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

Oct 20, 2010, 16:20 ET from Xilinx, Inc.

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:

GAAP Results

(In millions, except EPS)







Growth Rates


Q2

FY 2011

Q1

FY 2011

Q2

FY 2010



Q-T-Q


Y-T-Y

Net revenues

$619.7

$594.7

$415.0


4%

49%

Operating income

$222.7

$208.0

$82.1


7%

171%

Net income

$170.9

$158.6

$64.0


8%

167%

Diluted earnings per share

$0.65

$0.58

$0.23


12%

183%




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."

Net Revenues by Geography:


Percentages


Growth Rates


Q2

FY 2011

Q1

FY 2011

Q2

FY 2010



Q-T-Q


Y-T-Y

North America

30%

32%

35%


-3%

28%

Asia Pacific

35%

34%

35%


7%

52%

Europe

26%

26%

21%


4%

85%

Japan

9%

8%

9%


22%

38%




Net Revenues by End Market:



Percentages


Growth Rates


Q2

FY 2011

Q1

FY 2011

Q2

FY2010



Q-T-Q


Y-T-Y

Communications

48%

47%

46%


5%

55%

Industrial & Other

31%

32%

31%


1%

52%

Consumer & Automotive

15%

15%

16%


7%

41%

Data Processing

6%

6%

7%


6%

25%




Net Revenues by Product:


Percentages


Growth Rates


Q2

FY 2011

Q1

FY 2011

Q2

FY 2010



Q-T-Q


Y-T-Y

New

44%

39%

31%


17%

113%

Mainstream

27%

30%

33%


-4%

22%

Base

25%

27%

31%


-3%

20%

Support

4%

4%

5%


-7%

21%

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)



Q2

FY 2011

Q1

FY 2011

Q2

FY 2010





Annual Return on Equity (%)*

32

32

10





Operating Cash Flow

$42

$105

$118





Depreciation Expense

$13

$12

$12





Capital Expenditures

$15

$18

$4





Combined Inventory Days

89

80

75





Revenue Turns (%)

48

53

57


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



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. 

#1057F

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




Oct. 2,

Jul. 3,

Sept. 26,


Oct. 2,

Sept. 26,




2010

2010

2009


2010

2009

Net revenues

$ 619,666

$ 594,737

$ 414,950


$ 1,214,403

$ 791,185

Cost of revenues

213,260

208,176

158,177


421,436

301,999

Gross margin

406,406

386,561

256,773


792,967

489,186

Operating expenses:







  Research and development

96,578

94,484

90,145


191,062

173,378

  Selling, general and administrative

87,174

84,058

78,621


171,232

152,177

  Amortization of acquisition-related intangibles

-

-

-


-

2,493

  Restructuring charges

-

-

5,915


-

21,686



Total operating expenses

183,752

178,542

174,681


362,294

349,734










Operating income

222,654

208,019

82,092


430,673

139,452

Interest and other expense, net

(3,484)

(5,130)

(1,782)


(8,614)

(12,692)










Income before income taxes

219,170

202,889

80,310


422,059

126,760

Provision for income taxes

48,275

44,302

16,272


92,577

24,716

Net income

$ 170,895

$ 158,587

$   64,038


$    329,482

$ 102,044










Net income per common share:







 Basic

$       0.66

$       0.58

$       0.23


$          1.23

$       0.37

 Diluted

$       0.65

$       0.58

$       0.23


$          1.22

$       0.37










Cash dividends declared per common share

$       0.16

$       0.16

$       0.14


$          0.32

$       0.28










Shares used in per share calculations:







 Basic

260,151

272,097

276,353


267,355

275,735

 Diluted

263,286

275,541

276,988


270,484

276,271



XILINX, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS  

(In thousands)




Oct. 2,

Apr. 3,




2010

2010




(Unaudited)







ASSETS



Current assets:



 Cash, cash equivalents and short-term investments

$    1,406,664

$ 1,386,605

 Accounts receivable, net

556,766

262,735

 Inventories

170,180

130,628

 Deferred tax assets and other current assets

210,303

127,098

Total current assets

2,343,913

1,907,066

Net property, plant and equipment

374,384

365,878

Long-term investments

704,586

582,202

Other assets

292,968

329,172

Total Assets

$    3,715,851

$ 3,184,318






LIABILITIES AND STOCKHOLDERS' EQUITY



Current liabilities:



 Accounts payable and accrued  liabilities

$       297,226

$    277,029

 Deferred income on shipments to distributors

93,608

80,132

Total current liabilities

390,834

357,161

Convertible debentures

884,390

354,798

Deferred tax liabilities

350,702

294,149

Other long-term liabilities

62,694

57,740






Stockholders' equity

2,027,231

2,120,470

Total Liabilities and Stockholders' Equity

$    3,715,851

$ 3,184,318



XILINX, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

(Unaudited)

(In thousands)


Three Months Ended


Six Months Ended



Oct. 2,

Jul. 3,

Sept. 26,


Oct. 2,

Sept. 26,



2010

2010

2009


2010

2009









SELECTED CASH FLOW INFORMATION:








 Depreciation


$ 12,747

$ 12,191

$ 12,056


24,938

25,065

 Amortization


1,943

1,743

3,260


3,686

8,567

 Stock-based compensation


15,421

15,120

11,762


30,541

25,491

 Net cash provided by operating activities


41,616

105,042

117,976


146,658

264,943

 Purchases of property, plant and equipment


15,177

18,267

4,133


33,444

8,847

 Payment of dividends to stockholders


41,645

43,817

38,744


85,462

77,318

 Repurchases of common stock


32,976

433,333

-


466,309

-

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


41,816

5,817

15,677


47,633

(379)









STOCK-BASED COMPENSATION INCLUDED IN:








  Cost of revenues


$   1,312

$   1,267

$   1,272


$  2,579

2,387

  Research and development


7,341

7,204

5,205


14,545

11,201

  Selling, general and administrative


6,768

6,649

5,285


13,417

10,958

  Restructuring charges


-

-

-


-

945



SOURCE Xilinx, Inc.



RELATED LINKS

http://www.xilinx.com