EX-99.1 2 a06-22287_1ex99d1.htm EX-99

Exhibit 99.1

Investor Relations Contact:

Lori Owen

Xilinx, Inc.

(408) 879-6911

ir@xilinx.com

XILINX ANNOUNCES SECOND QUARTER FISCAL 2007 RESULTS; $0.27 EPS

SAN JOSE, CA, OCTOBER 19, 2006 — Xilinx, Inc. (Nasdaq: XLNX) today announced net revenues of $467.2 million in the second quarter of fiscal 2007, down 3% sequentially from the prior quarter and up 17% from the same quarter a year ago. Second quarter net income of $93.0 million, or $0.27 per diluted share, increased 13% from the prior quarter, and included stock-based compensation of $21.9 million.

Xilinx also announced that its Board of Directors declared a quarterly cash dividend of $0.09 per outstanding share of common stock, payable on December 6, 2006 to all stockholders of record at the close of business on November 15, 2006.

Additional second quarter comparisons are represented in the chart below:

GAAP Results

(In millions, except EPS)

 

 

 

 

 

 

 

Growth Rates

 

 

 

Q2 FY 2007

 

Q1 FY 2007

 

Q2 FY 2006

 

Q-T-Q

 

Y-T-Y

 

Net revenues

 

$

467.2

 

$

481.4

 

$

398.9

 

-3

%

17

%

Operating income

 

$

93.2

 

$

93.1

 

$

82.3

 

0

%

13

%

Net income

 

$

93.0

 

$

82.5

 

$

85.6

 

13

%

9

%

Diluted earnings per share

 

$

0.27

 

$

0.24

 

$

0.24

 

13

%

13

%

 

Results excluding the effects of stock-based compensation

(In millions, except EPS)

 

 

 

 

 

 

 

 

Growth Rates

 

 

 

Q2 FY 2007

 

Q1 FY 2007

 

Q2 FY 2006

 

Q-T-Q

 

Y-T-Y

 

Net revenues

 

$

467.2

 

$

481.4

 

$

398.9

 

-3

%

17

%

Operating income

 

$

115.1

 

$

122.1

 

$

82.3

 

-6

%

40

%

Net income

 

$

109.9

 

$

105.5

 

$

85.6

 

4

%

28

%

Diluted earnings per share

 

$

0.32

 

$

0.30

 

$

0.24

 

7

%

33

%

 

Sales to wireline and wireless communications end markets were particularly weak during the quarter as a result of inventory rebalancing and consolidation activity among several large customers.  All other end markets were up sequentially with the Industrial and Other category posting the strongest sales growth due primarily to strength from defense applications.

“In spite of a seasonally weak quarter, I am pleased with the growth of our New Products, which increased 18% sequentially.  Sales from 90-nanometer (nm) and 65nm products were particularly strong during the quarter representing over 20% of total sales, up from less than 10% a year ago.  Our success on these process nodes is a reflection of our clear technology leadership,” said Wim Roelandts, Xilinx chief executive officer.  “Additionally, the rollout of our latest Virtex™-5 family, the industry’s first field programmable gate array (FPGA) family on 65nm technology, remains on schedule and significantly ahead of competition.”



 

Business Review — September Quarter FY07

·                  Total inventory days at Xilinx and distribution were 126 days, up from 117 days last quarter.

·                  Accounts receivable days sales outstanding were 36, up from 29 in the prior quarter.

·                  Capital expenditures and depreciation were both $13 million.

Net Revenues by Geography:

 

Percentages

 

Growth Rates

 

 

 

Q2
FY 2007

 

Q1
FY 2007

 

Q2
FY 2006

 


Q-T-Q

 


Y-T-Y

 

North America

 

40

%

39

%

41

%

-1

%

15

%

Europe

 

23

%

24

%

20

%

-7

%

34

%

Japan

 

12

%

11

%

16

%

6

%

-14

%

Asia Pacific/ROW

 

25

%

26

%

23

%

-5

%

29

%

 

Net Revenues by End Market:

 

Percentages

 

Growth Rates

 

 

 

Q2
FY 2007

 

Q1
FY 2007

 

Q2
FY 2006

 


Q-T-Q

 


Y-T-Y

 

Communications

 

45

%

49

%

48

%

-9

%

10

%

Industrial & Other

 

29

%

26

%

24

%

5

%

37

%

Consumer & Automotive

 

16

%

15

%

15

%

1

%

28

%

Data Processing

 

10

%

10

%

13

%

2

%

-6

%

 

Net Revenues by Product*:

 

Percentages

 

Growth Rates

 

 

 

Q2
FY 2007

 

Q1
FY 2007

 

Q2
FY 2006

 


Q-T-Q

 


Y-T-Y

 

New

 

22

%

18

%

12

%

18

%

125

%

Mainstream

 

54

%

59

%

60

%

-10

%

6

%

Base

 

18

%

17

%

22

%

-2

%

-6

%

Support

 

6

%

6

%

6

%

-1

%

12

%

 

*Products are classified as follows:

New products: Virtex-5, Virtex-4, Spartan™-3, Spartan-3E, and CoolRunner™- II products

Mainstream products: Virtex-II Pro, Virtex-II, Spartan-IIE, Spartan-II, CoolRunner, Virtex-E products

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

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

Highlights — September quarter fiscal 2007:

·                        Xilinx continued to expand its leadership in 65nm technology and began shipments of Virtex-5 LXT FPGAs.  The LXT platform is the second of four Virtex-5 platforms that Xilinx has begun shipping and features the industry’s lowest power 65nm transceivers. Xilinx’s 8.2i Integrated Software Environment (ISE™) offers full support for Virtex-5 devices, including the Virtex-5 LX330 FPGA, the industry’s highest density 65nm FPGA.  Xilinx remains the only PLD company to ship 65nm products.

