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Xilinx Announces September Quarter Results; EPS $0.24

PRNewswire-FirstCall
SAN JOSE, Calif.
Oct 20, 2005

Xilinx, Inc. (NASDAQ: XLNX) today announced net revenues of $399 million in the second quarter of fiscal 2006, down 2% sequentially from the prior quarter and down 1% from the same quarter a year ago. Net income was $86 million or $0.24 per diluted share, up 11% from $77 million or $0.21 per diluted share in the prior quarter. Net income for the second quarter of fiscal 2006 was down 1% from the second quarter of fiscal 2005. A favorable tax court decision during the quarter positively impacted the tax rate and increased earnings by $0.03 per share.

(Logo: http://www.newscom.com/cgi-bin/prnh/20020822/XLNXLOGO )

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 December 1, 2005 to all stockholders of record at the close of business on November 17, 2005.

  Additional second quarter comparisons are represented in the chart below.


   Quarterly Information
   (In millions, except EPS)
                                                                Growth Rates
                         Q2 FY 2006  Q1 FY 2006  Q2 FY 2005    Q-T-Q   Y-T-Y
   Net revenues            $398.9      $405.4      $403.3       -2%     -1%
   Operating income         $82.3       $90.5      $101.3       -9%    -19%
   Net income               $85.6       $76.8       $86.2       11%     -1%
   Net income per share     $0.24       $0.21       $0.24       14%      0%


Turns business, which are orders that are booked and shipped within the quarter, were weaker than anticipated in the month of September. Most of this weakness was concentrated among large communications and storage companies that have manufacturing operations in Asia Pacific. Combined sales from Xilinx's 90-nanometer products, Virtex™-4 and Spartan™-3, doubled sequentially, meeting expectations and representing 10% of total revenues.

"The September quarter was a challenging quarter. I am pleased, however, with the growth of our 90nm products. Additionally, significant yield improvements on these products during the quarter positively impacted gross margin which increased to 61.4%, up from 60.9% in the prior quarter," said Wim Roelandts, Chairman and CEO.

  Business Review -- September Quarter FY06

  -- Total inventory days at Xilinx and distribution were 146 days, up from
     132 days last quarter.
  -- Accounts receivable days sales outstanding were 44, flat from the prior
     quarter.
  -- Capital expenditures and depreciation were $16 million and $13 million,
     respectively.


  Net revenues by Geography:

                                            Percentages        Growth Rates
                                       Q2       Q1       Q2
                                    FY 2006  FY 2006  FY 2005  Q-T-Q   Y-T-Y

   North America                       41%     41%       42%    -1%     -3%
   Europe                              20%     20%       21%    -2%     -8%
   Japan                               16%     14%       15%    15%      8%
   Asia Pacific/ROW                    23%     25%       22%   -12%      4%


  Net revenues by End Market:

                                            Percentages         Growth Rates
                                       Q2       Q1       Q2
                                    FY 2006  FY 2006  FY 2005   Q-T-Q  Y-T-Y

   Communications                     48%       51%      53%     -6%   -10%
   Storage & Servers                  13%       13%      13%     -5%    -1%
   Consumer & Automotive              15%       14%       --      2%   N/M**
   Industrial & Other                 24%       22%      34%*     9%   N/M**

*This figure includes sales from consumer, industrial, automotive and other applications. As of Q3 FY05, Xilinx split this 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          Growth Rates
                                       Q2       Q1       Q2
                                    FY 2006  FY 2006  FY 2005   Q-T-Q  Y-T-Y

   New                                 30%      27%      17%     11%    71%
   Mainstream                          48%      51%      58%     -8%   -19%
   Base                                16%      16%      18%     -2%   -10%
   Support                              6%       6%       7%     -5%    -9%

  *Products are classified as follows:

New products: Virtex-4, Virtex-II Pro, Spartan-IIE, Spartan-3, Spartan-3E, Easypath™ 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 -- September Quarter FY06:

  -- The Xilinx Spartan family now represents a record 24% of total net
     revenues, up from 23% last quarter and up from 8% five years ago.  The
     Spartan-3 family, which is the industry's leading 90nm FPGA in terms of
     sales, experienced significant yield improvements during the quarter
     contributing to Xilinx's better gross margin.
  -- Sales from each of the three Virtex-4 family domains, LX, FX and SX,
     more than doubled sequentially.  Design wins for this family are strong
     across a broad base of end markets and backlog moving into the December
     quarter is up significantly.

