Attached files

file filename
8-K - FORM 8-K - XILINX INCc16068e8vk.htm
Exhibit 99.1
Investor Relations Contact:
Lori Owen
Xilinx, Inc.
(408) 879-6911
ir@xilinx.com
XILINX ANNOUNCES RECORD FISCAL 2011 RESULTS;
Q4 SALES INCREASE 4% SEQUENTIALLY
SAN JOSE, CA, April 27, 2011— Xilinx, Inc. (Nasdaq: XLNX) today announced record fiscal 2011 sales of $2.37 billion, up 29% from the prior fiscal year. Fiscal 2011 net income increased 80% to of $641.9 million, or $2.39 per diluted share, versus fiscal 2010 net income of $357.5 million or $1.29 per diluted share.
Fourth quarter fiscal 2011 sales were $587.9 million, up 4% sequentially and up 11% from the fourth quarter of the prior fiscal year. Fourth quarter fiscal 2011 net income was $160.1 million, or $0.59 per diluted share.
Additional fourth quarter comparisons are represented in the charts below:
GAAP Results
(In millions, except EPS)
                                         
    Q4     Q3     Q4     Growth Rates  
    FY 2011     FY 2011     FY 2010     Q-T-Q     Y-T-Y  
Net revenues
  $ 587.9     $ 567.2     $ 529.0       4 %     11 %
Operating income
  $ 181.2     $ 183.5     $ 156.1       -1 %     16 %
Net income
  $ 160.1     $ 152.3     $ 148.5       5 %     8 %
Diluted earnings per share
  $ 0.59     $ 0.58     $ 0.54       2 %     9 %
“I am very pleased with our fiscal 2011 results. Record sales and continued fiscal discipline contributed to significant improvements in our profitability. Gross and operating margins were a record 65.4% and 33.6%, respectively, in fiscal 2011. This is up from 63.4% and 23.6%, respectively, in the prior fiscal year,” said Moshe Gavrielov, Xilinx President and Chief Executive Officer. “In fiscal 2012, we will continue to demonstrate clear 28-nm technology leadership with our game changing product strategy. Xilinx was the first PLD company to tape out 28-nm product, the first to deliver 28-nm silicon to customers, and the first and only company to demonstrate working 28-nm silicon at the recent NAB Conference and Globalpress Electronics Summit. We have already taped out three 28-nm FPGAs thus far and we continue to expect the product rollout at this technology node to be the fastest in our history.”

 

 


 

Net Revenues by Geography:
                                         
    Percentages        
    Q4     Q3     Q4     Growth Rates  
    FY 2011     FY 2011     FY 2010     Q-T-Q     Y-T-Y  
North America
    27 %     30 %     33 %     -8 %     -8 %
Asia Pacific
    35 %     38 %     35 %     -5 %     12 %
Europe
    30 %     22 %     24 %     40 %     35 %
Japan
    8 %     10 %     8 %     -7 %     10 %
Net Revenues by End Market:
                                         
    Percentages        
    Q4     Q3     Q4     Growth Rates  
    FY 2011     FY 2011     FY2010     Q-T-Q     Y-T-Y  
Communications
    47 %     45 %     47 %     8 %     10 %
Industrial & Other
    32 %     34 %     30 %     -1 %     18 %
Consumer & Automotive
    14 %     15 %     15 %     -1 %     8 %
Data Processing
    7 %     6 %     8 %     12 %     -2 %
Net Revenues by Product:
                                         
    Percentages        
    Q4     Q3     Q4     Growth Rates  
    FY 2011     FY 2011     FY 2010     Q-T-Q     Y-T-Y  
New
    46 %     43 %     36 %     10 %     42 %
Mainstream
    26 %     27 %     31 %     1 %     -6 %
Base
    23 %     25 %     28 %     -5 %     -10 %
Support
    5 %     5 %     5 %     4 %     13 %
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™-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)
                         
