Xilinx Reports Third Consecutive Quarter of Record Sales; Operating Margin Reaches 35%
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Xilinx Reports Third Consecutive Quarter of Record Sales; Operating Margin Reaches 35%

SAN JOSE, Calif., July 21 — (PRNewswire) — Xilinx, Inc. (Nasdaq: XLNX) today announced first quarter fiscal 2011 sales of $594.7 million, up 12% sequentially and up 58% from the first quarter of the prior fiscal year.  First quarter fiscal 2011 net income was $158.6 million, or $0.58 per diluted share.

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The Xilinx Board of Directors announced a quarterly cash dividend of $0.16 per outstanding share of common stock, payable on September 1, 2010 to all stockholders of record at the close of business on August 11, 2010.

Additional first quarter comparisons are represented in the charts below:

GAAP Results

(In millions, except EPS)







Growth Rates


Q1
FY 2011

Q4
FY 2010

Q1
FY 2010


Q-T-Q

Y-T-Y

Net revenues

$594.7

$529.0

$376.2


12%

58%

Operating income

$208.0

$156.1

$57.4


33%

263%

Net income

$158.6

$148.5

$38.0


7%

317%

Diluted earnings per share

$0.58

$0.54

$0.14


7%

314%




The June quarter marked the third consecutive quarter of record sales for Xilinx. New Product sales were led by strong growth from the Virtex-6 and Virtex-5 FPGA families.  These product families are experiencing success in a wide variety of applications including Long Term Evolution (LTE) wireless networks, next generation broadcast video-on-demand systems, high performance computer systems and high resolution imaging systems.  

"It was an exceptional quarter on a number of fronts," said Moshe Gavrielov, Xilinx President and Chief Executive Officer.  "In addition to record sales, operating income increased 33% sequentially to $208 million, a new milestone for Xilinx.   Operating margin of 35% in the June quarter is up from 30% in the prior quarter and up from 15% in the same quarter a year ago.  Our improved profitability is a result of robust sales in addition to continued fiscal discipline."  Gavrielov continued, "I believe Xilinx is embarking upon an extraordinary new product cycle enabled by the strong design win momentum from our Virtex-6 and Spartan-6 families as well as the recent announcement of our 7 series FPGAs."

Net Revenues by Geography:


Percentages


Growth Rates


Q1
FY 2011

Q4
FY 2010

Q1
FY 2010


Q-T-Q

Y-T-Y

North America

32%

33%

35%


12%

48%

Asia Pacific

34%

35%

37%


11%

46%

Europe

26%

24%

20%


19%

103%

Japan

8%

8%

8%


1%

42%




Net Revenues by End Market:


Percentages


Growth Rates


Q1
FY 2011

Q4
FY 2010

Q1
FY 2010


Q-T-Q

Y-T-Y

Communications

47%

47%

49%


12%

53%

Industrial & Other

32%

30%

31%


21%

64%

Consumer & Automotive

15%

15%

14%


8%

67%

Data Processing

6%

8%

6%


-12%

54%




Net Revenues by Product:


Percentages


Growth Rates


Q1
FY 2011

Q4
FY 2010

Q1
FY 2010


Q-T-Q

Y-T-Y

New

39%

36%

25%


23%

148%

Mainstream

30%

31%

36%


9%

33%

Base

27%

28%

34%


4%

22%

Support

4%

5%

5%


3%

33%




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)



Q1
FY 2011

Q4
FY 2010

Q1
FY 2010





Annual Return on Equity (%)*

32

18

8





Operating Cash Flow

$107

$104

$147





Depreciation Expense

$12

$12

$13





Capital Expenditures

$18

$11

$5





Combined Inventory Days

80

79

78





Revenue Turns (%)

53

56

57

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




Highlights – First Quarter Fiscal 2011


Business Outlook – September Quarter Fiscal 2011


Conference Call

A conference call will be held today at 2:00 p.m. Pacific Time to discuss the first quarter financial results and management's outlook for the September 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 81542321. 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," "believe,"  "may," "will," "could," "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 September 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 customer acceptance of our new products, the ability of our foundry suppliers to deliver sufficient wafer volumes in a timely manner, 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, 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 Form 10-K.

