(Reuters) - Chipmaker Xilinx Inc expects fourth quarter results at the mid-point of analysts' expectations, allaying investor concerns that the slowdown in the semiconductor market would continue into the new year.
Xilinx' shares rose 7 percent in extended trading after the announcement. Rival Altera Corp was also up 5 percent after the bell.
The maker of programmable chips, expects revenue to grow 2 percent to 6 percent sequentially in the fourth quarter to $521.2 million to $541.8 million. Analysts were expecting revenue of $533.3 million for the period.
"People were expecting the worst for the March quarter given they were expecting the cautious data points, particularly around the communications market," ThinkEquity analyst Sujeeva De Silva said.
Xilinx' announcement follows better-than-expected outlook by chipmakers this week. Linear Technology forecast strong third-quarter sales on improving bookings, while Dutch Chipmaker ASML said it expects strong chip demand to continue into the second half of the year.
For the third quarter, the company reported sales of $511.1 million, beating analysts' expectations of $499.3 million.
Net income during the period was $127 million or 47 cents a share. Analysts, on average, expected the company to earn 37 cent a share for the period.
Reporting by Himank Sharma in Bangalore, Additional reporting by Noel Randewich in San Francisco; Editing by Supriya Kurane