Xilinx Announces 2014 Fiscal Q2 Sales Increase 3% Sequentially; New Products Drive Growth

SAN JOSE, Calif., Oct. 16, 2013 /PRNewswire-FirstCall/ -- Xilinx, Inc. (Nasdaq: XLNX) today announced second quarter fiscal 2014 sales of $599 million, up 3% from the prior quarter and up 10% from the same quarter of the prior fiscal year.  Second quarter fiscal 2014 net income was $141 million or $0.49 per diluted share; including a contingent litigation expense of $29 million, or $0.09 per diluted share.

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The Xilinx Board of Directors announced a quarterly cash dividend of $0.25 per outstanding share of common stock, payable on November 27, 2013 to all stockholders of record at the close of business on November 6, 2013.

Additional second quarter comparisons are represented in the charts below:

"Sales from Xilinx's 28-nm products have once again exceeded our expectations, surpassing $80 million in the September quarter.  Kintex™-7 sales were particularly strong during the quarter, driven by wired and wireless communication applications," said Moshe Gavrielov, Xilinx President and Chief Executive Officer.   "Additionally, gross margin was 69.5% in the September quarter, up from 65.5% in the same quarter of the prior year.  This is the second consecutive quarter that the Company has reported a record gross margin and a strong testament to our on-going margin expansion efforts." 

Highlights – September Quarter Fiscal 2014

• The Vivado® Design Suite software, first introduced in April, 2012, continues to receive strong customer adoption. Over 70% of our 28-nm designs are now using Vivado. Built from the ground up to address productivity bottlenecks in system-level integration and implementation, the Vivado Design Suite continues to lead the PLD industry in overall productivity, ease-of-use and system level integration capabilities; and remains the industry's only software to support both programmable SOC and 3D designs.
• Sales from Industrial and A&D increased 6% sequentially in the September quarter, representing a record 38% of total sales. Xilinx is benefitting from strong customer adoption of the 28-nm platform as well as the industry-wide shift to smarter vision applications such as intelligent imaging, surveillance and machine vision, which are pervasive throughout Industrial, Automotive, AVB and A&D.
• Xilinx's Zynq-7000 All Programmable SoC family continues to gain broad-based customer adoption. Initially targeting longer time-to-revenue markets such as Automotive and Industrial, the Zynq-7000 family is now participating in approximately 40% of wireless designs and is rapidly gaining traction in data center applications. Xilinx remains the only PLD Company generating material sales from a programmable SoC product.

Business Outlook – December Quarter Fiscal 2014 

• Sales are expected to be up 2% to down 2% 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 291 million.
• December quarter tax rate is expected to be approximately 13%.

Conference Call

A conference call will be held today at 2:00 p.m. Pacific Time to discuss the September quarter financial results and management's outlook for the December 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 76692154. 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 December 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, costs and liabilities associated with current and future litigation, and other risk factors listed in our most recent Form 10-Q and 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.

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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.

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Investor Relations Contact:
Lori Owen
Xilinx, Inc.
(408) 879-6911
[email protected]

SOURCE Xilinx, Inc.