XILINX, INC. 
By SAN JOSE, Calif., Jan. 18, 2012 /PRNewswire-FirstCall/ -- Xilinx, Inc. (Nasdaq: XLNX) today announced third quarter fiscal 2012 sales of $511.1 million, down 8 percent sequentially from the prior quarter and down 10 percent from the same quarter of the prior year. Third quarter net income was $127.0 million, or $0.47 per diluted share. Included in the third quarter net income was a tax benefit of $15.3 million, or $0.06 per diluted share, related to one-time items including the lapse of the statute of limitations with respect to certain previously unrecognized tax positions.
(Logo: http://photos.prnewswire.com/prnh/20020822/XLNXLOGO)
The Xilinx Board of Directors announced a quarterly cash dividend of $0.19 per outstanding share of common stock, payable on February 29, 2012 to all stockholders of record at the close of business on February 8, 2012.
Additional third quarter comparisons are represented in the charts below:
GAAP Results
(In millions, except EPS) Growth Rates
Q3 Q2 Q3
FY 2012 FY 2012 FY 2011 Q-T-Q Y-T-Y
------- ------- ------- ----- -----
Net revenues $511.1 $555.2 $567.2 -8% -10%
Operating income $137.1 $154.8 $183.5 -11% -25%
Net income $127.0 $126.3 $152.3 1% -17%
Diluted earnings per share $0.47 $0.47 $0.58 0% -19%
Xilinx's sales declined 8 percent sequentially during the December quarter, impacted by particularly weak business from large communications customers. The Company's profitability as measured by gross margin and cash flow remained robust. December quarter gross margin was 65.8 percent and operating cash flow for the quarter was $181.0 million. Operating cash flow for calendar year 2011 was $863.2 million, a new Company record. "We experienced strong growth in our Virtex®-6 and Spartan®-6 product families and achieved significant milestones in our 28-nm rollout, in spite of challenging industry conditions. During the quarter, we commenced shipments of the PLD industry's first Stacked Silicon Interconnect (SSI) product as well as the industry's first embedded systems platform, the Zynq-7000 product family," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "Xilinx is not only expanding its addressable market but also paving the way for the entire semiconductor industry with these innovative new offerings."
Net Revenues by Geography:
Percentages Growth Rates
Q3 Q2 Q3
FY 2012 FY 2012 FY 2011 Q-T-Q Y-T-Y
------- ------- ------- ----- -----
North
America 32% 29% 30% 1% -6%
Asia
Pacific 35% 31% 38% 5% -17%
Europe 23% 29% 22% -27% -6%
Japan 10% 11% 10% -16% -4%
Net Revenues by End Market:
Percentages Growth Rates
Q3 Q2 Q3
FY 2012 FY 2012 FY2011 Q-T-Q Y-T-Y
------- ------- ------ ----- -----
Communications 43% 44% 45% -10% -13%
Industrial & Other 34% 33% 34% -7% -9%
Consumer & Automotive 15% 16% 15% -9% -8%
Data Processing 8% 7% 6% 0% 6%
Net Revenues by Product:
Percentages Growth Rates
Q3 Q2 Q3
FY 2012 FY 2012 FY 2011 Q-T-Q Y-T-Y
------- ------- ------- -----
New 51% 54% 43% -13% 5%
Mainstream 24% 22% 27% -1% -20%
Base 21% 20% 25% 0% -22%
Support 4% 4% 5% -15% -26%
Products are classified as follows:
New Products: Virtex-7, Kintex(TM)-7,
Zynq-7000, Virtex-6, Virtex-5,
Spartan-6, Spartan-3A and Spartan-3E
product families
Mainstream Products: Virtex-4, Spartan-
3, Spartan-IIE, 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)
Q3 Q2 Q3
FY 2012 FY 2012 FY 2011
------- ------- -------
Annual Return on Equity (%)* 22 23 30
Operating Cash Flow $181 $200 $333
Depreciation Expense $14 $13 $13
Capital Expenditures $19 $18 $15
Combined Inventory Days 142 126 130
Revenue Turns (%) 56 51 44
*Return on equity calculation:
Annualized net income/average
stockholders' equity
Product Highlights
-- Xilinx began shipping the industry's first extensible processing
platform, the Zynq-7000 device. This product family integrates
industry-standard ARM dual-core Cortex(TM)-A9 MPCore(TM) processing
system with Xilinx's scalable 28-nm programmable logic architecture.
The Zynq-7000 product family already has nearly 40 design wins in the
areas of Automotive, Computing & Data Processing, Defense, Industrial,
Scientific and Medical.
-- The Company's first Stacked Silicon Interconnect (SSI) product, Virtex-7
2000T FPGA, commenced shipments in the December quarter. With an
unprecedented two million logic cells, this devices is the PLD
industry's ultimate integration vehicle. Demand for these devices is
strong with initial customers in the areas of communications, test and
measurement and ASIC Emulation.
Business Outlook - March Quarter Fiscal 2012
-- Sales are expected to increase 2% to 6% sequentially.
-- Gross margin is expected to be approximately 64% to 65%.
