New products: Virtex-5, Virtex-4, Spartan(TM)-3, Spartan-3E, and CoolRunner(TM)- II products
Mainstream products: Virtex-II Pro, Virtex-II, Spartan-IIE, Spartan-II, CoolRunner, Virtex-E products
Base products: Virtex, 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 fiscal 2007: -- Xilinx continued to expand its leadership in 65nm technology and began shipments of Virtex-5 LXT FPGAs. The LXT platform is the second of four Virtex-5 platforms that Xilinx has begun shipping and features the industry's lowest power 65nm transceivers. Xilinx's 8.2i Integrated Software Environment (ISE(TM)) offers full support for Virtex-5 devices, including the Virtex-5 LX330 FPGA, the industry's highest density 65nm FPGA. Xilinx remains the only PLD company to ship 65nm products. -- For the third consecutive year Xilinx earned the highest ranking for FPGA-level EDA vendor usage among respondents in the FPGA EDA tool vendor survey conducted by EE Times, part of CMP Technology LLC. In addition, Xilinx ranked number one in all the categories covering the "most important attributes in selecting an FPGA EDA tool vendor" and scored higher than any other FPGA vendor in user satisfaction. Xilinx top rating is strong testament to its excellence in design tools technology, support and services and the Company's total solutions approach to handling today's complex system designs. Business Outlook - December Quarter FY07 -- Revenues expected to increase 2% to 5% sequentially. -- Gross margin expected to be 61% to 62%, including approximately $2 million of stock-based compensation charges. -- R&D and SG&A expenses are expected to be approximately flat sequentially, including approximately $20 million of stock-based compensation. -- Other income expected to be approximately $18 million. -- Tax rate is expected to be approximately 23% - 24%. -- Fully diluted share count expected to decrease to approximately 340 million shares. Business Update - December Quarter FY07
The Company expects to issue a third quarter business update press release after the market closes on Thursday, December 7, 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, greater product mix changes than anticipated, 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, 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 .
#06105 XILINX, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands, except per share amounts) Three Months Ended Six Months Ended Sept. 30, Oct. 1, Jul. 1, Sept. 30, Oct. 1, 2006 2005 2006 2006 2005 Net revenues $467,180 $398,929 $481,362 $948,542 $804,308 Cost of revenues 180,580 153,968 192,059 372,639 312,450 Gross margin 286,600 244,961 289,303 575,903 491,858 Operating expenses: Research and development 95,951 79,953 97,582 193,533 158,657 Selling, general and administrative 95,462 77,744 94,418 189,880 153,731 Amortization of acquisition-related intangibles 2,031 1,755 2,031 4,062 3,511 Stock-based compensation related to prior years -- -- 2,209 2,209 -- Litigation settlements and contingencies -- 3,165 -- -- 3,165 Total operating expenses 193,444 162,617 196,240 389,684 319,064 Operating income 93,156 82,344 93,063 186,219 172,794 Impairment loss on investments -- -- (437) (437) -- Interest income and other, net 26,132 15,910 14,841 40,973 25,253 Income before income taxes 119,288 98,254 107,467 226,755 198,047 Provision for income taxes 26,242 12,656 24,976 51,218 35,608 Net income $93,046 $85,598 $82,491 $175,537 $162,439 Basic net income per common share $0.27 $0.25 $0.24 $0.52 $0.46 Diluted net income per common share $0.27 $0.24 $0.24 $0.51 $0.45 Cash dividends declared per common share $0.09 $0.07 $0.09 $0.18 $0.14 Common and equivalent shares used in computing net income per share amounts: Basic 339,431 349,254 341,853 340,845 350,165 Diluted 343,192 356,360 348,988 346,734 357,384 XILINX, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) Sept. 30, Apr. 1, 2006 2006 (Unaudited) (1) ASSETS Current assets Cash, cash equivalents and short-term investments $1,227,352 $984,917 Investment in United Microelectronics Corporation, current