Xilinx Announces Q3 Fiscal 2015 Results; EPS $0.62

Jan 21, 2015, 16:20 ET from Xilinx, Inc.

SAN JOSE, Calif., Jan. 21, 2015 /PRNewswire/ -- Xilinx, Inc. (Nasdaq: XLNX) today announced third quarter fiscal 2015 sales of $594 million, down 2% from the prior quarter and up 1% from the same quarter of the prior fiscal year.  Third quarter fiscal 2015 net income was $168 million or $0.62 per share, including a $0.02 per diluted share benefit primarily related to the reinstatement of the R&D tax credit. 

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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 February 25, 2015 to all stockholders of record at the close of business on February 4, 2015.

Additional third quarter comparisons are represented in the charts below:  

GAAP Results

(In millions, except EPS)

Growth Rates

Q3

FY 2015

Q2

FY 2015

Q3

FY 2014

Q-T-Q

Y-T-Y

Net revenues

$593.5

$604.3

$586.8

-2%

1%

Operating income

$190.0

$200.0

$202.7

-5%

-6%

Net income

$168.5

$171.5

$175.9

-2%

-4%

Diluted earnings per share

$0.62

$0.62

$0.61

0%

2%

 

"Solid profitability during the quarter was tempered by disappointing sales from broadcast and communications end markets," said Moshe Gavrielov, Xilinx President and Chief Executive Officer.  "However, I am pleased with the renewed growth of our 28nm product family, which increased nearly 20% sequentially.   I expect this product family to continue to post healthy growth in 2015 driven by a broad base of applications." 

                                                          

Net Revenues by Geography:

Percentages

Growth Rates

Q3

FY 2015

Q2

FY 2015

Q3

FY 2014

 

Q-T-Q

Y-T-Y

North America

34%

32%

29%

4%

18%

Asia Pacific

39%

37%

40%

3%

-2%

Europe

17%

21%

22%

-18%

-16%

Japan

10%

10%

9%

-4%

2%

                                                                                                       

Net Revenues by End Market:

 Percentages

Growth Rates

Q3

FY 2015

Q2

FY 2015

Q3

FY 2014

 

Q-T-Q

Y-T-Y

Communications & Data Center

41%

41%

44%

 

-3%

-7%

Industrial, Aerospace & Defense

43%

41%

37%

4%

18%

Broadcast, Consumer & Automotive

14%

15%

16%

-6%

-9%

Other

2%

3%

3%

-41%

-39%

                                                                                                                          

Net Revenues by Product:

Percentages

Growth Rates

Q3

FY 2015

Q2

FY 2015

Q3

FY 2014

 

Q-T-Q

 

Y-T-Y

New

43%

43%

38%

-1%

14%

Mainstream

29%

31%

33%

-8%

-10%

Base

25%

23%

26%

4%

-3%

Support

3%

3%

3%

-2%

-1%

 

Products are classified as follows:

New products: Virtex® UltraScale™, Kintex® UltraScale, Virtex-7,  Kintex7, Artix®-7, Zynq®-7000, Virtex6, Spartan®6 products

Mainstream products: Virtex5, Spartan3 and CoolRunner™II products

Base products: Virtex4, VirtexII, VirtexE, Virtex, Spartan-II, Spartan, CoolRunner and XC9500 products

Support products: Configuration solutions, HardWire, Software & Support/Services

 

Key Statistics:

(Dollars in millions)

Q3

FY 2015

Q2

FY 2015

Q3

FY 2014

Annual Return on Equity (%)*

25

25

20

Operating Cash Flow

$291

$204

$216

Depreciation Expense

$14

$14

$14

Capital Expenditures

$6

$8

$11

Combined Inventory Days

134

153

114

Revenue Turns (%)

44

48

52

 

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

 

Highlights – December Quarter Fiscal 2015

  • Xilinx 28nm products exceeded $150 million in sales for the quarter, up nearly 20% sequentially and up over 50% from the same quarter a year ago.  Sales from all product family members increased sequentially and were driven by a broad base of applications. 
  • Xilinx recently introduced its Kintex UltraScale devices, which are the industry's first 20nm FPGAs to move into volume production.  Customers can benefit from an estimated one-year time to market advantage relative to its competition. At 20nm, Xilinx also announced that it is now shipping the industry's largest FPGA, which delivers over 4X the capacity of competitive devices and extends its high-end leadership.
  • Xilinx announced the SDAccel™ development environment for OpenCL™, C, and C++, enabling up to 25X better performance/watt for data center application acceleration leveraging FPGAs. SDAccel, the newest member of the SDx™ family, combines the industry's first architecturally optimizing compiler supporting any combination of OpenCL, C, and C++ kernels, along with libraries, development boards, and the first complete CPU/GPU-like development and run-time experience for FPGAs.
  • In November, Xilinx Board of Directors granted an authorization for the Company to repurchase up to $800 million of its common stock. Since fiscal 2010, the Company has repurchased over 50 million shares for approximately $1.8 billion.  