    Q4     Q3     Q4  
    FY 2011     FY 2011     FY 2010  
Annual Return on Equity (%)*
    28       30       18  
Operating Cash Flow
  $ 245     $ 333     $ 104  
Depreciation Expense
  $ 13     $ 13     $ 12  
Capital Expenditures
  $ 17     $ 15     $ 11  
Combined Inventory Days
    133       130       79  
Revenue Turns (%)
    53       44       56  
     
*   Return on equity calculation: Annualized net income/average stockholders’ equity

 

2


 

Product and Financial Highlights — Fiscal 2011
    Xilinx fortified its 28-nm leadership by shipping the industry’s first 28-nm FPGA, a Kintex™-7 device, in March. As Xilinx’s first mid-range FPGA family, Kintex-7 leverages the unified architecture shared across the 7 series families to enable the industry’s fastest product rollout of next generation programmable logic devices. At the same time, customers benefit with the ability to begin designs now that may ultimately migrate to Virtex®-7 or Artix™-7 FPGAs.
 
    Xilinx extended its competitive leadership by taping out the industry’s first stacked silicon interconnect technology for delivering breakthrough capacity, bandwidth and power savings using multiple FPGA die in a single package. This FPGA-based platform approach currently has no competition in the marketplace. It is the result of five years of Xilinx research and development efforts coupled with industry leading technology from TSMC and our assembly suppliers.
 
    Xilinx unveiled the Zynq™7000 family, the industry’s first Extensible Processing Platform, which tightly integrates a complete ARM(R) Cortex™-A9 MPCore™ processor-based system with 28-nm, low-power programmable logic. This product targets end markets such as video surveillance, automotive driver assistance, factory automation, and audio, video and broadcast and has already received a number of design wins.
 
    Xilinx generated record cash flow and returned record value to shareholders in fiscal 2011 as measured by total dollars invested in buyback and dividend. In fiscal 2011, Xilinx generated over $720 million in cash, up from $554 million in the prior fiscal year. During the fiscal year, Xilinx increased its dividend by $0.03 per diluted share to $0.19 per diluted share and repurchased $469 million in stock.
 
Business Outlook — June Quarter Fiscal 2012
    Sales are expected to be flat to up 4% sequentially.
 
    Gross margin is expected to be approximately 64% to 65%.
 
    Operating expenses are expected to be approximately $206 million, including $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 274 million.
 
    June quarter tax rate is expected to be approximately 16%.
Conference Call
A conference call will be held today at 2:00 p.m. Pacific Time to discuss the fourth 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 (800) 642-1687 and referencing confirmation code 57880006. The telephonic replay will be available for two weeks following the live call.

 

3


 

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 to identify such forward-looking statements that 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 June 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, our ability to successfully manage production at multiple foundries, variability in wafer pricing, and other risk factors listed in our most recent Forms 10-Q and 10-K.
About Xilinx
Xilinx is the world’s leading provider of programmable platforms. For more information, visit www.xilinx.com.
Xilinx, the Xilinx logo, Virtex, Spartan, ISE, and other brands designated herein are trademarks of Xilinx in the United States and other countries. All other trademarks are the property of their respective owners.
#1127F

 

4


 

XILINX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)
                                         
    Three Months Ended     Twelve Months Ended  
    Apr. 2,     Apr. 3,     Jan. 1,     Apr. 2,     Apr. 3,  
    2011     2010     2011     2011     2010  
Net revenues
  $ 587,852     $ 529,020     $ 567,190     $ 2,369,445     $ 1,833,554  
Cost of revenues
    203,703       185,484       194,419       819,558       671,803  
 
                             
Gross margin
    384,149       343,536       372,771       1,549,887       1,161,751  
 
                             
Operating expenses:
                                       
Research and development
    102,967       94,240       98,453       392,482       369,485  
Selling, general and administrative
    92,863       90,346       86,531       350,626       327,560  
Amortization of acquisition-related intangibles
    1,034                   1,034       2,493  
Restructuring charges
    6,070       2,847       4,276       10,346       30,064  
 