portion 11,506 37,285 Accounts receivable, net 186,224 194,205 Inventories 198,958 201,029 Deferred tax assets and other current assets 242,758 230,812 Total current assets 1,866,798 1,648,248 Net property, plant and equipment 359,736 358,257 Long-term investments 552,260 616,296 Investment in United Microelectronics Corporation, net of current portion 65,164 239,209 Other assets 290,380 311,537 Total Assets $3,134,338 $3,173,547 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued liabilities $237,757 $218,466 Deferred income on shipments to distributors 109,775 126,558 Total current liabilities 347,532 345,024 Deferred tax liabilities 83,596 92,153 Other long-term liabilities 5,043 7,485 Stockholders' equity 2,698,167 2,728,885 Total Liabilities and Stockholders' Equity $3,134,338 $3,173,547 (1) Derived from audited financial statements Xilinx, Inc. RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS (Unaudited) (In thousands, except per share amounts) Six Months Three Months Ended Ended Sept. 30, July 1, Sept. 30, 2006 2006 2006 GAAP OPERATING INCOME $93,156 $93,063 $186,219 Adjustment for stock-based compensation within: Cost of revenues 2,426 3,642 6,068 Research and development 9,810 12,364 22,174 Selling, general and administrative 9,670 10,802 20,472 Stock-based compensation related to prior years -- 2,209 2,209 NON-GAAP OPERATING INCOME $115,062 $122,080 $237,142 GAAP NET INCOME $93,046 $82,491 $175,537 Adjustment for stock-based compensation within: Cost of revenues 2,426 3,642 6,068 Research and development 9,810 12,364 22,174 Selling, general and administrative 9,670 10,802 20,472 Stock-based compensation related to prior years -- 2,209 2,209 Provision for income taxes (5,016) (5,986) (11,002) NON-GAAP NET INCOME $109,936 $105,522 $215,458 GAAP DILUTED NET INCOME PER COMMON SHARE $0.27 $0.24 $0.51 Adjustment for stock-based compensation 0.05 0.06 0.11 NON-GAAP DILUTED NET INCOME PER COMMON SHARE $0.32 $0.30 $0.62 GAAP DILUTED SHARES 343,192 348,988 346,734 Adjustment for stock-based compensation (739) (2,340) (1,855) NON-GAAP DILUTED SHARES 342,453 346,648 344,879 GAAP GROSS MARGIN PERCENTAGE 61.3% 60.1% 60.7% Adjustment for stock-based compensation 0.6% 0.8% 0.7% NON-GAAP GROSS MARGIN PERCENTAGE 61.9% 60.9% 61.4% GAAP OPERATING MARGIN PERCENTAGE 19.9% 19.3% 19.6% Adjustment for stock-based compensation 4.7% 6.1% 5.4% NON-GAAP OPERATING MARGIN PERCENTAGE 24.6% 25.4% 25.0% GAAP NET MARGIN PERCENTAGE 19.9% 17.1% 18.5% Adjustment for stock-based compensation 3.6% 4.8% 4.2% NON-GAAP NET MARGIN PERCENTAGE 23.5% 21.9% 22.7% In addition to disclosing financial results calculated in accordance with U.S. generally accepted accounting principles (GAAP), the Company's earnings release contains non-GAAP financial measures that exclude the effects of stock-based compensation and the requirements of Statement of Financial Accounting Standards No. 123( R ), "Share-based Payment" (SFAS 123( R )). The non-GAAP financial measures used by management and disclosed by the Company exclude the statement of income effects of all forms of stock-based compensation and the effects of SFAS 123( R ) upon the number of diluted shares used in calculating non-GAAP net income per share. These non-GAAP financial measures are not in accordance with or an alternative for GAAP measures and may be different from, and therefore not comparable to, non-GAAP measures used by other companies. The Company has provided reconciliations of the non-GAAP measures to the most directly comparable GAAP measures. Xilinx believes that the presentation of these non-GAAP measures, when shown in conjunction with the corresponding GAAP measures and our reconciliations, provides useful information to management and investors regarding financial and business trends relating to Xilinx's financial condition and results of operations. For additional information regarding these non-GAAP financial measures and their use by Company management, see the Form 8-K dated October 19, 2006 that Xilinx has filed with the SEC.
Web site: http://www.xilinx.com/