Xilinx Inc. XLNX,
Shares obtained in off-hours trading on Monday after the semiconductor company said loosening some restrictions on Chinese companies had helped its business. Xilinx said it now expects first-quarter tax revenue of $ 720 million to $ 734 million, after previously declaring from $ 660 million to $ 720 million. “While we have seen some COVID-19 related impacts during the June quarter, our overall business has performed well overall, with stronger than expected revenue in our Wired and Wireless Group and Data Center Group more than offsetting weaker-than-expected revenue in our consumer-oriented end markets, including automotive, transmission and consumer, “Chief Executive Officer VIctor Peng said in the announcement. “Part of the strength of revenue in the quarter was because customers accelerated orders following recent changes to the United States government restrictions on sales of certain of our products to international customers.” President Donald Trump eased some restrictions on Huawei this month after lobbying by chip companies; Huawei is an important partner of Xilinx. However, a Xilinx spokeswoman told MarketWatch that the changes that affected its revenue were announced in late April, and that Huawei was not yet included in the chipmaker’s forecast. Xilinx shares rose more than 6% in after-hours trading after the announcement, after closing with a 1% gain at $ 91.96. The stock is down 5.9% so far this year, as the S&P 500 SPX index,
It has fallen 6.9%.
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