EX-99.1 2 c99784exv99w1.htm EXHIBIT 99.1 Exhibit 99.1
     
Investor Relations Contact:
Lori Owen
Xilinx, Inc.
(408) 879-6911
ir@xilinx.com
  Exhibit 99.1
XILINX ANNOUNCES FISCAL 2010 RESULTS;
RECORD Q4 SALES OF $529 MILLION
SAN JOSE, CA, APRIL 28, 2010— Xilinx, Inc. (Nasdaq: XLNX) today announced fiscal 2010 sales of $1.83 billion, essentially flat with sales from the prior fiscal year. Fiscal 2010 net income decreased 1% to $357.5 million, or $1.29 per diluted share, versus fiscal 2009 net income of $361.7 million, or $1.31 per diluted share. Fiscal 2009 net income included a $75.0 million pre-tax gain, or $0.21 per diluted share, on the extinguishment of convertible debt.
Fourth quarter fiscal 2010 sales were $529.0 million, up 3% sequentially and up 34% from the fourth quarter of the prior fiscal year. Fourth quarter fiscal 2010 net income was $148.5 million, or $0.54 per diluted share, including previously announced pre-tax restructuring charges totaling $2.8 million, or $0.01 per diluted share. Included in the fourth quarter net income was a tax benefit of $23.2 million, or $0.08 per diluted share, primarily related to the impact of our recent favorable ruling in the Ninth Circuit Court.
The Xilinx Board of Directors announced a quarterly cash dividend of $0.16 per outstanding share of common stock, payable on June 9, 2010 to all stockholders of record at the close of business on May 19, 2010.
Additional fourth quarter comparisons are represented in the charts below:
GAAP Results
(In millions, except EPS)
                                         
    Q4     Q3     Q4     Growth Rates  
    FY 2010     FY 2010     FY 2009     Q-T-Q     Y-T-Y  
Net revenues
  $ 529.0     $ 513.3     $ 395.0       3 %     34 %
Operating income
  $ 156.1     $ 136.6     $ 78.3       14 %     99 %
Net income
  $ 148.5     $ 106.9     $ 78.0       39 %     90 %
Diluted earnings per share
  $ 0.54     $ 0.38     $ 0.28       42 %     93 %
“Record quarterly sales of $529 million coupled with the highest gross and operating margins achieved in nearly six years provide strong testament to the growing acceptance of Xilinx programmable platforms as well as to our continued financial discipline,” said Moshe Gavrielov, Xilinx President and Chief Executive Officer. “Gross and operating margins for the quarter were 64.9% and 29.5%, respectively, up from 62.1% and 19.8% in the same quarter a year ago.” Gavrielov continued, “In the next fiscal year and beyond, I believe Xilinx is uniquely positioned to capitalize on incremental growth opportunities afforded by our 28nm leadership as well as our innovative platform-based architectures.”

 

 


 

Net Revenues by Geography:
                                         
    Percentages        
    Q4     Q3     Q4     Growth Rates  
    FY 2010     FY 2010     FY 2009     Q-T-Q     Y-T-Y  
North America
    33 %     35 %     35 %     -5 %     24 %
Asia Pacific
    35 %     36 %     35 %     1 %     34 %
Europe
    24 %     20 %     22 %     25 %     48 %
Japan
    8 %     9 %     8 %     -4 %     35 %
Net Revenues by End Market:
                                         
    Percentages        
    Q4     Q3     Q4     Growth Rates  
    FY 2010     FY 2010     FY 2009     Q-T-Q     Y-T-Y  
Communications
    47 %     46 %     47 %     7 %     34 %
Industrial & Other
    30 %     32 %     32 %     -4 %     27 %
Consumer & Automotive
    15 %     15 %     14 %     5 %     47 %
Data Processing
    8 %     7 %     7 %     7 %     42 %
Net Revenues by Product:
                                         
