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Xilinx Announces Fiscal 2009 Results

Posted on: Wednesday, 22 April 2009, 15:20 CDT

SAN JOSE, Calif., April 22 /PRNewswire-FirstCall/ -- Xilinx, Inc. (Nasdaq: XLNX) today announced fiscal 2009 sales of $1.83 billion, down 1% compared with $1.84 billion in fiscal 2008. Net income increased 0.4% to $375.6 million, or $1.36 per diluted share, in fiscal 2009 versus net income of $374.0 million, or $1.25 per diluted share, in the prior fiscal year.

(Logo: http://www.newscom.com/cgi-bin/prnh/20020822/XLNXLOGO)

Fourth quarter sales were $395.0 million, down 14% sequentially and down 17% from the fourth quarter of the prior fiscal year. Fourth quarter net income was $70.5 million, or $0.26 per diluted share, including a $20.9 million pre-tax gain on the early extinguishment of convertible debentures and a $1.0 million pre-tax impairment charge on investments. Collectively, these income and expense items represented approximately $0.06 per diluted share after tax.

The Xilinx Board of Directors declared a quarterly cash dividend of $0.14 per outstanding share of common stock, payable on June 3, 2009 to all stockholders of record at the close of business on May 13, 2009.

Additional fourth quarter comparisons are represented in the charts below:

GAAP Results (In millions, except EPS) Growth Rates Q4 FY 2009 Q3 FY 2009 Q4 FY 2008 Q-T-Q Y-T-Y ---------- ---------- ---------- ----- ----- Net revenues $395.0 $458.4 $475.8 -14% -17% Operating income $78.3 $119.6 $117.0 -35% -33% Net income $70.5 $139.4 $96.5 -49% -27% Diluted earnings per share $0.26 $0.51 $0.34 -49% -24%

March quarter sales declined 14% sequentially with sales from all geographies and end markets declining as expected. Xilinx operating expenses declined 4% sequentially, which was more than expected as a result of continued expense controls.

"Current economic conditions remain challenging for the semiconductor industry and Xilinx is no exception," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "However, strong 65-nm design win activity coupled with increased participation in end markets such as next generation wireless communications and defense have enabled Xilinx to outperform the semiconductor industry throughout the recent economic downturn."

Net Revenues by Geography: Percentages Growth Rates Q4 Q3 Q4 FY 2009 FY 2009 FY 2008 Q-T-Q Y-T-Y ------- ------- ------- ----- ----- North America 35% 34% 38% -11% -23% Asia Pacific 35% 33% 28% -11% 1% Europe 22% 22% 23% -12% -21% Japan 8% 11% 11% -34% -35%

Net Revenues by End Market: Percentages Growth Rates Q4 Q3 Q4 FY 2009 FY 2009 FY 2008 Q-T-Q Y-T-Y ------- ------- ------- ----- ----- Communications 47% 44% 42% -7% -6% Industrial & Other 32% 33% 33% -18% -20% Consumer & Automotive 14% 16% 17% -27% -33% Data Processing 7% 7% 8% -5% -29%

Net Revenues by Product*: Percentages Growth Rates Q4 Q3 Q4 FY 2009 FY 2009 FY 2008 Q-T-Q Y-T-Y ------- ------- ------- ----- ----- New 52% 48% 38% -6% 14% Mainstream 33% 36% 42% -22% -35% Base 10% 11% 14% -20% -43% Support 5% 5% 6% -10% -27% *Products are classified as follows: New Products: Virtex(R)-5, Virtex-4, Spartan(R)-3, and CoolRunner(TM)-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 -Fiscal 2009

• During the March quarter, Xilinx began shipments of its industry-leading, next generation Virtex-6 and Spartan-6 FPGA families of products. Both product families offer significant competitive advantages in areas such as performance, power, capacity, DSP bandwidth, memory and I/O performance. Currently, over 700 customers representing approximately 1,000 projects are engaged with the Virtex-6 and Spartan-6 FPGA Early Access program. Xilinx remains the only PLD company currently shipping a 45-nm, high-volume FPGA product.
• Sales from the Virtex-5 family increased throughout fiscal 2009 in spite of the economic downturn. Exiting fiscal 2009, Virtex-5 sales represented 17% of total sales in the fourth quarter, up from 7% in the same quarter of the prior fiscal year. Virtex-5 FPGAs are finding traction in a variety of applications including next generation wireless base stations, cable infrastructure to support "on demand" usage, communications test equipment, and even electronic gaming equipment.
• Xilinx continues to have one of the most stable and resilient business models in the technology industry in terms of cash flow generation and commitment to shareholder return. In fiscal 2009, Xilinx generated $442.5 million in operating cash flow, paid $193.2 million in cash to repurchase $310.4 million (principal amount) of our convertible debentures, paid $154.5 million in cash dividends and repurchased $275.0 million of common stock. Xilinx currently has among the highest dividend yields in the technology industry.

