SAN JOSE, Calif., Jan. 20 /PRNewswire-FirstCall/ -- Xilinx, Inc. (Nasdaq: XLNX) today announced record third quarter fiscal 2010 sales of $513.3 million, up 24% sequentially and up 12% from the third quarter of the prior fiscal year. Third quarter net income was $106.9 million, or $0.38 per diluted share, including previously announced restructuring charges totaling $5.5 million, or approximately $0.02 per diluted share. On a year over year basis, third quarter net income and diluted earnings per share declined because in the third quarter of fiscal 2009 there was a $58.3 million pre-tax gain from the early extinguishment of convertible debentures, partially offset by a $19.5 million pre-tax impairment charge on investments.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020822/XLNXLOGO)
The Xilinx Board of Directors announced a quarterly cash dividend of $0.16 per outstanding share of common stock, payable on March 3, 2010 to all stockholders of record at the close of business on February 10, 2010.
Additional third quarter comparisons are represented in the charts below:
GAAP Results (In millions, except EPS) |
|||||||
Growth Rates |
|||||||
Q3 FY 2010 |
Q2 FY 2010 |
Q3 FY 2009 |
Q-T-Q |
Y-T-Y |
|||
Net revenues |
$513.3 |
$415.0 |
$458.4 |
24% |
12% |
||
Operating income |
$136.6 |
$82.1 |
$119.6 |
66% |
14% |
||
Net income |
$106.9 |
$64.0 |
$119.4 |
67% |
-10% |
||
Diluted earnings per share |
$0.38 |
$0.23 |
$0.44 |
65% |
-14% |
||
Record sales were driven by strength from all end markets and geographic regions. New Product sales increased 32% sequentially during the quarter due primarily to strong growth from the Virtex®-5 and Spartan®-3 FPGA families.
"It was a record-setting quarter for Xilinx," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "In addition to record total sales, Xilinx's Virtex-5 family comfortably surpassed $100 million in quarterly sales—more than any other FPGA product in history. Sales strength from this family was driven by Communications, Industrial and Other and Data Processing. Based on new design win activity, I am confident about the prospects for continued sales growth from the Virtex-5 family."
Net Revenues by Geography: |
|||||||
Percentages |
Growth Rates |
||||||
Q3 FY 2010 |
Q2 FY 2010 |
Q3 FY 2009 |
Q-T-Q |
Y-T-Y |
|||
North America |
35% |
35% |
34% |
25% |
17% |
||
Asia Pacific |
36% |
35% |
33% |
27% |
18% |
||
Europe |
20% |
21% |
22% |
19% |
4% |
||
Japan |
9% |
9% |
11% |
17% |
-7% |
||
Net Revenues by End Market: |
|||||||
Percentages |
Growth Rates |
||||||
Q3 FY 2010 |
Q2 FY 2010 |
Q3 FY 2009 |
Q-T-Q |
Y-T-Y |
|||
Communications |
46% |
46% |
44% |
23% |
16% |
||
Industrial & Other |
32% |
31% |
33% |
29% |
8% |
||
Consumer & Automotive |
15% |
16% |
16% |
15% |
2% |
||
Data Processing |
7% |
7% |
7% |
25% |
27% |
||
Net Revenues by Product: |
|||||||
Percentages |
Growth Rates |
||||||
Q3 FY 2010 |
Q2 FY 2010 |
Q3 FY 2009 |
Q-T-Q |
Y-T-Y |
|||
New |
33% |
31% |
21% |
32% |
72% |
||
Mainstream |
33% |
33% |
34% |
22% |
9% |
||
Base |
29% |
31% |
40% |
18% |
-17% |
||
Support |
5% |
5% |
5% |
22% |
5% |
||
Products are classified as follows: |
|
New Products: Virtex-6, Virtex-5, Spartan-6, Spartan-3A and Spartan-3E product families |
|
Mainstream Products: Virtex-4, Spartan-3, Spartan-II and CoolRunner™-II product families |
|
Base Products: Virtex, Virtex-E, Virtex-II, Spartan, XC4000, CoolRunner and XC9500 product families |
|
Support Products: Configuration products, HardWire, Software & Support/Services |
|
Key Statistics: (Dollars in millions) |
||||
Q3 FY 2010 |
Q2 FY 2010 |
Q3 FY 2009 |
||
Annual Return on Equity (%)* |
14 |
10 |
20 |
|
Operating Cash Flow |
$185 |
$118 |
$128 |
|
Depreciation Expense |
$13 |
$12 |
$13 |
|
Capital Expenditures |
$9 |
$4 |
$11 |
|
Combined Inventory Days |
85 |
75 |
99 |
|
Revenue Turns (%) |
58 |
57 |
54 |
|
*Return on equity calculation: Annualized net income/average stockholders' equity |
||||
Product and Financial Highlights
- Building upon Virtex-5 success, Xilinx today announced that its Virtex-6 family has achieved full production qualification and is commencing volume shipments. Xilinx also recently announced first shipments and availability of the industry's largest FPGA, the 40-nm LX760, which is ideal for use in advanced prototyping platforms and the ASIC emulation market.
