Xilinx Announces 2014 Fiscal Q3 Results; 28nm Sales Reach $100 Million

Jan 21, 2014, 16:20 ET from Xilinx, Inc.

SAN JOSE, Calif., Jan. 21, 2014 /PRNewswire/ -- Xilinx, Inc. (Nasdaq: XLNX) today announced third quarter fiscal 2014 sales of $587 million, down 2% from the prior quarter and up 15% from the same quarter of the prior fiscal year.  Third quarter fiscal 2014 net income was $176 million or $0.61 per diluted share; including the reversal of a litigation reserve with a net impact of $19 million, or $0.06 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 February 27, 2014 to all stockholders of record at the close of business on February 6, 2014.

Additional third quarter comparisons are represented in the charts below:

GAAP Results (In millions, except EPS)

 Growth Rates

Q3

FY 2014

Q2

FY 2014

Q3

FY 2013

 

Q-T-Q

Y-T-Y

Net revenues

$586.8

$598.9

$509.8

-2%

15%

Operating income

$202.7

$163.8

$120.8

24%

68%

Net income

$175.9

$141.5

$103.6

24%

70%

Diluted earnings per share

$0.61

$0.49

$0.38

24%

61%

 

"Sales from Xilinx's 28nm products were $100 million in the December quarter, driven by particularly strong and broad-based Kintex™-7 sales.  Sales from the Zynq™-7000 product family were also strong during the quarter, more than doubling sequentially, as key designs in wireless communication, industrial and aerospace and defense applications commenced production," said Moshe Gavrielov, Xilinx President and Chief Executive Officer.   "The phenomenal success of our 28nm product families has driven Xilinx PLD share gains for the second consecutive calendar year." 

Net Revenues by Geography:

Percentages

Growth Rates

Q3

FY 2014

Q2

FY 2014

Q3

FY 2013

 

Q-T-Q

 

Y-T-Y

North America

29%

31%

32%

-9%

5%

Asia Pacific

40%

38%

34%

3%

36%

Europe

22%

22%

24%

-5%

4%

Japan

9%

9%

10%

6%

5%

Net Revenues by End Market:

Percentages

Growth Rates

Q3

FY 2014

Q2

FY 2014

Q3

FY 2013

 

Q-T-Q

 

Y-T-Y

Communications & Data Center

44%

43%

47%

0%

9%

Industrial, Aerospace & Defense

37%

38%

36%

-5%

18%

Broadcast, Consumer & Automotive

16%

16%

15%

-3%

22%

Other

3%

3%

2%

9%

40%

Net Revenues by Product:

Percentages

Growth Rates

Q3

FY 2014

Q2

FY 2014

Q3

FY 2013

 

Q-T-Q

 

Y-T-Y

New

38%

36%

25%

5%

79%

Mainstream

33%

34%

41%

-5%

-10%

Base

26%

27%

30%

-7%

0%

Support

3%

3%

4%

-5%

-7%

 

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)

Q3

FY 2014

Q2

FY 2014

Q3

FY 2013

Annual Return on Equity (%)*

20

19

17

Operating Cash Flow

$216

$255

$123

Depreciation Expense

$14

$14

$14

Capital Expenditures

$11

$8

$8

Combined Inventory Days

114

102

131

Revenue Turns (%)

52

54

58

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

 

Highlights – December Quarter Fiscal 2014

  • Xilinx shipped the industry's first 20nm product in November 2013, continuing to execute on an aggressive rollout of its All Programmable UltraScale™ portfolio. The UltraScale product portfolio delivers the industry's only ASIC-class programmable architecture and extends Xilinx's market leading Kintex, and Virtex FPGA and 3D IC families. When combined with Vivado™ and the recently introduced UltraFast™ design methodology, Ultrascale devices enable next generation smarter systems such as 400G OTN, WCDMA Radio, and Intelligence Surveillance and Reconnaissance and high performance computing applications for the data center.
  • Xilinx announced a record breaking 4.4M logic cell device, more than doubling its industry leading highest capacity Virtex-7 device. This is Xilinx's second generation Stacked Silicon Interconnect technology built on TSMC's CoWoS manufacturing technology, enabling Xilinx to deliver devices with 2-4X the capacity of competing devices and continue to stay ahead of what Moore's Law could otherwise offer.

