Xilinx Announces Q1 Fiscal 2015 Results; EPS $0.62

SAN JOSE, Calif., July 22, 2014 /PRNewswire/ -- Xilinx, Inc. (Nasdaq: XLNX) today announced first quarter fiscal 2015 sales of $613 million, down 1% from the prior quarter and up 6% from the same quarter of the prior fiscal year.  First quarter fiscal 2015 net income was $174 million or $0.62 per diluted share.

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The Xilinx Board of Directors announced a quarterly cash dividend of $0.29 per outstanding share of common stock, payable on August 27, 2014 to all stockholders of record at the close of business on August 6, 2014.

Additional first quarter comparisons are represented in the charts below:

GAAP Results

(In millions, except EPS)











Growth Rates


Q1

FY 2015

Q4

FY 2014

Q1

FY 2014


Q-T-Q

Y-T-Y

Net revenues

$612.6

$617.8

$579.0


-1%

6%

Operating income

$206.5

$189.5

$192.9


9%

7%

Net income

$173.6

$156.0

$157.0


11%

11%

Diluted earnings per share

$0.62

$0.53

$0.56


17%

11%

 

"June quarter revenues were impacted by weaker than anticipated sales from our defense and wireless businesses," said Moshe Gavrielov, Xilinx President and Chief Executive Officer.  "However, I am pleased by our continued focus on supply chain efficiencies and cost reduction efforts, which resulted in gross and operating margins of 69.1% and 33.7%, respectively.  Looking ahead to the second half of our fiscal year, I believe Xilinx is positioned to benefit from a recovery in wireless and defense programs as well as improved business conditions in wired communications and industrial applications." 

Net Revenues by Geography:







Percentages


Growth Rates


Q1

FY 2015

Q4

FY 2014

Q1

FY 2014


Q-T-Q

Y-T-Y

North America

26%

27%

31%


-4%

-12%

Asia Pacific

43%

43%

36%


-2%

26%

Europe

21%

21%

24%


1%

-7%

Japan

10%

9%

9%


9%

21%

                                                                                                             

Net Revenues by End Market:








Percentages


Growth Rates


Q1

FY 2015

Q4

FY 2014

Q1

FY 2014


Q-T-Q

Y-T-Y

Communications & Data Center

50%

49%

44%


1%

20%

Industrial, Aerospace & Defense

31%

34%

37%


-9%

-11%

Broadcast, Consumer & Automotive

16%

15%

16%


5%

3%

Other

3%

2%

3%


39%

11%








                                                                                                                     

Net Revenues by Product:







Percentages


Growth Rates


Q1

FY 2015

Q4

FY 2014

Q1

FY 2014


Q-T-Q

Y-T-Y

New

45%

42%

30%


6%

58%

Mainstream

34%

34%

36%


0%

-2%

Base

18%

21%

30%


-14%

-36%

Support

3%

3%

4%


-9%

-9%

 

Products are classified as follows:

New products: Virtex® Ultrascale™, Kintex® Ultrascale,  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)





Q1

FY 2015

Q4

FY 2014

Q1

FY 2014





Annual Return on Equity (%)*

25

22

21





Operating Cash Flow

$130

$189

$144





Depreciation Expense

$13

$14

$14





Capital Expenditures

$9

$14

$11





Combined Inventory Days

135

115

105





Revenue Turns (%)

47

54

56






*Return on equity calculation: Annualized net income/average stockholders' equity

 

Highlights – June Quarter Fiscal 2015

  • Xilinx announced the first customer shipment of the Virtex® UltraScale™ All Programmable FPGA, and the expansion of the industry's only 20nm high-end family. Virtex UltraScale devices provide unprecedented levels of performance, system integration, and bandwidth for a wide range of applications, such as wired communication, test and measurement, aerospace and defense, and data center.
  • For the quarter, Xilinx reported a gross margin of 69.1%, up from 67.6% in the prior quarter and better than anticipated. The improvement in gross margin underscores the Company's continued commitment to driving cost reduction and efficiencies across the supply chain.
  • Xilinx continued to demonstrate a strong commitment to returning value to stockholders. During the June quarter, the Company repurchased 2.1 million shares of stock for $100 million and paid a record $77 million in quarterly dividends.