2



 

·                        For the third consecutive year Xilinx earned the highest ranking for FPGA-level EDA vendor usage among respondents in the FPGA EDA tool vendor survey conducted by EE Times, part of CMP Technology LLC. In addition, Xilinx ranked number one in all the categories covering the “most important attributes in selecting an FPGA EDA tool vendor” and scored higher than any other FPGA vendor in user satisfaction. Xilinx top rating is strong testament to its excellence in design tools technology, support and services and the Company’s total solutions approach to handling today’s complex system designs.

Business Outlook — December Quarter FY07

·                        Revenues expected to increase 2% to 5% sequentially.

·                        Gross margin expected to be 61% to 62%, including approximately $2 million of stock-based compensation charges.

·                        R&D and SG&A expenses are expected to be approximately flat sequentially, including approximately $20 million of stock-based compensation.

·                        Other income expected to be approximately $18 million.

·                        Tax rate is expected to be approximately 23% — 24%.

·                        Fully diluted share count expected to decrease to approximately 340 million shares.

Business Update — December Quarter FY07

The Company expects to issue a third quarter business update press release after the market closes on Thursday, December 7, 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, greater product mix changes than anticipated, 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, 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—

#06105

3



 

XILINX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In thousands, except per share amounts)

 

 

Three Months Ended

 

Six Months Ended

 

 

 

Sept. 30,

 

Oct. 1,

 

Jul. 1,

 

Sept. 30,

 

Oct. 1,

 

 

 

2006

 

2005

 

2006

 

2006

 

2005

 

Net revenues

 

$

467,180

 

$

398,929

 

$

481,362

 

$

948,542

 

$

804,308

 

Cost of revenues

 

180,580

 

153,968

 

192,059

 

372,639

 

312,450

 

Gross margin

 

286,600

 

244,961

 

289,303

 

575,903

 

491,858

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

95,951

 

79,953

 

97,582

 

193,533

 

158,657

 

Selling, general and administrative

 

95,462

 

77,744

 

94,418

 

189,880

 

153,731

 

Amortization of acquisition-related intangibles

 

2,031

 

1,755

 

2,031

 

4,062

 

3,511

 

Stock-based compensation related to prior years

 

—

 

—

 

2,209

 

2,209

 

—

 

Litigation settlements and contingencies

 

—

 

3,165

 

—

 

—

 

3,165

 

Total operating expenses

 

193,444

 

162,617

 

196,240

 

389,684

 

319,064

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

93,156

 

82,344

 

93,063

 

186,219

 

172,794

 

Impairment loss on investments

 

—

 

—

 

(437

)

(437

)

—

 

Interest income and other, net

 

26,132

 

15,910

 

14,841

 

40,973

 

25,253

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

119,288

 

98,254

 

107,467

 

226,755

 

198,047

 

Provision for income taxes

 

26,242

 

12,656

 

24,976

 

51,218

 

35,608

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

93,046

 

$

85,598

 

$

82,491

 

$

175,537

 

$

162,439

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per common share

 

$

0.27

 

$

0.25

 

$

0.24

 

$

0.52

 

$

0.46

 

Diluted net income per common share

 

$

0.27

 

$

0.24

 

$

0.24

 

$

0.51

 

$

0.45

 

Cash dividends declared per common share

 

$

0.09

 

$

0.07

 

$

0.09

 

$

0.18

 

$

0.14

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Basic

 

339,431

 

349,254

 

341,853

 

340,845

 

350,165

 

Diluted

 

343,192

 

356,360

 

348,988

 

346,734

 

357,384

 

 



XILINX, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

Sept. 30,

 

Apr. 1,

 

 

 

2006

 

2006

 

 

 

(Unaudited)

 

(1)

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

Current assets

 

 

 

 

 

Cash, cash equivalents and short-term investments

 

$

1,227,352

 

$

984,917

 

Investment in United Microelectronics Corporation, current portion

 

11,506

 

37,285

 

Accounts receivable, net

 

186,224

 

194,205

 

Inventories

 

198,958

 

201,029

 

Deferred tax assets and other current assets

 

242,758

 

230,812

 

 

 

 

 

 

 

Total current assets

 

1,866,798

 

1,648,248

 

 

 

 

 

 

 

Net property, plant and equipment

 

359,736

 

358,257

 

Long-term investments

 

552,260

 

616,296

 

