Xilinx Announces Q2 Fiscal 2012 Results

SAN JOSE, Calif., Oct. 19, 2011 -- Xilinx, Inc. (Nasdaq: XLNX) today announced second quarter fiscal 2012 sales of $555.2 million, down 10% sequentially from the prior quarter and down 10% from the same quarter of the prior year. Second quarter net income was $126.3 million, or $0.47 per diluted share.

The Xilinx Board of Directors announced a quarterly cash dividend of $0.19 per outstanding share of common stock, payable on November 30, 2011 to all stockholders of record at the close of business on November 9, 2011.

Additional second quarter comparisons are represented in the charts below:

"Sales growth during the September quarter was impacted by weaker than expected business conditions particularly in the Communications and Industrial and Other categories. In spite of declining sales, operating margin for the quarter was 28% as a result of higher-than-expected gross margin and a commensurate slow down of spending in recognition of the environment," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "Additionally, we continued to demonstrate leadership on the 28-nm node by recently taping out our sixth device, achieving to date over 200 design wins, and shipping parts to 50 discrete customers."

Products are classified as follows:

• New Products: Virtex®-7, Kintex(TM)-7, 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

Product Highlights

Xilinx continued to pioneer programmable systems integration leadership during the quarter achieving a number of key milestones:

• Xilinx taped out the PLD industry's first embedded systems platform, the Zynq(TM)-7000 device. The Zynq-7000 product family combines an industry-standard ARM® dual-core Cortex(TM)-A9 MPCore(TM) processing system with Xilinx 28-nm unified programmable logic architecture. With significant time-to-market leadership versus the competition, design win momentum for this product family is strong and broad-based. Current designs wins include applications in the automotive, defense, test and measurement and industrial, scientific and medical market segments.
• The Company's first Stacked Silicon Interconnect (SSI) product, Virtex-7 2000T FPGA, generated considerable design win activity during the quarter. This device, scheduled to ship in the December quarter, is the world's highest-capacity programmable logic device delivering twice the capacity of competitive offerings, 2.8 times the systems bandwidth and 50-70% reduced system level power and cost via single chip FPGA integrations.
• Xilinx has also delivered the third generation of integrated Agile Mixed Signal (AMS) at the 28-nm node. Now available across all product families, the highly flexible integrated AMS block eliminates a wide range of discrete analog functions and delivers a typical cost savings of $2-$7 along with greatly enhanced system level performance, board savings, and reliability. Xilinx is the only company to offer AMS at 28-nm. This innovative capability has been well received by customers across the board ranging from the cost-sensitive, low power markets addressed by Artix(TM)-7 FPGAs, the enhanced reliability and high performance markets addressed by the Kintex-7 and Virtex-7 product families, and the embedded markets addressed by the Zynq-7000 product family.

Business Outlook - December Quarter Fiscal 2012

• Sales are expected to be down 3% to down 8% sequentially.
• Gross margin is expected to be approximately 64%.
• Operating expenses are expected to be approximately $203 million, including approximately $2 million of amortization of acquisition-related intangibles.
• Other income and expense is expected to be an expense of approximately $8 million.
• Fully diluted share count is expected to be approximately 266 million.
• December quarter tax rate is expected to be approximately 14%.

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 second quarter financial 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 (855) 859-2056 and referencing confirmation code 12324688. 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 http://www.xilinx.com/.