Trade Wars Finally Catch Up With Xilinx, but Better Times Are Ahead
All hasn't been rosy for chipmaker Xilinx (NASDAQ: XLNX) this year. Sales are being pressured by the U.S.-China trade war, specifically the White House's trade restriction on sales to China's telecom giant Huawei, and the global economy has tapped the brakes. As a result, the company's year-over-year sales notched another slowdown during its fiscal 2020 second quarter (three months ended Sept. 28, 2019).
Nevertheless, sales were still up 12% from a year ago, and Xilinx's field-programmable gate arrays (FPGAs) and other hardware and software platforms are still gaining in adoption. The going is tough at the moment, which is usually the time to start eyeing companies with a winning track record.
Q2 sales came in at $833 million, near the upper end of guidance provided a few months ago. Paired with the first quarter of fiscal 2020, Xilinx is still putting up double-digit gains on the top and bottom lines. It may be a slowdown from the north-of-20% growth in the recent past, but it's still more than respectable given the economic worry and cautious stance many businesses are taking at the moment.
Source Fool.com
