XILINX, INC. 
By SAN JOSE, Calif., Jan. 19, 2011 /PRNewswire-FirstCall/ -- Xilinx, Inc. (Nasdaq: XLNX) today announced third quarter fiscal 2011 sales of $567.2 million, down 8% sequentially and up 10% from the third quarter of the prior fiscal year. Third quarter fiscal 2011 net income was $152.3 million, or $0.58 per diluted share.
(Logo: http://photos.prnewswire.com/prnh/20020822/XLNXLOGO)
The Xilinx Board of Directors announced a quarterly cash dividend of $0.16 per outstanding share of common stock, payable on March 2, 2011 to all stockholders of record at the close of business on February 9, 2011.
Additional third quarter comparisons are represented in the charts below:
GAAP Results
(In millions, except EPS)
Growth Rates
Q3 Q2 Q3
FY 2011 FY 2011 FY 2010 Q-T-Q Y-T-Y
----- -----
Net revenues $567.2 $619.7 $513.3 -8% 10%
Operating income $183.5 $222.7 $136.6 -18% 34%
Net income $152.3 $170.9 $106.9 -11% 42%
Diluted earnings per
share $0.58 $0.65 $0.38 -11% 53%
The sales decline during the quarter was driven primarily by weaker than anticipated wireless communications sales to customers in Europe and North America.
"While we did not achieve a fifth consecutive quarter of record sales, I am pleased with the Company's continued focus on cost reduction and financial discipline. This is reflected in gross margin and operating margin of 65.7% and 32%, respectively, in the December quarter. This is up from 64.1% and 27% in the same quarter of the prior year," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "As we embark upon 2011, I am encouraged by initial manufacturing milestones we have achieved on the new 28nm technology node. When coupled with the competitive advantages offered by our 7 series FPGAs, I believe Xilinx is positioned to establish clear market share leadership on this technology node."
Net Revenues by Geography:
Percentages Growth Rates
Q3 Q2 Q3
FY 2011 FY 2011 FY 2010 Q-T-Q Y-T-Y
------- ------- ------- ----- -----
North America 30% 30% 35% -7% -5%
Asia Pacific 38% 35% 36% -1% 19%
Europe 22% 26% 20% -22% 21%
Japan 10% 9% 9% -3% 14%
Net Revenues by End Market:
Percentages Growth Rates
Q3 Q2 Q3
FY 2011 FY 2011 FY 2010 Q-T-Q Y-T-Y
------- ------- ------- ----- -----
Communications 45% 48% 46% -14% 8%
Industrial & Other 34% 31% 32% -2% 15%
Consumer &
Automotive 15% 15% 15% -6% 15%
Data Processing 6% 6% 7% -6% -6%
Net Revenues by Product:
Percentages Growth Rates
Q3 Q2 Q3
FY 2011 FY 2011 FY 2010 Q-T-Q Y-T-Y
------- ------- ------- -----
New 43% 44% 33% -10% 46%
Mainstream 27% 27% 33% -11% -11%
Base 25% 25% 29% -7% -6%
Support 5% 4% 5% 13% 13%
Products are classified as follows:
New Products: Virtex(R)-6, Virtex-5, Spartan(R)-6, Spartan-3A and
Spartan-3E product families
Mainstream Products: Virtex-4, Spartan-3, Spartan-II and
CoolRunner(TM)-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)
Q3 Q2 Q3
FY 2011 FY 2011 FY 2010
------- ------- -------
Annual Return on Equity
(%)* 30 32 14
Operating Cash Flow $333 $42 $185
Depreciation Expense $13 $13 $13
Capital Expenditures $15 $15 $9
Combined Inventory Days 130 89 85
Revenue Turns (%) 44 48 58
*Return on equity calculation: Annualized net income/average
stockholders' equity
Highlights - Third Quarter Fiscal 2011
-- Xilinx announced the industry's first stacked silicon interconnect
technology for delivering breakthrough capacity, bandwidth and power
savings using multiple FPGA die in a single package. This platform
approach is the result of five years of Xilinx research and development
efforts coupled with industry leading technology from TSMC and our
assembly suppliers. Representing a significant step in FPGA evolution,
this innovation is expected to extend the range of applications
addressed by programmable logic.
-- Xilinx demonstrated its commitment to delivering superior transceiver
performance for optical communications by announcing the availability of
Virtex-6 HXT FPGAs that support 40Gbps and 100Gbps. Additionally, with
its Virtex-7 HT FPGAs, Xilinx demonstrated 28Gbps serial transceiver
performance required for next generation 100-400Gbps applications.
These 28nm devices are equipped with the industry's highest-speed and
lowest jitter serial transceivers available in an FPGA to support
stringent optical and backplane protocols.
Business Outlook - March Quarter Fiscal 2011
-- Sales are expected to be flat to up 5% sequentially.
-- Gross margin is expected to be approximately 65% plus or minus one
percentage point.
-- Operating expenses are expected to be approximately $195 million,
including approximately $6 million in restructuring charges.
-- Other income and expense is expected to be an expense of approximately
$9 million.
-- Fully diluted share count is expected to be approximately 266 million.
