- Associated Press - Thursday, July 22, 2010

NEW YORK (AP) - An analyst praised chip maker Xilinx Inc. on Thursday after its fiscal first-quarter results and second-quarter outlook topped expectations, but another warned that the company continued losing market share to rival Altera Corp.

The San Jose, Calif., company said late Wednesday that its net income quadrupled in the three months ended in June thanks to strong demand for its chips in wireless phone networks and video-on-demand systems. Revenue grew 58 percent.

Jefferies & Co. analyst Adam Benjamin raised his target price on the stock to $36 from $31, implying gains of 29 percent from Wednesday’s close of $27.80. He increased his earnings estimates for the year ending in March 2011.

But Baird analyst Tristan Gerra warned that Altera had a lead with an important product, which could cause Xilinx to lose more market share. He also said the company faces supply constraints that will hurt its revenue and gross margins for several quarters.

Still, he raised earnings estimate for the year above the $2.11-per-share consensus expectations of Wall Street analysts polled by Thomson Reuters.



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