UPGRADE YOUR BROWSER

We have detected your current browser version is not the latest one. Xilinx.com uses the latest web technologies to bring you the best online experience possible. Please upgrade to a Xilinx.com supported browser:Chrome, Firefox, Internet Explorer 11, Safari. Thank you!

Xilinx Announces Second Quarter Fiscal 2009 Results

- Virtex-5® sales exceed 10% of total sales

- Operating margin of 25.8% is highest reported in nearly three years

PRNewswire-FirstCall
SAN JOSE, Calif.
Oct 15, 2008

Xilinx, Inc. (NASDAQ: XLNX) today announced net revenues of $483.5 million in the second quarter of fiscal 2009, down 1% sequentially from the prior quarter and up 9% compared to the same quarter a year ago. Second quarter net income was $81.8 million, or $0.29 per diluted share, including a $29.0 million pre-tax impairment charge on investments and pre-tax restructuring charges of $2.5 million. Collectively, these charges represented approximately $0.09 per diluted share reduction after tax.

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

The Xilinx Board of Directors declared a quarterly cash dividend of $0.14 per outstanding share of common stock, payable on November 25, 2008 to all stockholders of record at the close of business on November 5, 2008.

  Additional second quarter comparisons are represented in the charts below:


  GAAP Results
  (In millions, except EPS)
                                                             Growth Rates
                          Q2 FY 2009 Q1 FY 2009 Q2 FY 2008  Q-T-Q    Y-T-Y
  Net revenues               $483.5     $488.2     $444.9    -1%       9%
  Operating income           $124.6     $107.0      $94.4    16%      32%
  Net income                  $81.8      $83.9      $89.7    -3%      -9%
  Diluted earnings per share  $0.29      $0.30      $0.30    -3%      -3%



Sales from all geographies except North America were up sequentially in the September quarter. Total international sales increased 2% sequentially representing a record 66% of total sales in the quarter, up from 62% in the same quarter of the prior year. The decline in sales from North America was primarily due to weakening sales from defense and wired communications applications.

Operating income for the September quarter was $124.6 million representing 25.8% of net revenues. This was the highest operating margin reported by Xilinx in nearly three years and a direct result of continued expense controls.

"Sales growth from our industry's leading Virtex-5 family was the highlight of the quarter," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "Virtex-5 FPGA sales increased over 40% sequentially during the quarter representing over 10% of total sales, up from 2% in the same quarter of the prior year. Sales from this family were driven by a broad base of applications with particularly strong growth coming from next generation wireless activity in China."

  Net Revenues by Geography:
                                 Percentages                 Growth Rates
                          Q2         Q1           Q2
                        FY 2009    FY 2009     FY 2008      Q-T-Q     Y-T-Y
  North America           34%        35%         38%         -6%       -5%
  Asia Pacific            32%        32%         30%          1%       18%
  Europe                  23%        23%         22%          2%       18%
  Japan                   11%        10%         10%          5%       12%


  Net Revenues by End Market:
                                   Percentages               Growth Rates
                             Q2        Q1         Q2
                           FY 2009   FY 2009    FY 2008     Q-T-Q    Y-T-Y
  Communications             43%       42%        45%         2%       4%
  Industrial & Other         32%       33%        30%        -6%      15%
  Consumer & Automotive      17%       16%        17%         6%      11%
  Data Processing             8%        9%         8%        -8%       8%


  Net Revenues by Product*:
                                   Percentages               Growth Rates
                           Q2          Q1          Q2
                         FY 2009     FY 2009     FY 2008     Q-T-Q     Y-T-Y
  New                      45%         42%         30%         5%       62%
  Mainstream               38%         40%         49%        -6%      -17%
  Base                     12%         12%         15%        -1%      -11%
  Support                   5%          6%          6%        -5%       -2%

  * 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 - September Quarter Fiscal 2009

  -- During the quarter, Xilinx announced the new Virtex-5 TXT FPGA
     platform.  Targeted for use in next generation Ethernet bridging and
     switching solutions as well as applications in high performance
     computing and video broadcast, these devices deliver the highest number
     of 6.5Gbps serial transceivers available on any FPGA, and are fully
     supported with application-specific IP, development tools, and
     reference designs for implementing high-bandwidth protocol bridging.
  -- Sales from the Spartan-3E and 3A families increased 18% sequentially in
     the September quarter driven primarily by applications including set
     top boxes, Digital Video Recorders, wired telecommunications and
     automotive telematics.  Sales from these product families represented
     6% of total sales, nearly doubling compared to the same quarter a year
     ago.


  Key Statistics:

                                           Q2             Q1           Q2
                                         FY 2009        FY 2009      FY 2008

  Annual Return on Equity (%)*             21             20           19

  Operating Cash Flow ($M)                 95            158          145

  Depreciation Expense ($M)                13             15           14
  Capital Expenditures ($M)                12             10           13

  Combined Inventory Days                  93             93           92

  Revenue Turns (%)                        59             59           59

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



  Business Outlook - December Quarter Fiscal 2009

  -- Sequential revenue growth is expected to be up 2% sequentially to
     down 2% sequentially.
  -- Gross margin is expected to be in the range of 63% to 64%.
  -- Operating expenses are expected to be approximately $180 million
  -- Other income including interest expense is expected to be
     approximately $3 million.
  -- Fully diluted share count is expected to be approximately 276 million
     shares.
  -- Tax rate for the remainder of fiscal 2009 is expected to be 21%
     inclusive of the R&D tax credit; December quarter tax rate will also
     include a catch-up benefit of approximately $3 million.


