EX-99.1 2 a05-13317_1ex99d1.htm EX-99.1

Exhibit 99.1

 

Investor Relations Contact:

Lori Owen

Xilinx, Inc.

(408) 879-6911

ir@xilinx.com

 

XILINX REVENUES INCREASE 4% SEQUENTIALLY;

STRONG NEW PRODUCT GROWTH

 

SAN JOSE, CA, JULY 21, 2005 — Xilinx, Inc. (Nasdaq: XLNX) today announced net revenues of $405 million in the first quarter of fiscal 2006, up 4% sequentially from the prior quarter and down 4% from the same quarter a year ago. Net income was $77 million or $0.21 per diluted share, up 14% from $67 million or $0.19 per diluted share in the prior quarter.  Net income for the first quarter of fiscal 2006 was down 19% from $95 million, or $0.26 per diluted share, as reported in the first quarter of fiscal 2005.

 

Xilinx also announced that the Company’s Board of Directors declared a quarterly cash dividend of $0.07 per outstanding share of common stock, payable on September 7, 2005 to all stockholders of record at the close of business on August 17, 2005.

 

Additional fiscal first quarter comparisons are represented in the chart below.

 

Quarterly Information

(In millions, except EPS)

 

 

 

 

 

 

 

 

 

Growth Rates

 

 

 

Q1 FY 2006

 

Q4 FY 2005

 

Q1 FY 2005

 

Q-T-Q

 

Y-T-Y

 

Net revenues

 

$

405.4

 

$

391.0

 

$

423.6

 

4

%

-4

%

Operating income

 

$

90.5

 

$

83.1

 

$

118.3

 

9

%

-24

%

Net income

 

$

76.8

 

$

67.2

 

$

95.3

 

14

%

-19

%

Net income per share

 

$

0.21

 

$

0.19

 

$

0.26

 

14

%

-17

%

 

New product sales were strong during the quarter increasing 22% sequentially with all products in this category posting growth.  Sales of Xilinx’s 90nm products, Spartan™-3and Virtex™-4, were exceptionally strong during the quarter, increasing nearly 90% sequentially as a result of robust design win activity across a broad base of end market segments.  “Design win momentum is rapidly shifting to 90nm technology.  With a substantial revenue lead over the competition and capacity from two of the world’s leading foundries, Xilinx has a substantial competitive lead in this process technology,” said Wim Roelandts, Chairman and CEO.

 

Continued expense controls and a decline in mask costs resulted in June quarter operating margin increasing to 22% of revenues, up from 21% last quarter.  Inventory days decreased six days during the quarter to 105 days.

 


 

Business Review – June Quarter FY06

 

•                  Total inventory days at Xilinx and distribution were 132 days, down from 139 days last quarter.

•                  Accounts receivables days sales outstanding were 44, down from 50 in the prior quarter.

•                  Capital expenditures and depreciation were $15 million and $13 million, respectively.

 

Net revenues by Geography:

 

 

 

Percentages

 

 

 

 

 

Q1

 

Q4

 

Q1

 

Growth Rates

 

 

 

FY 2006

 

FY 2005

 

FY 2005

 

Q-T-Q

 

Y-T-Y

 

North America

 

41

%

40

%

42

%

6

%

-7

%

Europe

 

20

%

21

%

20

%

-4

%

-4

%

Japan

 

14

%

14

%

14

%

8

%

-4

%

Asia Pacific/ROW

 

25

%

25

%

24

%

5

%

1

%

 

Net revenues by End Market*:

 

 

 

Percentages

 

 

 

 

 

Q1

 

Q4

 

Q1

 

Growth Rates

 

 

 

FY 2006

 

FY 2005

 

FY 2005

 

Q-T-Q

 

Y-T-Y

 

Communications

 

51

%

47

%

53

%

12

%

-8

%

Storage & Servers

 

13

%

17

%

11

%

-21

%

14

%

Consumer & Automotive

 

14

%

14

%

—

 

3

%

N/M

**

Industrial & Other

 

22

%

22

%

36

%

5

%

N/M

 

 

*As of Q3 FY05, Xilinx split the category formerly called “Consumer, Industrial & Other” into two components:  “Consumer & Automotive” and “Industrial & Other”.  Historical comparisons are not available for these two categories.

**N/M = Not meaningful

 

Net revenues by Product*:

 

 

 

Percentages

 

 

 

 

 

Q1

 

Q4

 

Q1

 

Growth Rates

 

 

 

FY 2006

 

FY 2005

 

FY 2005

 

Q-T-Q

 

Y-T-Y

 

New

 

27

%

22

%

11

%

22

%

120

%

Mainstream

 

51

%

54

%

63

%

-1

%

-22

%

Base

 

16

%

17

%

20

%

-3

%

-22

%

Support

 

6

%

7

%

6

%

-2

%

-4

%

 

*Products are classified as follows:

 

New products: Virtex-4, Virtex-II Pro, Spartan-IIE, Spartan-3, Spartan-3E, Easypathä and CoolRunner®- II products

Mainstream products: Virtex-II, Spartan-II, SpartanXL, CoolRunner, Virtex-E and Virtex products

Base products: XC3000, XC3100, XC4000, XC4000XL, XC4000XLA, XC4000XV, XC4000E, XC4000EX, XC5200, XC9500, XC9500XL, XC9500XV and Spartan products

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

 

Highlights – June Quarter FY06:

 

•                  Xilinx’s Spartan FPGAs now represent a record 23% of total revenues, up from 22% last quarter and up from 20% in the same quarter a year ago.  The high-volume, low-cost Spartan-3 solution continues to experience strong design-win adoption, especially in the consumer market.  All eight Spartan-3 FPGA products are currently in production on 90nm, 300mm wafers.  Additionally, two members of the logic-intensive Spartan-3E family are currently sampling and the entire family is on schedule for production release this calendar year.

