Investor Relations Contact:
Lori Owen
Xilinx, Inc.
(408) 879-6911
ir@xilinx.com | Exhibit 99.1 |
XILINX ANNOUNCES SECOND QUARTER FISCAL 2008 RESULTS
SAN JOSE, CA, OCTOBER 18, 2007 -- Xilinx, Inc. (Nasdaq: XLNX) today announced net revenues of $444.9 million in the second quarter of fiscal 2008, flat sequentially with the prior quarter and down 5% compared to the same quarter a year ago. Second quarter net income was $89.7 million, or $0.30 per diluted share.
The Xilinx Board of Directors declared a quarterly cash dividend of $0.12 per outstanding share of common stock, payable on December 5, 2007 to all stockholders of record at the close of business on November 14, 2007.
Additional second quarter comparisons are represented in the chart below:
GAAP Results
(In millions, except EPS)
| | | | | | | | Growth Rates |
| | Q2 FY 2008 | | Q1 FY 2008 | | Q2 FY 2007 | | Q-T-Q | | Y-T-Y |
| Net revenues | | $ | 444.9 | | $ | 445.9 | | $ | 467.2 | | 0 | % | | | -5 | % | |
| Operating income | | $ | 94.4 | | $ | 97.5 | | $ | 93.2 | | -3 | % | | | 1 | % | |
| Net income | | $ | 89.7 | | $ | 84.3 | | $ | 93.0 | | 6 | % | | | -4 | % | |
| Diluted earnings per share | | $ | 0.30 | | $ | 0.28 | | $ | 0.27 | | 7 | % | | | 11 | % | |
In spite of flat overall sales growth, sales from Asia Pacific reached record levels. Sales from Asia Pacific represented 30% of sales in the September quarter, up from 25% in the same quarter of the prior year and up from 13% in the same quarter five years ago. This growth is due to a combination of broad-based PLD adoption by customers within the region as well as the continuing trend by US and European companies to outsource manufacturing operations to the Asia Pacific region. Within Asia Pacific, sales from China and Korea recorded the strongest growth on a year-over-year basis driven primarily by increased activities in communications and consumer applications.
“I am pleased with our reduction in inventories as well as our continued operating expense control,” said Wim Roelandts, Xilinx chief executive officer. “Combined inventory at Xilinx and distribution decreased by nine days to 92 days in the September quarter. This is lower than we had anticipated entering the quarter and the lowest level in nearly four years. Additionally, operating expenses were lower than forecast.”
Business Review – September Quarter Fiscal 2008
- Total inventory days at Xilinx and distribution were 92 days, down from 101 dayslast quarter.
- Accounts receivable days sales outstanding were 48, up from 43 in the prior quarter.
- Capital expenditures and depreciation were $13 million and $14 million, respectively.
| Net Revenues by Geography: |
| | | Percentages | | Growth Rates |
| | | Q2 | | Q1 | | Q2 | | | | |
| | | FY 2008 | | FY 2008 | | FY 2007 | | Q-T-Q | | Y-T-Y |
| North America | | 38% | | 39% | | 40% | | -2% | | -9% |
| Asia Pacific | | 30% | | 29% | | 25% | | 3% | | 14% |
| Europe | | 22% | | 22% | | 23% | | -2% | | -9% |
| Japan | | 10% | | 10% | | 12% | | 2% | | -19% |
| |
| Net Revenues by End Market: |
| | | Percentages | | Growth Rates |
| | | Q2 | | Q1 | | Q2 | | | | |
| | | FY 2008 | | FY 2008 | | FY 2007 | | Q-T-Q | | Y-T-Y |
| Communications | | 45% | | 45% | | 45% | | 1% | | -6% |
| Industrial & Other | | 30% | | 32% | | 29% | | -5% | | 0% |
| Consumer & Automotive | | 17% | | 15% | | 16% | | 8% | | 1% |
| Data Processing | | 8% | | 8% | | 10% | | -1% | | -24% |
| |
| Net Revenues by Product*: |
| | | Percentages | | Growth Rates |
| | | Q2 | | Q1 | | Q2 | | | | |
| | | FY 2008 | | FY 2008 | | FY 2007 | | Q-T-Q | | Y-T-Y |
| New | | 30% | | 28% | | 22% | | 6% | | 29% |
| Mainstream | | 49% | | 50% | | 54% | | -1% | | -14% |
| Base | | 15% | | 16% | | 18% | | -10% | | -20% |
| Support | | 6% | | 6% | | 6% | | 4% | | -2% |
*Products are classified as follows:
New Products: Virtex™-5, Virtex-4, Spartan™-3, and CoolRunner™- II products
Mainstream Products: Virtex-II, Spartan-II, CoolRunner and Virtex-E products
Base Products: Virtex, Spartan, XC4000 and XC9500 products
Support Products: Configuration solutions, HardWire, Software & Support/Services
Highlights –September Quarter Fiscal 2008:
- For the second consecutive quarter, Xilinx experienced strong sales from the domain optimized Virtex-4 FX family, which includes embedded transceiver and processing functionality. Sales from this family increased 170% in the second quarter versus the same quarter a year ago representing over 30% of the overall Virtex-4 family, up from 15% in the same quarter last year.
