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Xilinx Sales Up 10% Sequentially; Quarterly Dividend Increased $0.02 Per Share

PRNewswire-FirstCall
SAN JOSE, Calif.
Oct 14, 2009

Xilinx, Inc. (NASDAQ: XLNX) today announced second quarter fiscal 2010 sales of $415.0 million, up 10% sequentially and down 14% from the second quarter of the prior fiscal year. Second quarter net income was $64.0 million, or $0.23 per diluted share, including previously announced restructuring charges totaling $5.9 million, or approximately $0.02 per diluted share.

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

The Xilinx Board of Directors announced a $0.02 increase in the quarterly cash dividend to $0.16 per outstanding share of common stock, payable on November 24, 2009 to all stockholders of record at the close of business on November 4, 2009.

  Additional second quarter comparisons are represented in the charts below:


  GAAP Results
  (In millions, except EPS)
                                                           Growth Rates
                          Q2        Q1          Q2
                       FY 2010   FY 2010     FY 2009(1)    Q-T-Q    Y-T-Y
                       -------   -------     ----------    -----    -----
  Net revenues          $415.0    $376.2      $483.5         10%     -14%
  Operating income       $82.1     $57.4      $124.6         43%     -34%
  Net income             $64.0     $38.0       $81.1         68%     -21%
  Diluted earnings
   per share             $0.23     $0.14       $0.29         64%     -21%

  (1) As adjusted due to the retrospective adoption of the accounting
      standard for convertible debentures in the first quarter of fiscal
      2010.

Sales growth in the September quarter was driven by strength from all end markets and geographic regions. New Product sales increased 36% sequentially during the quarter due primarily to strong growth from the Virtex®-5 and Spartan®-3 FPGA families.

"I am encouraged by the broad-based recovery in our business," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "Strong sales growth coupled with continued operating expense control contributed to a significant improvement in operating margin. September quarter operating margin was 20%, up from 15% in the prior quarter."

  Net Revenues by Geography:
                           Percentages             Growth Rates
                     Q2         Q1        Q2
                  FY 2010    FY 2010    FY 2009    Q-T-Q    Y-T-Y
                  -------    -------    -------    -----    -----
  North America        35%        35%        34%      12%    -10%
  Asia Pacific         35%        37%        32%       3%     -8%
  Europe               21%        20%        23%      15%    -23%
  Japan                 9%         8%        11%      26%    -23%



  Net Revenues by End Market:
                           Percentages         Growth Rates
                        Q2        Q1      Q2
                     FY 2010   FY 2010  FY 2009 Q-T-Q  Y-T-Y
                     -------   -------  ------- -----  -----
  Communications          46%       49%      43%    4%    -8%
  Industrial & Other      31%       31%      32%    9%   -17%
  Consumer &
   Automotive             16%       14%      17%   27%   -22%
  Data Processing          7%        6%       8%   31%   -20%



  Net Revenues by Product:
                      Percentages              Growth Rates
                Q2         Q1        Q2
             FY 2010    FY 2010    FY 2009    Q-T-Q     Y-T-Y
             -------    -------    -------    -----     -----
  New             31%        25%        16%      36%       63%
  Mainstream      33%        36%        37%       4%      -22%
  Base            31%        34%        42%      -1%      -37%
  Support          5%         5%         5%       2%      -23%

  Products are classified as follows:

  New Products: Virtex-6, Virtex-5, Spartan-6, Spartan-3A and Spartan-3E
  product families
  Mainstream Products: Virtex-4, Spartan-3, Spartan-II and CoolRunner™-II
  product families
  Base Products: Virtex, Virtex-E, Virtex-II, Spartan, XC4000, CoolRunner
  and XC9500 product families
  Support Products: Configuration products, HardWire, Software &
  Support/Services



  Key Statistics:
  (Dollars in millions)

                                     Q2            Q1             Q2
                                  FY 2010        FY 2010        FY 2009
                                  -------        -------        -------

