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

16 Oct, 2013, 16:20 ET from Xilinx, Inc.

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.

(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 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:

GAAP Results

(In millions, except EPS)

Growth Rates

Q2

FY 2014

Q1

FY 2014

Q2

FY 2013

 

Q-T-Q

 

Y-T-Y

Net revenues

$598.9

$579.0

$543.9

3%

10%

Operating income

$163.8

$192.9

$148.1

-15%

11%

Net income

$141.5

$157.0

$123.4

-10%

15%

Diluted earnings per share

$0.49

$0.56

$0.46

-13%

7%

"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." 

Net Revenues by Geography:

Percentages

Growth Rates

Q2

FY 2014

Q1

FY 2014

Q2

FY 2013

 

Q-T-Q

 

Y-T-Y

North America

31%

31%

28%

2%

22%

Asia Pacific

38%

36%

36%

11%

17%

Europe

22%

24%

26%

-6%

-7%

Japan

9%

9%

10%

3%

-5%

 

Net Revenues by End Market:

Percentages

Growth Rates

Q2

FY 2014

Q1

FY 2014

Q2

FY 2013

 

Q-T-Q

 

Y-T-Y

Communications & Data Center

43%

44%

49%

2%

-3%

Industrial, Aerospace & Defense

38%

37%

32%

6%

32%

Broadcast, Consumer & Automotive

16%

16%

15%

5%

17%

Other

3%

3%

4%

-5%

-25%

 

Net Revenues by Product:

Percentages

Growth Rates

Q2

FY 2014

Q1

FY 2014

Q2

FY 2013

 

Q-T-Q

 

Y-T-Y

New

36%

30%

20%

22%

100%

Mainstream

34%

36%

47%

-4%

-22%

Base

27%

30%

29%

-5%

4%

Support

3%

4%

4%

-4%

0%

Products are classified as follows:

New products: Virtex®‐7, Kintex‐7, Artix™-7, Zynq™-7000, Virtex‐6, Spartan™‐6 products Mainstream products: Virtex‐5, Spartan‐3 and CoolRunner™‐II products Base products: Virtex‐4, Virtex‐II, Virtex‐E, Virtex, Spartan-II, Spartan, CoolRunner and XC9500 products Support products: Configuration solutions, HardWire, Software & Support/Services

Key Statistics:

(Dollars in millions)

Q2

FY 2014

Q1

FY 2014

Q2

FY 2013

Annual Return on Equity (%)*

19

21

19

Operating Cash Flow

$255

$144

$197

Depreciation Expense

$14

$14

$14

Capital Expenditures

$8

$11

$8

Combined Inventory Days

102

105

109

Revenue Turns (%)

54

56

57

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

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.

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

Six Months Ended

September 28, 2013

June 29, 2013

September 29, 2012

September 28, 2013

September 29, 2012

Net revenues

$                    598,937

$          578,955

$                    543,933

$                 1,177,892

$                 1,126,717

Cost of revenues

182,816

179,700

187,713

362,516

386,124

Gross margin

416,121

399,255

356,220

815,376

740,593

Operating expenses:

Research and development

125,002

111,541

113,887

236,543

235,334

Selling, general and administrative

96,339

92,387

91,928

188,726

188,129

Amortization of acquisition-related intangibles

2,418

2,418

2,319

4,836

4,467

Litigation and contingencies

28,600

28,600

   Total operating expenses

252,359

206,346

208,134

458,705

427,930

Operating income

163,762

192,909

148,086

356,671

312,663

Interest and other expense, net

10,997

9,930

10,003

20,927

19,675

Income before income taxes

152,765

182,979

138,083

335,744

292,988

Provision for income taxes

11,304

25,956

14,646

37,260

39,720

Net income

$                    141,461

$          157,023

$                    123,437

$                    298,484

$                    253,268

Net income per common share:

Basic

$                           0.53

$                 0.59

$                           0.47

$                           1.12

$                          0.97

Diluted

$                           0.49

$                 0.56

$                           0.46

$                           1.05

$                          0.93

Cash dividends per common share

$                           0.25

$                 0.25

$                           0.22

$                           0.50

$                          0.44

Shares used in per share calculations:

Basic

268,478

264,153

260,605

265,350

262,143

Diluted

290,685

280,291

270,265

284,270

272,182

 

 

 

XILINX, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS  

(In thousands)

September 28, 2013

March 30, 2013 *

(unaudited)

ASSETS

Current assets:

Cash, cash equivalents and short-term investments

$                 2,264,065

$             1,714,745

Accounts receivable, net

277,539

229,175

Inventories

183,708

201,250

Deferred tax assets and other current assets

75,894

152,469

Total current assets

2,801,206

2,297,639

Net property, plant and equipment

357,420

365,687

Long-term investments

1,436,781

1,651,033

Other assets

404,645

415,092

Total Assets

$                 5,000,052

$             4,729,451

LIABILITIES , TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable and accrued  liabilities

$                    357,060

$                333,379

Deferred income on shipments to distributors

68,814

53,358

Deferred tax liabilities

126,211

51

Convertible debentures

930,085

Total current liabilities

1,482,170

386,788

Convertible debentures

922,666

Deferred tax liabilities

269,250

415,442

Other long-term liabilities

16,756

41,259

Temporary equity

359,549

Stockholders' equity

2,872,327

2,963,296

Total Liabilities, Temporary Equity and Stockholders' Equity

$                 5,000,052

$             4,729,451

* Derived from audited financial statements

 

 

 

XILINX, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

(Unaudited)

(In thousands)

Three Months Ended

Six Months Ended

September 28, 2013

June 29, 2013

September 29, 2012

September 28, 2013

September 29, 2012

SELECTED CASH FLOW INFORMATION:

Depreciation

$                      13,976

$            14,033

$                      14,151

$                      28,009

$                      28,754

Amortization

4,885

4,885

4,188

9,770

8,455

Stock-based compensation

23,060

20,954

19,246

44,014

36,854

Net cash provided by operating activities

254,943

144,209

197,370

399,152

360,316

Purchases of property, plant and equipment

8,441

11,301

7,636

19,742

15,978

Payment of dividends to stockholders

67,198

66,007

57,255

133,205

115,321

Repurchases of common stock

69,981

87,441

69,981

178,148

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

110,925

33,957

28,627

144,882

37,654

STOCK-BASED COMPENSATION INCLUDED IN:

Cost of revenues

$                        1,858

$              1,804

$                        1,473

$                        3,662

$                        3,201

Research and development

11,343

10,219

9,404

21,562

18,027

Selling, general and administrative

9,859

8,931

8,369

18,790

15,626

 

 

SOURCE Xilinx, Inc.



RELATED LINKS

http://www.xilinx.com