Investment in United Microelectronics Corporation, net of current portion

 

65,164

 

239,209

 

Other assets

 

290,380

 

311,537

 

 

 

 

 

 

 

Total Assets

 

$

3,134,338

 

$

3,173,547

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

237,757

 

$

218,466

 

Deferred income on shipments to distributors

 

109,775

 

126,558

 

 

 

 

 

 

 

Total current liabilities

 

347,532

 

345,024

 

 

 

 

 

 

 

Deferred tax liabilities

 

83,596

 

92,153

 

Other long-term liabilities

 

5,043

 

7,485

 

 

 

 

 

 

 

Stockholders' equity

 

2,698,167

 

2,728,885

 

 

 

 

 

 

 

Total Liabilities and Stockholders' Equity

 

$

3,134,338

 

$

3,173,547

 

(1)           Derived from audited financial statements



 

Xilinx, Inc.

 

 

RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS

 

 

(Unaudited)

 

 

(In thousands, except per share amounts)

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

Sept. 30,

 

July 1,

 

Sept. 30,

 

 

 

2006

 

2006

 

2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP OPERATING INCOME

 

$

93,156

 

$

93,063

 

$

186,219

 

Adjustment for stock-based compensation within:

 

 

 

 

 

 

 

Cost of revenues

 

2,426

 

3,642

 

6,068

 

Research and development

 

9,810

 

12,364

 

22,174

 

Selling, general and administrative

 

9,670

 

10,802

 

20,472

 

Stock-based compensation related to prior years

 

—

 

2,209

 

2,209

 

NON-GAAP OPERATING INCOME

 

$

115,062

 

$

122,080

 

$

237,142

 

 

 

 

 

 

 

 

 

GAAP NET INCOME

 

$

93,046

 

$

82,491

 

$

175,537

 

Adjustment for stock-based compensation within:

 

 

 

 

 

 

 

Cost of revenues

 

2,426

 

3,642

 

6,068

 

Research and development

 

9,810

 

12,364

 

22,174

 

Selling, general and administrative

 

9,670

 

10,802

 

20,472

 

Stock-based compensation related to prior years

 

—

 

2,209

 

2,209

 

Provision for income taxes

 

(5,016

)

(5,986

)

(11,002

)

NON-GAAP NET INCOME

 

$

109,936

 

$

105,522

 

$

215,458

 

 

 

 

 

 

 

 

 

GAAP DILUTED NET INCOME PER COMMON SHARE

 

$

0.27

 

$

0.24

 

$

0.51

 

Adjustment for stock-based compensation

 

0.05

 

0.06

 

0.11

 

NON-GAAP DILUTED NET INCOME PER COMMON SHARE

 

$

0.32

 

$

0.30

 

$

0.62

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP DILUTED SHARES

 

343,192

 

348,988

 

346,734

 

Adjustment for stock-based compensation

 

(739

)

(2,340

)

(1,855

)

NON-GAAP DILUTED SHARES

 

342,453

 

346,648

 

344,879

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP GROSS MARGIN PERCENTAGE

 

61.3

%

60.1

%

60.7

%

Adjustment for stock-based compensation

 

0.6

%

0.8

%

0.7

%

NON-GAAP GROSS MARGIN PERCENTAGE

 

61.9

%

60.9

%

61.4

%

 

 

 

 

 

 

 

 

GAAP OPERATING MARGIN PERCENTAGE

 

19.9

%

19.3

%

19.6

%

Adjustment for stock-based compensation

 

4.7

%

6.1

%

5.4

%

NON-GAAP OPERATING MARGIN PERCENTAGE

 

24.6

%

25.4

%

25.0

%

 

 

 

 

 

 

 

 

GAAP NET MARGIN PERCENTAGE

 

19.9

%

17.1

%

18.5

%

Adjustment for stock-based compensation

 

3.6

%

4.8

%

4.2

%

NON-GAAP NET MARGIN PERCENTAGE

 

23.5

%

21.9

%

22.7

%

 

In addition to disclosing financial results calculated in accordance with U.S. generally accepted accounting principles (GAAP), the Company's earnings release contains non-GAAP financial measures that exclude the effects of stock-based compensation and the requirements of Statement of Financial Accounting Standards No. 123(R), "Share-based Payment" (SFAS 123(R)). The non-GAAP financial measures used by management and disclosed by the Company exclude the statement of income effects of all forms of stock-based compensation and the effects of SFAS 123(R) upon the number of diluted shares used in calculating non-GAAP net income per share.  These non-GAAP financial measures are not in accordance with or an alternative for GAAP measures and may be different from, and therefore not comparable to, non-GAAP measures used by other companies. The Company has provided reconciliations of the non-GAAP measures to the most directly comparable GAAP measures. Xilinx believes that the presentation of these non-GAAP measures, when shown in conjunction with the corresponding GAAP measures and our reconciliations, provides useful information to management and investors regarding financial and business trends relating to Xilinx’s financial condition and results of operations.  For additional information regarding these non-GAAP financial measures and their use by Company management, see the Form 8-K dated October 19, 2006 that Xilinx has filed with the SEC.