- Fiscal 2008 annual return on equity 22%, up from 16% in prior year
(Logo: http://www.newscom.com/cgi-bin/prnh/20020822/XLNXLOGO)
Net revenues of $1.84 billion in fiscal 2008 were flat with the prior fiscal year. Fiscal 2008 net income was $374.0 million, up 7% from $350.7 million. Fiscal 2008 earnings per diluted share were $1.25, up 23% from $1.02 per diluted share in the prior fiscal year.
As previously announced on February 25, 2008, the Xilinx Board of Directors increased the quarterly cash dividend to $0.14 from $0.12 per common share, payable on May 28, 2008 to all stockholders of record at the close of business on May 7, 2008.
Additional fourth quarter comparisons are represented in the charts below:
GAAP Results
(In millions, except EPS)
Growth Rates
Q4 FY 2008 Q3 FY 2008 Q4 FY 2007 Q-T-Q Y-T-Y
Net revenues $475.8 $474.8 $443.5 0% 7%
Operating income $117.0 $115.3 $79.4 1% 47%
Net income $96.5 $103.6 $87.6 -7% 10%
Diluted earnings
per share $0.34 $0.35 $0.27 -3% 26%
Sales from New Products, led by strength from the Virtex(R)-5 FPGA family, increased 10% sequentially and represented 38% of total sales, up from 35% in the prior quarter and up from 24% in the same quarter a year ago.
"We remain keenly focused on increasing operating efficiencies and I am pleased with our progress in this area," said Moshe Gavrielov, President and Chief Executive Officer. "Gross margin in the March quarter was 63.4% -- the highest we have reported in nearly four years. Operating margin was 24.6% in the March quarter, up from 17.9% in the same quarter a year ago primarily due to improved gross margin coupled with continued expense controls."
Net Revenues by Geography:
Percentages Growth Rates
Q4 Q3 Q4
FY 2008 FY 2008 FY 2007 Q-T-Q Y-T-Y
North America 38% 41% 39% -7% 4%
Asia Pacific 28% 27% 26% 5% 18%
Europe 23% 22% 24% 7% 5%
Japan 11% 10% 11% 3% -1%
Net Revenues by End Market:
Percentages Growth Rates
Q4 Q3 Q4
FY 2008 FY 2008 FY 2007 Q-T-Q Y-T-Y
Communications 42% 41% 44% 2% 2%
Industrial & Other 33% 33% 30% 0% 17%
Consumer & Automotive 17% 17% 16% -2% 10%
Data Processing 8% 9% 10% -2% -6%
Net Revenues by Product*:
Percentages Growth Rates
Q4 Q3 Q4
FY 2008 FY 2008 FY 2007 Q-T-Q Y-T-Y
New 38% 35% 24% 10% 67%
Mainstream 42% 45% 52% -7% -15%
Base 14% 14% 18% -1% -12%
Support 6% 6% 6% 1% 14%
* Products are classified as follows:
New Products: Virtex-5, Virtex-4, Spartan(R)-3, and CoolRunner(TM)- II
products
Mainstream Products: Virtex-II, Spartan-II, CoolRunner and Virtex-E
products
Base Products: Virtex, Spartan, XC4000 and XC9500 products
Support Products: Configuration solutions, HardWire, Software &
Support/Services
Fiscal 2008 Highlights:
-- Ongoing efforts to improve operating margin and capital structure paid
off in fiscal 2008. Operating margin was 23% in fiscal 2008, up from
19% in the prior fiscal year as a result of gross margin expansion
coupled with expense reduction efforts. Annual return on equity was
22% in fiscal 2008, up from 16% in the prior fiscal year, primarily due
to improved operating efficiency and capital structure. During the
fiscal year, Xilinx repurchased 24 million shares of common stock and
announced an increase in its dividend to $0.14 per diluted share,
resulting in a dividend yield of 2.4%, higher than the dividend yield
of the S&P 500.
-- Xilinx improved its 65nm sales leadership with strong growth from its
Virtex-5 FPGA family. Shipping over a year before competing products,
sales from the Virtex-5 family increased more than 70% sequentially in
the March quarter. Recently, Xilinx introduced Virtex-5 FXT devices
which deliver in system integration for designs that demand
high-performance processing and high-speed serial I/Os, enabling
designers to reduce system costs, board space and component count.
Xilinx estimates that it currently supplies over 90% of the PLD
industry's 65nm sales.
-- Xilinx delivered the ISE(R) Design Suite 10.1, a single unified release
providing FPGA logic, embedded and DSP designers with immediate access
to the Company's entire line of design tools with full
interoperability. The ISE Design Suite offers significantly faster
implementations with an average of 2X faster run-times and up to
38% faster performance.
-- Xilinx realized record sales in the Consumer & Automotive and
Industrial and Other end markets in fiscal 2008. These combined
categories represented 49% of sales in fiscal 2008, up from 45% in the
prior fiscal year and up from 36% three years ago. Growth in these end
markets was primarily driven by strength in defense and automotive
applications and validates the Company's focused end market
diversification efforts.
Key Statistics:
Q4 Q3 Q4
FY 2008 FY 2008 FY 2007
Annual Return on Equity (%)* 22 21 16
Operating Cash Flow ($M) 102 208 106
Depreciation Expense ($M) 14 13 18
Capital Expenditures ($M) 6 11 63
Combined Inventory Days 92 91 120
Revenue Turns (%) 60 59 59
* Return on equity calculation: Annualized net income/average
stockholders' equity
Business Outlook -- June Quarter Fiscal 2009
-- Revenues are expected to be up 3% to down 1% sequentially.
-- Gross margin is expected to be approximately 63% to 64%.
-- Operating expenses are expected to be approximately flat sequentially.
-- Other income including interest expense is expected to be approximately
$6 million.
-- Tax rate is expected to be approximately 21%.
-- Fully diluted share count is expected to be approximately 280 million
shares.
