Design & Reuse

Xilinx Reports Third Consecutive Quarter of Record Sales; Operating Margin Reaches 35%

SAN JOSE, Calif., July 21, 2010 -- Xilinx, Inc. (Nasdaq: XLNX) today announced first quarter fiscal 2011 sales of $594.7 million, up 12% sequentially and up 58% from the first quarter of the prior fiscal year. First quarter fiscal 2011 net income was $158.6 million, or $0.58 per diluted share.

The Xilinx Board of Directors announced a quarterly cash dividend of $0.16 per outstanding share of common stock, payable on September 1, 2010 to all stockholders of record at the close of business on August 11, 2010.

Additional first quarter comparisons are represented in the charts below:

GAAP Results
(In millions, except EPS)


Growth  Rates

 Q1 FY 2011 Q4 FY 2010 Q1 FY 2010 Q-T-Q Y-T-Y
Net revenues $594.7 $529.0 $376.2 12% 58%
Operating income $208.0 $156.1 $57.4 33% 263%
Net income $158.6 $148.5 $38.0 7% 317%
Diluted earnings per share $0.58 $0.54 $0.14 7% 314%

The June quarter marked the third consecutive quarter of record sales for Xilinx. New Product sales were led by strong growth from the Virtex-6 and Virtex-5 FPGA families. These product families are experiencing success in a wide variety of applications including Long Term Evolution (LTE) wireless networks, next generation broadcast video-on-demand systems, high performance computer systems and high resolution imaging systems.

"It was an exceptional quarter on a number of fronts," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "In addition to record sales, operating income increased 33% sequentially to $208 million, a new milestone for Xilinx. Operating margin of 35% in the June quarter is up from 30% in the prior quarter and up from 15% in the same quarter a year ago. Our improved profitability is a result of robust sales in addition to continued fiscal discipline." Gavrielov continued, "I believe Xilinx is embarking upon an extraordinary new product cycle enabled by the strong design win momentum from our Virtex-6 and Spartan-6 families as well as the recent announcement of our 7 series FPGAs."

Net Revenues by Geography:


 Percentages
Growth Rates

Q1 FY 2011 Q4 FY 2010 Q1 FY 2010 Q-T-Q Y-T-Y
North America 32% 33% 35% 12% 48%
Asia Pacific 34% 35% 37% 11% 46%
Europe 26% 24% 20% 19% 103%
Japan 8% 8% 8% 1% 42%

Net Revenues by End Market:


 Percentages
Growth Rates

Q1 FY 2011 Q4 FY 2010 Q1 FY 2010 Q-T-Q Y-T-Y
Communications 47% 47% 49% 12% 53%
Industrial & Other 32% 30% 31% 21% 64%
Consumer & Automotive 15% 15% 14% 8% 67%
Data Processing 6% 8% 6% -12% 54%

Net Revenues by Product:


 Percentages
Growth Rates

Q1 FY 2011 Q4 FY 2010 Q1 FY 2010 Q-T-Q Y-T-Y
New 39% 36% 25% 23% 148%
Mainstream 30% 31% 36% 9% 33%
Base 27% 28% 34% 4% 22%
Support 4% 5% 5% 3% 33%

Products are classified as follows:

  • New Products: Virtex-6, Virtex-5, Spartan-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 2011 Q4 FY 2010 Q1 FY 2010
Annual Return on Equity (%)* 32 18 8
Operating Cash Flow $107 $104 $147
Depreciation Expense $12 $12 $13
Capital Expenditures $18 $11 $5
Combined Inventory Days 80 79 78
Revenue Turns (%) 53 56 57

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


Highlights - First Quarter Fiscal 2011
  • Xilinx introduced its 7 series FPGAs, the industry's first FPGAs that reduce total power consumption by 50% and offer industry-leading capacity of up to two million logic cells on the only unified architecture that scales across low-cost to ultra high-end families. The new 28nm Artix(TM)-7, Kintex(TM)-7 and Virtex(TM)-7 families combine breakthrough innovations in power efficiency, system performance and design productivity to make programmable logic more accessible to a broader community of users, end markets and applications.
  • Industrial and Other sales increased 21% sequentially in the June quarter reaching a new corporate record. Sales from this category have more than doubled in the past five years as customers are increasingly using PLDs to satisfy their silicon needs in myriad applications such as industrial networking, medical imaging, video surveillance and signal intelligence for defense applications.

Business Outlook - September Quarter Fiscal 2011

  • Sales are expected to be up 3% to 7% sequentially.
  • Gross margin is expected to be approximately 65% plus or minus one percentage point.
  • Operating expenses are expected to be approximately $185 million.
  • Other income and expense is expected to be a net expense of approximately $4 million.
  • Fully diluted share count is expected to be approximately 264 million.
  • September quarter tax rate is expected to be approximately 22%.

Financial Tables

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 first quarter financial results and management's outlook for the September 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 81542321. The telephonic replay will be available for two weeks following the live call.

About Xilinx

Xilinx is the world's leading provider of programmable platforms. For more information, visit www.xilinx.com.

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