- Record sales of $488.2 million in fiscal Q1 - Gross margin of 63.8% - Industrial and Other sales reach record level
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The Xilinx Board of Directors declared a quarterly cash dividend of $0.14 per outstanding share of common stock, payable on August 27, 2008 to all stockholders of record at the close of business on August 6, 2008.
Additional first quarter comparisons are represented in the charts below: GAAP Results (In millions, except EPS) Growth Rates Q1 FY 2009 Q4 FY 2008 Q1 FY 2008 Q-T-Q Y-T-Y Net revenues $488.2 $475.8 $445.9 3% 9% Operating income $107.0 $117.0 $97.5 -9% 10% Net income $83.9 $96.5 $84.3 -13% 0% Diluted earnings per share $0.30 $0.34 $0.28 -12% 7%
Sales from New Products increased 15% sequentially in the June quarter representing 42% of total sales, up from 28% in the same quarter a year ago. Virtex(R)-4 FPGA sales were particularly strong during the quarter driven by applications in the communications, defense and medical end markets.
Sales from the Asia Pacific region increased 15% sequentially in the June quarter reaching a record 32% of total sales, up from 29% in the same quarter a year ago. Strong sales growth was driven primarily by communications customers within the region as well as US-based communications customers with manufacturing operations in Asia Pacific.
"We reported a solid quarter in spite of macroeconomic headwinds," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "In addition to achieving record sales in the June quarter, our gross margin continued to improve due to disciplined efforts in the areas of yield improvement and cost reduction. Gross margin in the June quarter was 63.8%, up from 63.4% in the prior quarter and up from 62.2% in the same quarter a year ago."
Net Revenues by Geography: Percentages Growth Rates Q1 Q4 Q1 FY 2009 FY 2008 FY 2008 Q-T-Q Y-T-Y North America 35% 38% 39% -4% -1% Asia Pacific 32% 28% 29% 15% 21% Europe 23% 23% 22% 1% 14% Japan 10% 11% 10% -3% 9% Net Revenues by End Market: Percentages Growth Rates Q1 Q4 Q1 FY 2009 FY 2008 FY 2008 Q-T-Q Y-T-Y Communications 42% 42% 45% 3% 2% Industrial & Other 33% 33% 32% 5% 16% Consumer & Automotive 16% 17% 15% -2% 13% Data Processing 9% 8% 8% 3% 17% Net Revenues by Product*: Percentages Growth Rates Q1 Q4 Q1 FY 2009 FY 2008 FY 2008 Q-T-Q Y-T-Y New 42% 38% 28% 15% 64% Mainstream 40% 42% 50% -2% -12% Base 12% 14% 16% -14% -19% Support 6% 6% 6% -5% 8% *Products are classified as follows: New Products: Virtex-5, Virtex-4, Spartan(R)-3, and CoolRunner(TM)-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 -- June Quarter Fiscal 2009
-- Sales from products manufactured using 90nm and 65nm process technologies reached record levels in the June quarter exceeding 40% of total sales, up from 26% in the same quarter a year ago. Xilinx's successful introduction of the Virtex-5 family in May 2006 has enabled the Company to achieve significant 65nm sales leadership over PLD competitors. Xilinx estimates that it currently supplies approximately 90% of the PLD industry's 65nm sales. Virtex-5 devices continue to generate strong design win momentum across a broad range of end markets.
-- Industrial and Other sales reached record levels in the June quarter driven by growth from the defense, industrial, scientific and medical applications. Xilinx FPGAs are ideally suited for many of the applications in this space due to their high DSP performance, embedded processing functionality and integration capabilities. Sales from Industrial and Other applications represented 33% of total sales in the June quarter, up from 22% three years ago.
Key Statistics: Q1 Q4 Q1 FY 2009 FY 2008 FY 2008 Annual Return on Equity (%)* 20 22 18 Operating Cash Flow ($M) 158 102 126 Depreciation Expense ($M) 15 14 12 Capital Expenditures ($M) 10 6 16 Combined Inventory Days 93 92 101 Revenue Turns (%) 59 60 57 *Return on equity calculation: Annualized net income/average stockholders' equity Business Outlook -- September Quarter Fiscal 2009 -- Revenues are expected to be between up 1% to down 3% sequentially. -- Gross margin is expected to be in the range of 63% to 64%. -- Operating expenses are expected to be approximately $180 million including $1 million to $2 million of previously announced restructuring charges. -- Other income including interest expense is expected to be approximately $5 million. -- Tax rate is expected to be approximately 22%. -- Fully diluted share count is expected to be approximately 277 million shares.
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 Form 10-K.
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.
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#0866F 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 June 28, March 29, June 30, 2008 2008 2007 Net revenues $488,246 $475,760 $445,912 Cost of revenues 176,506 173,974 168,478 Gross margin 311,740 301,786 277,434 Operating expenses: Research and development 90,734 90,888 87,870 Selling, general and administrative 93,004 92,469 90,199 Amortization of acquisition- related intangibles 1,425 1,426 1,897 Restructuring charges 19,536 - - Total operating expenses 204,699 184,783 179,966 Operating income 107,041 117,003 97,468 Impairment loss on investments (4,621) (2,850) - Interest and other, net 5,705 5,328 13,533 Income before income taxes 108,125 119,481 111,001 Provision for income taxes 24,196 23,002 26,723 Net income $83,929 $96,479 $84,278 Net income per common share: Basic $0.30 $0.34 $0.28 Diluted $0.30 $0.34 $0.28 Cash dividends declared per common share $0.14 $0.12 $0.12 Shares used in per share calculations: Basic 278,165 284,523 297,720 Diluted 280,881 286,321 303,198 XILINX, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) June 28, March 29, 2008 2008 (Unaudited) (1) ASSETS Current assets: Cash, cash equivalents and short- term investments $1,238,713 $1,296,435 Accounts receivable, net 205,480 249,147 Inventories 140,372 130,250 Deferred tax assets and other current assets 147,933 144,364 Total current assets 1,732,498 1,820,196 Net property, plant and equipment 398,882 404,430 Long-term investments 607,253 564,269 Other assets 352,422 348,212 Total Assets $3,091,055 $3,137,107 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $237,681 $228,988 Deferred income on shipments to distributors 99,789 111,678 Total current liabilities 337,470 340,666 Convertible debentures 999,552 999,851 Deferred tax liabilities 100,548 84,486 Other long-term liabilities 43,894 40,281 Stockholders' equity 1,609,591 1,671,823 Total Liabilities and Stockholders' Equity $3,091,055 $3,137,107 (1) Derived from audited financial statements XILINX, INC. SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited) (In thousands) Three Months Ended June 28, March 29, June 30, 2008 2008 2007 SELECTED CASH FLOW INFORMATION: Depreciation $15,420 $13,876 $12,446 Amortization 4,226 4,219 4,605 Stock-based compensation 14,164 17,697 16,521 Net cash provided by operating activities 158,497 101,841 126,324 Purchases of property, plant and equipment (9,873) (6,238) (15,599) Payment of dividends to stockholders (38,928) (34,093) (35,718) Repurchases of common stock (150,000) (200,000) - Proceeds from issuance of common stock to employees and excess tax benefit 31,531 57,700 48,046 STOCK-BASED COMPENSATION INCLUDED IN: Cost of revenues $1,582 $1,820 $2,171 Research and development 6,354 8,908 7,301 Selling, general and administrative 6,228 6,970 7,048
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