Xilinx (NASDAQ:XLNX) Margins Under Pressure Long Term

Xilinx (NASDAQ:XLNX) recently released their third-quarter results, and along with guidance, were largely in line with company guidance.

But over the long terms, according to comments from the company, their margins look like they'll be coming under pressure.

Auriga commented, saying that Xilinx "management highlighted increased R&D spending to accelerate the release of 28nm products. Along with our recent comments about checks suggesting more aggressive pricing from XLNX for new design wins, we remain concerned about the implications for longer term operating margins."

Auriga is changing their fourth quarter 2011 and full year 2011 EPS/revenue estimates from $0.54/$578 million and $2.29/$2.37 billion to $0.55/$582 million and $2.37/$2.36 billion. Estimates for 2012 remain in place.

Auriga maintains their "Hold" rating on Xilinx (XLNX), which was trading at $31.27, up $0.25, or 0.81 percent, at 12:34 PM EST. Auriga has a price target on Xilinx of $35.