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Xilinx Announces Fiscal 2009 Results

SAN JOSE, Calif., April 22 /PRNewswire-FirstCall/ -- Xilinx, Inc. (NASDAQ: XLNX) today announced fiscal 2009 sales of $1.83 billion, down 1% compared with $1.84 billion in fiscal 2008. Net income increased 0.4% to $375.6 million, or $1.36 per diluted share, in fiscal 2009 versus net income of $374.0 million, or $1.25 per diluted share, in the prior fiscal year.

(Logo: http://www.newscom.com/cgi-bin/prnh/20020822/XLNXLOGO)

Fourth quarter sales were $395.0 million, down 14% sequentially and down 17% from the fourth quarter of the prior fiscal year. Fourth quarter net income was $70.5 million, or $0.26 per diluted share, including a $20.9 million pre-tax gain on the early extinguishment of convertible debentures and a $1.0 million pre-tax impairment charge on investments. Collectively, these income and expense items represented approximately $0.06 per diluted share after tax.

The Xilinx Board of Directors declared a quarterly cash dividend of $0.14 per outstanding share of common stock, payable on June 3, 2009 to all stockholders of record at the close of business on May 13, 2009.

Additional fourth quarter comparisons are represented in the charts below:

    GAAP Results
    (In millions, except EPS)

                                                               Growth Rates
                          Q4 FY 2009  Q3 FY 2009 Q4 FY 2008   Q-T-Q   Y-T-Y
                          ----------  ---------- ----------   -----   -----
    Net revenues             $395.0     $458.4     $475.8     -14%     -17%
    Operating income          $78.3     $119.6     $117.0     -35%     -33%
    Net income                $70.5     $139.4      $96.5     -49%     -27%
    Diluted earnings per
     share                    $0.26      $0.51      $0.34     -49%     -24%

March quarter sales declined 14% sequentially with sales from all geographies and end markets declining as expected. Xilinx operating expenses declined 4% sequentially, which was more than expected as a result of continued expense controls.

"Current economic conditions remain challenging for the semiconductor industry and Xilinx is no exception," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "However, strong 65-nm design win activity coupled with increased participation in end markets such as next generation wireless communications and defense have enabled Xilinx to outperform the semiconductor industry throughout the recent economic downturn."

    Net Revenues by Geography:
                                Percentages            Growth Rates
                         Q4         Q3         Q4
                      FY 2009    FY 2009    FY 2008    Q-T-Q    Y-T-Y
                      -------    -------    -------    -----    -----
    North America        35%        34%        38%      -11%    -23%
    Asia Pacific         35%        33%        28%      -11%      1%
    Europe               22%        22%        23%      -12%    -21%
    Japan                 8%        11%        11%      -34%    -35%

    Net Revenues by End Market:
                                   Percentages        Growth Rates
                             Q4        Q3       Q4
                          FY 2009   FY 2009  FY 2008  Q-T-Q   Y-T-Y
                          -------   -------  -------  -----   -----
    Communications           47%      44%      42%     -7%     -6%
    Industrial & Other       32%      33%      33%    -18%    -20%
    Consumer &
     Automotive              14%      16%      17%    -27%    -33%
    Data Processing           7%       7%       8%     -5%    -29%

    Net Revenues by Product*:
                              Percentages              Growth Rates
                       Q4          Q3        Q4
                    FY 2009    FY 2009    FY 2008    Q-T-Q     Y-T-Y
                    -------    -------    -------    -----     -----
    New               52%        48%        38%       -6%        14%
    Mainstream        33%        36%        42%      -22%       -35%
    Base              10%        11%        14%      -20%       -43%
    Support            5%         5%         6%      -10%       -27%

    *Products are classified as follows:

    New Products: Virtex(R)-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 -Fiscal 2009