-- Operating expenses are expected to be approximately $207 million,
including approximately $2 million of amortization of
acquisition-related intangibles.
-- Other income and expense is expected to be an expense of approximately
$10 million.
-- Fully diluted share count is expected to be approximately 270 million.
-- March quarter tax rate is expected to be approximately 14%.
Conference Call
A conference call will be held today at 2:00 p.m. Pacific Time to discuss the third quarter financial results and management's outlook for the March 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 (888) 405-4660 and referencing confirmation code 36594823. 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," "believe," "may," "will," "could," "anticipate," "estimate," "continue," "plan," "intend," "project" or other similar expressions. Statements that refer to or are based on projections, uncertain events or assumptions also identify forward-looking statements. Such forward-looking statements include, but are not limited to, statements related to the semiconductor market, the growth and acceptance of our programmable platforms, expected revenue growth, the demand and growth in the markets we serve, opportunity for expansion into new markets, and our expectations regarding our business outlook for the March quarter for fiscal 2012. 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 customer acceptance of our new products, current global economic conditions, the health of our customers and the end markets in which they participate, our ability to forecast end customer demand, a high dependence on turns business, 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, variability in wafer pricing, and other risk factors listed in our most recent Forms 10-K and 10-Q.
About Xilinx
Xilinx is the world's leading provider of programmable platforms. For more information, visit www.xilinx.com.
Xilinx, the Xilinx logo, Artix, ISE, Kintex, Spartan, Virtex, Zynq and other designated brands included herein are trademarks of Xilinx in the United States and other countries. All other trademarks are the property of their respective owners.
#1208F
Investor Relations Contact:
Lori Owen
Xilinx, Inc.
(408) 879-6911
ir@xilinx.com
XILINX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
Dec. 31, Oct. 1, Jan. 1, Dec. 31, Jan. 1,
2011 2011 2011 2011 2011
Net revenues $511,091 $555,209 $567,190 $1,681,763 $1,781,593
Cost of revenues 174,805 200,564 194,419 598,501 615,855
Gross margin 336,286 354,645 372,771 1,083,262 1,165,738
Operating expenses:
Research and development 108,245 105,774 98,453 320,036 289,515
Selling, general and
administrative 88,934 88,681 86,531 274,011 257,763
Amortization of acquisition-
related intangibles 1,982 1,982 - 5,587 -
Restructuring charges - 3,369 4,276 3,369 4,276
Total operating expenses 199,161 199,806 189,260 603,003 551,554
Operating income 137,125 154,839 183,511 480,259 614,184
Interest and other expense,
net (7,187) (8,598) (3,302) (23,596) (11,916)
Income before income taxes 129,938 146,241 180,209 456,663 602,268
Provision for income taxes 2,924 19,955 27,868 48,989 120,445
Net income $127,014 $126,286 $152,341 $407,674 $481,823
Net income per common share:
Basic $0.49 $0.48 $0.59 $1.54 $1.82
Diluted $0.47 $0.47 $0.58 $1.50 $1.79
Cash dividends declared per
common share $0.19 $0.19 $0.16 $0.57 $0.48
Shares used in per share
calculations:
Basic 261,257 264,006 259,418 264,183 265,085
Diluted 267,884 267,927 263,612 271,713 268,778
XILINX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
Dec. 31, Apr. 2,
2011 2011 *
(Unaudited)
ASSETS
Current assets:
Cash, cash equivalents and short-term
investments $1,760,631 $1,926,413
Accounts receivable, net 211,132 286,464
Inventories 245,476 264,745
Deferred tax assets and other current
assets 135,315 145,164
Total current assets 2,352,554 2,622,786
Net property, plant and equipment 390,014 380,570
Long-term investments 1,190,812 766,452
Other assets 411,720 371,042
Total Assets $4,345,100 $4,140,850
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $319,212 $268,377
Deferred income on shipments to
distributors 63,225 99,763
Total current liabilities 382,437 368,140
Convertible debentures 903,059 890,980
Deferred tax liabilities 449,170 403,990
Other long-term liabilities 49,458 63,123
Stockholders' equity 2,560,976 2,414,617
Total Liabilities and Stockholders' Equity $4,345,100 $4,140,850
* Derived
from audited
financial
statements
XILINX, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)
(In thousands) Three Months Ended
Dec. 31, Oct. 1, Jan. 1,
2011 2011 2011
SELECTED CASH
FLOW
INFORMATION:
Depreciation $13,862 $13,396 $12,500
Amortization 4,327 4,326 1,873
Stock-based
compensation 17,843 16,899 14,754
Net cash provided
by operating
activities 180,970 199,584 332,527
Purchases of
property, plant
and equipment 18,984 17,628 14,880
Payment of
dividends to
stockholders 49,566 50,348 41,489
Repurchases of
common stock 42,447 111,537 2,634
Proceeds from
issuance of
common stock to
employees and
excess tax
benefit 12,017 28,369 24,991
STOCK-BASED
COMPENSATION
INCLUDED IN:
Cost of revenues $1,350 $1,284 $1,092
Research and
development 8,655 8,103 7,120
Selling, general
and
administrative 7,838 7,512 6,542
SOURCE Xilinx, Inc.
