EX-99.1 2 a06-2966_1ex99d1.htm EXHIBIT 99

Exhibit 99.1

 

Investor Relations Contact:

Lori Owen

Xilinx, Inc.

(408) 879-6911

ir@xilinx.com

 

XILINX ANNOUNCES DECEMBER QUARTER RESULTS;

NEW PRODUCT SALES INCREASE 24% SEQUENTIALLY.

 

SAN JOSE, CA, JANUARY 19, 2006 — Xilinx, Inc. (Nasdaq: XLNX) today announced net revenues of $450 million in the third quarter of fiscal 2006, up 13% sequentially from the prior quarter and up 27% from the same quarter a year ago. Third quarter net income was $81 million, or $0.23 per diluted share, compared to net income of $86 million or $0.24 per diluted share in the prior quarter.

 

The tax provision for the third quarter of fiscal 2006 includes a $25.3 million charge related to the planned repatriation of $500 million in foreign earnings pursuant to the provisions of the American Jobs Creation Act of 2004.  In addition, the Company recorded a tax benefit of $9.5 million primarily related to the ability to use certain credits that were previously accounted for as unusable.  The net impact of these items added $15.8 million to the Company’s third quarter tax provision.

 

Xilinx also announced that its Board of Directors declared a quarterly cash dividend of $0.07 per outstanding share of common stock, payable on March 1, 2006 to all stockholders of record at the close of business on February 8, 2006.

 

Additional third quarter comparisons are represented in the chart below.

 

Quarterly Information

(In millions, except EPS)

 

 

 

 

 

 

 

 

 

Growth Rates

 

 

 

Q3 FY 2006

 

Q2 FY 2006

 

Q3 FY 2005

 

Q-T-Q

 

Y-T-Y

 

Net revenues

 

$

449.6

 

$

398.9

 

$

355.4

 

13

%

27

%

Operating income

 

$

119.8

 

$

82.3

 

$

69.3

 

46

%

73

%

Net income

 

$

81.0

 

$

85.6

 

$

64.1

 

-5

%

26

%

Diluted earnings per share

 

$

0.23

 

$

0.24

 

$

0.18

 

-4

%

28

%

 

December quarter sales were better than expected as a result of broad based product and end market strength.  Sales from each of Xilinx’s Virtex™ products were strong during the quarter contributing to strength in both the New and Mainstream product categories.  From an end market perspective, sales from the Industrial and Other category were particularly strong, fueled by applications in defense and test and measurement.

 

“Xilinx’s New Product sales were strong in the third quarter,” said Wim Roelandts, Chief Executive Officer and Chairman of the Board.  “Sales from these products increased 24% sequentially driven by strong sales of Xilinx’s Virtex-4™, Virtex-II Pro™, Spartan-3™ and CoolRunner™-II families.  New Products currently represent 33% of total sales, up from 30% last quarter and up from 20% in the same quarter a year ago.  I am also pleased with our continued manufacturing efficiencies and solid financial management which contributed to improved gross and operating margins.  Gross margin in the quarter increased to 63%, up from 61% in the prior quarter and operating margin increased to 27%, up from 21% in the prior quarter.”

 


 

Business Review – December Quarter FY06

 

•                  Total inventory days at Xilinx and distribution were 144 days, down from 146 days last quarter.

•                  Accounts receivable days sales outstanding were 29, down from 44 in the prior quarter.

•                  Capital expenditures and depreciation were $14 million and $13 million, respectively.