   Annual Return on Equity (%)*        10              8             17

   Operating Cash Flow               $118           $147            $95

   Depreciation Expense               $12            $13            $13

   Capital Expenditures                $4             $5            $12

   Combined Inventory Days             75             78             93

   Revenue Turns (%)                   57             57             59

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

  Highlights -Second Quarter Fiscal 2010

  --  Xilinx announced design support for Virtex-6 HXT FPGAs with Version
      11.3 of the ISE® Design Suite software. Optimized for 40G/100G wired
      telecommunications and data communications, Virtex-6 HXT FPGAs deliver
      serial interface technology to designers of ultra-high bandwidth
      systems with line rates in excess of 11 Gigabits per second.   As the
      leader in serial connectivity solutions for FPGAs, Xilinx estimates
      that it shipped over 75% of the PLD industry's FPGAs with embedded
      transceivers in the September quarter.
  --  The Spartan-6 family continues to be the PLD industry's only 45nm
      high-volume FPGA family.  Manufactured by Samsung, this family marks
      the first time transceiver capability and high-performance PCIe and
      memory controller blocks have been integrated into a 45nm low-cost
      FPGA fabric.  These key technologies enable customers to make
      FPGA-based products and platforms that are lower power, lower cost and
      easier to use.

  --  The Company's consistent profitability and cash flow generation--even
      during challenging economic conditions, led to the Board's recent
      decision to increase the quarterly cash dividend by $0.02 to $0.16 per
      common share.  This is the fifth time Xilinx has increased its
      dividend since initiating the dividend program in April 2004.


  Business Outlook - December Quarter Fiscal 2010
  --  Sales are expected to be up approximately 6% to 10% sequentially.
  --  Gross margin is expected to be approximately 62% to 63%.
  --  Operating expenses are expected to be approximately $186 million,
      including $3 million in charges relating to restructuring activity
      announced on April 15, 2009.
  --  Other income and expense is expected to be a net expense of
      approximately $1 million.
  --  Fully diluted share count is expected to be approximately 278 million.

  --  December quarter tax rate is expected to be approximately 19%.


  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 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 32161500. 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 the Company to generate cost and operating expense savings in an efficient and timely fashion, the ability of our customers to manage their inventories, a high dependence on turns business, the ability of our foundry suppliers to deliver sufficient wafer volumes in a timely manner, 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.

  #0952F



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

                           Three Months Ended         Six Months Ended
                           ------------------         ----------------
                     Sept. 26,  Sept. 27, June 27,  Sept. 26,  Sept. 27,
                          2009      2008*     2009       2009       2008*
                          ----      ----      ----       ----       ----
  Net revenues        $414,950  $483,537  $376,235   $791,185   $971,783
  Cost of revenues     158,177   177,407   143,822    301,999    353,913
                       -------   -------   -------    -------    -------
  Gross margin         256,773   306,130   232,413    489,186    617,870
                       -------   -------   -------    -------    -------
  Operating expenses:
     Research and
      development       90,145    89,501    83,233    173,378    180,235
     Selling, general
      and
      administrative    78,621    88,080    73,556    152,177    181,084
     Amortization of
      acquisition-
      related
      intangibles            -     1,426     2,493      2,493      2,851
     Restructuring
      charges            5,915     2,487    15,771     21,686     22,023
                         -----     -----    ------     ------     ------
      Total
       operating
       expenses        174,681   181,494   175,053    349,734    386,193
                       -------   -------   -------    -------    -------

  Operating income      82,092   124,636    57,360    139,452    231,677
  Impairment loss
   on investments            -   (29,001)        -          -    (33,622)
  Interest and
   other income
   (expense), net       (1,782)    7,240   (10,910)   (12,692)    11,718
                        ------     -----   -------    -------     ------

  Income before
   income taxes         80,310   102,875    46,450    126,760    209,773
  Provision for
   income taxes         16,272    21,815     8,444     24,716     45,535
                        ------    ------     -----     ------     ------
  Net income           $64,038   $81,060   $38,006   $102,044   $164,238
                       =======   =======   =======   ========   ========