 

2


 

•                  The Virtex-4 family continues to demonstrate significant advantages in performance, power consumption and signal integrity.  Fourteen members of this family are currently shipping including all members of the LX and SX families.

 

Business Outlook – September Quarter FY06

 

•                  Revenues expected to be up 0% - 4% sequentially.

•                  Gross margin expected to be approximately 61% - 62%.

•                  Operating expenses expected to be up 4% sequentially.

•                  Other income expected to be approximately $9 million.

•                  Tax rate expected to be approximately 24%.

•                  Fully diluted share count expected to approximate 358 million shares.

 

Business Update – September Quarter FY06

 

A second quarter business update will be issued in the form of a press release after the market closes on Wednesday, September 7, 2005.  Financial guidance to the investment community will be limited to the points mentioned in the business update document.  Please sign up for a push email alert, which is available from our investor relations web site at http://www.investor.xilinx.com.

 

This release contains forward-looking statements and projections. 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, our ability to forecast end customer demand, customer acceptance of our new products, the ability of our customers to manage their inventories, a high dependence on turns business, higher-than-anticipated product delinquencies, more customer volume discounts than expected, fluctuations in manufacturing yields, our ability to deliver product in a timely manner, our ability to secure meaningful wafer capacity from our suppliers, our ability to successfully manage production at multiple foundries, currency fluctuations and their respective impact to customer purchasing power, variability in wafer pricing, and other risk factors listed in our most recent Form 10-K.

 

About Xilinx

 

Xilinx, Inc. (NASDAQ: XLNX) is the worldwide leader of programmable logic solutions. Additional information about Xilinx is available at http://www.xilinx.com.

 

—30—

 

#0576

 

3


 

XILINX, INC.

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

(In thousands, except per share amounts)

 

 

 

Three Months Ended

 

 

 

Jul. 2,

 

Jul. 3,

 

Apr. 2,

 

 

 

2005

 

2004

 

2005

 

 

 

 

 

 

 

 

 

Net revenues

 

$

405,379

 

$

423,583

 

$

390,977

 

 

 

 

 

 

 

 

 

Costs and expenses :

 

 

 

 

 

 

 

Cost of revenues

 

158,482

 

144,163

 

152,001

 

Research and development

 

78,704

 

71,923

 

80,034

 

Selling, general and administrative

 

75,987

 

80,590

 

74,063

 

Amortization of acquisition-related intangibles

 

1,756

 

1,402

 

1,750

 

Write-off of acquired in-process research and development

 

—

 

7,198

 

—

 

Total costs and expenses

 

314,929

 

305,276

 

307,848

 

 

 

 

 

 

 

 

 

Operating income

 

90,450

 

118,307

 

83,129

 

Interest income and other, net

 

9,343

 

5,841

 

9,628

 

 

 

 

 

 

 

 

 

Income before income taxes

 

99,793

 

124,148

 

92,757

 

Provision for income taxes

 

22,952

 

28,896

 

25,552

 

Net income

 

$

76,841

 

$

95,252

 

$

67,205

 

 

 

 

 

 

 

 

 

Basic net income per common share

 

$

0.22

 

$

0.27

 

$

0.19

 

Diluted net income per common share

 

$

0.21

 

$

0.26

 

$

0.19

 

Cash dividends declared per common share

 

$

0.07

 

$

0.05

 

$

0.05

 

 

 

 

 

 

 

 

 

Common and equivalent shares used in computing net income per share amounts:

 

 

 

 

 

 

 

Basic

 

350,705

 

347,173

 

349,795

 

Diluted

 

358,038

 

359,419

 

358,460

 

 


 

XILINX, INC.

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

 

Jul. 2,

 

Apr. 2,

 

 

 

2005

 

2005

 

 

 

(Unaudited)

 

(1)

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

Current assets

 

 

 

 

 

Cash, cash equivalents and short-term investments

 

$

951,178

 

$

861,558

 

Accounts receivable, net

 

194,601

 

213,459

 

Inventories

 

181,996

 

185,722

 

Short-term investment in United Microelectronics Corporation

 

99,012

 

—

 

Deferred tax assets and other current assets

 

149,273

 

205,625

 

 

 

 

 

 

 

Total current assets

 

1,576,060

 

1,466,364

 

 

 

 

 

 

 

Net property, plant and equipment

 

346,129

 

344,516

 

Long-term investments

 

732,258

 

766,596

 

Investment in United Microelectronics Corporation-net of current portion

 

198,024

 

246,110

 

Other assets

 

242,925

 

215,610

 

 

 

 

 

 

 

Total Assets

 

$

3,095,396

 

$

3,039,196

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

221,749

 

$

195,883

 

Deferred income on shipments to distributors

 

110,799

 

102,511

 

 

 

 

 

 

 

Total current liabilities

 

332,548

 

298,394

 

 

 

 

 

 

 

Deferred tax liabilities

 

52,132

 

67,294

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

Common stock and additional paid-in capital

 

896,742

 

910,431

 

Retained earnings

 

1,815,159

 

1,762,873

 

Treasury stock, at cost

 

(33,067

)

—

 

Accumulated other comprehensive income

 

31,882

 

204

 

 

 

 

 

 

 

Total stockholders’ equity

 

2,710,716

 

2,673,508

 

 

 

 

 

 

 

Total Liabilities and Stockholders’ Equity

 

$

3,095,396

 

$

3,039,196

 

 

(1) Derived from audited financial statements