Xilinx Announces Third Quarter Fiscal 2011 Results

SAN JOSE, Calif., Jan. 19, 2011 /PRNewswire-FirstCall/ -- Xilinx, Inc. (Nasdaq: XLNX) today announced third quarter fiscal 2011 sales of $567.2 million, down 8% sequentially and up 10% from the third quarter of the prior fiscal year.  Third quarter fiscal 2011 net income was $152.3 million, or $0.58 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 March 2, 2011 to all stockholders of record at the close of business on February 9, 2011.

Additional third quarter comparisons are represented in the charts below:

The sales decline during the quarter was driven primarily by weaker than anticipated wireless communications sales to customers in Europe and North America.

"While we did not achieve a fifth consecutive quarter of record sales, I am pleased with the Company's continued focus on cost reduction and financial discipline.  This is reflected in gross margin and operating margin of 65.7% and 32%, respectively, in the December quarter.  This is up from 64.1% and 27% in the same quarter of the prior year," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "As we embark upon 2011, I am encouraged by initial manufacturing milestones we have achieved on the new 28nm technology node.  When coupled with the competitive advantages offered by our 7 series FPGAs, I believe Xilinx is positioned to establish clear market share leadership on this technology node."  

Highlights – Third Quarter Fiscal 2011

• Xilinx announced the industry's first stacked silicon interconnect technology for delivering breakthrough capacity, bandwidth and power savings using multiple FPGA die in a single package.  This platform approach is the result of five years of Xilinx research and development efforts coupled with industry leading technology from TSMC and our assembly suppliers.  Representing a significant step in FPGA evolution, this innovation is expected to extend the range of applications addressed by programmable logic.    
• Xilinx demonstrated its commitment to delivering superior transceiver performance for optical communications by announcing the availability of Virtex-6 HXT FPGAs that support 40Gbps and 100Gbps.  Additionally, with its Virtex-7 HT FPGAs, Xilinx demonstrated 28Gbps serial transceiver performance required for next generation 100-400Gbps applications.  These 28nm devices are equipped with the industry's highest-speed and lowest jitter serial transceivers available in an FPGA to support stringent optical and backplane protocols.  

Business Outlook – March Quarter Fiscal 2011

• Sales are expected to be flat to up 5% sequentially.
• Gross margin is expected to be approximately 65% plus or minus one percentage point.
• Operating expenses are expected to be approximately $195 million, including approximately $6 million in restructuring charges.
• Other income and expense is expected to be an expense of approximately $9 million.
• Fully diluted share count is expected to be approximately 266 million.
• March quarter tax rate is expected to be approximately 21%.

Conference Call

A conference call will be held today at 2:00 p.m. Pacific Time to discuss the third 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 (800) 642-1687 and referencing confirmation code 32142705. 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 March 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, 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 10-Q 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.