- Xilinx demonstrated its commitment to serving the high growth Asia Pacific market at the recent opening ceremonies for its new regional headquarters in Singapore. The headquarters provides infrastructure and support for all of Xilinx's activities in the region and includes facilities for research and development, marketing, manufacturing and testing, logistics warehousing and regional business operations. Xilinx is currently the largest PLD vendor in Asia Pacific, with 48% market segment share in CY2006.
- Xilinx received the Cisco Excellence in Delivery and Flexibility supplier appreciation award during the quarter. Xilinx was among an exclusive group of suppliers honored at Cisco’s recent 16thannual supplier appreciation day and received the award based on its support of Cisco’s flexibility and lead-time requirements.
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Business Outlook – December Quarter Fiscal 2008
- Revenues are expected to be up 2% to 6% sequentially.
- Gross margin is expected to be between 62% and 63%.
- Operating expenses are expected to be approximately flat sequentially.
- Other income including interest expense is expected to be approximately $12 million.
- Tax rate is expected to be approximately 21%.
- Fully diluted share count is expected to be approximately 297 million shares.
| Business Update – December Quarter Fiscal 2008 The Company expects to issue a third quarter business update press release after the market closes on Wednesday, December 5, 2007. Financial guidance to the investment community will be limited to the points mentioned in the business update document. Please sign up for a push email alert, which is available from our investor relations web site at http://www.investor.xilinx.com. |
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 “may,” “will,” “could,” “should,” “expect,” “believe,” “anticipate,” “estimate,” “continue,” “plan,” “intend,” “project” or other similar words. Undue reliance should not be placed on such forward-looking statements and projections, which speak only as of the date they are made. Actual events and results may differ materially from those in the forward-looking statements and are subject to risks and uncertainties including the general health of global economies as well as of the semiconductor industry, the health of our end markets and our customers' customers, our ability to forecast end customer demand, customer acceptance of our new products, the ability of our customers to manage their inventories, 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 Form 10-K.
About Xilinx
Xilinx, Inc. (NASDAQ: XLNX) is the worldwide leader of programmable logic solutions. Additional information about Xilinx is available athttp://www.xilinx.com.
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XILINX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)
| | Three Months Ended | | Six Months Ended |
| | Sept. 29, | | Sept. 30, | | June 30, | | Sept. 29, | | Sept. 30, |
| | 2007 | | 2006 | | 2007 | | 2007 | | 2006 |
| Net revenues | $ | 444,894 | | $ | 467,180 | | $ | 445,912 | | $ | 890,806 | | $ | 948,542 | |
| Cost of revenues | | 170,122 | | | 180,580 | | | 168,478 | | | 338,600 | | | 372,639 | |
| Gross margin | | 274,772 | | | 286,600 | | | 277,434 | | | 552,206 | | | 575,903 | |
| Operating expenses: | | | | | | | | | | | | | | | |
| Research and development | | 88,294 | | | 95,951 | | | 87,870 | | | 176,164 | | | 193,533 | |
| Selling, general and administrative | | 90,204 | | | 95,462 | | | 90,199 | | | 180,403 | | | 189,880 | |
| Amortization of acquisition-related intangibles | | 1,897 | | | 2,031 | | | 1,897 | | | 3,794 | | | 4,062 | |
| Stock-based compensation related to prior years | | – | | | – | | | – | | | – | | | 2,209 | |
| Total operating expenses | | 180,395 | | | 193,444 | | | 179,966 | | | 360,361 | | | 389,684 | |
| |
| Operating income | | 94,377 | | | 93,156 | | | 97,468 | | | 191,845 | | | 186,219 | |
| Impairment loss on investments | | – | | | – | | | – | | | – | | | (437 | ) |