                             
Total operating expenses
    202,934       187,433       189,260       754,488       729,602  
 
                             
 
                                       
Operating income
    181,215       156,103       183,511       795,399       432,149  
Impairment loss on investments
    (5,904 )     (764 )           (5,904 )     (3,805 )
Interest and other income (expense), net
    (6,499 )     6,655       (3,302 )     (18,415 )     (6,579 )
 
                             
Income before income taxes
    168,812       161,994       180,209       771,080       421,765  
Provision for income taxes
    8,760       13,462       27,868       129,205       64,281  
 
                             
Net income
  $ 160,052     $ 148,532     $ 152,341     $ 641,875     $ 357,484  
 
                             
 
                                       
Net income per common share:
                                       
Basic
  $ 0.61     $ 0.54     $ 0.59     $ 2.43     $ 1.30  
 
                             
Diluted
  $ 0.59     $ 0.54     $ 0.58     $ 2.39     $ 1.29  
 
                             
 
                                       
Cash dividends declared per common share
  $ 0.16     $ 0.16     $ 0.16     $ 0.64     $ 0.60  
 
                             
Shares used in per share calculations:
                                       
Basic
    263,603       274,686       259,418       264,094       276,012  
 
                             
Diluted
    272,161       277,290       263,612       268,061       276,953  
 
                             

 

 


 

XILINX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
                 
    Apr. 2,     Apr. 3,  
    2011     2010  
    (Unaudited)        
 
ASSETS
               
Current assets:
               
Cash, cash equivalents and short-term investments
  $ 1,926,413     $ 1,386,605  
Accounts receivable, net
    286,464       262,735  
Inventories
    264,745       130,628  
Deferred tax assets and other current assets
    145,164       127,098  
 
           
Total current assets
    2,622,786       1,907,066  
Net property, plant and equipment
    380,570       365,878  
Long-term investments
    766,452       582,202  
Other assets
    371,042       329,172  
 
           
Total Assets
  $ 4,140,850     $ 3,184,318  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
Current liabilities:
               
Accounts payable and accrued liabilities
  $ 268,377     $ 277,029  
Deferred income on shipments to distributors
    99,763       80,132  
 
           
Total current liabilities
    368,140       357,161  
Convertible debentures
    890,980       354,798  
Deferred tax liabilities
    403,990       294,149  
Other long-term liabilities
    63,123       57,740  
 
               
Stockholders’ equity
    2,414,617       2,120,470  
 
           
Total Liabilities and Stockholders’ Equity
  $ 4,140,850     $ 3,184,318  
 
           

 

 


 

XILINX, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)
(In thousands)
                                         
    Three Months Ended     Twelve Months Ended  
    Apr. 2,     Apr. 3,     Jan. 1,     Apr. 2,     Apr. 3,  
    2011     2010     2011     2011     2010  
 
                                       
SELECTED CASH FLOW INFORMATION:
                                       
Depreciation
  $ 12,923     $ 12,248     $ 12,500     $ 50,361     $ 50,180  
Amortization
    2,972       3,205       1,873       8,531       14,982  
Stock-based compensation
    14,963       15,471       14,754       60,258       56,481  
Net cash provided by operating activities
    244,967       103,870       332,527       724,152       554,291  
Purchases of property, plant and equipment
    16,655       10,612       14,880       64,979       28,152  
Payment of dividends to stockholders
    42,121       44,031       41,489       169,072       165,648  
Repurchases of common stock
          124,997       2,634       468,943       149,997  
Proceeds from issuance of common stock to employees and excess tax benefit
    105,135       50,389       24,991       177,759       63,556  
 
                                       
STOCK-BASED COMPENSATION INCLUDED IN:
                                       
Cost of revenues
  $ 1,154     $ 1,501     $ 1,092     $ 4,825     $ 5,180  
Research and development
    7,115       7,276       7,120       28,780       25,766  
Selling, general and administrative
    6,694       6,694       6,542       26,653       24,590  
Restructuring charges
                            945