    --  During the March quarter, Xilinx began shipments of its
        industry-leading, next generation Virtex-6 and Spartan-6 FPGA families
        of products.  Both product families offer significant competitive
        advantages in areas such as performance, power, capacity, DSP bandwidth,
        memory and I/O performance.  Currently, over 700 customers representing
        approximately 1,000 projects are engaged with the Virtex-6 and Spartan-6
        FPGA Early Access program. Xilinx remains the only PLD company currently
        shipping a 45-nm, high-volume FPGA product.
    --  Sales from the Virtex-5 family increased throughout fiscal 2009 in spite
        of the economic downturn.   Exiting fiscal 2009, Virtex-5 sales
        represented 17% of total sales in the fourth quarter, up from 7% in the
        same quarter of the prior fiscal year.  Virtex-5 FPGAs are finding
        traction in a variety of applications including next generation wireless
        base stations, cable infrastructure to support "on demand"
        usage, communications test equipment, and even electronic gaming
        equipment.
    --  Xilinx continues to have one of the most stable and resilient business
        models in the technology industry in terms of cash flow generation and
        commitment to shareholder return.  In fiscal 2009, Xilinx generated
        $442.5 million in operating cash flow, paid $193.2 million in cash to
        repurchase $310.4 million (principal amount) of our convertible
        debentures, paid $154.5 million in cash dividends and repurchased $275.0
        million of common stock.  Xilinx currently has among the highest
        dividend yields in the technology industry.

    Key Statistics:
    (Dollars in millions)

                                           Q4             Q3            Q4
                                        FY 2009        FY 2009       FY 2008
                                        -------        -------       -------

     Annual Return on Equity (%)*          22            24            22

     Operating Cash Flow                  $61          $128          $102

     Depreciation Expense                 $13           $13           $14
     Capital Expenditures                  $6           $11            $6

     Combined Inventory Days               90            99            92

      Revenue Turns (%)                    66            54            60

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

Business Outlook - June Quarter Fiscal 2010

    --  Sales are expected to be up 4% to down 4% sequentially.
    --  Gross margin is expected to be in the range of 61% to 63%.
    --  Operating expenses are expected to be approximately $173 million to $175
        million including $11 million to $13 million in charges relating to
        restructuring activity announced on April 15, 2009.
    --  Interest and other is expected to be a net expense of approximately $3
        million.
    --  Fully diluted share count is expected to be approximately flat with the
        prior quarter.
    --  June 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 quarter's results and management's outlook for the June 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 92495581. The telephonic replay will be available for two weeks following the live call. The Company does not plan to provide a scheduled business update during the June quarter.

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," "may," "will," "could," "believe," "anticipate," "estimate," "continue," "plan," "intend," "project" or other similar words. 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 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 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 Forms 10-K and 10-Q.

About Xilinx

Xilinx, Inc. (NASDAQ: XLNX) is the worldwide leader of programmable logic solutions. Additional information about Xilinx is available at http://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.

#0928F

    XILINX, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (In thousands, except per share amounts)

                             Three Months Ended               Year Ended
                             ------------------               ----------
                    Mar. 28,    Mar. 29,     Dec. 27,     Mar. 28,  Mar. 29,
                     2009         2008         2008         2009     2008
                 (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)   (1)
                -----------  -----------  -----------  -----------     --
    Net revenues   $395,014     $475,760     $458,387   $1,825,184 $1,841,372
    Cost of
     revenues       149,907      173,974      165,331      669,151    686,988
                    -------      -------      -------      -------    -------
    Gross margin    245,107      301,786      293,056    1,156,033  1,154,384
                    -------      -------      -------    ---------  ---------
    Operating
     expenses:
       Research and
        development  88,190       90,888       86,967      355,392    358,063
       Selling,
        general and
        administra-
        tive         77,652       92,469       85,032      343,768    365,325
       Amortization
        of
        acquisition-
        related
        intangibles   1,006        1,426        1,475        5,332      6,802
       Restructuring
        charges           -            -            -       22,023         --
                          -            -            -       ------         --
          Total
           operating
           expenses 166,848      184,783      173,474      726,515    730,190
                    -------      -------      -------      -------    -------

    Operating
     income          78,259      117,003      119,582      429,518    424,194
    Gain on early
     extinguishment
     of convertible
     debentures      20,934            -       89,672      110,606         --
    Impairment
     loss on
     investments       (967)      (2,850)     (19,540)     (54,129)    (2,850)
    Interest and
     other income
     (expense), net  (1,431)       5,328         (575)      12,189     52,750
                     ------        -----         ----       ------     ------

