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Xilinx Announces Fourth Consecutive Quarter of Record Sales; Operating Margin Reaches 36%

PR Newswire
SAN JOSE, Calif.
Oct 20, 2010

SAN JOSE, Calif., Oct. 20 /PRNewswire-FirstCall/ -- Xilinx, Inc. (Nasdaq: XLNX) today announced second quarter fiscal 2011 sales of $619.7 million, up 4% sequentially and up 49% from the second quarter of the prior fiscal year. Second quarter fiscal 2011 net income was $170.9 million, or $0.65 per diluted share.

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The Xilinx Board of Directors announced a quarterly cash dividend of $0.16 per outstanding share of common stock, payable on December 1, 2010 to all stockholders of record at the close of business on November 10, 2010.

Additional second quarter comparisons are represented in the charts below:



    GAAP Results
    (In millions, except EPS)

                                                          Growth Rates
                               Q2       Q1      Q2
                            FY 2011  FY 2011  FY 2010  Q-T-Q     Y-T-Y
                                                       -----     -----
    Net revenues              $619.7   $594.7   $415.0      4%        49%
    Operating income          $222.7   $208.0    $82.1      7%       171%
    Net income                $170.9   $158.6    $64.0      8%       167%
    Diluted earnings per
     share                     $0.65    $0.58    $0.23     12%       183%

The September quarter marked the fourth consecutive quarter of record sales for Xilinx. Operating margin of 36% was also a new milestone for Xilinx, up from 35% in the previous quarter; and up from 20% in the same quarter of the prior year.

"New Product sales were led by particularly strong growth from the Virtex™-6 and Spartan™-6 FPGA families," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "Combined sales from these families more than doubled sequentially in the September quarter driven by strong new customer adoption in wide ranging applications such as 3D digital video displays, high performance computing and wireless infrastructure."



    Net Revenues by Geography:
                                 Percentages                 Growth Rates
                         Q2         Q1          Q2
                       FY 2011    FY 2011    FY 2010    Q-T-Q     Y-T-Y
                       -------    -------    -------    -----     -----
    North America            30%        32%         35%     -3%        28%
    Asia Pacific             35%        34%         35%      7%        52%
    Europe                   26%        26%         21%      4%        85%
    Japan                     9%         8%          9%     22%        38%



    Net Revenues by End Market:

                                     Percentages               Growth Rates
                              Q2         Q1        Q2
                           FY 2011    FY 2011    FY2010   Q-T-Q     Y-T-Y
                           -------    -------    ------   -----     -----
    Communications               48%        47%       46%      5%        55%
    Industrial & Other           31%        32%       31%      1%        52%
    Consumer &
     Automotive                  15%        15%       16%      7%        41%
    Data Processing               6%         6%        7%      6%        25%



    Net Revenues by Product:
                                 Percentages                Growth Rates
                         Q2         Q1         Q2
                       FY 2011    FY 2011    FY 2010   Q-T-Q     Y-T-Y
                       -------    -------    -------   -----
    New                      44%        39%        31%     17%       113%
    Mainstream               27%        30%        33%     -4%        22%
    Base                     25%        27%        31%     -3%        20%
    Support                   4%         4%         5%     -7%        21%

    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 2011      FY 2011      FY 2010
                                   -------      -------      -------

    Annual Return on Equity
     (%)*                                 32           32           10

    Operating Cash Flow                  $42         $105         $118

    Depreciation Expense                 $13          $12          $12

    Capital Expenditures                 $15          $18           $4

    Combined Inventory Days               89           80           75

    Revenue Turns (%)                     48           53           57

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

Highlights - Second Quarter Fiscal 2011

    --  Sales from the Virtex-5 FPGA family reached another milestone in the
        September quarter, surpassing $1 billion in total sales.  This product
        family continues to experience solid design win traction in myriad
        applications such as wireless LTE infrastructure, LED backlit, avionics
        imaging and mobile backhaul.
    --  Xilinx augmented its leadership in Aerospace and Defense (A&D) solutions
        by launching the Virtex-5QV FPGA, the first high-density, rad-hard
        reconfigurable FPGA for space applications.   Additionally, Xilinx
        received NSA approval of its Virtex-5Q FPGA solution for high-grade
        cryptographic processing, underscoring a 20-year track record of meeting
        the rigorous demands of the A&D industry.

Business Outlook - December Quarter Fiscal 2011

    --  Sales are expected to be flat to down 4% sequentially.
    --  Gross margin is expected to be approximately 65% plus or minus one
        percentage point.
    --  Operating expenses are expected to be approximately $190 million.
    --  Other income and expense is expected to be an expense of approximately
        $9 million.
    --  Fully diluted share count is expected to be approximately 262 million.
    --  December quarter tax rate is expected to be approximately 22%.

Conference Call

A conference call will be held today at 2:00 p.m. Pacific Time to discuss the second quarter financial 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 14094913. 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," "believe," "may," "will," "could," "anticipate," "estimate," "continue," "plan," "intend," "project" or other similar expressions to identify such forward-looking statements that include, but are not limited to, statements related to the semiconductor market, the growth and acceptance of our programmable platforms, expected revenue growth, the demand and growth in the markets we serve, opportunity for expansion into new markets, and our expectations regarding our business outlook for the December quarter for fiscal 2011. 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 customer acceptance of our new products, the ability of our foundry suppliers to deliver sufficient wafer volumes in a timely manner, current global economic conditions, the health of our customers and the end markets in which they participate, our ability to forecast end customer demand, 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 10Q and 10-K.

