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Xilinx Announces Fiscal 2010 Results; Record Q4 Sales of $529 Million
Apr 28, 2010 (04:04 PM EDT)


SAN JOSE, Calif., April 28 /PRNewswire-FirstCall/ -- Xilinx, Inc. (Nasdaq: XLNX) today announced fiscal 2010 sales of $1.83 billion, essentially flat with sales from the prior fiscal year.  Fiscal 2010 net income decreased 1% to $357.5 million, or $1.29 per diluted share, versus fiscal 2009 net income of $361.7 million, or $1.31 per diluted share.  Fiscal 2009 net income included a $75.0 million pre-tax gain, or $0.21 per diluted share, on the extinguishment of convertible debt.

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

Fourth quarter fiscal 2010 sales were $529.0 million, up 3% sequentially and up 34% from the fourth quarter of the prior fiscal year.  Fourth quarter fiscal 2010 net income was $148.5 million, or $0.54 per diluted share, including previously announced pre-tax restructuring charges totaling $2.8 million, or $0.01 per diluted share.   Included in the fourth quarter net income was a tax benefit of $23.2 million, or $0.08 per diluted share, primarily related to the impact of our recent favorable ruling in the Ninth Circuit Court.  

The Xilinx Board of Directors announced a quarterly cash dividend of $0.16 per outstanding share of common stock, payable on June 9, 2010 to all stockholders of record at the close of business on May 19, 2010.

Additional fourth quarter comparisons are represented in the charts below:

GAAP Results

(In millions, except EPS)




Growth Rates


Q4

FY 2010

Q3

FY 2010

Q4

FY 2009


Q-T-Q

Y-T-Y

Net revenues

$529.0

$513.3

$395.0


3%

34%

Operating income

$156.1

$136.6

$78.3


14%

99%

Net income

$148.5

$106.9

$78.0


39%

90%

Diluted earnings per share

$0.54

$0.38

$0.28


42%

93%




"Record quarterly sales of $529 million coupled with the highest gross and operating margins achieved in nearly six years provide strong testament to the growing acceptance of Xilinx programmable platforms as well as to our continued financial discipline," said Moshe Gavrielov, Xilinx President and Chief Executive Officer.  "Gross and operating margins for the quarter were 64.9% and 29.5%, respectively, up from 62.1% and 19.8% in the same quarter a year ago."  Gavrielov continued, "In the next fiscal year and beyond, I believe Xilinx is uniquely positioned to capitalize on incremental growth opportunities afforded by our 28nm leadership as well as our innovative platform-based architectures."

Net Revenues by Geography:


Percentages


Growth Rates


Q4

FY 2010

Q3

FY 2010

Q4

FY 2009


Q-T-Q

Y-T-Y

North America

33%

35%

35%


-5%

24%

Asia Pacific

35%

36%

35%


1%

34%

Europe

24%

20%

22%


25%

48%

Japan

8%

9%

8%


-4%

35%




Net Revenues by End Market:


Percentages


Growth Rates


Q4

FY 2010

Q3

FY 2010

Q4

FY 2009


Q-T-Q

Y-T-Y

Communications

47%

46%

47%


7%

34%

Industrial & Other

30%

32%

32%


-4%

27%

Consumer & Automotive

15%

15%

14%


5%

47%

Data Processing

8%

7%

7%


7%

42%




Net Revenues by Product:


Percentages


Growth Rates


Q4

FY 2010

Q3

FY 2010

Q4

FY 2009


Q-T-Q

Y-T-Y

New

36%

33%

23%


13%

108%

Mainstream

31%

33%

36%


-4%

15%

Base

28%

29%

36%


0%

7%

Support

5%

5%

5%


4%

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)


Q4

FY 2010

Q3

FY 2010

Q4

FY 2009





Annual Return on Equity (%)*

18

14

18





Operating Cash Flow

$104

$185

$61





Depreciation Expense

$12

$13

$13





Capital Expenditures

$11

$9

$6





Combined Inventory Days

79

85

90





Revenue Turns (%)

56

58

66




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

Product and Financial Highlights – Fiscal 2010

  • Xilinx's 65nm Virtex-5 platform became the industry's most successful FPGA family in history generating more in quarterly sales than any other PLD family.  Sales from this family nearly doubled in fiscal 2010 from the prior fiscal year due to broad-based customer acceptance in a variety of end markets including: mobile infrastructure, enterprise switching and routing, cryptography and industrial imaging.
  • Xilinx introduced and commenced volume shipments of its next generation Virtex-6 and Spartan-6 FPGA platforms.  The 40nm Virtex-6 platform leverages the successful Virtex-5 architecture and delivers higher performance and lower power consumption than competing FPGAs.  The Spartan-6 platform marks the first time transceiver capability, high-performance PCIe and memory controller blocks have been integrated into a 45nm low-cost FPGA fabric.  
  • Xilinx announced targeted design platform development kits for the Virtex-6 and Spartan-6 product families.  These kits are designed to increase productivity and innovation for electronic designers in the areas of embedded processing, DSP and high speed serial connectivity and address end markets such as automotive, broadcast, consumer and industrial.  
  • After announcing collaboration with ARM in October, 2009, Xilinx recently unveiled a revolutionary, extensible, processing platform architecture designed to deliver unrivaled levels of system performance, flexibility and integration.   This innovative, platform-based approach is expected to drive expansion into new market spaces leveraging Xilinx 28nm FPGA technology together with ARM's processor strengths and ecosystem.    
  • Xilinx generated over $550 million in cash and raised its dividend by $0.02 per diluted share to $0.16 per diluted share in fiscal 2010.  This demonstrates not only the resilience of Xilinx's business model during a challenging economic period, but also the Company's continued commitment to returning value to shareholders.  Xilinx continues to have among the highest dividend yields in the technology industry.  