  Net income per common share:
    Basic                $0.23     $0.29     $0.14      $0.37      $0.59
                         =====     =====     =====      =====      =====
    Diluted              $0.23     $0.29     $0.14      $0.37      $0.59
                         =====     =====     =====      =====      =====

  Cash dividends
   declared per
   common share          $0.14     $0.14     $0.14      $0.28      $0.28
                         =====     =====     =====      =====      =====

  Shares used in per share calculations:
    Basic              276,353   276,169   275,523    275,735    277,357
                       =======   =======   =======    =======    =======
    Diluted            276,988   277,714   276,258    276,271    279,258
                       =======   =======   =======    =======    =======


  * As adjusted due to the retrospective adoption of the accounting
    standard for convertible debentures in the first quarter of fiscal 2010



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

                                       Sept. 26,    March 28,
                                          2009         2009*
                                          ----         ----
                                      (Unaudited)

  ASSETS
  Current assets:
    Cash, cash equivalents
     and short-term investments     $1,517,610   $1,324,933
    Accounts receivable, net           226,673      216,390
    Inventories                        100,957      119,832
    Deferred tax assets and
     other current assets               99,192       91,313
                                        ------       ------
  Total current assets               1,944,432    1,752,468
  Net property,
   plant and equipment                 371,689      387,907
  Long-term investments                352,375      347,787
  Other assets                         292,189      323,739
                                       -------      -------
  Total Assets                      $2,960,685   $2,811,901
                                    ==========   ==========

  LIABILITIES AND STOCKHOLDERS' EQUITY
  Current liabilities:
    Accounts payable and accrued
     liabilities                      $216,701     $170,702
    Deferred income on shipments
     to distributors                    75,755       62,364
                                        ------       ------
  Total current liabilities            292,456      233,066
  Convertible debentures               353,471      352,110
  Deferred tax liabilities             206,714      196,189
  Other long-term liabilities          141,906       81,776
  Stockholders' equity               1,966,138    1,948,760
                                     ---------    ---------
  Total Liabilities and
   Stockholders' Equity             $2,960,685   $2,811,901
                                    ==========   ==========

  * Derived from audited financial statements and adjusted due
    to the retrospective adoption of the accounting standard for
    convertible debentures in the first quarter of fiscal 2010



  XILINX, INC.
  SUPPLEMENTAL FINANCIAL INFORMATION
  (Unaudited)
  (In thousands)             Three Months Ended         Six Months Ended
                             ------------------         ----------------
                       Sept. 26,  Sept. 27, June 27,  Sept. 26,  Sept. 27,
                            2009      2008*     2009       2009       2008*
                            ----      ----      ----       ----       ----

  SELECTED CASH FLOW INFORMATION:
    Depreciation         $12,056   $13,309   $13,009    $25,065    $28,729
    Amortization           3,260     4,176     5,307      8,567      8,351
    Stock-based
     compensation         11,762    13,724    13,729     25,491     28,147
    Net cash provided
     by operating
     activities          117,976    94,700   146,967    264,943    253,197
    Purchases of
     property, plant and
     equipment            (4,133)  (11,777)   (4,714)    (8,847)   (21,650)
    Payment of
     dividends to
     stockholders        (38,744)  (38,697)  (38,574)   (77,318)   (77,625)
    Repurchases of
     common stock              -  (125,000)        -          -   (275,000)
    Proceeds from
     issuance of common
     stock to employees
     and excess tax
     benefit              15,677    49,856   (16,056)      (379)    81,387

  STOCK-BASED COMPENSATION INCLUDED IN:
     Cost of revenues     $1,272    $1,497    $1,115     $2,387     $3,079
     Research and
      development          5,205     6,293     5,996     11,201     12,647
     Selling, general
      and
      administrative       5,285     5,629     5,673     10,958     11,857
     Restructuring
      charges                  -       305       945        945        564

  * As adjusted due to the retrospective adoption of the accounting
    standard for convertible debentures in the first quarter of fiscal 2010


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

First Call Analyst:
FCMN Contact:

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

SOURCE: Xilinx, Inc.

CONTACT: 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

 

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