Business Outlook – September Quarter Fiscal 2015

  • Sales are expected to be flat to down 4% sequentially.
  • Gross margin is expected to be approximately 70%.
  • Operating expenses are expected to be approximately $236 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 282 million.
  • June 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 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 59028978. 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 2015.  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.

#1438F

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 28,
2014


March 29,
2014


June 29,
2013

Net revenues

$ 612,633


$  617,823


$ 578,955

Cost of revenues

189,189


199,945


179,700

Gross margin

423,444


417,878


399,255

Operating expenses:






Research and development

122,013


127,812


111,541

Selling, general and administrative

92,513


98,087


92,387

Amortization of acquisition-related intangibles

2,418


2,462


2,418

Total operating expenses

216,944


228,361


206,346

Operating income

206,500


189,517


192,909

Loss on extinguishment of convertible debentures


9,848


Interest and other expense, net

6,222


3,819


9,930

Income before income taxes

200,278


175,850


182,979

Provision for income taxes

26,667


19,823


25,956

Net income

$ 173,611


$  156,027


$ 157,023

Net income per common share:






Basic

$       0.65


$        0.58


$       0.59

Diluted

$       0.62


$        0.53


$       0.56

Cash dividends per common share

$       0.29


$        0.25


$       0.25

Shares used in per share calculations:






Basic

267,648


268,134


264,153

Diluted

281,579


294,536


280,291

 

XILINX, INC.




CONDENSED CONSOLIDATED BALANCE SHEETS




(In thousands)





June 28, 2014


March 29, 2014 *


(unaudited)



ASSETS




Current assets:




  Cash, cash equivalents and short-term investments

$      2,485,206


$           2,457,321

  Accounts receivable, net

281,335


267,833

  Inventories

256,791


233,999

  Deferred tax assets and other current assets

145,367


107,994

Total current assets

3,168,699


3,067,147

Net property, plant and equipment

350,736


355,089

Long-term investments

1,109,645


1,190,775

Other assets

425,139


424,338

Total Assets

$      5,054,219


$           5,037,349





LIABILITIES , TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY




Current liabilities:




  Accounts payable and accrued  liabilities

$         296,825


$              369,260

  Deferred income on shipments to distributors

69,258


55,099

  Current portion of long-term debt

567,765


565,001

Total current liabilities

933,848


989,360





Long-term debt

994,110


993,870

Deferred tax liabilities

283,492


253,433

Other long-term liabilities

13,169


13,005

Temporary equity

32,236


34,999

Stockholders' equity

2,797,364


2,752,682

Total Liabilities, Temporary Equity and Stockholders' Equity

$      5,054,219


$           5,037,349





* Derived from audited financial statements




 

XILINX, INC.






SUPPLEMENTAL FINANCIAL INFORMATION






(Unaudited)






(In thousands)





Three Months Ended


June 28,
2014


March 29,
2014


June 29,
2013

SELECTED CASH FLOW INFORMATION:






Depreciation

$   13,468


$     13,860


$   14,033

Amortization

5,205


4,980


4,885

Stock-based compensation

22,106


25,961


20,954

Net cash provided by operating activities

130,119


189,375


144,209

Purchases of property, plant and equipment

9,116


14,148


11,301

Payment of dividends to stockholders

77,421


67,042


66,007

Repurchases of common stock

101,016


73,955


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

16,855


111,301


33,957







STOCK-BASED COMPENSATION INCLUDED IN:






Cost of revenues

$     1,992


$       1,974


$     1,804

Research and development

10,505


12,723


10,219

Selling, general and administrative

9,609


11,264


8,931

 

SOURCE Xilinx, Inc.



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