    Percentages        
    Q4     Q3     Q4     Growth Rates  
    FY 2010     FY 2010     FY 2009     Q-T-Q     Y-T-Y  
New
    36 %     33 %     23 %     13 %     108 %
Mainstream
    31 %     33 %     36 %     -4 %     15 %
Base
    28 %     29 %     36 %     0 %     7 %
Support
    5 %     5 %     5 %     4 %     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)
                         
    Q4     Q3     Q4  
    FY 2010     FY 2010     FY 2009  
Annual Return on Equity (%)*
    18       14       18  
Operating Cash Flow
  $ 104     $ 185     $ 61  
Depreciation Expense
  $ 12     $ 13     $ 13  
Capital Expenditures
  $ 11     $ 9     $ 6  
Combined Inventory Days
    79       85       90  
Revenue Turns (%)
    56       58       66  
*Return on equity calculation: Annualized net income/average stockholders’ equity

 

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Product and Financial Highlights — Fiscal 2010
    Xilinx’s 65nm Virtex-5 platform became the industry’s most successful FPGA family in history generating more in quarterly sales than any other PLD family. Sales from this family nearly doubled in fiscal 2010 from the prior fiscal year due to broad-based customer acceptance in a variety of end markets including: mobile infrastructure, enterprise switching and routing, cryptography and industrial imaging.
    Xilinx introduced and commenced volume shipments of its next generation Virtex-6 and Spartan-6 FPGA platforms. The 40nm Virtex-6 platform leverages the successful Virtex-5 architecture and delivers higher performance and lower power consumption than competing FPGAs. The Spartan-6 platform marks the first time transceiver capability, high-performance PCIe and memory controller blocks have been integrated into a 45nm low-cost FPGA fabric.
    Xilinx announced targeted design platform development kits for the Virtex-6 and Spartan-6 product families. These kits are designed to increase productivity and innovation for electronic designers in the areas of embedded processing, DSP and high speed serial connectivity and address end markets such as automotive, broadcast, consumer and industrial.
    After announcing collaboration with ARM in October, 2009, Xilinx recently unveiled a revolutionary, extensible, processing platform architecture designed to deliver unrivaled levels of system performance, flexibility and integration. This innovative, platform-based approach is expected to drive expansion into new market spaces leveraging Xilinx 28nm FPGA technology together with ARM’s processor strengths and ecosystem.
    Xilinx generated over $550 million in cash and raised its dividend by $0.02 per diluted share to $0.16 per diluted share in fiscal 2010. This demonstrates not only the resilience of Xilinx’s business model during a challenging economic period, but also the Company’s continued commitment to returning value to shareholders. Xilinx continues to have among the highest dividend yields in the technology industry.
Business Outlook — June Quarter Fiscal 2011
    Sales are expected to be up 5% to 9% sequentially.
    Gross margin is expected to be approximately 65% plus or minus one percentage point.
    Operating expenses are expected to be approximately $182 million.
    Other income and expense is expected to be a net expense of approximately $2 million.
    Fully diluted share count is expected to be approximately 276 million.
    June quarter tax rate is expected to be approximately 21%.

 

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Conference Call
A conference call will be held today at 2:00 p.m. Pacific Time to discuss the fourth quarter and year-end financial results and management’s outlook for the June 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 67509509. 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 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 June 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 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 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.
#1026F

 

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XILINX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)
                                         
    Three Months Ended     Twelve Months Ended  
    Apr. 3,     Mar. 28,     Jan. 2,     Apr. 3,     Mar. 28,  
    2010     2009 *     2010     2010     2009 *  
Net revenues
  $ 529,020     $ 395,014     $ 513,349     $ 1,833,554     $ 1,825,184  
Cost of revenues
    185,484       149,907       184,320       671,803       669,151  
 
                             
Gross margin
    343,536       245,107       329,029       1,161,751       1,156,033  
 
                             
Operating expenses:
                                       
Research and development
    94,240       88,190       101,867       369,485       355,392  
Selling, general and administrative
    90,346       77,652       85,037       327,560       343,768  
Amortization of acquisition-related intangibles
          1,006             2,493       5,332  
Restructuring charges
    2,847             5,531       30,064       22,023  
 
                             
Total operating expenses
    187,433       166,848       192,435       729,602       726,515  
 
