Xilinx (NASDAQ: XLNX) was up 3% after it announced it brought in $1.01 billion in the third quarter of the 2021 fiscal year. This revenue was more than the $956.8 million estimations. The company also recorded a $1.29 EPS in the same quarter, which was a lot more than the $0.95 financial analysts predicted.
The $1.01 billion record revenue represented a sequential growth of 8% and a year-over-year growth of 26%. This growth was despite industry-wide supply constraints. In addition, DCG (Data Center Growth) garnered record revenue, with 28% sequential growth and a year-over-year increase of 81%, all driven by Networking and Compute strength.
Business Highlights
The market regulator in China approved the $35 billion sales of Xilinx stock. Beijing’s regulatory approval brings the purchase of the company closer to completion. In a public notice, the State Administration for market regulation in the country said it would approve the purchase agreement on the condition that Xilinx and AMD don’t force tie-in product sales.
The regulator said that the new entity also needs to make sure of the programmability and flexibility of Xilinx FPGAs. They also said that their developmental techniques should be working with ARM-based microprocessors. The Chinese regulators also claimed that the company must ensure its FPGA and GPU products are interoperable with Chinese products.
The merger between these two companies comes as both entities battle Intel corporation to enter the data center microchips market.
Both Beijing and Washington have sometimes stopped these kinds of mergers by withholding regulatory approval. For example, Applied Materials Inc gave its $2.2 billion plan to buy Kokusai Electric Corporation in japan because China denied them regulatory approval.
Details of the Agreement
As per the merger agreement terms between Advanced Micro Devices and Xilinx, the Board of Directors of Xilinx made a unanimous vote to declare a $0.37 cash dividend per common stock outstanding shares.
Top management statements
Xilinx’s Chief Executive Officer and President, Victor Peng said:
We saw broad and robust demand across our end markets with record quarters in our DCG business as well as our A&D end market. A&D record performance, combined with strong ISM and TME performance, also led to a record for total AIT, and drove stronger overall profitability.
La notizia Xilinx up 7% after announcing record third-quarter revenue era stato segnalata su Invezz.