  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 December quarter. The web cast and subsequent replay will be available in the investor relations section of the company's web site at 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 66313422. The telephonic replay will be available for two weeks following the live call.

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. #0884F

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

                                Three Months Ended       Six Months Ended
                          Sept. 27, Sept. 29, June 28,  Sept. 27, Sept. 29,
                            2008      2007      2008      2008      2007
  Net revenues            $483,537  $444,894  $488,246  $971,783  $890,806
  Cost of revenues         177,407   170,122   176,506   353,913   338,600
  Gross margin             306,130   274,772   311,740   617,870   552,206
  Operating expenses:
     Research and
      development           89,501    88,294    90,734   180,235   176,164
     Selling, general and
      administrative        88,080    90,204    93,004   181,084   180,403
     Amortization of
      acquisition-related
      intangibles            1,426     1,897     1,425     2,851     3,794
     Restructuring charges   2,487       -      19,536    22,023       -
       Total operating
        expenses           181,494   180,395   204,699   386,193   360,361

  Operating income         124,636    94,377   107,041   231,677   191,845
  Impairment loss on
   investments             (29,001)      -      (4,621)  (33,622)      -
  Interest and other, net    8,490    19,504     5,705    14,195    33,037

  Income before income
   taxes                   104,125   113,881   108,125   212,250   224,882
  Provision for income
   taxes                    22,300    24,183    24,196    46,496    50,906
  Net income               $81,825   $89,698   $83,929  $165,754  $173,976

  Net income per common
   share:
    Basic                    $0.30     $0.30     $0.30     $0.60     $0.58
    Diluted                  $0.29     $0.30     $0.30     $0.59     $0.57

  Cash dividends declared
   per common share          $0.14     $0.12     $0.14     $0.28     $0.24

  Shares used in per share
   calculations:
    Basic                  276,169   298,008   278,165   277,357   297,863
    Diluted                277,714   302,226   280,881   279,258   302,604



  XILINX, INC.
  CONDENSED CONSOLIDATED BALANCE SHEETS
  (In thousands)
                                                Sept. 27,         March 29,
                                                  2008              2008
                                               (Unaudited)          (1)

  ASSETS
  Current assets:
    Cash, cash equivalents and short-
     term investments                         $1,301,013        $1,296,435
    Accounts receivable, net                     234,078           249,147
    Inventories                                  141,704           130,250
    Deferred tax assets and other
     current assets                              145,896           144,364
  Total current assets                         1,822,691         1,820,196
  Net property, plant and equipment              397,350           404,430
  Long-term investments                          472,268           564,269
  Other assets                                   356,519           348,212
  Total Assets                                $3,048,828        $3,137,107

  LIABILITIES AND STOCKHOLDERS' EQUITY
  Current liabilities:
    Accounts payable and accrued
     liabilities                                $224,822          $228,988
    Deferred income on shipments to
     distributors                                 94,141           111,678
  Total current liabilities                      318,963           340,666
  Convertible debentures                         999,563           999,851
  Deferred tax liabilities                        95,659            84,486
  Other long-term liabilities                     74,749            40,281
  Stockholders' equity                         1,559,894         1,671,823
  Total Liabilities and Stockholders'
   Equity                                     $3,048,828        $3,137,107

  (1) Derived from audited financial statements



  XILINX, INC.
  SUPPLEMENTAL FINANCIAL INFORMATION
  (Unaudited)
  (In thousands)
                                Three Months Ended        Six Months Ended
                           Sept. 27, Sept. 29, June 28,  Sept. 27, Sept. 29,
                             2008      2007      2008      2008      2007

  SELECTED CASH FLOW
   INFORMATION:
    Depreciation           $13,309   $14,380   $15,420   $28,729   $26,826
    Amortization             4,227     4,604     4,226     8,453     9,209
    Stock-based
     compensation           13,724    15,753    14,423    28,147    32,274
    Net cash provided by
     operating activities   94,700   145,066   158,497   253,197   271,390
    Purchases of property,
     plant and equipment   (11,777)  (13,019)   (9,873)  (21,650)  (28,618)
    Payment of dividends
     to stockholders       (38,697)  (35,683)  (38,928)  (77,625)  (71,401)
    Repurchases of common
     stock                (125,000) (150,000) (150,000) (275,000) (150,000)
    Proceeds from issuance
     of common stock to
     employees and excess
     tax benefit            49,856    30,738    31,531    81,387    78,784

  STOCK-BASED COMPENSATION
   INCLUDED IN:
     Cost of revenues       $1,497    $1,677    $1,582    $3,079    $3,848
     Research and
      development            6,293     7,247     6,354    12,647    14,549
     Selling, general and
      administrative         5,629     6,829     6,228    11,857    13,877
     Restructuring charges     305       -         259       564       -

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

First Call Analyst:
FCMN Contact:

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20020822/XLNXLOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com

SOURCE: Xilinx, Inc.

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

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


Worldwide Media Contacts

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

 

Image
image 2