- On October 19, 2009, Xilinx and ARM announced they are collaborating to enable ARM processor and interconnect technology on Xilinx FPGA products. This agreement is expected to allow programmable solutions to penetrate even deeper into existing markets and expand into new market spaces by leveraging ARM's processor strengths and ecosystem.
- On December 8, 2009, Xilinx announced six new Targeted Design Platform development kits for the Virtex-6 and Spartan-6 product families. The new kits increase productivity and innovation for electronic designers in the areas of target embedded processing, DSP and high speed serial connectivity.
- December quarter operating margin was 27%, up from 20% in the prior quarter and the highest reported by the Company in four years. Improved customer demand and continued spending discipline contributed to the operating margin increase.
Business Outlook – March Quarter Fiscal 2010
- Sales are expected to be up 3% sequentially to down 1% sequentially.
- Gross margin is expected to be approximately 64% to 65%.
- Operating expenses are expected to be approximately $180 million, including $3 million in previously announced restructuring charges.
- Other income and expense is expected to be a net expense of approximately $2 million.
- Fully diluted share count is expected to be approximately 275 million.
- March quarter tax rate is expected to be approximately 20%.
Conference Call
A conference call will be held today at 2:00 p.m. Pacific Time to discuss the quarter's 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 (800) 642-1687 and referencing confirmation code 47787165. 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," "may," "will," "could," "believe," "anticipate," "estimate," "continue," "plan," "intend," "project" or other similar words. 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 the general health of global economies as well as of the semiconductor industry, the health of our end markets and our customers' customers, the ability of our foundry suppliers to deliver sufficient wafer volumes in a timely manner, our ability to forecast end customer demand, customer acceptance of our new products, the ability of the Company to generate cost and operating expense savings in an efficient and timely fashion, the ability of our customers to manage their inventories, 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 Forms 10-K and 10-Q.
About Xilinx
Xilinx, Inc. (NASDAQ: XLNX) is the worldwide leader of programmable logic solutions. Additional information about Xilinx is available at http://www.xilinx.com.
Xilinx, the Xilinx logo, Virtex, Spartan, ISE, and other brands designated herein are trademarks of Xilinx in the United States and other countries. All other trademarks are the property of their respective owners.
#1004F
Investor Relations Contact: |
|
Lori Owen |
|
Xilinx, Inc. |
|
(408) 879-6911 |
|
XILINX, INC. |
|||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
|||||||||
(Unaudited) |
|||||||||
(In thousands, except per share amounts) |
|||||||||
Three Months Ended |
Nine Months Ended |
||||||||
Jan. 2, |
Dec. 27, |
Sept. 26, |
Jan. 2, |
Dec. 27, |
|||||
2010 |
2008* |
2009 |
2010 |
2008* |
|||||
Net revenues |
$ 513,349 |
$ 458,387 |
$ 414,950 |
$ 1,304,534 |
$ 1,430,170 |
||||
Cost of revenues |
184,320 |
165,331 |
158,177 |
486,319 |
519,244 |
||||
Gross margin |
329,029 |
293,056 |
256,773 |
818,215 |
910,926 |
||||
Operating expenses: |
|||||||||
Research and development |
101,867 |
86,967 |
90,145 |
275,245 |
267,202 |
||||
Selling, general and administrative |
85,037 |
85,032 |
78,621 |
237,214 |
266,116 |
||||
Amortization of acquisition-related intangibles |
- |
1,475 |
- |
2,493 |
4,326 |
||||
Restructuring charges |
5,531 |
- |
5,915 |
27,217 |
22,023 |
||||
Total operating expenses |
192,435 |
173,474 |
174,681 |
542,169 |
559,667 |
||||
Operating income |
136,594 |
119,582 |
82,092 |
276,046 |
351,259 |
||||
Impairment loss on investments |
(3,041) |
(19,540) |
