- Virtex-5(R) sales exceed 10% of total sales - Operating margin of 25.8% is highest reported in nearly three years
SAN JOSE, Calif., Oct. 15 /PRNewswire-FirstCall/ -- 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(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 - 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
Web site: http://www.xilinx.com/