Xilinx Announces 2014 Fiscal Q1 Results; Sales Increase 9% Sequentially

Jul 17, 2013, 16:20 ET from Xilinx, Inc.

SAN JOSE, Calif., July 17, 2013 /PRNewswire/ -- Xilinx, Inc. (Nasdaq: XLNX) today announced first quarter fiscal 2014 sales of $579 million, up 9% from the prior quarter and down 1% from the same quarter of the prior fiscal year.  First quarter fiscal 2014 net income was $157 million or $0.56 per diluted share.  

(Logo: http://photos.prnewswire.com/prnh/20020822/XLNXLOGO)

The Xilinx Board of Directors announced a quarterly cash dividend of $0.25 per outstanding share of common stock, payable on August 28, 2013 to all stockholders of record at the close of business on August 7, 2013.

Additional first quarter comparisons are represented in the charts below:                      

GAAP Results

(In millions, except EPS)

Growth Rates

Q1

FY 2014

Q4

FY 2013

Q1

FY 2013

 

Q-T-Q

 

Y-T-Y

Net revenues

$579.0

$532.2

$582.8

9%

-1%

Operating income

$192.9

$147.2

$164.6

31%

17%

Net income

$157.0

$130.6

$129.8

20%

21%

Diluted earnings per share

$0.56

$0.47

$0.47

19%

19%

 

"The June quarter was exceptional on many fronts.  Better than expected sales during the quarter were driven by broad-based end market strength, with particularly strong growth from wired communications and aerospace and defense applications. Gross margin was 69% in the quarter, up from 66% in prior quarter, and a new record for the Company.  Operating margin of 33% was up from 28% in the prior quarter and a direct result of improved gross margin and continued spending discipline," said Moshe Gavrielov, Xilinx President and Chief Executive Officer.  "Sales of our 28-nm products exceeded $50 million during the quarter, once again surpassing our expectations with strong growth from all five products.  With the first 20-nm product in the semiconductor industry recently taped out by the Company, I am confident that Xilinx will continue to drive market expansion opportunities and augment our PLD leadership." 

Net Revenues by Geography:

Percentages

Growth Rates

Q1

FY 2014

Q4

FY 2013

Q1

FY 2013

 

Q-T-Q

 

Y-T-Y

North America

31%

31%

30%

9%

6%

Asia Pacific

36%

34%

35%

15%

2%

Europe

24%

26%

26%

1%

-9%

Japan

9%

9%

9%

5%

-7%

 

Net Revenues by End Market:

Percentages

 Growth Rates

Q1

FY 2014

Q4

FY 2013

Q1

FY 2013

 

Q-T-Q

 

Y-T-Y

Communications & Data Center

44%

44%

45%

8%

-2%

Industrial, Aerospace & Defense

37%

37%

34%

10%

9%

Broadcast, Consumer & Automotive

16%

17%

16%

4%

-5%

Other

3%

2%

5%

27%

-40%

 

Net Revenues by Product:

Percentages

Growth Rates

Q1

FY 2014

Q4

FY 2013

Q1

FY 2013

 

Q-T-Q

 

Y-T-Y

New

30%

27%

17%

24%

75%

Mainstream

36%

41%

43%

-3%

-17%

Base

30%

28%

36%

14%

-17%

Support

4%

4%

4%

0%

-5%

 

Products are classified as follows:

New products: Virtex®7, Kintex™7, Artix™-7, Zynq™-7000, Virtex6, Spartan™6 products Mainstream products: Virtex5, Spartan3 and CoolRunner™II products Base products: Virtex4, VirtexII, VirtexE, Virtex, Spartan-II, Spartan, CoolRunner and XC9500 products Support products: Configuration solutions, HardWire, Software & Support/Services

Key Statistics:

(Dollars in millions)

Q1

FY 2014

Q4

FY 2013

Q1

FY 2013

Annual Return on Equity (%)*

21

17

19

Operating Cash Flow

$144

$174

$163

Depreciation Expense

$14

$14

$15

Capital Expenditures

$11

$6

$8

Combined Inventory Days

105

110

99

Revenue Turns (%)

56

58

55

*Return on equity calculation: Annualized net income/average equities, including temporary equity

 

Highlights – June Quarter Fiscal 2014

  • Xilinx recently announced it has taped out the semiconductor industry's first 20-nm device and the PLD industry's first 20-nm All Programmable device. Xilinx has also implemented the industry's first ASIC-class programmable architecture called UltraScale™. These milestones expand on Xilinx's industry first 28-nm tape-out, All Programmable SoCs, All Programmable 3D ICs, and SoC-strength design suite. With unprecedented scalability and significantly faster performance, UltraScale devices enable next generation smarter systems including 400G OTN, 4X4 Mixed Mode Radio applications and high performance computing applications for the data center.
  • During the quarter, Xilinx and TSMC extended a highly successful collaboration by announcing that we are teaming together to create the fastest time-to-market and highest performance FPGAs to be built on TSMC's 16-nm FinFET process. This program is expected to deliver test chips in 2013 and first product in 2014.

Business Outlook – September Quarter Fiscal 2014

  • Sales are expected to be flat to up 3% sequentially.
  • Gross margin is expected to be approximately 69%.
  • Operating expenses are expected to be approximately $225 million, including $2 million of amortization of acquisition-related intangibles.
  • Other income and expenses are expected to be a net expense of approximately $9 million.
  • Fully diluted share count is expected to be approximately 284 million.
  • September quarter tax rate is expected to be approximately 14%.

