Xilinx Recall Impact Small for Q1
Staff Reporter -- EDN, July 5, 2006
Xilinx’s Spartan 3 recall may have a small impact, if any, on the company’s quarterly revenue.
That’s the conclusion of analyst firm Lehman Brothers which as issued its own assessment of the impact of the recall.
“We believe the recall may impact up to 5 percent to 10 percent of Xilinx’s revenues and result in a softer quarter,” said Tim Luke, a managing director at Lehman Brothers, in his brief report. “We believe that the news and the stock option inquiry by the [U.S. Securities and Exchange Commission] may weight on the stock in the near term."
Lehman Brothers said that it remains unclear how much of the affected products remain in the channel, but that a majority of Xilinx’s product runs through Avnet and Lehman’s channel checks suggest that Avnet has not reported any problems with the FPGAs.
With that in mind Luke said that Lehman’s estimates for the quarter ending in June remains unchanged at $487 million in revenues and earnings per share of 32 cents.