Business Outlook – June Quarter Fiscal 2011

  • Sales are expected to be up 5% to 9% sequentially.
  • Gross margin is expected to be approximately 65% plus or minus one percentage point.
  • Operating expenses are expected to be approximately $182 million.
  • Other income and expense is expected to be a net expense of approximately $2 million.
  • Fully diluted share count is expected to be approximately 276 million.
  • June quarter tax rate is expected to be approximately 21%.

Conference Call

A conference call will be held today at 2:00 p.m. Pacific Time to discuss the fourth quarter and year-end financial results and management's outlook for the June 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 67509509. 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 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 June 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 the general health of global economies as well as of the semiconductor industry, the health of our end markets and our customers' customers, the ability of our foundry suppliers to deliver sufficient wafer volumes in a timely manner, 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, 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 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.

#1026F

XILINX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In thousands, except per share amounts)




Three Months Ended


Twelve Months Ended




Apr. 3,

Mar. 28,

Jan. 2,


Apr. 3,

Mar. 28,




2010

2009 *

2010


2010

2009 *

Net revenues

$  529,020

$  395,014

$  513,349


$  1,833,554

$  1,825,184

Cost of revenues

185,484

149,907

184,320


671,803

669,151

Gross margin

343,536

245,107

329,029


1,161,751

1,156,033

Operating expenses:







  Research and development

94,240

88,190

101,867


369,485

355,392

  Selling, general and administrative

90,346

77,652

85,037


327,560

343,768

  Amortization of acquisition-related intangibles

-

1,006

-


2,493

5,332

  Restructuring charges

2,847

-

5,531


30,064

22,023



Total operating expenses

187,433

166,848

192,435


729,602

726,515










Operating income

156,103

78,259

136,594


432,149

429,518

Impairment loss on investments

(764)

(967)

(3,041)


(3,805)

(54,129)

Gain on early extinguishment of convertible debentures

-

16,745

-


-

75,035

Interest and other income (expense), net

6,655

(2,373)

(542)


(6,579)

7,602










Income before income taxes

161,994

91,664

133,011


421,765

458,026

Provision for income taxes

13,462

13,627

26,103


64,281

96,307

Net income

$  148,532

$  78,037

$  106,908


$  357,484

$  361,719










Net income per common share:







 Basic

$  0.54

$  0.28

$  0.39


$  1.30

$  1.31

 Diluted

$  0.54

$  0.28

$  0.38


$  1.29

$  1.31










Cash dividends declared per common share

$  0.16

$  0.14

$  0.16


$  0.60

$  0.56










Shares used in per share calculations:







 Basic

274,686

274,689

276,832


276,012

276,113

 Diluted

277,290

274,881

278,566


276,953

276,854











* 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)





April 3,

March 28,





2010

2009*





(Unaudited)


ASSETS




Current assets:




 Cash, cash equivalents and short-term investments


$           1,386,605

$           1,324,933

 Accounts receivable, net


262,735

216,390

 Inventories


130,628

119,832

 Deferred tax assets and other current assets


127,098

91,313

Total current assets


1,907,066

1,752,468

Net property, plant and equipment


365,878

387,907

Long-term investments


582,202

347,787

Other assets


329,172

323,739

Total Assets


$           3,184,318

$           2,811,901







LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




 Accounts payable and accrued  liabilities


$              277,029

$              170,702

 Deferred income on shipments to distributors


80,132

62,364

Total current liabilities


357,161

233,066

Convertible debentures


354,798

352,110

Deferred tax liabilities


294,149

196,189

Other long-term liabilities


57,740

81,776







Stockholders' equity


2,120,470

1,948,760

Total Liabilities and Stockholders' Equity


$           3,184,318

$           2,811,901







* Derived from audited financial statements and adjusted for 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


Twelve Months Ended



Apr. 3,

Mar. 28,

Jan. 2,


Apr. 3,

Mar. 28,



2010

2009 *

2010


2010

2009 *

SELECTED CASH FLOW INFORMATION:








 Depreciation


$              12,248

$              13,465

$             12,867


$               50,180

$            55,632

 Amortization


3,105

3,262

3,210


14,882

15,682

 Stock-based compensation


15,471

13,321

15,519


56,481

54,509

 Net cash provided by operating activities


103,870

60,854

185,478


554,291

442,530

 Purchases of property, plant and equipment


(10,612)

(6,398)

(8,693)


(28,152)

(39,109)

 Payment of dividends to stockholders


(44,031)

(38,552)

(44,299)


(165,648)

(154,534)

 Repurchases of common stock


(124,997)

-

(25,000)


(149,997)

(275,000)

 Proceeds from issuance of common stock to employees and excess tax benefit


50,389

20,259

13,546


63,556

104,638









STOCK-BASED COMPENSATION INCLUDED IN:








  Cost of revenues


$                1,501

$                1,375

$               1,291


$                 5,180

$              5,791

  Research and development


7,276

6,373

7,289


25,766

25,075

  Selling, general and administrative


6,694

5,573

6,939


24,590

23,079

  Restructuring charges


-

-

-


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



SOURCE Xilinx, Inc.