EX-99.1 2 exhibit99-1.htm PRESS RELEASE OF XILINX, INC. DATED JANUARY 14, 2009

Investor Relations Contact:
Lori Owen
Xilinx, Inc.
(408) 879-6911
ir@xilinx.com

EXHIBIT 99.1

XILINX ANNOUNCES THIRD QUARTER FISCAL 2009 RESULTS

  • Operating margin of 26.1% is highest reported in three years
  • Virtex-5® sales post strong growth

SAN JOSE, CA, JANUARY 14, 2009-- Xilinx, Inc. (Nasdaq: XLNX) today announced net revenues of $458.4 million in the third quarter of fiscal 2009, down 5% sequentially from the prior quarter and down 3% compared to the same quarter a year ago. Third quarter net income was $139.4 million, or $0.51 per diluted share, including an $89.7 million pre-tax gain on the early extinguishment of convertible debentures and a $19.5 million pre-tax impairment charge on investments. Collectively, these income and expense items represented approximately $0.19 per diluted share after tax.

The Xilinx Board of Directors declared a quarterly cash dividend of $0.14 per outstanding share of common stock, payable on February 25, 2009 to all stockholders of record at the close of business on February 4, 2009.

Additional third quarter comparisons are represented in the charts below:

GAAP Results
(In millions, except EPS)

                            Growth Rates
  Q3 FY 2009 Q2 FY 2009 Q3 FY 2008 Q-T-Q      Y-T-Y
Net revenues   $458.4   $483.5   $474.8   -5 %     -3 %  
Operating income   $119.6   $124.6   $115.3 -4 % 4 %
Net income $139.4   $81.8   $103.6 70 % 35 %
Diluted earnings per share   $0.51   $0.29   $0.35 76 % 46 %

Sales in the month of December were particularly weak as the current economic recessionary environment began impacting customers in most Xilinx end markets. With the exception of sales to Industrial and Other which were flat, sales to other end markets declined sequentially in the December quarter.

Continued cost reduction efforts contributed to improved gross and operating margins during the quarter. Operating margin of 26.1% was up from 24.3% in the same quarter of the prior year and the highest reported in over three years. Gross margin of 63.9% was up from 63.3% in the same quarter of the prior year and the highest reported in over four years.

“Sales from the Company’s flagship Virtex-5 family posted exceptionally strong growth in the December quarter increasing 35% sequentially and representing 15% of total sales, up from 10% in the prior quarter.” said Moshe Gavrielov, Xilinx President and Chief Executive Officer. “The success of this product family in today’s challenging economic environment underscores a growing affinity for programmable solutions versus ASIC alternatives. Programmable solutions provide customers with lower risk, greater flexibility and, in many cases, lower total overall cost.”


Net Revenues by Geography:

       Percentages      Growth Rates
  Q3      Q2      Q3         
  FY 2009 FY 2009 FY 2008 Q-T-Q Y-T-Y
   North America   34 %     34 %       41 %     -4 %     -20 %  
   Asia Pacific 33 % 32 % 27 % -1 % 20 %
   Europe 22 % 23 % 22 % -12 % -4 %
   Japan 11 % 11 % 10 % -4 % 1 %
 
Net Revenues by End Market:
  Percentages Growth Rates
  Q3 Q2 Q3    
  FY 2009 FY 2009 FY 2008 Q-T-Q Y-T-Y
   Communications 44 % 43 % 41 % -3 % 4 %
   Industrial & Other 33 % 32 % 33 % 0 % -2 %
   Consumer & Automotive 16 % 17 % 17 % -12 % -11 %
   Data Processing 7 % 8 % 9 % -21 % -27 %
 
Net Revenues by Product*:
  Percentages Growth Rates
  Q3 Q2 Q3    
  FY 2009 FY 2009 FY 2008 Q-T-Q Y-T-Y
   New 48 % 45 % 35 % 2 % 34 %
   Mainstream 36 % 38 % 45 % -9 % -22 %
   Base 11 % 12 % 14 % -17 % -29 %
   Support 5 % 5 % 6 % -11 % -19 %

*Products are classified as follows:

New Products: Virtex-5, Virtex-4, Spartan®-3, and CoolRunner™-II products
Mainstream Products: Virtex-II, Spartan-II, CoolRunner and Virtex-E products
Base Products: Virtex, Spartan, XC4000 and XC9500 products
Support Products: Configuration solutions, HardWire, Software & Support/Services

Highlights – December Quarter Fiscal 2009

  • For the second consecutive quarter, sales to customers in wireless communications were particularly strong, increasing over 10% sequentially. Most of this growth was attributable to the next generation rollout of wireless technologies in China. Xilinx FPGA solutions, most notably Virtex-5 FPGAs, are key beneficiaries of this next generation wireless technology rollout due to their high performance, functionality and system integration capabilities.

  • Xilinx continues to have one of the most stable and resilient business models in the technology industry in terms of profitability and cash flow generation. In the December quarter, Xilinx generated $128.5 million in operating cash flow and paid $146.3 million in cash to repurchase $241.1 million (principal amount) of convertible debentures and $38.4 million in cash dividends. Xilinx currently has among the highest dividend yields in the technology industry.

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Key Statistics:            
            Q3           Q2           Q3
  FY 2009  FY 2009  FY 2008 
Annual Return on Equity (%)* 24  21 21
Operating Cash Flow (millions) $128  $95 $208
Depreciation Expense (millions) $13  $13 $13
Capital Expenditures (millions) $11  $12 $11
Combined Inventory Days 99 93 91
Revenue Turns (%) 54 59 59

     *Return on equity calculation: Annualized net income/average stockholders’ equity

Business Outlook – March Quarter Fiscal 2009

  • Sales are expected to be down 15% to 25% sequentially.
  • Gross margin is expected to be in the range of 61% to 63%.
  • Operating expenses are expected to be flat to slightly down sequentially from the December quarter.
  • Interest and other is expected to be a net expense of $3 million.
  • Fully diluted share count is expected to be approximately 275 million shares.
  • March quarter tax rate is expected to be approximately 21%.

