Xilinx Announces Fourth Consecutive Quarter of Record Sales; Operating Margin Reaches 36%

SAN JOSE, Calif., Oct. 20 /PRNewswire-FirstCall/ -- Xilinx, Inc. (Nasdaq: XLNX) today announced second quarter fiscal 2011 sales of $619.7 million, up 4% sequentially and up 49% from the second quarter of the prior fiscal year.  Second quarter fiscal 2011 net income was $170.9 million, or $0.65 per diluted share.

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The Xilinx Board of Directors announced a quarterly cash dividend of $0.16 per outstanding share of common stock, payable on December 1, 2010 to all stockholders of record at the close of business on November 10, 2010.

Additional second quarter comparisons are represented in the charts below:

The September quarter marked the fourth consecutive quarter of record sales for Xilinx.   Operating margin of 36% was also a new milestone for Xilinx, up from 35% in the previous quarter; and up from 20% in the same quarter of the prior year.  

"New Product sales were led by particularly strong growth from the Virtex™-6 and Spartan™-6 FPGA families," said Moshe Gavrielov, Xilinx President and Chief Executive Officer.  "Combined sales from these families more than doubled sequentially in the September quarter driven by strong new customer adoption in wide ranging applications such as 3D digital video displays, high performance computing and wireless infrastructure."

Highlights – Second Quarter Fiscal 2011

• Sales from the Virtex-5 FPGA family reached another milestone in the September quarter, surpassing $1 billion in total sales.  This product family continues to experience solid design win traction in myriad applications such as wireless LTE infrastructure, LED backlit, avionics imaging and mobile backhaul.
• Xilinx augmented its leadership in Aerospace and Defense (A&D) solutions by launching the Virtex-5QV FPGA, the first high-density, rad-hard reconfigurable FPGA for space applications.   Additionally, Xilinx received NSA approval of its Virtex-5Q FPGA solution for high-grade cryptographic processing, underscoring a 20-year track record of meeting the rigorous demands of the A&D industry.

Business Outlook – December Quarter Fiscal 2011

• Sales are expected to be flat to down 4% sequentially.
• Gross margin is expected to be approximately 65% plus or minus one percentage point.
• Operating expenses are expected to be approximately $190 million.
• Other income and expense is expected to be an expense of approximately $9 million.
• Fully diluted share count is expected to be approximately 262 million.
• December quarter tax rate is expected to be approximately 22%.

Conference Call

A conference call will be held today at 2:00 p.m. Pacific Time to discuss the second 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 (800) 642-1687 and referencing confirmation code 14094913. 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 to identify such forward-looking statements that include, but are not limited to, statements related to the semiconductor market, the growth and acceptance of our programmable platforms, 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 for fiscal 2011.  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, the ability of our foundry suppliers to deliver sufficient wafer volumes in a timely manner, 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, and other risk factors listed in our most recent Forms 10Q and 10-K.

About Xilinx

Xilinx is the world's leading provider of programmable platforms.   For more information, visit 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. 

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SOURCE Xilinx, Inc.