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. 

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Investor Relations Contact:

Lori Owen

Xilinx, Inc.

(408) 879-6911

Email Contact



XILINX, INC.




CONDENSED CONSOLIDATED STATEMENTS OF INCOME




(Unaudited)




(In thousands, except per share amounts)







Three Months Ended




July 3,

April 3,

June 27,




2010

2010

2009

Net revenues

$             594,737

$             529,020

$             376,235

Cost of revenues

208,176

185,484

143,822

Gross margin

386,561

343,536

232,413

Operating expenses:




  Research and development

94,484

94,240

83,233

  Selling, general and administrative

84,058

90,346

73,556

  Amortization of acquisition-related intangibles

-

-

2,493

  Restructuring charges

-

2,847

15,771



Total operating expenses

178,542

187,433

175,053







Operating income

208,019

156,103

57,360

Impairment loss on investments

-

(764)

-

Interest and other income (expense), net

(5,130)

6,655

(10,910)







Income before income taxes

202,889

161,994

46,450

Provision for income taxes

44,302

13,462

8,444

Net income

$             158,587

$             148,532

$               38,006







Net income per common share:




 Basic

$                   0.58

$                   0.54

$                   0.14

 Diluted

$                   0.58

$                   0.54

$                   0.14







Cash dividends declared per common share

$                   0.16

$                   0.16

$                   0.14







Shares used in per share calculations:




 Basic

272,097

274,686

275,523

 Diluted

275,541

277,290

276,258



XILINX, INC.




CONDENSED CONSOLIDATED BALANCE SHEETS  




(In thousands)








July 3,

April 3,





2010

2010





(Unaudited)








ASSETS




Current assets:




 Cash, cash equivalents and short-term investments


$    1,543,665

$ 1,386,605

 Accounts receivable, net


355,406

262,735

 Inventories


151,630

130,628

 Deferred tax assets and other current assets


171,471

127,098

Total current assets


2,222,172

1,907,066

Net property, plant and equipment


371,954

365,878

Long-term investments


580,386

582,202

Other assets


298,492

329,172

Total Assets


$    3,473,004

$ 3,184,318







LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




 Accounts payable and accrued  liabilities


$       298,885

$    277,029

 Deferred income on shipments to distributors


74,207

80,132

Total current liabilities


373,092

357,161

Convertible debentures


849,505

354,798

Deferred tax liabilities


322,664

294,149

Other long-term liabilities


60,620

57,740







Stockholders' equity


1,867,123

2,120,470

Total Liabilities and Stockholders' Equity


$    3,473,004

$ 3,184,318



XILINX, INC.





SUPPLEMENTAL FINANCIAL INFORMATION





(Unaudited)





(In thousands)


Three Months Ended



July 3,

April 3,

June 27,



2010

2010

2009






SELECTED CASH FLOW INFORMATION:





 Depreciation


$ 12,191

$ 12,248

$ 13,009

 Amortization


1,743

3,105

5,307

 Stock-based compensation


15,120

15,471

13,729

 Net cash provided by operating activities


107,084

103,870

146,967

 Purchases of property, plant and equipment


18,267

10,612

4,714

 Payment of dividends to stockholders


43,817

44,031

38,574

 Repurchases of common stock


433,333

124,997

-

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


3,775

50,389

(16,056)






STOCK-BASED COMPENSATION INCLUDED IN:





  Cost of revenues


$   1,267

$   1,501

$   1,115

  Research and development


7,204

7,276

5,996

  Selling, general and administrative


6,649

6,694

5,673

  Restructuring charges


-

-

945



SOURCE Xilinx, Inc.

Contact:
Xilinx, Inc.
Lori Owen, Investor Relations of Xilinx, Inc.
Phone: +1-408-879-6911
Email Contact
Web: http://www.xilinx.com