Business Outlook – March Quarter Fiscal 2014

  • Sales are expected to be up 2% to up 6% sequentially.
  • Gross margin is expected to be approximately 68%.
  • Operating expenses are expected to be approximately $226 million, including $2.5 million of amortization of acquisition-related intangibles.
  • Other income and expenses are expected to be a net expense of approximately $7 million.
  • Fully diluted share count is expected to be approximately 289 million.
  • March 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 December quarter financial results and management's outlook for the March 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 30665781. 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 March 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 Forms 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.

#1403F

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

 

XILINX, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands, except per share amounts)

Three Months Ended

Nine Months Ended

December 28, 2013

September 28, 2013

December 29, 2012

December 28, 2013

December 29, 2012

Net revenues

$                   586,816

$                    598,937

$                   509,767

$                1,764,708

$                1,636,484

Cost of revenues

180,792

182,816

170,493

543,308

556,617

Gross margin

406,024

416,121

339,274

1,221,400

1,079,867

Operating expenses:

   Research and development

128,092

125,002

129,055

364,635

364,389

   Selling, general and administrative

91,794

96,339

86,823

280,520

274,952

   Amortization of acquisition-related intangibles

2,589

2,418

2,554

7,425

7,021

   Litigation and contingencies

(19,190)

28,600

9,410

Total operating expenses

203,285

252,359

218,432

661,990

646,362

Operating income

202,739

163,762

120,842

559,410

433,505

Interest and other expense, net

4,807

10,997

5,149

25,734

24,824

Income before income taxes

197,932

152,765

115,693

533,676

408,681

Provision for income taxes

22,055

11,304

12,045

59,315

51,765

Net income

$                   175,877

$                    141,461

$                   103,648

$                   474,361

$                   356,916

Net income per common share:

   Basic

$                         0.66

$                          0.53

$                         0.40

$                         1.78

$                         1.36

   Diluted

$                         0.61

$                          0.49

$                         0.38

$                         1.66

$                         1.31

Cash dividends per common share

$                         0.25

$                          0.25

$                         0.22

$                         0.75

$                         0.66

Shares used in per share calculations:

   Basic

267,780

268,478

260,690

266,068

261,723

   Diluted

288,195

290,685

271,174

285,380

271,861

 

XILINX, INC. CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

December 28, 2013

March 30, 2013 *

(unaudited)

ASSETS

Current assets:

  Cash, cash equivalents and short-term investments

$                2,457,419

$             1,714,745

  Accounts receivable, net

207,248

229,175

  Inventories

206,728

201,250

  Deferred tax assets and other current assets

76,431

152,469

Total current assets

2,947,826

2,297,639

Net property, plant and equipment

354,800

365,687

Long-term investments

1,287,392

1,651,033

Other assets

411,783

415,092

Total Assets

$                5,001,801

$             4,729,451

LIABILITIES , TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY

Current liabilities:

  Accounts payable and accrued  liabilities

$                   309,009

$                333,379

  Deferred income on shipments to distributors

48,075

53,358

  Deferred tax liabilities

140,601

51

  Convertible debentures

934,392

Total current liabilities

1,432,077

386,788

Convertible debentures

922,666

Deferred tax liabilities

279,696

415,442

Other long-term liabilities

13,057

41,259

Temporary equity

355,243

Stockholders' equity

2,921,728

2,963,296

Total Liabilities, Temporary Equity and Stockholders' Equity

$                5,001,801

$             4,729,451

 

XILINX, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

(Unaudited)

(In thousands)

Three Months Ended

Nine Months Ended

December 28, 2013

September 28, 2013

December 29, 2012

December 28, 2013

December 29, 2012

SELECTED CASH FLOW INFORMATION:

Depreciation

$                     13,595

$                      13,976

$                     13,680

$                     41,604

$                     42,434

Amortization

5,058

4,885

4,423

14,828

12,878

Stock-based compensation

24,339

23,060

19,762

68,353

56,616

Net cash provided by operating activities

216,390

254,943

122,568

615,542

482,884

Purchases of property, plant and equipment

10,975

8,441

8,075

30,717

24,053

Payment of dividends to stockholders

67,096

67,198

57,326

200,301

172,647

Repurchases of common stock

97,140

69,981

19,541

167,121

197,689

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

12,729

110,925

20,547

157,611

58,201

STOCK-BASED COMPENSATION INCLUDED IN:

Cost of revenues

$                       1,966

$                        1,858

$                       1,517

$                       5,628

$                       4,718

Research and development

11,912

11,343

9,654

33,474

27,681

Selling, general and administrative

10,461

9,859

8,591

29,251

24,217

SOURCE Xilinx, Inc.



RELATED LINKS

http://www.xilinx.com