SAN JOSE, Calif., April 23, 2014 -- Xilinx, Inc. (Nasdaq: XLNX) today announced fiscal 2014 sales of $2.38 billion, up 10% from the prior fiscal year. Fiscal 2014 net income increased 29% to $630 million, or $2.19 per diluted share, versus fiscal 2013 net income of $488 million or $1.79 per diluted share.
Fourth quarter fiscal 2014 sales were $618 million, up 5% sequentially and up 16% from the fourth quarter of the prior fiscal year. Fourth quarter fiscal 2014 net income was $156 million, or $0.53 per diluted share, including a $10 million loss, or $0.03 per diluted share, associated with the recent redemption of convertible notes.
Additional fourth quarter comparisons are represented in the charts below:
GAAP Results
(In millions, except EPS)
| | | | | Growth Rates |
| | Q4
FY 2014 | Q3
FY 2014 | Q4
FY 2013 | Q-T-Q | Y-T-Y |
| Net revenues | $617.8 | $586.8 | $532.2 | 5% | 16% |
| Operating income | $189.5 | $202.7 | $147.2 | -7% | 29% |
| Net income | $156.0 | $175.9 | $130.6 | -11% | 19% |
| Diluted earnings per share | $0.53 | $0.61 | $0.47 | -13% | 13% |
"The tremendous success of our 28nm product portfolio has contributed to Xilinx PLD segment share gains for the third consecutive fiscal year," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "With March quarter sales exceeding $140 million, we have established an estimated 70% market segment share at 28nm for all of fiscal 2014, with leadership across all product families and broad adoption of our Vivado® Design Suite and UltraFast™ Design Methodology. Our proven formula for success is already bearing fruit at 20nm with the UltraScale™ family, which includes the PLD industry's only high-end product."
Net Revenues by Geography:
| | Percentages | Growth Rates |
| | Q4 FY 2014 | Q3 FY 2014 | Q4 FY 2013 | Q-T-Q | Y-T-Y |
| North America | 27% | 29% | 31% | -2% | 0% |
| Asia Pacific | 43% | 40% | 34% | 12% | 48% |
| Europe | 21% | 22% | 26% | 3% | -6% |
| Japan | 9% | 9% | 9% | 2% | 16% |
Net Revenues by End Market:
| | Percentages | Growth Rates |
| | Q4 FY 2014 | Q3 FY 2014 | Q4 FY 2013 | Q-T-Q | Y-T-Y |
| Communications & Data Center | 49% | 44% | 44% | 17% | 30% |
| Industrial, Aerospace & Defense | 34% | 37% | 37% | -3% | 7% |
| Broadcast, Consumer & Automotive | 15% | 16% | 17% | -4% | 2% |
| Other | 2% | 3% | 2% | -23% | 2% |
Net Revenues by Product:
| | Percentages | Growth Rates |
| | Q4 FY 2014 | Q3 FY 2014 | Q4 FY 2013 | Q-T-Q | Y-T-Y |
| New | 42% | 38% | 27% | 17% | 85% |
| Mainstream | 34% | 33% | 41% | 8% | -5% |
| Base | 21% | 26% | 28% | -16% | -16% |
| Support | 3% | 3% | 4% | 10% | 0% |
Products are classified as follows:
New products: Kintex™ Ultrascale, Virtex®‐7, Kinte‐7, Artix™-7, Zynq™-7000, Virtex‐6, Spartan™‐6 products
Mainstream products: Virtex‐5, Spartan‐3 and CoolRunner™‐II products
Base products: Virtex‐4, Virtex‐II, Virtex‐E, Virtex, Spartan-II, Spartan, CoolRunner and XC9500 products
Support products: Configuration solutions, HardWire, Software & Support/Services
Key Statistics:
(Dollars in millions)
| | Q4
FY 2014 | Q3
FY 2014 | Q4
FY 2013 |
| Annual Return on Equity (%)* | 22 | 20 | 17 |
| Operating Cash Flow | $189 | $216 | $174 |
| Depreciation Expense | $14 | $14 | $14 |
| Capital Expenditures | $14 | $11 | $6 |
| Combined Inventory Days | 115 | 114 | 110 |
| Revenue Turns (%) | 54 | 52 | 58 |
*Return on equity calculation: Annualized net income/average stockholders' equity
Product and Financial Highlights – Fiscal 2014
- During fiscal year 2014, sales from Xilinx's 28nm product portfolio, which includes the 7 series FPGAs and the Zynq-7000 family, surpassed $380 million with material contributions from all product families. 28nm momentum has continued to grow, driven by a wide range of applications that includes next generation LTE wireless base stations, OTN, Datacenter, industrial networking, surveillance, electronic warfare and automotive driver assist.
- The Company continued to drive gross margin improvement, achieving a record 68.8% gross margin in fiscal year 2014, up from 66.0% in the prior fiscal year. This improvement reflects the Company's continued discipline and focus on driving gross margin expansion projects across our product portfolio.
- Xilinx generated over $800 million in operating cash flow in fiscal 2014. Demonstrating a strong commitment to increase shareholder value, Xilinx paid its shareholders a record $267M in dividends and repurchased 5.2 million shares for $242 million. Xilinx recently increased its quarterly dividend by $0.04 per share to $0.29 per share. Additionally, more favorable financial market conditions and a continued strong credit rating enabled Xilinx to issue $1 billion of senior notes, using the proceeds to redeem its 2007 convertible notes.
- Xilinx, in close partnership with TSMC, shipped the industry's first 20nm device, Kintex Ultrascale, in November 2013 and we expect to ship the first Virtex Ultrascale devices during the June quarter.
- Xilinx announced the next generation Zynq UltraScale Multi-Processing SoC (MPSoC) Architecture targeted for 16nm. The UltraScale MPSoC architecture extends Xilinx's ASIC-class UltraScale FPGA and 3D IC architectures to enable heterogeneous multi-processing SoCs with the right engines for the right tasks. Xilinx will be leveraging TSMC's FinFet + process, offering the highest performance FinFet transistors in the industry.
Business Outlook – June Quarter Fiscal 2015
- Sales are expected to be up 0% to 4% sequentially.
- Gross margin is expected to be approximately 68%.
- Operating expenses are expected to be approximately $220 million including $2.5 million of amortization of acquisition-related intangibles.
- Other income and expenses are expected to be a net expense of approximately $8 million.
- Fully diluted share count is expected to be approximately 286 million.
- June quarter tax rate is expected to be approximately 13% - 14%.
Financial Tables
Financial Tables are available here.
Conference Call
A conference call will be held today at 2:00 p.m. Pacific Time to discuss the March quarter financial 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 (855) 859-2056 and referencing confirmation code 8428806. The telephonic replay will be available for two weeks following the live call.
About Xilinx
Xilinx develops All Programmable technologies and devices, beyond hardware to software, digital to analog, and single to multiple die in 3D ICs. These industry leading devices are coupled with a next-generation design environment and IP to serve a broad range of customer needs, from programmable logic to programmable systems integration. For more information visit www.xilinx.com.