  Business Outlook -- December Quarter FY06

  -- Revenues expected to be up 1% - 5% sequentially.
  -- Gross margin expected to be 62% - 63%.
  -- Operating expenses expected to be down 1% sequentially.
  -- Other income expected to be approximately $11 million.
  -- Tax rate expected to be approximately 21% - 22%.
  -- Fully diluted share count expected to decrease to approximately 352
     million shares.

  Business Update -- December Quarter FY06

A third quarter business update will be issued in the form of a press release after the market closes on Wednesday, December 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 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 customer purchasing power, variability in wafer pricing, and other risk factors listed in our most recent Form 10-K.

About Xilinx

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

   XILINX, INC.

   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
   (Unaudited)

   (In thousands, except per share amounts)

                                  Three Months Ended      Six Months Ended
                             Oct. 1,  Oct. 2,   Jul. 2,   Oct. 1,   Oct. 2,
                             2005      2004      2005      2005      2004

  Net revenues             $398,929  $403,277  $405,379  $804,308  $826,860

  Costs and expenses:
    Cost of revenues        153,968   145,024   158,482   312,450   289,187
    Research and
     development             79,953    78,135    78,704    158,657  150,058
    Selling, general and
     administrative          77,744    77,086    75,987    153,731  157,676
    Amortization of
     acquisition-related
     intangibles              1,755     1,757     1,756      3,511    3,159
    Litigation settlement
     and contingency          3,165        --        --      3,165       --
    Write-off of acquired
     in-process research
     and development             --        --        --         --    7,198
      Total costs and
      expenses              316,585   302,002   314,929    631,514  607,278

  Operating income           82,344   101,275    90,450    172,794  219,582
  Interest income and
   other, net                15,910     7,323     9,343     25,253   13,164

  Income before income
   taxes                     98,254   108,598    99,793    198,047  232,746
  Provision for income
   taxes                     12,656    22,389    22,952     35,608   51,285

  Net income                $85,598   $86,209   $76,841   $162,439 $181,461

  Basic net income per
   common share               $0.25     $0.25     $0.22      $0.46    $0.52
  Diluted net income per
   common share               $0.24     $0.24     $0.21      $0.45    $0.51
  Cash dividends declared
   per common share           $0.07     $0.05     $0.07      $0.14    $0.10

  Common and equivalent
   shares used in computing
   net income per share
   amounts:
    Basic                   349,254   347,859   350,705    350,165  347,350
    Diluted                 356,360   357,832   358,038    357,384  358,882


   XILINX, INC.

   CONDENSED CONSOLIDATED BALANCE SHEETS
   (In thousands)

                                                        Oct. 1,    Apr. 2,
                                                         2005       2005
                                                      (Unaudited)    (1)

  ASSETS
  Current assets
  Cash, cash equivalents and short-term investments     $881,885   $861,558
  Investment in United Microelectronics Corporation,
   current portion                                        30,000         --
  Accounts receivable, net                               191,512    213,459
  Inventories                                            199,667    185,722
  Deferred tax assets and other current assets           186,727    205,625

  Total current assets                                 1,489,791  1,466,364

  Net property, plant and equipment                      348,797    344,516
  Long-term investments                                  760,944    766,596
  Investment in United Microelectronics Corporation,
   net of current portion                                256,100    246,110
  Other assets                                           313,893    215,610

  Total Assets                                        $3,169,525 $3,039,196

  LIABILITIES AND STOCKHOLDERS' EQUITY
  Current liabilities
  Accounts payable and accrued liabilities              $224,698   $195,883
  Deferred income on shipments to distributors           109,817    102,511

  Total current liabilities                              334,515    298,394

  Deferred tax liabilities                                59,633     67,294
  Other long-term liabilities                              7,635         --

  Stockholders' equity                                 2,767,742  2,673,508

  Total Liabilities and Stockholders' Equity          $3,169,525 $3,039,196

  (1) Derived from audited financial statements
Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20020822/XLNXLOGO
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PRN Photo Desk photodesk@prnewswire.com

SOURCE: Xilinx, Inc.

CONTACT: Investor Relations: Lori Owen of Xilinx, Inc., +1-408-879-6911
or ir@xilinx.com

Web site: http://www.xilinx.com/


Worldwide Media Contacts

Silvia E. Gianelli
Phone: 408-626-4328
Email: silvia.gianelli@xilinx.com

 

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