Business Outlook – March Quarter Fiscal 2015

  • Sales are expected to be down 2% to down 6% sequentially.
  • Gross margin is expected to be approximately 68% to 69%.
  • Operating expenses are expected to be approximately $227 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 270 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 50649087. 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 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.

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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

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XILINX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In thousands, except per share amounts)

Three Months Ended

Nine Months Ended

December 27, 2014

September 27, 2014

December 28, 2013

December 27, 2014

December 28, 2013

Net revenues

$               593,549

$               604,262

$               586,816

$            1,810,445

$            1,764,708

Cost of revenues

179,638

169,617

180,792

538,445

543,308

Gross margin

413,911

434,645

406,024

1,272,000

1,221,400

Operating expenses:

Research and development

133,455

138,335

128,092

393,803

364,635

Selling, general and administrative

88,076

93,883

91,794

274,472

280,520

Amortization of acquisition-related intangibles

2,371

2,378

2,589

7,167

7,425

Litigation and contingencies

(19,190)

9,410

Total operating expenses

223,902

234,596

203,285

675,442

661,990

Operating income

190,009

200,049

202,739

596,558

559,410

Interest and other expense, net

4,007

5,731

4,807

15,960

25,734

Income before income taxes

186,002

194,318

197,932

580,598

533,676

Provision for income taxes

17,536

22,802

22,055

67,005

59,315

Net income

$                 168,466

$                   171,516

$                 175,877

$                 513,593

$                 474,361

Net income per common share:

Basic

$                     0.64

$                     0.64

$                     0.66

$                     1.93

$                     1.78

Diluted

$                     0.62

$                     0.62

$                     0.61

$                     1.85

$                     1.66

Cash dividends per common share

$                     0.29

$                     0.29

$                     0.25

$                     0.87

$                     0.75

Shares used in per share calculations:

Basic

262,881

265,942

267,780

266,299

266,068

Diluted

273,795

275,800

288,195

277,709

285,380

 

XILINX, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

December 27, 2014

March 29, 2014 *

(unaudited)

ASSETS

Current assets:

Cash, cash equivalents and short-term investments

$            2,920,768

$            2,457,321

Accounts receivable, net

187,496

267,833

Inventories

246,664

233,999

Deferred tax assets and other current assets

160,213

107,994

Total current assets

3,515,141

3,067,147

Net property, plant and equipment

337,914

355,089

Long-term investments

654,013

1,190,775

Other assets

408,137

424,338

Total Assets

$            4,915,205

$            5,037,349

LIABILITIES , TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY

  Accounts payable and accrued  liabilities

$               288,240

$               369,260

  Deferred income on shipments to distributors

51,486

55,099

  Current portion of long-term debt

573,290

565,001

Total current liabilities

913,016

989,360

Long-term debt

994,595

993,870

Deferred tax liabilities

293,138

253,433

Other long-term liabilities

14,268

13,005

Temporary equity

26,710

34,999

Stockholders' equity

2,673,478

2,752,682

Total Liabilities, Temporary Equity and Stockholders' Equity

$            4,915,205

$            5,037,349

* Derived from audited financial statements

 

XILINX, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

(Unaudited)

(In thousands)

Three Months Ended

Nine Months Ended

December 27, 2014

September 27, 2014

December 28, 2013

December 27, 2014

December 28, 2013

SELECTED CASH FLOW INFORMATION:

Depreciation

$                        13,711

$                        13,678

$                        13,595

$                        40,857

$                        41,604

Amortization

5,048

5,303

5,058

15,556

14,828

Stock-based compensation

29,054

28,740

24,339

79,900

68,353

Net cash provided by operating activities

290,742

203,881

216,390

624,741

615,542

Purchases of property, plant and equipment

6,139

8,427

10,975

23,682

30,717

Payment of dividends to stockholders

76,172

76,957

67,096

230,550

200,301

Repurchases of common stock

174,997

199,999

97,140

476,012

167,121

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

16,700

2,452

12,729

36,007

157,611

STOCK-BASED COMPENSATION INCLUDED IN:

Cost of revenues

$                          2,339

$                          2,077

$                          1,966

$                          6,408

$                          5,628

Research and development

14,909

14,831

11,912

$                        40,245

$                        33,474

Selling, general and administrative

11,806

11,832

10,461

$                        33,247

$                        29,251

 

SOURCE Xilinx, Inc.



RELATED LINKS

http://www.xilinx.com