-- March 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 third quarter financial results and management's outlook for the March 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 32142705. 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 March 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, current global economic conditions, the health of our customers and the end markets in which they participate, our ability to forecast end customer demand, 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-Q and 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.
#1102F
Investor Relations Contact:
Lori Owen
Xilinx, Inc.
(408) 879-6911
ir@xilinx.com
XILINX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended
------------------
Jan. 1, Oct. 2, Jan. 2,
2011 2010 2010
---- ---- ----
Net revenues $567,190 $619,666 $513,349
Cost of revenues 194,419 213,260 184,320
Gross margin 372,771 406,406 329,029
Operating expenses:
Research and development 98,453 96,578 101,867
Selling, general and
administrative 86,531 87,174 85,037
Amortization of acquisition-
related intangibles - - -
Restructuring charges 4,276 - 5,531
Total operating expenses 189,260 183,752 192,435
Operating income 183,511 222,654 136,594
Impairment loss on investments - - (3,041)
Interest and other expense, net (3,302) (3,484) (542)
Income before income taxes 180,209 219,170 133,011
Provision for income taxes 27,868 48,275 26,103
Net income $152,341 $170,895 $106,908
Net income per common share:
Basic $0.59 $0.66 $0.39
Diluted $0.58 $0.65 $0.38
Cash dividends declared per
common share $0.16 $0.16 $0.16
Shares used in per share
calculations:
Basic 259,418 260,151 276,832
Diluted 263,612 263,286 278,566
======= ======= =======
Nine Months Ended
-----------------
Jan. 1, Jan. 2,
2011 2010
---- ----
Net revenues $1,781,593 $1,304,534
Cost of revenues 615,855 486,319
Gross margin 1,165,738 818,215
Operating expenses:
Research and development 289,515 275,245
Selling, general and
administrative 257,763 237,214
Amortization of acquisition-
related intangibles - 2,493
Restructuring charges 4,276 27,217
Total operating expenses 551,554 542,169
Operating income 614,184 276,046
Impairment loss on investments - (3,041)
Interest and other expense, net (11,916) (13,234)
Income before income taxes 602,268 259,771
Provision for income taxes 120,445 50,819
Net income $481,823 $208,952
Net income per common share:
Basic $1.82 $0.76
Diluted $1.79 $0.75
Cash dividends declared per
common share $0.48 $0.44
Shares used in per share
calculations:
Basic 265,085 275,989
Diluted 268,778 277,030
======= =======
XILINX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
Jan. 1, Apr. 3,
2011 2010
---- ----
(Unaudited)
ASSETS
Current assets:
Cash, cash equivalents and short-
term investments $1,764,765 $1,386,605
Accounts receivable, net 369,657 262,735
Inventories 242,532 130,628
Deferred tax assets and other current
assets 153,701 127,098
Total current assets 2,530,655 1,907,066
Net property, plant and equipment 376,764 365,878
Long-term investments 660,167 582,202
Other assets 290,847 329,172
Total Assets $3,858,433 $3,184,318
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $294,483 $277,029
Deferred income on shipments to
distributors 80,536 80,132
Total current liabilities 375,019 357,161
Convertible debentures 887,197 354,798
Deferred tax liabilities 368,521 294,149
Other long-term liabilities 54,090 57,740
Stockholders' equity 2,173,606 2,120,470
Total Liabilities and Stockholders'
Equity $3,858,433 $3,184,318
========== ==========
XILINX, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)
(In thousands) Three Months Ended
------------------
Jan. 1, Oct. 2, Jan. 2,
2011 2010 2010
---- ---- ----
SELECTED CASH FLOW INFORMATION:
Depreciation $12,500 $12,747 $12,867
Amortization 1,873 1,943 3,210
Stock-based compensation 14,754 15,421 15,519
Net cash provided by operating
activities 332,527 41,616 185,478
Purchases of property, plant and
equipment 14,880 15,177 8,693
Payment of dividends to stockholders 41,489 41,645 44,299
Repurchases of common stock 2,634 32,976 25,000
Proceeds from issuance of common stock
to employees and excess tax benefit 24,991 41,816 13,546
STOCK-BASED COMPENSATION INCLUDED IN:
Cost of revenues $1,092 $1,312 $1,291
Research and development 7,120 7,341 7,289
Selling, general and administrative 6,542 6,768 6,939
Restructuring charges - - -
Nine Months
(In thousands) Ended
-----------
Jan. 1, Jan. 2,
2011 2010
---- ----
SELECTED CASH FLOW INFORMATION:
Depreciation $37,438 $37,932
Amortization 5,559 11,777
Stock-based compensation 45,295 41,010
Net cash provided by operating
activities 479,185 450,421
Purchases of property, plant and
equipment 48,324 17,540
Payment of dividends to stockholders 126,951 121,617
Repurchases of common stock 468,943 25,000
Proceeds from issuance of common stock
to employees and excess tax benefit 72,624 13,167
STOCK-BASED COMPENSATION INCLUDED IN:
Cost of revenues $3,671 $3,678
Research and development 21,665 18,140
Selling, general and administrative 19,959 18,247
Restructuring charges - 945
SOURCE Xilinx, Inc.
