Xilinx (XLNX) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Investor Relations Contact:                        

Lori Owen

Xilinx, Inc.

(408) 879-6911

ir@xilinx.com

XILINX ANNOUNCES 2014 FISCAL Q3 RESULTS;

28NM SALES REACH $100 MILLION

SAN JOSE, CA, January 21, 2014-- Xilinx, Inc. (Nasdaq: XLNX) today announced third quarter fiscal 2014 sales of $587 million, down 2% from the prior quarter and up 15% from the same quarter of the prior fiscal year. Third quarter fiscal 2014 net income was $176 million or $0.61 per diluted share; including the reversal of a litigation reserve with a net impact of $19 million, or $0.06 per diluted share.

The Xilinx Board of Directors announced a quarterly cash dividend of $0.25 per outstanding share of common stock, payable on February 27, 2014 to all stockholders of record at the close of business on February 6, 2014.

Additional third quarter comparisons are represented in the charts below:

GAAP Results

(In millions, except EPS)

				Growth Rates
	Q3 FY 2014	Q2 FY 2014	Q3 FY 2013	Q-T-Q	Y-T-Y
Net revenues	$586.8	$598.9	$509.8	-2%	15%
Operating income	$202.7	$163.8	$120.8	24%	68%
Net income	$175.9	$141.5	$103.6	24%	70%
Diluted earnings per share	$0.61	$0.49	$0.38	24%	61%

“Sales from Xilinx’s 28nm products were $100 million in the December quarter, driven by particularly strong and broad-based Kintex^™-7 sales. Sales from the Zynq^™-7000 product family were also strong during the quarter, more than doubling sequentially, as key designs in wireless communication, industrial and aerospace and defense applications commenced production,” said Moshe Gavrielov, Xilinx President and Chief Executive Officer. “The phenomenal success of our 28nm product families has driven Xilinx PLD share gains for the second consecutive calendar year.”

Net Revenues by Geography:

	Percentages			Growth Rates
	Q3 FY 2014	Q2 FY 2014	Q3 FY 2013	Q-T-Q	Y-T-Y
North America	29%	31%	32%	-9%	5%
Asia Pacific	40%	38%	34%	3%	36%
Europe	22%	22%	24%	-5%	4%
Japan	9%	9%	10%	6%	5%

Net Revenues by End Market:

	Percentages			Growth Rates
	Q3 FY 2014	Q2 FY 2014	Q3 FY 2013	Q-T-Q	Y-T-Y
Communications & Data Center	44%	43%	47%	0%	9%
Industrial, Aerospace & Defense	37%	38%	36%	-5%	18%
Broadcast, Consumer & Automotive	16%	16%	15%	-3%	22%
Other	3%	3%	2%	9%	40%

Net Revenues by Product:

	Percentages			Growth Rates
	Q3 FY 2014	Q2 FY 2014	Q3 FY 2013	Q-T-Q	Y-T-Y
New	38%	36%	25%	5%	79%
Mainstream	33%	34%	41%	-5%	-10%
Base	26%	27%	30%	-7%	0%
Support	3%	3%	4%	-5%	-7%

Products are classified as follows:

New products: Virtex^®‐7, Kintex‐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)

	Q3 FY 2014	Q2 FY 2014	Q3 FY 2013
Annual Return on Equity (%)*	20	19	17
Operating Cash Flow	$216	$255	$123
Depreciation Expense	$14	$14	$14
Capital Expenditures	$11	$8	$8
Combined Inventory Days	114	102	131
Revenue Turns (%)	52	54	58

*Return on equity calculation: Annualized net income/average equities, including temporary equity

Highlights – December Quarter Fiscal 2014

• Xilinx shipped the industry’s first 20nm product in November 2013, continuing to execute on an aggressive rollout of its All Programmable UltraScale™ portfolio. The UltraScale product portfolio delivers the industry’s only ASIC-class programmable architecture and extends Xilinx’s market leading Kintex, and Virtex FPGA and 3D IC families. When combined with Vivado™ and the recently introduced UltraFast™ design methodology, Ultrascale devices enable next generation smarter systems such as 400G OTN, WCDMA Radio, and Intelligence Surveillance and Reconnaissance and high performance computing applications for the data center.

• Xilinx announced a record breaking 4.4M logic cell device, more than doubling its industry leading highest capacity Virtex-7 device. This is Xilinx’s second generation Stacked Silicon Interconnect technology built on TSMC’s CoWoS manufacturing technology, enabling Xilinx to deliver devices with 2-4X the capacity of competing devices and continue to stay ahead of what Moore’s Law could otherwise offer.

Business Outlook – March Quarter Fiscal 2014

• Sales are expected to be up 2% to up 6% sequentially.

• Gross margin is expected to be approximately 68%.

