for double-digit expansion
Xilinx Inc., the chipmaker in takeover talks with Advanced Micro Devices Inc., reported earnings that beat Wall Street estimates and said revenue will start rowing again in the current period.
Sales will be $750 million to $800 million in the three months ending in December, the San Jose, California-based company said. Revenue even at the low end of the forecast would represent the company’s first quarter of year-over-year growth in five such periods. Analysts on average projected $774 million.
Xilinx Chief Executive Officer Victor Peng is trying to spread the use of his company’s products into new areas such as data centers while combating the impact of disappearing sales to Huawei Technologies Co. and the global pandemic. The company is also negotiating a possible takeover by AMD, according to people familiar with the matter. Xilinx executives, speaking on a conference call, declined to discuss the potential deal.
The chipmaker is confident the effort to push into data centers can sustain double-digit growth, even if orders are “choppy,” Peng said. Xilinx reported that data center sales were up 30% in the fiscal second quarter and now account for 14% of the company’s total revenue. “The data center market is being disrupted and we offer a lot of value,” he said in an interview.