Shares in Xilinx Inc. rose slightly in after-hours trading after the chipmaker delivered better-than-expected second-quarter earnings results.

The company, which makes customizable chips called field-programmable gate arrays for the aerospace and defense industries as well as for servers and consumer products, reported revenue of $766.5 million in the quarter, down 8% from a year ago but ahead of market analyst predictions of a figure of $756.7 million.

Xilinx booked net income of $193.8 million or 79 cents a share in the quarter, down 15% a year ago. Adjusted profit before costs such as stock compensation came in at $203 million or 82 cents per share. Analysts had been forecasting 76 cents per share.

Highlights in the quarter included Xilinx’s advanced products accounting for 70% of total revenue, up 8% over the previous quarter, though down 13% year-over-year. The company landed Subaru Corp. as a client in the quarter as the Japanese carmaker selected Xilinx to power the new version of its vision-based advanced driver assistant system.

Other notable deals included Continental AG signing on to use the Xilinx UltraScale MPSoC to power its new Advance Radar Sensor.

Earlier this month Advanced Micro Devices Inc. was reportedly in talks to acquire Xilinx in a deal that could be valued at more than $30 billion.

“Xilinx business continued to strengthen in fiscal Q2, buoyed by the economic recovery and increasing demand across our broad set of end markets,” Chief Financial Officer Brice Hill said in a statement. “This drove better than expected sequential revenue growth of 5% and GAAP operating income growth of 17%, resulting in $232 million of free cash flow and $93 million in capital return to stockholders with our quarterly dividend.”

In a conference call following the release of the figures, Xilinx Chief Executive Officer Victor Peng (pictured) predicted “robust long-term growth” in the auto market while also noting that the company’s auto segment “is not quite back to the pre-COVID run rate.” He also noted that the company’s data center division is currently seeing 30% annual growth.

For the quarter ahead, Xilinx is predicting revenue of between $750 million and $800 million, roughly in line with analyst average predictions of $774.2 million.

Xilinx’s share price was up 1.98% in after-hours trading, sitting at $133.50 as of 8 p.m. EDT.

Photo: Xilinx/Facebook