| Interest and other, net | | 19,504 | | | 26,132 | | | 13,533 | | | 33,037 | | | 40,973 | |
| Income before income taxes | | 113,881 | | | 119,288 | | | 111,001 | | | 224,882 | | | 226,755 | |
| Provision for income taxes | | 24,183 | | | 26,242 | | | 26,723 | | | 50,906 | | | 51,218 | |
| Net income | $ | 89,698 | | $ | 93,046 | | $ | 84,278 | | $ | 173,976 | | $ | 175,537 | |
| |
| Net income per common share: | | | | | | | | | | | | | | | |
| Basic | $ | 0.30 | | $ | 0.27 | | $ | 0.28 | | $ | 0.58 | | $ | 0.52 | |
| Diluted | $ | 0.30 | | $ | 0.27 | | $ | 0.28 | | $ | 0.57 | | $ | 0.51 | |
| Cash dividends declared per common share | $ | 0.12 | | $ | 0.09 | | $ | 0.12 | | $ | 0.24 | | $ | 0.18 | |
| Shares used in per share calculations: | | | | | | | | | | | | | | | |
| Basic | | 298,008 | | | 339,431 | | | 297,720 | | | 297,863 | | | 340,845 | |
| Diluted | | 302,226 | | | 343,192 | | | 303,198 | | | 302,604 | | | 346,734 | |
XILINX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
| | Sept. 29, | | March 31, |
| | 2007 | | 2007 |
| | (Unaudited) | | (1) |
| ASSETS | | | | | | |
| Current assets | | | | | | |
| Cash, cash equivalents and short-term investments | $ | 1,221,288 | | $ | 1,137,915 | |
| Accounts receivable, net | | 236,600 | | | 182,295 | |
| Inventories | | 128,954 | | | 174,572 | |
| Deferred tax assets and other current assets | | 185,296 | | | 205,320 | |
| Total current assets | | 1,772,138 | | | 1,700,102 | |
| Net property, plant and equipment | | 414,827 | | | 413,036 | |
| Long-term investments | | 687,358 | | | 675,713 | |
| Investment in United Microelectronics Corporation | | 67,070 | | | 67,050 | |
| Other assets | | 327,065 | | | 323,454 | |
| Total Assets | $ | 3,268,458 | | $ | 3,179,355 | |
| |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | |
| Current liabilities | | | | | | |
| Accounts payable and accrued liabilities | $ | 193,661 | | $ | 214,317 | |
| Deferred income on shipments to distributors | | 101,943 | | | 89,052 | |
| Total current liabilities | | 295,604 | | | 303,369 | |
| Convertible debentures | | 999,119 | | | 999,597 | |
| Deferred tax liabilities | | 90,175 | | | 102,329 | |
| Other long-term liabilities | | 41,504 | | | 1,320 | |
| Stockholders' equity | | 1,842,056 | | | 1,772,740 | |
| Total Liabilities and Stockholders' Equity | $ | 3,268,458 | | $ | 3,179,355 | |
| | | | | | | |
| (1) Derived from audited financial statements | | | | | | |
XILINX,INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)
(In thousands)
| | Three Months Ended | | Six Months Ended |
| | Sept. 29, | | Sept. 30, | | June 30, | | Sept. 29, | | Sept. 30, |
| | 2007 | | 2006 | | 2007 | | 2007 | | 2006 |
| SELECTED CASH FLOW INFORMATION: | | | | | | | | | | | | | | | | | | | |
| Depreciation | $ | 14,380 | | | $ | 12,825 | | | $ | 12,446 | | | $ | 26,826 | | | $ | 25,509 | |
| Amortization | | 4,604 | | | | 4,467 | | | | 4,605 | | | | 9,209 | | | | 8,953 | |
| Stock-based compensation | | 15,753 | | | | 21,906 | | | | 16,521 | | | | 32,274 | | | | 48,714 | |
| Net cash provided by operating activities | | 145,066 | | | | 119,497 | | | | 126,324 | | | | 271,390 | | | | 272,762 | |
| Purchases of property, plant and equipment | | (13,019 | ) | | | (14,031 | ) | | | (15,599 | ) | | | (28,618 | ) | | | (26,989 | ) |
| Payment of dividends to stockholders | | (35,683 | ) | | | (30,331 | ) | | | (35,718 | ) | | | (71,401 | ) | | | (61,161 | ) |
| Repurchases of common stock | | (150,000 | ) | | | (125,000 | ) | | | - | | | | (150,000 | ) | | | (250,000 | ) |
| Proceeds from issuance of common | | | | | | | | | | | | | | | | | | | |
| stock to employees and excess tax benefit | | 30,738 | | | | 31,137 | | | | 48,046 | | | | 78,784 | | | | 68,699 | |
| |
| STOCK-BASED COMPENSATION INCLUDED IN: | | | | | | | | | | | | | | | | | | | |
| Cost of revenues | $ | 1,677 | | | $ | 2,426 | | | $ | 2,171 | | | $ | 3,848 | | | $ | 6,068 | |
| Research and development | | 7,247 | | | | 9,810 | | | | 7,301 | | | | 14,548 | | | | 22,174 | |
| Selling, general and administrative | | 6,829 | | | | 9,670 | | | | 7,048 | | | | 13,877 | | | | 20,472 | |
