(RTTNews) - Programmable chip maker Xilinx Inc. (XLNX: News ) will announce second-quarter results before the market opens Wednesday, with analysts expecting earnings of $0.22 per share, on revenues of $410.21 million. In the second quarter of fiscal 2008, the company earned $0.29 per share on net revenues of $483.5 million.

Last month, Xilinx raised its sequential sales growth target for the second quarter to 10% from its prior range of 2%-6%, citing a significant increase in sales of Virtex-5 chips and broad based strength across nearly all end markets and geographies.

The company had reported revenues of $376.2 million for the first quarter. On average, seventeen analysts polled by Thomson Reuters expect the company to report revenues of $410.21 million for the second quarter.

Further, the San Jose, California-based company expects Virtex-5 sales to surpass 20% of total sales for the second quarter. The Virtex-5 line comprises programmable chips for high-speed networking applications. The company's chips are used in network routers, cellphone base stations, cable modems and DVD routers. About 40% of the company's business is generated from the communications market, while about 30% stems from the industrial segment.

For the preceding first quarter, the company witnessed a 56% downswing in profit, totaling $38.0 million, or $0.14 per share, compared to $86.3 million, or $0.31 per share, last year, hurt by sales decline in all geographies and end markets. Sales for the quarter fell 23% to $376.2 million from $488.2 million in the year-ago period, impacted by supply constraints primarily relating to certain Virtex-5 devices in high demand.
Chip makers have been reeling under the economic meltdown that coerced them to experience plummeting sales for the past few months. However, the market is currently witnessing a tenuous improvement due to strong fundamental demands. Several chip makers have recently hiked their sales outlook, signaling a broad recovery in the chip business.

Worldwide sales of semiconductors in August were up 5% to $19.1 billion from $18.2 billion in July, the Semiconductor Industry Association or SIA reported. Sales declined 16.1% from August 2008. Year-to-date sales through August dropped 21.3% to $133.8 billion from $170.1 billion last year. Further, SIA noted that the rate of decline has slowed from the first six months of 2009 during which sales declined by 25% year-on-year.

SIA President George Scalise said, "Continuing recovery of consumer spending led the sixth-consecutive month of sequential growth in semiconductor sales. Various incentive programs for energy-efficient products, ranging from automobiles to home appliances, have bolstered demand for semiconductors, which deliver critical enabling technology for reducing energy consumption."

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