New products: Virtex-4, Virtex-II Pro, Spartan(TM)-IIE, Spartan-3, Spartan-3E, Easypath(TM) and CoolRunner-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 -- December Quarter FY06: -- Xilinx shipped a record 10 million 90nm devices during the quarter and now has four product families in production on 90nm. Just nine months after introduction, Xilinx completed the roll-out of its newest Spartan family, Spartan-3E. The logic-intensive Spartan-3E family complements the I/O intensive Spartan-3 family and enables Xilinx to address a wider spectrum of applications in the areas of consumer and low cost networking. -- Xilinx entered into strategic agreements with both Toshiba Corporation and UMC to include technology development at 65nm and beyond. Research and development efforts at both foundries have resulted in 65nm prototype wafers, including actual programmable circuitry. -- During the quarter, Xilinx announced the release of applications- optimized XtremeDSP(TM) solutions that accelerate development of multimedia, video and imaging (MVI) systems. The easy-to-use MVI- tailored solutions include an integrated design environment with robust tools and easy-to-use pre-packaged development kits. Additionally, Xilinx recently announced the acquisition of Accelchip, a provider of DSP design tools. This acquisition strengthens Xilinx's commitment to evolving the programming model for FPGA-based DSP system design. -- Xilinx announced the 8.1i release of its popular Integrated Software Environment (ISE(TM)) design tools, featuring IS Fmax Technology with enhanced physical synthesis capabilities to improve performance and timing closure for both the Virtex-4 and Spartan-3 architectures. Using ISE 8.1i software, designers can boost performance by an average of 10% to 37% as compared to previous ISE releases and up to 70% over competing solutions using Virtex-4 FPGAs. -- On November 15, 2005, Xilinx announced a $40 million investment in a new building in Singapore, our Asia regional headquarters. The new building will quadruple the existing capacity of its on-site manufacturing facility, triple the in-house process development resources and provide increased infrastructure support for the 13 offices across the Asia Pacific region. Business Outlook -- March Quarter FY06 -- Revenues expected to be up 1% - 5% sequentially. -- Gross margin expected to be approximately 63%. -- Operating expenses expected to increase approximately 7% sequentially, inclusive of the impact of the acquisition of Accelchip. -- Other income expected to be approximately $10 million. -- Tax rate expected to be approximately 23% plus or minus one percentage point. -- Fully diluted share count expected to decrease to approximately 351 million shares. Business Update -- March Quarter FY06
A fourth quarter business update will be issued in the form of a press release after the market closes on Monday, March 6, 2006. 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.
Xilinx, Inc. is the worldwide leader of programmable logic solutions. Additional information about Xilinx is available at http://www.xilinx.com.
#0609 XILINX, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands, except per share amounts) Three Months Ended Nine Months Ended Dec. 31, Jan. 01, Oct. 1, Dec. 31, Jan. 01, 2005 2005 2005 2005 2005 Net revenues $449,605 $355,396 $398,929 $1,253,913 $1,182,256 Cost of revenues 166,476 135,096 153,968 478,926 424,283 Gross margin 283,129 220,300 244,961 774,987 757,973 Operating expenses: Research and development 81,073 77,356 79,953 239,730 227,414 Selling, general and administrative 80,683 71,856 77,744 234,414 229,532 Amortization of acquisition-related intangibles 1,536 1,759 1,755 5,047 4,918 Litigation settlements and contingencies -- -- 3,165 3,165 -- Write-off of acquired in-process research and development -- -- -- -- 7,198 Total operating expenses 163,292 150,971 162,617 482,356 469,062 Operating income 119,837 69,329 82,344 292,631 288,911 Impairment loss on investments -- (3,099) -- -- (3,099) Interest income and other, net 10,943 8,811 15,910 36,196 21,975 Income before income taxes 130,780 75,041 98,254 328,827 307,787 Provision for income taxes 49,811 10,984 12,656 85,419 62,269 Net income $80,969 $64,057 $85,598 $243,408 $245,518 Basic net income per common share $0.23 $0.18 $0.25 $0.70 $0.71 Diluted net income per common share $0.23 $0.18 $0.24 $0.68 $0.68 Cash dividends declared per common share $0.07 $0.05 $0.07 $0.21 $0.15 Common and equivalent shares used in computing net income per share amounts: Basic 348,203 348,441 349,254 349,674 347,555 Diluted 353,237 358,211 356,360 355,881 358,551 XILINX, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) Dec. 31, Apr. 2, 2005 2005 (Unaudited) (1) ASSETS Current assets Cash, cash equivalents and short-term investments $888,320 $861,558 Investment in United Microelectronics Corporation, current portion 32,685 -- Accounts receivable, net 142,271 213,459 Inventories 211,882 185,722 Deferred tax assets and other current assets 203,196 205,625 Total current assets 1,478,354 1,466,364 Net property, plant and equipment 349,895 344,516 Long-term investments 784,344 766,596 Investment in United Microelectronics Corporation, net of current portion 209,698 246,110 Other assets 289,846 215,610 Total Assets $3,112,137 $3,039,196 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued liabilities $265,191 $195,883 Deferred income on shipments to distributors 111,717 102,511 Total current liabilities 376,908 298,394 Deferred tax liabilities 35,551 67,294 Other long-term liabilities 7,485 -- Stockholders' equity 2,692,193 2,673,508 Total Liabilities and Stockholders' Equity $3,112,137 $3,039,196 (1) Derived from audited financial statements