Conference Call

A conference call will be held today at 2:00 p.m. Pacific Time to discuss the quarter's results and management's outlook for the March 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 76849026. The telephonic replay will be available for two weeks following the live call.

Business Update - March Quarter Fiscal 2009

The Company expects to issue a fourth quarter business update press release before the market opens on Tuesday, March 3, 2009. 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 www.investor.xilinx.com.

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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,” “may,” “will,” “could,” “believe,” “anticipate,” “estimate,” “continue,” “plan,” “intend,” “project” or other similar words. 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, 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, 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, Inc. (NASDAQ: XLNX) is the worldwide leader of programmable logic solutions. Additional information about Xilinx is available at http://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.

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XILINX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)

    Three Months Ended   Nine Months Ended
        Dec. 27,   Dec. 29, Sept. 27, Dec. 27,   Dec. 29,
    2008            2007         2008           2008            2007
Net revenues $ 458,387   $ 474,806 $ 483,537   $ 1,430,170     $ 1,365,612
Cost of revenues   165,331       174,414     177,407     519,244       513,014
Gross margin   293,056       300,392     306,130     910,926       852,598
Operating expenses:                  
     Research and development   86,967     91,011   89,501     267,202   267,175
     Selling, general and administrative   85,032     92,453   88,080     266,116   272,856
     Amortization of acquisition-related intangibles   1,475     1,582   1,426     4,326   5,376
     Restructuring charges   -       -     2,487     22,023       -
          Total operating expenses   173,474       185,046     181,494     559,667       545,407
 
Operating income   119,582     115,346   124,636     351,259   307,191
Gain on early extinguishment of convertible debentures   89,672     -   -     89,672   -
Impairment loss on investments   (19,540 )   -   (29,001 )   (53,162 ) -
Interest and other, net   (575 )     14,385     8,490     13,620       47,422
Income before income taxes   189,139     129,731   104,125     401,389   354,613
Provision for income taxes   49,765       26,139     22,300     96,261       77,045
Net income $ 139,374     $ 103,592   $ 81,825   $ 305,128     $ 277,568
 
Net income per common share:                  
     Basic $ 0.51     $ 0.36   $ 0.30   $ 1.10     $ 0.94
     Diluted $ 0.51     $ 0.35   $ 0.29   $ 1.10     $ 0.92
Cash dividends declared per common share $ 0.14     $ 0.12   $ 0.14   $ 0.42     $ 0.36
Shares used in per share calculations:                  
     Basic   273,997       289,703     276,169     276,584       296,714
     Diluted   274,223       293,036     277,714     277,603       301,030

XILINX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)

    Dec. 27,   March 29,
  2008   2008
       (Unaudited)       (1)
ASSETS      
Current assets:      
     Cash, cash equivalents and short-term investments $ 1,289,930 $ 1,296,435
     Accounts receivable, net   213,590   249,147
     Inventories   149,421   130,250
     Deferred tax assets and other current assets   101,327     144,364
Total current assets   1,754,268   1,820,196
Net property, plant and equipment   394,973   404,430
Long-term investments   388,972   564,269
Other assets   343,248     348,212
Total Assets $ 2,881,461   $ 3,137,107
 
LIABILITIES AND STOCKHOLDERS' EQUITY      
Current liabilities:      
     Accounts payable and accrued liabilities $ 207,786 $ 228,988
     Deferred income on shipments to distributors   71,510     111,678
Total current liabilities   279,296   340,666
Convertible debentures   760,107   999,851
Deferred tax liabilities   102,425   84,486
Other long-term liabilities   71,150   40,281
Stockholders' equity   1,668,483     1,671,823
Total Liabilities and Stockholders' Equity $ 2,881,461   $ 3,137,107

     (1) Derived from audited financial statements

XILINX, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)
(In thousands)

Three Months Ended Nine Months Ended
Dec. 27, Dec. 29, Sept. 27, Dec. 27, Dec. 29,
2008       2007       2008       2008       2007
SELECTED CASH FLOW INFORMATION:
     Depreciation $ 13,438 $ 13,497 $ 13,309 $ 42,167 $ 40,323
     Amortization 4,120 4,328 4,227 12,573 13,537
     Stock-based compensation 13,041 16,456 13,724 41,188 48,730
     Net cash provided by operating activities 128,479 207,744 94,700 381,676 479,134
     Purchases of property, plant and equipment (11,061 ) (10,737 ) (11,777 ) (32,711 ) (39,355 )
     Payment of dividends to stockholders (38,357 ) (34,480 ) (38,697 ) (115,982 ) (105,881 )
     Repurchases of common stock - (200,000 ) (125,000 ) (275,000 ) (350,000 )
     Repurchases of convertible debentures (146,324 ) - - (146,324 ) -
     Proceeds from issuance of common stock to 
          employees and excess tax benefit 		2,992 11,610 49,856 84,379 90,394
 
STOCK-BASED COMPENSATION INCLUDED IN:
     Cost of revenues $ 1,337   $ 1,937 $ 1,497 $ 4,416 $ 5,785  
     Research and development   6,055     7,977       6,293     18,702   22,526
     Selling, general and administrative 5,649 6,542 5,629   17,506   20,419
     Restructuring charges - - 305 564 -