Key Statistics: (Dollars in millions) Q1 Q4 Q1 FY 2010 FY 2009 FY 2009 ------- ------- ------- Annual Return on Equity (%)* 8 18 18 Operating Cash Flow $128 $61 $158 Depreciation Expense $13 $13 $15 Capital Expenditures $5 $6 $10 Combined Inventory Days 78 90 93 Revenue Turns (%) 57 66 59 *Return on equity calculation: Annualized net income/average stockholders' equity
Highlights -First Quarter Fiscal 2010
-- During the June quarter, Xilinx released the Xilinx Base Targeted Design Platform aimed at accelerating the development of system-on-chip solutions with Xilinx Virtex-6 and Spartan-6 FPGAs. This design platform combines the 11.2 release of the ISE(R) Design Suite, with an expanded intellectual property portfolio and pre-verified reference designs enabling design teams to dramatically reduce development cycles and focus engineering resources on creating greater product differentiation. -- Xilinx introduced the Xilinx Virtex-5Q family for the Aerospace and Defense (A&D) industry. Virtex-5Q FPGAs leverage the proven Virtex-5 family architecture to deliver higher speeds, greater capacity and lower dynamic power consumption on average over previous generations. Xilinx is the leading programmable logic provider to the A&D market with over twice the market share of its nearest competitor serving myriad applications including secure communications, avionics, military and satellite communications.
Business Outlook - September Quarter Fiscal 2010
-- Sales are expected to be up approximately 2% to 6% sequentially. -- Gross margin is expected to be approximately 61%. -- Operating expenses are expected to be approximately flat including $5 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 278 million, flat with the prior quarter. -- September quarter tax rate is expected to be approximately 16%.
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 16517886. 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," "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, the ability of our foundry suppliers to deliver sufficient wafer volumes in a timely manner, 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, 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.
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Investor Relations Contact: Lori Owen Xilinx, Inc. (408) 879-6911 ir@xilinx.com
XILINX, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) Three Months Ended ------------------ June 27, March 28, June 28, 2009 2009* 2008* (Unaudited) (Unaudited) (Unaudited) ----------- ----------- ----------- Net revenues $376,235 $395,014 $488,246 Cost of revenues 143,822 149,907 176,506 ------- ------- ------- Gross margin 232,413 245,107 311,740 ------- ------- ------- Operating expenses: Research and development 83,233 88,190 90,734 Selling, general and administrative 73,556 77,652 93,004 Amortization of acquisition- related intangibles 2,493 1,006 1,425 Restructuring charges 15,771 - 19,536 ------ --- ------ Total operating expenses 175,053 166,848 204,699 ------- ------- ------- Operating income 57,360 78,259 107,041 Gain on early extinguishment of convertible debentures - 16,742 - Impairment loss on investments - (967) (4,621) Interest and other income (expense), net (10,910) (2,373) 4,478 ------- ------ ----- Income before income taxes 46,450 91,661 106,898 Provision for income taxes 8,444 22,017 20,643 ----- ------ ------ Net income $38,006 $69,644 $86,255 ======= ======= ======= Net income per common share: Basic $0.14 $0.25 $0.31 ===== ===== ===== Diluted $0.14 $0.25 $0.31 ===== ===== ===== Cash dividends declared per common share $0.14 $0.14 $0.14 ===== ===== ===== Shares used in per share calculations: Basic 275,523 274,689 278,165 ======= ======= ======= Diluted 276,258 274,881 280,881 ======= ======= ======= * As adjusted for the adoption of FSP APB 14-1. XILINX, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) June 27, March 28, 2009 2009* ---- ---- (Unaudited) ASSETS Current assets: Cash, cash equivalents and short- term investments $1,424,547 $1,324,933 Accounts receivable, net 195,929 216,390 Inventories 101,166 119,832 Deferred tax assets and other current assets 111,548 91,313 ------- ------ Total current assets 1,833,190 1,752,468 Net property, plant and equipment 379,612 387,907 Long-term investments 350,053 347,787 Other assets 282,325 323,739 ------- ------- Total Assets $2,845,180 $2,811,901 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $195,582 $170,702 Deferred income on shipments to distributors 49,732 62,364 ------ ------ Total current liabilities 245,314 233,066 Convertible debentures 352,333 352,110 Deferred tax liabilities 196,955 196,189 Other long-term liabilities 138,500 81,776 Stockholders' equity 1,912,078 1,948,760 --------- --------- Total Liabilities and Stockholders' Equity $2,845,180 $2,811,901 ========== ========== * Derived from audited financial statements and adjusted for adoption of FSP APB 14-1. XILINX, INC. SUPPLEMENTAL FINANCIAL INFORMATION (In thousands) Three Months Ended ------------------ June 27, March 28, June 28, 2009 2009* 2008* ---- ---- ---- (Unaudited) (Unaudited) (Unaudited) ----------- ----------- ----------- SELECTED CASH FLOW INFORMATION: Depreciation $13,009 $13,465 $15,420 Amortization 4,792 3,261 4,175 Stock-based compensation 13,729 13,321 14,423 Net cash provided by operating activities 128,475 60,854 158,497 Purchases of property, plant and equipment (4,714) (6,398) (9,873) Payment of dividends to stockholders (38,574) (38,552) (38,928) Repurchases of common stock - - (150,000) Repurchases of convertible debentures - (46,858) - Proceeds from issuance of common stock to employees and excess tax benefit 2,436 20,259 31,531 STOCK-BASED COMPENSATION INCLUDED IN: Cost of revenues $1,115 $1,375 $1,582 Research and development 5,996 6,373 6,354 Selling, general and administrative 5,673 5,573 6,228 Restructuring charges 945 - 259 * As adjusted for the adoption of FSP APB 14-1.