EX-99.1 2 c03652exv99w1.htm EXHIBIT 99.1 Exhibit 99.1
Exhibit 99.1
Investor Relations Contact:
Lori Owen
Xilinx, Inc.
(408) 879-6911
ir@xilinx.com
XILINX REPORTS THIRD CONSECUTIVE QUARTER OF RECORD SALES;
OPERATING MARGIN REACHES 35%
SAN JOSE, CA, JULY 21, 2010 — Xilinx, Inc. (Nasdaq: XLNX) today announced first quarter fiscal 2011 sales of $594.7 million, up 12% sequentially and up 58% from the first quarter of the prior fiscal year. First quarter fiscal 2011 net income was $158.6 million, or $0.58 per diluted share.
The Xilinx Board of Directors announced a quarterly cash dividend of $0.16 per outstanding share of common stock, payable on September 1, 2010 to all stockholders of record at the close of business on August 11, 2010.
Additional first quarter comparisons are represented in the charts below:
GAAP Results
(In millions, except EPS)
                                         
    Q1     Q4     Q1     Growth Rates  
    FY 2011     FY 2010     FY 2010     Q-T-Q     Y-T-Y  
Net revenues
   $ 594.7     $ 529.0     $ 376.2       12 %     58 %
Operating income
   $ 208.0     $ 156.1     $ 57.4       33 %     263 %
Net income
   $ 158.6     $ 148.5     $ 38.0       7 %     317 %
Diluted earnings per share
   $ 0.58     $ 0.54     $ 0.14       7 %     314 %
The June quarter marked the third consecutive quarter of record sales for Xilinx. New Product sales were led by strong growth from the Virtex-6 and Virtex-5 FPGA families. These product families are experiencing success in a wide variety of applications including Long Term Evolution (LTE) wireless networks, next generation broadcast video-on-demand systems, high performance computer systems and high resolution imaging systems.
“It was an exceptional quarter on a number of fronts,” said Moshe Gavrielov, Xilinx President and Chief Executive Officer. “In addition to record sales, operating income increased 33% sequentially to $208 million, a new milestone for Xilinx. Operating margin of 35% in the June quarter is up from 30% in the prior quarter and up from 15% in the same quarter a year ago. Our improved profitability is a result of robust sales in addition to continued fiscal discipline.” Gavrielov continued, “I believe Xilinx is embarking upon an extraordinary new product cycle enabled by the strong design win momentum from our Virtex-6 and Spartan-6 families as well as the recent announcement of our 7 series FPGAs.”

 

 

 

Net Revenues by Geography:
                                         
    Percentages     Growth Rates  
    Q1     Q4     Q1              
    FY 2011     FY 2010     FY 2010     Q-T-Q     Y-T-Y  
North America
     32 %     33 %     35 %     12 %     48 %
Asia Pacific
     34 %     35 %     37 %     11 %     46 %
Europe
     26 %     24 %     20 %     19 %     103 %
Japan
     8 %     8 %     8 %     1 %     42 %
Net Revenues by End Market:
                                         
    Percentages     Growth Rates  
    Q1     Q4     Q1              
    FY 2011     FY 2010     FY 2010     Q-T-Q     Y-T-Y  
Communications
     47 %     47 %     49 %     12 %     53 %
Industrial & Other
     32 %     30 %     31 %     21 %     64 %
Consumer & Automotive
     15 %     15 %     14 %     8 %     67 %
Data Processing
     6 %     8 %     6 %     -12 %     54 %
Net Revenues by Product:
                                         
    Percentages     Growth Rates  
    Q1     Q4     Q1              
    FY 2011     FY 2010     FY 2010     Q-T-Q     Y-T-Y  
New
     39 %     36 %     25 %     23 %     148 %
Mainstream
     30 %     31 %     36 %     9 %     33 %
Base
     27 %     28 %     34 %     4 %     22 %
Support
     4 %     5 %     5 %     3 %     33 %
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)
                         
    Q1     Q4     Q1  
    FY 2011     FY 2010     FY 2010  
 
  
Annual Return on Equity (%)*
     32       18       8  
 
  
Operating Cash Flow
   $ 107     $ 104     $ 147  
 
  
Depreciation Expense
   $ 12     $ 12     $ 13  
 
  
Capital Expenditures
   $ 18     $ 11     $ 5  
 
  
Combined Inventory Days
     80       79       78  
 
  
Revenue Turns (%)
     53       56       57  
     
*   Return on equity calculation: Annualized net income/average stockholders’ equity

 

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Highlights — First Quarter Fiscal 2011
  •   Xilinx introduced its 7 series FPGAs, the industry’s first FPGAs that reduce total power consumption by 50% and offer industry-leading capacity of up to two million logic cells on the only unified architecture that scales across low-cost to ultra high-end families. The new 28nm Artix™-7, Kintex™-7 and Virtex™-7 families combine breakthrough innovations in power efficiency, system performance and design productivity to make programmable logic more accessible to a broader community of users, end markets and applications.
  •   Industrial and Other sales increased 21% sequentially in the June quarter reaching a new corporate record. Sales from this category have more than doubled in the past five years as customers are increasingly using PLDs to satisfy their silicon needs in myriad applications such as industrial networking, medical imaging, video surveillance and signal intelligence for defense applications.
 