- |
(3,041) |
(53,162) |
||||
Gain on early extinguishment of convertible debentures |
- |
58,290 |
- |
- |
58,290 |
||||
Interest and other income (expense), net |
(542) |
(1,743) |
(1,782) |
(13,234) |
9,975 |
||||
Income before income taxes |
133,011 |
156,589 |
80,310 |
259,771 |
366,362 |
||||
Provision for income taxes |
26,103 |
37,145 |
16,272 |
50,819 |
82,680 |
||||
Net income |
$ 106,908 |
$ 119,444 |
$ 64,038 |
$ 208,952 |
$ 283,682 |
||||
Net income per common share: |
|||||||||
Basic |
$ 0.39 |
$ 0.44 |
$ 0.23 |
$ 0.76 |
$ 1.03 |
||||
Diluted |
$ 0.38 |
$ 0.44 |
$ 0.23 |
$ 0.75 |
$ 1.02 |
||||
Cash dividends declared per common share |
$ 0.16 |
$ 0.14 |
$ 0.14 |
$ 0.44 |
$ 0.42 |
||||
Shares used in per share calculations: |
|||||||||
Basic |
276,832 |
273,997 |
276,353 |
275,989 |
276,584 |
||||
Diluted |
278,566 |
274,223 |
276,988 |
277,030 |
277,603 |
||||
* As adjusted due to the retrospective adoption of the accounting standard for convertible debentures in the first quarter of fiscal 2010. |
|||||||||
XILINX, INC. |
|||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||
(In thousands) |
|||
Jan. 2, |
March 28, |
||
2010 |
2009* |
||
(Unaudited) |
|||
ASSETS |
|||
Current assets: |
|||
Cash, cash equivalents and short-term investments |
$ 1,489,993 |
$ 1,324,933 |
|
Accounts receivable, net |
231,078 |
216,390 |
|
Inventories |
128,935 |
119,832 |
|
Deferred tax assets and other current assets |
108,720 |
91,313 |
|
Total current assets |
1,958,726 |
1,752,468 |
|
Net property, plant and equipment |
367,514 |
387,907 |
|
Long-term investments |
503,106 |
347,787 |
|
Other assets |
292,605 |
323,739 |
|
Total Assets |
$ 3,121,951 |
$ 2,811,901 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||
Current liabilities: |
|||
Accounts payable and accrued liabilities |
$ 284,573 |
$ 170,702 |
|
Deferred income on shipments to distributors |
77,395 |
62,364 |
|
Total current liabilities |
361,968 |
233,066 |
|
Convertible debentures |
354,460 |
352,110 |
|
Deferred tax liabilities |
247,822 |
196,189 |
|
Other long-term liabilities |
123,793 |
81,776 |
|
Stockholders' equity |
2,033,908 |
1,948,760 |
|
Total Liabilities and Stockholders' Equity |
$ 3,121,951 |
$ 2,811,901 |
|
* Derived from audited financial statements and adjusted for the retrospective adoption of the accounting standard for convertible debentures in the first quarter of fiscal 2010. |
|||
XILINX, INC. |
|||||||
SUPPLEMENTAL FINANCIAL INFORMATION |
|||||||
(Unaudited) |
|||||||
(In thousands) |
Three Months Ended |
Nine Months Ended |
|||||
Jan. 2, |
Dec. 27, |
Sept. 26, |
Jan. 2, |
Dec. 27, |
|||
2010 |
2008* |
2009 |
2010 |
2008* |
|||
SELECTED CASH FLOW INFORMATION: |
|||||||
Depreciation |
$ 12,867 |
$ 13,438 |
$ 12,056 |
$ 37,932 |
$ 42,167 |
||
Amortization |
3,210 |
4,069 |
3,260 |
11,777 |
12,420 |
||
Stock-based compensation |
15,519 |
13,041 |
11,762 |
41,010 |
41,188 |
||
Net cash provided by operating activities |
185,478 |
128,479 |
117,976 |
450,421 |
381,676 |
||
Purchases of property, plant and equipment |
(8,693) |
(11,061) |
(4,133) |
(17,540) |
(32,711) |
||
Payment of dividends to stockholders |
(44,299) |
(38,357) |
(38,744) |
(121,617) |
(115,982) |
||
Repurchases of common stock |
(25,000) |
- |
- |
(25,000) |
(275,000) |
||
Proceeds from issuance of common stock to employees and excess tax benefit |
13,546 |
2,992 |
15,677 |
13,167 |
84,379 |
||
STOCK-BASED COMPENSATION INCLUDED IN: |
|||||||
Cost of revenues |
$ 1,291 |
$ 1,337 |
$ 1,272 |
$ 3,678 |
$ 4,416 |
||
Research and development |
7,289 |
6,055 |
5,205 |
18,140 |
18,702 |
||
Selling, general and administrative |
6,939 |
5,649 |
5,285 |
18,247 |
17,506 |
||
Restructuring charges |
- |
- |
- |
945 |
564 |
||
* As adjusted due to the retrospective adoption of the accounting standard for convertible debentures in the first quarter of fiscal 2010 |
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SOURCE Xilinx, Inc.
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