                             
 
                                       
Operating income
    156,103       78,259       136,594       432,149       429,518  
Impairment loss on investments
    (764 )     (967 )     (3,041 )     (3,805 )     (54,129 )
Gain on early extinguishment of convertible debentures
          16,745                   75,035  
Interest and other income (expense), net
    6,655       (2,373 )     (542 )     (6,579 )     7,602  
 
                             
 
                                       
Income before income taxes
    161,994       91,664       133,011       421,765       458,026  
Provision for income taxes
    13,462       13,627       26,103       64,281       96,307  
 
                             
Net income
  $ 148,532     $ 78,037     $ 106,908     $ 357,484     $ 361,719  
 
                             
 
                                       
Net income per common share:
                                       
Basic
  $ 0.54     $ 0.28     $ 0.39     $ 1.30     $ 1.31  
 
                             
Diluted
  $ 0.54     $ 0.28     $ 0.38     $ 1.29     $ 1.31  
 
                             
 
                                       
Cash dividends declared per common share
  $ 0.16     $ 0.14     $ 0.16     $ 0.60     $ 0.56  
 
                             
 
                                       
Shares used in per share calculations:
                                       
Basic
    274,686       274,689       276,832       276,012       276,113  
 
                             
Diluted
    277,290       274,881       278,566       276,953       276,854  
 
                             
     
*   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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XILINX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
                 
    April 3,     March 28,  
    2010     2009*  
    (Unaudited)        
ASSETS
               
Current assets:
               
Cash, cash equivalents and short-term investments
  $ 1,386,605     $ 1,324,933  
Accounts receivable, net
    262,735       216,390  
Inventories
    130,628       119,832  
Deferred tax assets and other current assets
    127,098       91,313  
 
           
Total current assets
    1,907,066       1,752,468  
Net property, plant and equipment
    365,878       387,907  
Long-term investments
    582,202       347,787  
Other assets
    329,172       323,739  
 
           
Total Assets
  $ 3,184,318     $ 2,811,901  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
Current liabilities:
               
Accounts payable and accrued liabilities
  $ 277,029     $ 170,702  
Deferred income on shipments to distributors
    80,132       62,364  
 
           
Total current liabilities
    357,161       233,066  
Convertible debentures
    354,798       352,110  
Deferred tax liabilities
    294,149       196,189  
Other long-term liabilities
    57,740       81,776  
 
               
Stockholders’ equity
    2,120,470       1,948,760  
 
           
Total Liabilities and Stockholders’ Equity
  $ 3,184,318     $ 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.

 

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XILINX, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)
(In thousands)
                                         
    Three Months Ended     Twelve Months Ended  
    Apr. 3,     Mar. 28,     Jan. 2,     Apr. 3,     Mar. 28,  
    2010     2009 *     2010     2010     2009 *  
SELECTED CASH FLOW INFORMATION:
                                       
Depreciation
  $ 12,248     $ 13,465     $ 12,867     $ 50,180     $ 55,632  
Amortization
    3,105       3,262       3,210       14,882       15,682  
Stock-based compensation
    15,471       13,321       15,519       56,481       54,509  
Net cash provided by operating activities
    103,870       60,854       185,478       554,291       442,530  
Purchases of property, plant and equipment
    (10,612 )     (6,398 )     (8,693 )     (28,152 )     (39,109 )
Payment of dividends to stockholders
    (44,031 )     (38,552 )     (44,299 )     (165,648 )     (154,534 )
Repurchases of common stock
    (124,997 )           (25,000 )     (149,997 )     (275,000 )
Proceeds from issuance of common stock to employees and excess tax benefit
    50,389       20,259       13,546       63,556       104,638  
 
                                       
STOCK-BASED COMPENSATION INCLUDED IN:
                                       
Cost of revenues
  $ 1,501     $ 1,375     $ 1,291     $ 5,180     $ 5,791  
Research and development
    7,276       6,373       7,289       25,766       25,075  
Selling, general and administrative
    6,694       5,573       6,939       24,590       23,079  
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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