SAN JOSE, Calif. -- July 15, 2009 -- Xilinx, Inc. (Nasdaq: XLNX) today announced first quarter fiscal 2010 sales of $376.2 million, down 5% sequentially and down 23% from the first quarter of the prior fiscal year. First quarter net income was $38.0 million, or $0.14 per diluted share, including previously announced pre-tax restructuring charges totaling $15.8 million, and the reversal of $8.7 million of interest income previously accrued on the tax prepayment as a result of the recent adverse court case ruling. Collectively, these items represented approximately $0.07 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 August 26, 2009 to all stockholders of record at the close of business on August 5, 2009.
Additional first quarter comparisons are represented in the charts below:
GAAP Results (In millions, except EPS)
| Growth Rates
|
| Q1 FY 2010 | Q4 FY 2009(1) | Q1 FY 2009(1) | Q-T-Q | Y-T-Y |
| Net revenues | $376.2 | $395.0 | $488.2 | -5% | -23% |
| Operating income | $57.4 | $78.3 | $107.0 | -27% | -46% |
| Net income | $38.0 | $69.6 | $86.3 | -45% | -56% |
| Diluted earnings per share | $0.14 | $0.25 | $0.31 | -44% | -55% |
(1) As adjusted due to the adoption of FSP APB 14-1 "Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)"
"Sales growth was impacted in the June quarter by supply constraints primarily relating to certain Virtex -5 devices in high demand," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "We reduced SG&A and R&D expenses by more than 5% sequentially and generated $128 million of operating cash flow. At the same time, we remain committed to our ongoing investment in next generation FPGA development, which we expect to drive future growth opportunities."
During the June quarter, sales from Asia Pacific increased 2% sequentially to represent a record 37% of total sales. This was up from 35% of sales in the prior quarter, and up from 32% of total sales in the same quarter a year ago. Sales from all other geographies declined sequentially during the quarter.
Net Revenues by Geography:
| Percentages
| Growth Rates |
| Q1 FY 2010 | Q4 FY 2009 | Q1 FY 2009 | Q-T-Q | Y-T-Y |
| North America | 35% | 35% | 35% | -6% | -25% |
| Asia Pacific | 37% | 35% | 32% | 2% | -10% |
| Europe | 20% | 22% | 23% | -13% | -32% |
| Japan | 8% | 8% | 10% | -4% | -36% |
Net Revenues by End Market:
| Percentages
| Growth Rates |
| Q1 FY 2010 | Q4 FY 2009 | Q1 FY 2009 | Q-T-Q | Y-T-Y |
| Communications | 49% | 47% | 42% | -2% | -10% |
| Industrial & Other | 31% | 32% | 33% | -6% | -28% |
| Consumer & Automotive | 14% | 14% | 16% | -5% | -35% |
| Data Processing | 6% | 7% | 9% | -19% | -44% |
Net Revenues by Product: Note: The product categories represented below have been modified to make categories more meaningful given new product introductions and maturing of products. For comparative purposes, we have provided supplemental information on our website at
www.investor.xilinx.com that presents results based on previous category classifications.
| Percentages
| Growth Rates |
| Q1 FY 2010 | Q4 FY 2009 | Q1 FY 2009 | Q-T-Q | Y-T-Y |
| New | 25% | 23% | 12% | 3% | 60% |
| Mainstream | 36% | 36% | 39% | -6% | -30% |
| Base | 34% | 36% | 43% | -8% | -39% |
| Support | 5% | 5% | 6% | -6% | -28% |
Products are classified as follows: - New Products: Virtex-6, Virtex-5, Spartan(R)-6, Spartan-3A and Spartan-3E product families
- Mainstream Products: Virtex-4, Spartan-3, Spartan-II and CoolRunner(TM)-II product families
- Base Products: Virtex, Virtex-E, Virtex-II, Spartan, XC4000, CoolRunner and XC9500 product families
- Support Products: Configuration products, HardWire, Software & Support/Services
Key Statistics: (Dollars in millions)
| Q1 FY 2010 | Q4 FY 2009 | Q1 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 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%.
Financial Table
To read financial tables,
click here
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.
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.
