- Virtex-5(R) sales exceed 10% of total sales - Operating margin of 25.8% is highest reported in nearly three years
SAN JOSE, Calif., Oct. 15 /PRNewswire-FirstCall/ -- Xilinx, Inc. (NASDAQ: XLNX) today announced net revenues of $483.5 million in the second quarter of fiscal 2009, down 1% sequentially from the prior quarter and up 9% compared to the same quarter a year ago. Second quarter net income was $81.8 million, or $0.29 per diluted share, including a $29.0 million pre-tax impairment charge on investments and pre-tax restructuring charges of $2.5 million. Collectively, these charges represented approximately $0.09 per diluted share reduction after tax.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020822/XLNXLOGO)
The Xilinx Board of Directors declared a quarterly cash dividend of $0.14 per outstanding share of common stock, payable on November 25, 2008 to all stockholders of record at the close of business on November 5, 2008.
Additional second quarter comparisons are represented in the charts below:
GAAP Results
(In millions, except EPS)
Growth Rates
Q2 FY 2009 Q1 FY 2009 Q2 FY 2008 Q-T-Q Y-T-Y
Net revenues $483.5 $488.2 $444.9 -1% 9%
Operating income $124.6 $107.0 $94.4 16% 32%
Net income $81.8 $83.9 $89.7 -3% -9%
Diluted earnings per share $0.29 $0.30 $0.30 -3% -3%
Sales from all geographies except North America were up sequentially in the September quarter. Total international sales increased 2% sequentially representing a record 66% of total sales in the quarter, up from 62% in the same quarter of the prior year. The decline in sales from North America was primarily due to weakening sales from defense and wired communications applications.
Operating income for the September quarter was $124.6 million representing 25.8% of net revenues. This was the highest operating margin reported by Xilinx in nearly three years and a direct result of continued expense controls.
"Sales growth from our industry's leading Virtex-5 family was the highlight of the quarter," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "Virtex-5 FPGA sales increased over 40% sequentially during the quarter representing over 10% of total sales, up from 2% in the same quarter of the prior year. Sales from this family were driven by a broad base of applications with particularly strong growth coming from next generation wireless activity in China."
Net Revenues by Geography:
Percentages Growth Rates
Q2 Q1 Q2
FY 2009 FY 2009 FY 2008 Q-T-Q Y-T-Y
North America 34% 35% 38% -6% -5%
Asia Pacific 32% 32% 30% 1% 18%
Europe 23% 23% 22% 2% 18%
Japan 11% 10% 10% 5% 12%
Net Revenues by End Market:
Percentages Growth Rates
Q2 Q1 Q2
FY 2009 FY 2009 FY 2008 Q-T-Q Y-T-Y
Communications 43% 42% 45% 2% 4%
Industrial & Other 32% 33% 30% -6% 15%
Consumer & Automotive 17% 16% 17% 6% 11%
Data Processing 8% 9% 8% -8% 8%
Net Revenues by Product*:
Percentages Growth Rates
Q2 Q1 Q2
FY 2009 FY 2009 FY 2008 Q-T-Q Y-T-Y
New 45% 42% 30% 5% 62%
Mainstream 38% 40% 49% -6% -17%
Base 12% 12% 15% -1% -11%
Support 5% 6% 6% -5% -2%
* 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
Highlights - September Quarter Fiscal 2009
-- During the quarter, Xilinx announced the new Virtex-5 TXT FPGA
platform. Targeted for use in next generation Ethernet bridging and
switching solutions as well as applications in high performance
computing and video broadcast, these devices deliver the highest number
of 6.5Gbps serial transceivers available on any FPGA, and are fully
supported with application-specific IP, development tools, and
reference designs for implementing high-bandwidth protocol bridging.
-- Sales from the Spartan-3E and 3A families increased 18% sequentially in
the September quarter driven primarily by applications including set
top boxes, Digital Video Recorders, wired telecommunications and
automotive telematics. Sales from these product families represented
6% of total sales, nearly doubling compared to the same quarter a year
ago.
Key Statistics:
Q2 Q1 Q2
FY 2009 FY 2009 FY 2008
Annual Return on Equity (%)* 21 20 19
Operating Cash Flow ($M) 95 158 145
Depreciation Expense ($M) 13 15 14
Capital Expenditures ($M) 12 10 13
Combined Inventory Days 93 93 92
Revenue Turns (%) 59 59 59
* Return on equity calculation: Annualized net income/average
stockholders' equity
Business Outlook - December Quarter Fiscal 2009
-- Sequential revenue growth is expected to be up 2% sequentially to
down 2% sequentially.
-- Gross margin is expected to be in the range of 63% to 64%.
-- Operating expenses are expected to be approximately $180 million
-- Other income including interest expense is expected to be
approximately $3 million.
-- Fully diluted share count is expected to be approximately 276 million
shares.
-- Tax rate for the remainder of fiscal 2009 is expected to be 21%
inclusive of the R&D tax credit; December quarter tax rate will also
include a catch-up benefit of approximately $3 million.