 

Net revenues by Geography:

 

 

 

Percentages

 

 

 

 

 

 

 

Q3
FY 2006

 

Q2
FY 2006

 

Q3
FY 2005

 

Growth Rates

 

Q-T-Q

 

Y-T-Y

North America

 

43

%

41

%

42

%

18

%

28

%

Europe

 

20

%

20

%

21

%

14

%

24

%

Japan

 

14

%

16

%

14

%

-4

%

25

%

Asia Pacific/ROW

 

23

%

23

%

23

%

14

%

27

%

 

Net revenues by End Market:

 

 

 

Percentages

 

 

 

 

 

 

 

Q3
FY 2006

 

Q2
FY 2006

 

Q3
FY 2005

 

Growth Rates

 

Q-T-Q

 

Y-T-Y

Communications

 

48

%

48

%

47

%

11

%

13

%

Storage & Servers

 

11

%

13

%

16

%

-4

%

-16

%

Consumer & Automotive

 

14

%

15

%

15

%

9

%

18

%

Industrial & Other

 

27

%

24

%

22

%

26

%

56

%

 

Net revenues by Product*:

 

 

 

Percentages

 

 

 

 

 

 

 

Q3
FY 2006

 

Q2
FY 2006

 

Q3
FY 2005

 

Growth Rates

 

Q-T-Q

 

Y-T-Y

New

 

33

%

30

%

20

%

24

%

112

%

Mainstream

 

47

%

48

%

57

%

11

%

5

%

Base

 

14

%

16

%

17

%

-1

%

4

%

Support

 

6

%

6

%

6

%

8

%

9

%

 

*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 – December Quarter FY06:

 

•                        Xilinx shipped a record 10 million 90nm devices during the quarter and now has four product families in production on 90nm.  Just nine months after introduction, Xilinx completed the roll-out of its newest Spartan family, Spartan-3E.  The logic-intensive Spartan-3E family complements the I/O intensive Spartan-3 family and enables Xilinx to address a wider spectrum of applications in the areas of consumer and low cost networking.

 

•                        Xilinx entered into strategic agreements with both Toshiba Corporation and UMC to include technology development at 65nm and beyond. Research and development efforts at both foundries have resulted in 65nm prototype wafers, including actual programmable circuitry.

 

2


 

•                        During the quarter, Xilinx announced the release of applications–optimized XtremeDSP™ solutions that accelerate development of multimedia, video and imaging (MVI) systems.  The easy-to-use MVI-tailored solutions include an integrated design environment with robust tools and easy-to-use pre-packaged development kits.  Additionally, Xilinx recently announced the acquisition of Accelchip, a provider of DSP design tools.  This acquisition strengthens Xilinx’s commitment to evolving the programming model for FPGA-based DSP system design.

 

•                        Xilinx announced the 8.1i release of its popular Integrated Software Environment (ISE ™) design tools, featuring IS Fmax Technology with enhanced physical synthesis capabilities to improve performance and timing closure for both the Virtex-4 and Spartan-3 architectures.  Using ISE 8.1i software, designers can boost performance by an average of 10% to 37% as compared to previous ISE releases and up to 70% over competing solutions using Virtex-4 FPGAs.

 

•                        On November 15, 2005, Xilinx announced a $40 million investment in a new building in Singapore, our Asia regional headquarters.  The new building will quadruple the existing capacity of its on-site manufacturing facility, triple the in-house process development resources and provide increased infrastructure support for the 13 offices across the Asia Pacific region.

 

Business Outlook – March Quarter FY06

 

•                  Revenues expected to be up 1% - 5% sequentially.

•                  Gross margin expected to be approximately 63%.

•                  Operating expenses expected to increase approximately 7% sequentially, inclusive of the impact of the acquisition of Accelchip.

•                  Other income expected to be approximately $10 million.

•                  Tax rate expected to be approximately 23% plus or minus one percentage point.

•                  Fully diluted share count expected to decrease to approximately 351 million shares.

 

Business Update – March Quarter FY06

 

A fourth quarter business update will be issued in the form of a press release after the market closes on Monday, March 6, 2006.  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 secure adequate test, packaging and assembly capacity from our suppliers, our ability to successfully manage production at multiple foundries, currency fluctuations and their respective impact to

 

3


 

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—

#0609

 

4


 

XILINX, INC.