About Xilinx

Xilinx is the world's leading provider of programmable platforms. For more information, visit 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.

#1057F



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


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

                              Three Months Ended             Six Months Ended
                              ------------------             ----------------
                        Oct. 2,   Jul. 3,   Sept. 26,   Oct. 2,    Sept. 26,
                            2010      2010       2009        2010        2009
                            ----      ----       ----        ----        ----
    Net revenues        $619,666  $594,737   $414,950  $1,214,403    $791,185
    Cost of
     revenues            213,260   208,176    158,177     421,436     301,999
    Gross margin         406,406   386,561    256,773     792,967     489,186
    Operating
     expenses:
       Research and
        development       96,578    94,484     90,145     191,062     173,378
       Selling,
        general and
        administrative    87,174    84,058     78,621     171,232     152,177
       Amortization of
        acquisition-
        related
        intangibles            -         -          -           -       2,493
       Restructuring
        charges                -         -      5,915           -      21,686
                             ---       ---      -----         ---      ------
        Total operating
         expenses        183,752   178,542    174,681     362,294     349,734

    Operating
     income              222,654   208,019     82,092     430,673     139,452
    Interest and
     other expense,
     net                  (3,484)   (5,130)    (1,782)     (8,614)    (12,692)
                          ------    ------     ------      ------     -------

    Income before
     income taxes        219,170   202,889     80,310     422,059     126,760
    Provision for
     income taxes         48,275    44,302     16,272      92,577      24,716
                          ------    ------     ------      ------      ------
    Net income          $170,895  $158,587    $64,038    $329,482    $102,044
                        ========  ========    =======    ========    ========

    Net income per
     common share:
      Basic                $0.66     $0.58      $0.23       $1.23       $0.37
                           =====     =====      =====       =====       =====
      Diluted              $0.65     $0.58      $0.23       $1.22       $0.37
                           =====     =====      =====       =====       =====

    Cash dividends
     declared per
     common share          $0.16     $0.16      $0.14       $0.32       $0.28
                           =====     =====      =====       =====       =====

    Shares used in
     per share
     calculations:
      Basic              260,151   272,097    276,353     267,355     275,735
                         =======   =======    =======     =======     =======
      Diluted            263,286   275,541    276,988     270,484     276,271
                         =======   =======    =======     =======     =======


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

                                                  Oct. 2,      Apr. 3,
                                                       2010        2010
                                                       ----        ----
                                                (Unaudited)

    ASSETS
    Current assets:
      Cash, cash equivalents and short-term
       investments                                 $1,406,664  $1,386,605
      Accounts receivable, net                        556,766     262,735
      Inventories                                     170,180     130,628
      Deferred tax assets and other current
       assets                                       210,303     127,098
                                                    -------     -------
    Total current assets                          2,343,913   1,907,066
    Net property, plant and equipment               374,384     365,878
    Long-term investments                           704,586     582,202
    Other assets                                    292,968     329,172
    Total Assets                                 $3,715,851  $3,184,318
                                                 ==========  ==========

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities:
      Accounts payable and accrued
       liabilities                                 $297,226    $277,029
      Deferred income on shipments to
       distributors                                  93,608      80,132
                                                     ------      ------
    Total current liabilities                       390,834     357,161
    Convertible debentures                          884,390     354,798
    Deferred tax liabilities                        350,702     294,149
    Other long-term liabilities                      62,694      57,740

    Stockholders' equity                          2,027,231   2,120,470
                                                  ---------   ---------
    Total Liabilities and Stockholders'
     Equity                                      $3,715,851  $3,184,318
                                                 ==========  ==========


    XILINX, INC.
    SUPPLEMENTAL FINANCIAL INFORMATION
    (Unaudited)

    (In thousands)                   Three Months Ended       Six Months Ended
                                     ------------------       ----------------
                                                      Sept.           Sept.
                                   Oct. 2,  Jul. 3,    26,  Oct. 2,    26,
                                       2010     2010    2009    2010    2009
                                       ----     ----    ----    ----    ----

    SELECTED CASH FLOW
     INFORMATION:
      Depreciation                  $12,747  $12,191 $12,056  24,938  25,065
      Amortization                    1,943    1,743   3,260   3,686   8,567
      Stock-based compensation       15,421   15,120  11,762  30,541  25,491
      Net cash provided by
       operating activities          41,616  105,042 117,976 146,658 264,943
      Purchases of property, plant
       and equipment                 15,177   18,267   4,133  33,444   8,847
      Payment of dividends to
       stockholders                  41,645   43,817  38,744  85,462  77,318
      Repurchases of common stock    32,976  433,333       - 466,309       -
      Proceeds from issuance of
       common stock to employees
       and excess tax benefit        41,816    5,817  15,677  47,633    (379)

    STOCK-BASED COMPENSATION
     INCLUDED IN:
       Cost of revenues              $1,312   $1,267  $1,272  $2,579   2,387
       Research and development       7,341    7,204   5,205  14,545  11,201
       Selling, general and
        administrative                6,768    6,649   5,285  13,417  10,958
       Restructuring charges              -        -       -       -     945

SOURCE Xilinx, Inc.

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SOURCE: Xilinx, Inc.

CONTACT: Lori Owen, Investor Relations  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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