(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(TM)-4 and Spartan(TM)-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(TM) and CoolRunner(R)- 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
CONTACT: Investor Relations: Lori Owen of Xilinx, Inc., +1-408-879-6911 or
Email Contact
Web site: http://www.xilinx.com/