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

(In thousands, except per share amounts)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

Dec. 31,

 

Jan. 01,

 

Oct. 1,

 

Dec. 31,

 

Jan. 01,

 

 

 

2005

 

2005

 

2005

 

2005

 

2005

 

Net revenues

 

$

449,605

 

$

355,396

 

$

398,929

 

$

1,253,913

 

$

1,182,256

 

Cost of revenues

 

166,476

 

135,096

 

153,968

 

478,926

 

424,283

 

Gross margin

 

283,129

 

220,300

 

244,961

 

774,987

 

757,973

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

81,073

 

77,356

 

79,953

 

239,730

 

227,414

 

Selling, general and administrative

 

80,683

 

71,856

 

77,744

 

234,414

 

229,532

 

Amortization of acquisition-related intangibles

 

1,536

 

1,759

 

1,755

 

5,047

 

4,918

 

Litigation settlements and contingencies

 

—

 

—

 

3,165

 

3,165

 

—

 

Write-off of acquired in-process research and development

 

—

 

—

 

—

 

—

 

7,198

 

Total operating expenses

 

163,292

 

150,971

 

162,617

 

482,356

 

469,062

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

119,837

 

69,329

 

82,344

 

292,631

 

288,911

 

Impairment loss on investments

 

—

 

(3,099

)

—

 

—

 

(3,099

)

Interest income and other, net

 

10,943

 

8,811

 

15,910

 

36,196

 

21,975

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

130,780

 

75,041

 

98,254

 

328,827

 

307,787

 

Provision for income taxes

 

49,811

 

10,984

 

12,656

 

85,419

 

62,269

 

Net income

 

$

80,969

 

$

64,057

 

$

85,598

 

$

243,408

 

$

245,518

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per common share

 

$

0.23

 

$

0.18

 

$

0.25

 

$

0.70

 

$

0.71

 

Diluted net income per common share

 

$

0.23

 

$

0.18

 

$

0.24

 

$

0.68

 

$

0.68

 

Cash dividends declared per common share

 

$

0.07

 

$

0.05

 

$

0.07

 

$

0.21

 

$

0.15

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Basic

 

348,203

 

348,441

 

349,254

 

349,674

 

347,555

 

Diluted

 

353,237

 

358,211

 

356,360

 

355,881

 

358,551

 

 


 

XILINX, INC.

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

 

Dec. 31,

 

Apr. 2,

 

 

 

2005

 

2005

 

 

 

(Unaudited)

 

(1)

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

Current assets

 

 

 

 

 

Cash, cash equivalents and short-term investments

 

$

888,320

 

$

861,558

 

Investment in United Microelectronics Corporation, current portion

 

32,685

 

—

 

Accounts receivable, net

 

142,271

 

213,459

 

Inventories

 

211,882

 

185,722

 

Deferred tax assets and other current assets

 

203,196

 

205,625

 

 

 

 

 

 

 

Total current assets

 

1,478,354

 

1,466,364

 

 

 

 

 

 

 

Net property, plant and equipment

 

349,895

 

344,516

 

Long-term investments

 

784,344

 

766,596

 

Investment in United Microelectronics Corporation, net of current portion

 

209,698

 

246,110

 

Other assets

 

289,846

 

215,610

 

 

 

 

 

 

 

Total Assets

 

$

3,112,137

 

$

3,039,196

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

265,191

 

$

195,883

 

Deferred income on shipments to distributors

 

111,717

 

102,511

 

 

 

 

 

 

 

Total current liabilities

 

376,908

 

298,394

 

 

 

 

 

 

 

Deferred tax liabilities

 

35,551

 

67,294

 

Other long-term liabilities

 

7,485

 

—

 

Stockholders’ equity

 

2,692,193

 

2,673,508

 

 

 

 

 

 

 

Total Liabilities and Stockholders’ Equity

 

$

3,112,137

 

$

3,039,196

 

 

(1) Derived from audited financial statements