Highlights -Second Quarter Fiscal 2010
-- Xilinx announced design support for Virtex-6 HXT FPGAs with Version 11.3 of the ISE(R) Design Suite software. Optimized for 40G/100G wired telecommunications and data communications, Virtex-6 HXT FPGAs deliver serial interface technology to designers of ultra-high bandwidth systems with line rates in excess of 11 Gigabits per second. As the leader in serial connectivity solutions for FPGAs, Xilinx estimates that it shipped over 75% of the PLD industry's FPGAs with embedded transceivers in the September quarter. -- The Spartan-6 family continues to be the PLD industry's only 45nm high-volume FPGA family. Manufactured by Samsung, this family marks the first time transceiver capability and high-performance PCIe and memory controller blocks have been integrated into a 45nm low-cost FPGA fabric. These key technologies enable customers to make FPGA-based products and platforms that are lower power, lower cost and easier to use. -- The Company's consistent profitability and cash flow generation--even during challenging economic conditions, led to the Board's recent decision to increase the quarterly cash dividend by $0.02 to $0.16 per common share. This is the fifth time Xilinx has increased its dividend since initiating the dividend program in April 2004.
Business Outlook - December Quarter Fiscal 2010
-- Sales are expected to be up approximately 6% to 10% sequentially. -- Gross margin is expected to be approximately 62% to 63%. -- Operating expenses are expected to be approximately $186 million, including $3 million in charges relating to restructuring activity announced on April 15, 2009. -- Other income and expense is expected to be a net expense of approximately $1 million. -- Fully diluted share count is expected to be approximately 278 million. -- December quarter tax rate is expected to be approximately 19%.
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 December 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 32161500. 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 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.
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XILINX, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands, except per share amounts) Three Months Ended Six Months Ended ------------------ ---------------- Sept. 26, Sept. 27, June 27, Sept. 26, Sept. 27, 2009 2008* 2009 2009 2008* ---- ---- ---- ---- ---- Net revenues $414,950 $483,537 $376,235 $791,185 $971,783 Cost of revenues 158,177 177,407 143,822 301,999 353,913 ------- ------- ------- ------- ------- Gross margin 256,773 306,130 232,413 489,186 617,870 ------- ------- ------- ------- ------- Operating expenses: Research and development 90,145 89,501 83,233 173,378 180,235 Selling, general and administrative 78,621 88,080 73,556 152,177 181,084 Amortization of acquisition- related intangibles - 1,426 2,493 2,493 2,851 Restructuring charges 5,915 2,487 15,771 21,686 22,023 ----- ----- ------ ------ ------ Total operating expenses 174,681 181,494 175,053 349,734 386,193 ------- ------- ------- ------- ------- Operating income 82,092 124,636 57,360 139,452 231,677 Impairment loss on investments - (29,001) - - (33,622) Interest and other income (expense), net (1,782) 7,240 (10,910) (12,692) 11,718 ------ ----- ------- ------- ------ Income before income taxes 80,310 102,875 46,450 126,760 209,773 Provision for income taxes 16,272 21,815 8,444 24,716 45,535 ------ ------ ----- ------ ------ Net income $64,038 $81,060 $38,006 $102,044 $164,238 ======= ======= ======= ======== ======== Net income per common share: Basic $0.23 $0.29 $0.14 $0.37 $0.59 ===== ===== ===== ===== ===== Diluted $0.23 $0.29 $0.14 $0.37 $0.59 ===== ===== ===== ===== ===== Cash dividends declared per common share $0.14 $0.14 $0.14 $0.28 $0.28 ===== ===== ===== ===== ===== Shares used in per share calculations: Basic 276,353 276,169 275,523 275,735 277,357 ======= ======= ======= ======= ======= Diluted 276,988 277,714 276,258 276,271 279,258 ======= ======= ======= ======= ======= * As adjusted due to the retrospective adoption of the accounting standard for convertible debentures in the first quarter of fiscal 2010 XILINX, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) Sept. 26, March 28, 2009 2009* ---- ---- (Unaudited) ASSETS Current assets: Cash, cash equivalents and short-term investments $1,517,610 $1,324,933 Accounts receivable, net 226,673 216,390 Inventories 100,957 119,832 Deferred tax assets and other current assets 99,192 91,313 ------ ------ Total current assets 1,944,432 1,752,468 Net property, plant and equipment 371,689 387,907 Long-term investments 352,375 347,787 Other assets 292,189 323,739 ------- ------- Total Assets $2,960,685 $2,811,901 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $216,701 $170,702 Deferred income on shipments to distributors 75,755 62,364 ------ ------ Total current liabilities 292,456 233,066 Convertible debentures 353,471 352,110 Deferred tax liabilities 206,714 196,189 Other long-term liabilities 141,906 81,776 Stockholders' equity 1,966,138 1,948,760 --------- --------- Total Liabilities and Stockholders' Equity $2,960,685 $2,811,901 ========== ========== * Derived from audited financial statements and adjusted due to the retrospective adoption of the accounting standard for convertible debentures in the first quarter of fiscal 2010 XILINX, INC. SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited) (In thousands) Three Months Ended Six Months Ended ------------------ ---------------- Sept. 26, Sept. 27, June 27, Sept. 26, Sept. 27, 2009 2008* 2009 2009 2008* ---- ---- ---- ---- ---- SELECTED CASH FLOW INFORMATION: Depreciation $12,056 $13,309 $13,009 $25,065 $28,729 Amortization 3,260 4,176 5,307 8,567 8,351 Stock-based compensation 11,762 13,724 13,729 25,491 28,147 Net cash provided by operating activities 117,976 94,700 146,967 264,943 253,197 Purchases of property, plant and equipment (4,133) (11,777) (4,714) (8,847) (21,650) Payment of dividends to stockholders (38,744) (38,697) (38,574) (77,318) (77,625) Repurchases of common stock - (125,000) - - (275,000) Proceeds from issuance of common stock to employees and excess tax benefit 15,677 49,856 (16,056) (379) 81,387 STOCK-BASED COMPENSATION INCLUDED IN: Cost of revenues $1,272 $1,497 $1,115 $2,387 $3,079 Research and development 5,205 6,293 5,996 11,201 12,647 Selling, general and administrative 5,285 5,629 5,673 10,958 11,857 Restructuring charges - 305 945 945 564 * As adjusted due to the retrospective adoption of the accounting standard for convertible debentures in the first quarter of fiscal 2010