Business Outlook — September Quarter Fiscal 2011
  •   Sales are expected to be up 3% to 7% sequentially.
  •   Gross margin is expected to be approximately 65% plus or minus one percentage point.
  •   Operating expenses are expected to be approximately $185 million.
  •   Other income and expense is expected to be a net expense of approximately $4 million.
  •   Fully diluted share count is expected to be approximately 264 million.
  •   September 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 first quarter financial results and management’s outlook for the September 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 81542321. The telephonic replay will be available for two weeks following the live call.

 

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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 September 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, the general health of global economies as well as of the semiconductor industry, the health of our end markets and our customers’ customers, our ability to forecast end customer demand, 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 Form 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.
#10XXF

 

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XILINX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)
                         
    Three Months Ended  
    July 3,     April 3,     June 27,  
    2010     2010     2009  
Net revenues
   $ 594,737     $ 529,020     $ 376,235  
Cost of revenues
     208,176       185,484       143,822  
 
                  
Gross margin
     386,561       343,536       232,413  
 
                  
Operating expenses:
                        
Research and development
     94,484       94,240       83,233  
Selling, general and administrative
     84,058       90,346       73,556  
Amortization of acquisition-related intangibles
     —       —       2,493  
Restructuring charges
     —       2,847       15,771  
 
                  
Total operating expenses
     178,542       187,433       175,053  
 
                  
 
                        
Operating income
     208,019       156,103       57,360  
Impairment loss on investments
     —       (764 )     —  
Interest and other income (expense), net
     (5,130 )     6,655       (10,910 )
 
                  
Income before income taxes
     202,889       161,994       46,450  
Provision for income taxes
     44,302       13,462       8,444  
 
                  
Net income
   $ 158,587     $ 148,532     $ 38,006  
 
                  
 
                        
Net income per common share:
                        
Basic
   $ 0.58     $ 0.54     $ 0.14  
 
                  
Diluted
   $ 0.58     $ 0.54     $ 0.14  
 
                  
 
                        
Cash dividends declared per common share
   $ 0.16     $ 0.16     $ 0.14  
 
                  
 
                        
Shares used in per share calculations:
                        
Basic
     272,097       274,686       275,523  
 
                  
Diluted
     275,541       277,290       276,258  
 
                  

 

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XILINX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
                 
    July 3,     April 3,  
    2010     2010  
    (Unaudited)          
 
                
ASSETS
                
Current assets:
                
Cash, cash equivalents and short-term investments
   $ 1,543,665     $ 1,386,605  
Accounts receivable, net
     355,406       262,735  
Inventories
     151,630       130,628  
Deferred tax assets and other current assets
     171,471       127,098  
 
            
Total current assets
     2,222,172       1,907,066  
Net property, plant and equipment
     371,954       365,878  
Long-term investments
     580,386       582,202  
Other assets
     298,492       329,172  
 
            
Total Assets
   $ 3,473,004     $ 3,184,318  
 
            
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current liabilities:
                
Accounts payable and accrued liabilities
   $ 298,885     $ 277,029  
Deferred income on shipments to distributors
     74,207       80,132  
 
            
Total current liabilities
     373,092       357,161  
Convertible debentures
     849,505       354,798  
Deferred tax liabilities
     322,664       294,149  
Other long-term liabilities
     60,620       57,740  
 
                
Stockholders’ equity
     1,867,123       2,120,470  
 
            
Total Liabilities and Stockholders’ Equity
   $ 3,473,004     $ 3,184,318  
 
            

 

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XILINX, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)
(In thousands)
                         
    Three Months Ended  
    July 3,     April 3,     June 27,  
    2010     2010     2009  
 
                        
SELECTED CASH FLOW INFORMATION:
                        
Depreciation
   $ 12,191     $ 12,248     $ 13,009  
Amortization
     1,743       3,105       5,307  
Stock-based compensation
     15,120       15,471       13,729  
Net cash provided by operating activities
     107,084       103,870       146,967  
Purchases of property, plant and equipment
     18,267       10,612       4,714  
Payment of dividends to stockholders
     43,817       44,031       38,574  
Repurchases of common stock
     433,333       124,997       —  
Proceeds from issuance of common stock to employees and excess (reduction of) tax benefit
     3,775       50,389       (16,056 )
 
                        
STOCK-BASED COMPENSATION INCLUDED IN:
                        
Cost of revenues
   $ 1,267     $ 1,501     $ 1,115  
Research and development
     7,204       7,276       5,996  
Selling, general and administrative
     6,649       6,694       5,673  
Restructuring charges
     —       —       945  

 

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