Conference Call

A conference call will be held today at 2:00 p.m. Pacific Time to discuss the June quarter financial results and management's outlook for the September quarter. The webcast and subsequent replay will be available in the Investor Relations section of the Company's web site at www.investor.xilinx.com.  A telephonic replay of the call may be accessed later in the day by calling (855) 859-2056 and referencing confirmation code 16932631. The telephonic replay will be available for two weeks following the live call. 

This release contains forward-looking statements and projections. Forward-looking statements and projections can often be identified by the use of forward-looking words such as "expect," "believe,"  "may," "will," "could," "anticipate," "estimate," "continue," "plan," "intend," "project" or other similar expressions.  Statements that refer to or are based on projections, uncertain events or assumptions also identify forward-looking statements.  Such forward looking statements include,  but are not limited to, statements related to the semiconductor market, the growth and acceptance of our products, expected revenue growth, the demand and growth in the markets we serve, opportunity for expansion into new markets, and our expectations regarding our business outlook for the September quarter of fiscal 2014.  Undue reliance should not be placed on such forward-looking statements and projections, which speak only as of the date they are made. We undertake no obligation to update such forward-looking statements.  Actual events and results may differ materially from those in the forward-looking statements and are subject to risks and uncertainties including customer acceptance of our new products, current global economic conditions, the health of our customers and the end markets in which they participate, our ability to forecast end customer demand, a high dependence on turns business, more customer volume discounts than expected, greater product mix changes than anticipated, fluctuations in manufacturing yields, our ability to deliver product in a timely manner, our ability to successfully manage production at multiple foundries, variability in wafer pricing, and other risk factors listed in our most recent Form 10-K.

About Xilinx Xilinx develops All Programmable technologies and devices, beyond hardware to software, digital to analog, and single to multiple die in 3D ICs.  These industry leading devices are coupled with a next-generation design environment and IP to serve a broad range of customer needs, from programmable logic to programmable systems integration.  For more information visit www.xilinx.com.

#1333F

Xilinx, the Xilinx logo, Artix, ISE, Kintex, Spartan, Virtex, Zynq, Vivado, and other designated brands included herein are trademarks of Xilinx in the United States and other countries. All other trademarks are the property of their respective owners.

XLNX-F

Investor Relations Contact: Lori Owen Xilinx, Inc. (408) 879-6911 ir@xilinx.com

 

XILINX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In thousands, except per share amounts)

Three Months Ended

June 29,

March 30,

June 30,

2013

2013

2012

Net revenues

$ 578,955

$ 532,168

$ 582,784

Cost of revenues

179,700

180,589

198,411

Gross margin

399,255

351,579

384,373

Operating expenses:

   Research and development

111,541

111,133

121,447

   Selling, general and administrative

92,387

90,732

96,201

   Amortization of acquisition-related intangibles

2,418

2,487

2,148

Total operating expenses

206,346

204,352

219,796

Operating income 

192,909

147,227

164,577

Interest and other expense, net

9,930

8,902

9,672

Income before income taxes 

182,979

138,325

154,905

Provision for income taxes

25,956

7,705

25,074

Net income 

$ 157,023

$ 130,620

$ 129,831

Net income per common share:

  Basic 

$       0.59

$       0.50

$       0.49

  Diluted 

$       0.56

$       0.47

$       0.47

Cash dividends per common share

$       0.25

$       0.22

$       0.22

Shares used in per share calculations:

  Basic

264,153

263,035

263,055

  Diluted

280,291

277,090

273,820

 

XILINX, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS  

(In thousands)

June 29, 2013

March 30, 2013 *

 (Unaudited) 

ASSETS

Current assets:

  Cash, cash equivalents and short-term investments

$   1,841,780

$         1,714,745

  Accounts receivable, net

268,153

229,175

  Inventories

186,800

201,250

  Deferred tax assets and other current assets

57,851

152,469

Total current assets

2,354,584

2,297,639

Net property, plant and equipment

362,956

365,687

Long-term investments

1,634,031

1,651,033

Other assets

409,352

415,092

Total Assets

$   4,760,923

$         4,729,451

LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY

Current liabilities:

  Accounts payable and accrued  liabilities

$      271,360

$            333,379

  Deferred income on shipments to distributors

57,938

53,358

  Deferred tax liabilities

146,397

51

  Convertible debentures

926,781

-

Total current liabilities

1,402,476

386,788

Convertible debentures

-

922,666

Deferred tax liabilities

228,219

415,442

Other long-term liabilities

40,376

41,259

Temporary equity

362,854

-

Stockholders' equity

2,726,998

2,963,296

Total liabilities, temporary equity and stockholders' equity

$   4,760,923

$         4,729,451

* Derived from audited financial statements

 

XILINX, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

(Unaudited)

(In thousands)

Three Months Ended

June 29,

March 30,

June 30,

2013

2013

2012

SELECTED CASH FLOW INFORMATION:

  Depreciation 

$ 14,033

$ 13,893

$ 14,603

  Amortization 

4,885

4,355

4,267

  Stock-based compensation

20,954

21,246

17,608

  Net cash provided by operating activities

144,209

173,653

162,946

  Purchases of property, plant and equipment

11,301

6,212

8,342

  Payment of dividends to stockholders

66,007

57,822

58,066

  Repurchases of common stock

-

-

90,707

  Proceeds from issuance of common stock to employees and excess tax benefit

33,957

59,671

9,027

STOCK-BASED COMPENSATION INCLUDED IN:

   Cost of revenues

$   1,804

$   1,638

$   1,728

   Research and development

10,219

10,256

8,623

   Selling, general and administrative

8,931

9,352

7,257

SOURCE Xilinx, Inc.



RELATED LINKS

http://www.xilinx.com