The San Jose, Calif.-based developer of programmable chips used on products such as cellphone base stations and DVD players said sales are expected to be down 9% to 12% in the December quarter.
Earlier, the company had called for sales to decline just 3% to 8%, sequentially. Xilinx attributed the decrease to a further loss of large customer business in its communications unit.
The downward outlook reflects continued uncertainty in the semiconductor sector, which has caused major industry players to revise lower sales figures. Just last week, Intel (INTC) warned its fourth-quarter revenue would fall about $1 billion short of expectations.
Xilinx reported a 26% in second-quarter profit in October, which it attributed to declines in its communications and industrial groups.