    Income before
     income taxes    96,795      119,481      189,139      498,184    474,094
    Provision for
     income taxes    26,283       23,002       49,765      122,544    100,047
                     ------       ------       ------      -------    -------
    Net income      $70,512      $96,479     $139,374     $375,640   $374,047
                    =======      =======     ========     ========   ========

    Net income per
     common share:
      Basic           $0.26        $0.34        $0.51        $1.36      $1.27
                      =====        =====        =====        =====      =====
      Diluted         $0.26        $0.34        $0.51        $1.36      $1.25
                      =====        =====        =====        =====      =====

    Cash dividends
     declared per
     common share     $0.14        $0.12        $0.14        $0.56      $0.48
                      =====        =====        =====        =====      =====

    Shares used in
     per share
     calculations:
      Basic         274,689      284,523      273,997      276,113    295,050
                    =======      =======      =======      =======    =======
      Diluted       274,881      286,321      274,223      276,854    298,636
                    =======      =======      =======      =======    =======


    (1) Derived from audited financial statements



    XILINX, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands)
                           March 28,   March 29,
                             2009        2008
                             ----        ----
                         (Unaudited)     (1)

    ASSETS
    Current assets:
      Cash, cash
       equivalents and
       short-term
       investments         $1,324,933 $1,296,435
      Accounts
       receivable, net        216,390    249,147
      Inventories             119,832    130,250
      Deferred tax
       assets and other
       current assets          91,313    144,364
                               ------    -------
    Total current
     assets                 1,752,468  1,820,196
    Net property,
     plant and
     equipment                387,907    404,430
    Long-term
     investments              347,787    564,269
    Other assets              337,353    348,212
                              -------    -------
    Total Assets           $2,825,515 $3,137,107
                           ========== ==========

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities:
      Accounts payable
       and accrued
       liabilities           $170,702   $228,988
      Deferred income on
       shipments to
       distributors            62,364    111,678
                               ------    -------
    Total current
     liabilities              233,066    340,666
    Convertible
     debentures               690,125    999,851
    Deferred tax
     liabilities               82,648     84,486
    Other long-term
     liabilities               81,776     40,281
    Stockholders'
     equity                 1,737,900  1,671,823
                            ---------  ---------
    Total Liabilities
     and Stockholders'
     Equity                $2,825,515 $3,137,107
                           ========== ==========

      (1) Derived from audited financial
       statements



    XILINX, INC.
    SUPPLEMENTAL FINANCIAL INFORMATION
    (In thousands)
                             Three Months Ended                 Year Ended
                             ------------------                 ----------
                   Mar. 28,     Mar. 29,     Dec. 27,     Mar. 28,    Mar. 29,
                     2009         2008         2008         2009       2008
                     ----         ----         ----         ----       ----
                 (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)     (1)
                 -----------  -----------  -----------  -----------      --

    SELECTED CASH
     FLOW
     INFORMATION:
      Depreciation   $13,465      $13,876      $13,438      $55,632   $54,199
      Amortization     3,312        4,219        4,120       15,885    17,756
      Stock-based
       compensation   13,321       17,697       13,041       54,509    66,427
      Net cash
       provided by
       operating
       activities     60,854      101,866      128,479      442,530   581,000
      Purchases of
       property,
       plant and
       equipment      (6,398)      (6,238)     (11,061)     (39,109)  (45,593)
      Payment of
       dividends to
       stockholders  (38,552)     (34,093)     (38,357)    (154,534) (139,974)
      Repurchases of
       common stock        -     (200,000)           -     (275,000) (550,000)
      Repurchases of
       convertible
       debentures    (46,858)           -     (146,324)    (193,182)        -
      Proceeds from
       issuance of
       common stock
       to employees
       and excess
       tax benefit    20,259       57,677        2,992      104,638   148,071

    STOCK-BASED
     COMPENSATION
     INCLUDED IN:
       Cost of
        revenues      $1,375       $1,820       $1,337       $5,791    $7,605
       Research and
        development    6,373        8,908        6,055       25,075    31,433
       Selling, general
        and
        administrative 5,573        6,969        5,649       23,079    27,389
       Restructuring
        charges            -            -            -          564         -

    (1) Derived from audited financial statements

Web site: http://www.xilinx.com/