• Operating expenses are expected to be approximately $226 million, including $2.5 million of amortization of acquisition-related intangibles.

• Other income and expenses are expected to be a net expense of approximately $7 million.

• Fully diluted share count is expected to be approximately 289 million.

• March quarter tax rate is expected to be approximately 13%.

Conference Call

A conference call will be held today at 2:00 p.m. Pacific Time to discuss the December 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 (855) 859-2056 and referencing confirmation code 30665781. 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 products, 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 of fiscal 2014. 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, costs and liabilities associated with current and future litigation, and other risk factors listed in our most recent Forms 10-Q and 10-K.

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.

#1403F

Xilinx, the Xilinx logo, Artix, ISE, Kintex, Spartan, Virtex, Zynq, Vivado, 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.

XLNX-F

XILINX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In thousands, except per share amounts)

	Three Months Ended							Nine Months Ended
	December 28, 2013			September 28, 2013		December 29, 2012		December 28, 2013		December 29, 2012
Net revenues	$	586,816		$	598,937	$	509,767	$	1,764,708	$	1,636,484
Cost of revenues	180,792			182,816		170,493		543,308		556,617
Gross margin	406,024			416,121		339,274		1,221,400		1,079,867
Operating expenses:
Research and development	128,092			125,002		129,055		364,635		364,389
Selling, general and administrative	91,794			96,339		86,823		280,520		274,952
Amortization of acquisition-related intangibles	2,589			2,418		2,554		7,425		7,021
Litigation and contingencies	(19,190		)	28,600		—		9,410		—
Total operating expenses	203,285			252,359		218,432		661,990		646,362
Operating income	202,739			163,762		120,842		559,410		433,505
Interest and other expense, net	4,807			10,997		5,149		25,734		24,824
Income before income taxes	197,932			152,765		115,693		533,676		408,681
Provision for income taxes	22,055			11,304		12,045		59,315		51,765
Net income	$	175,877		$	141,461	$	103,648	$	474,361	$	356,916
Net income per common share:
Basic	$	0.66		$	0.53	$	0.40	$	1.78	$	1.36
Diluted	$	0.61		$	0.49	$	0.38	$	1.66	$	1.31
Cash dividends per common share	$	0.25		$	0.25	$	0.22	$	0.75	$	0.66
Shares used in per share calculations:
Basic	267,780			268,478		260,690		266,068		261,723
Diluted	288,195			290,685		271,174		285,380		271,861

XILINX, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

	December 28, 2013		March 30, 2013 *
	(unaudited)
ASSETS
Current assets:
Cash, cash equivalents and short-term investments	$	2,457,419	$	1,714,745
Accounts receivable, net	207,248		229,175
Inventories	206,728		201,250
Deferred tax assets and other current assets	76,431		152,469
Total current assets	2,947,826		2,297,639
Net property, plant and equipment	354,800		365,687
Long-term investments	1,287,392		1,651,033
Other assets	411,783		415,092
Total Assets	$	5,001,801	$	4,729,451
LIABILITIES , TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	309,009	$	333,379
Deferred income on shipments to distributors	48,075		53,358
Deferred tax liabilities	140,601		51
Convertible debentures	934,392		—
Total current liabilities	1,432,077		386,788
Convertible debentures	—		922,666
Deferred tax liabilities	279,696		415,442
Other long-term liabilities	13,057		41,259
Temporary equity	355,243		—
Stockholders' equity	2,921,728		2,963,296
Total Liabilities, Temporary Equity and Stockholders' Equity	$	5,001,801	$	4,729,451
* Derived from audited financial statements

XILINX, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

(Unaudited)

(In thousands)

	Three Months Ended						Nine Months Ended
	December 28, 2013		September 28, 2013		December 29, 2012		December 28, 2013		December 29, 2012
SELECTED CASH FLOW INFORMATION:
Depreciation	$	13,595	$	13,976	$	13,680	$	41,604	$	42,434
Amortization	5,058		4,885		4,423		14,828		12,878
Stock-based compensation	24,339		23,060		19,762		68,353		56,616
Net cash provided by operating activities	216,390		254,943		122,568		615,542		482,884
Purchases of property, plant and equipment	10,975		8,441		8,075		30,717		24,053
Payment of dividends to stockholders	67,096		67,198		57,326		200,301		172,647
Repurchases of common stock	97,140		69,981		19,541		167,121		197,689
Proceeds from issuance of common stock to employees and excess tax benefit	12,729		110,925		20,547		157,611		58,201
STOCK-BASED COMPENSATION INCLUDED IN:
Cost of revenues	$	1,966	$	1,858	$	1,517	$	5,628	$	4,718
Research and development	11,912		11,343		9,654		33,474		27,681
Selling, general and administrative	10,461		9,859		8,591		29,251		24,217