Key Statistics: (Dollars in millions) Q4 Q3 Q4 FY 2009 FY 2009 FY 2008 ------- ------- ------- Annual Return on Equity (%)* 22 24 22 Operating Cash Flow $61 $128 $102 Depreciation Expense $13 $13 $14 Capital Expenditures $6 $11 $6 Combined Inventory Days 90 99 92 Revenue Turns (%) 66 54 60 *Return on equity calculation: Annualized net income/average stockholders' equity

Business Outlook - June Quarter Fiscal 2010

• Sales are expected to be up 4% to down 4% sequentially.
• Gross margin is expected to be in the range of 61% to 63%.
• Operating expenses are expected to be approximately $173 million to $175 million including $11 million to $13 million in charges relating to restructuring activity announced on April 15, 2009.
• Interest and other is expected to be a net expense of approximately $3 million.
• Fully diluted share count is expected to be approximately flat with the prior quarter.
• June quarter tax rate is expected to be approximately 21%.

Conference Call

A conference call will be held today at 2:00 p.m. Pacific Time to discuss the quarter's 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 92495581. The telephonic replay will be available for two weeks following the live call. The Company does not plan to provide a scheduled business update during the June quarter.

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," "may," "will," "could," "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. 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 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 the Company to generate cost and operating expense savings in an efficient and timely fashion, 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 Forms 10-K and 10-Q.

About Xilinx

Xilinx, Inc. (NASDAQ: XLNX) is the worldwide leader of programmable logic solutions. Additional information about Xilinx is available at http://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.

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XILINX, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) Three Months Ended Year Ended ------------------ ---------- Mar. 28, Mar. 29, Dec. 27, Mar. 28, Mar. 29, 2009 2008 2008 2009 2008 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (1) ----------- ----------- ----------- ----------- -- Net revenues $395,014 $475,760 $458,387 $1,825,184 $1,841,372 Cost of revenues 149,907 173,974 165,331 669,151 686,988 ------- ------- ------- ------- ------- Gross margin 245,107 301,786 293,056 1,156,033 1,154,384 ------- ------- ------- --------- --------- Operating expenses: Research and development 88,190 90,888 86,967 355,392 358,063 Selling, general and administra- tive 77,652 92,469 85,032 343,768 365,325 Amortization of acquisition- related intangibles 1,006 1,426 1,475 5,332 6,802 Restructuring charges - - - 22,023 -- - - - ------ -- Total operating expenses 166,848 184,783 173,474 726,515 730,190 ------- ------- ------- ------- ------- Operating income 78,259 117,003 119,582 429,518 424,194 Gain on early extinguishment of convertible debentures 20,934 - 89,672 110,606 -- Impairment loss on investments (967) (2,850) (19,540) (54,129) (2,850) Interest and other income (expense), net (1,431) 5,328 (575) 12,189 52,750 ------ ----- ---- ------ ------ Income before income taxes 96,795 119,481 189,139 498,184 474,094 Provision for income taxes 26,283 23,002 49,765 122,544 100,047 ------ ------ ------ ------- ------- Net income $70,512 $96,479 $139,374 $375,640 $374,047 ======= ======= ======== ======== ======== Net income per common share: Basic $0.26 $0.34 $0.51 $1.36 $1.27 ===== ===== ===== ===== ===== Diluted $0.26 $0.34 $0.51 $1.36 $1.25 ===== ===== ===== ===== ===== Cash dividends declared per common share $0.14 $0.12 $0.14 $0.56 $0.48 ===== ===== ===== ===== ===== Shares used in per share calculations: Basic 274,689 284,523 273,997 276,113 295,050 ======= ======= ======= ======= ======= Diluted 274,881 286,321 274,223 276,854 298,636 ======= ======= ======= ======= ======= (1) Derived from audited financial statements XILINX, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) March 28, March 29, 2009 2008 ---- ---- (Unaudited) (1) ASSETS Current assets: Cash, cash equivalents and short-term investments $1,324,933 $1,296,435 Accounts receivable, net 216,390 249,147 Inventories 119,832 130,250 Deferred tax assets and other current assets 91,313 144,364 ------ ------- Total current assets 1,752,468 1,820,196 Net property, plant and equipment 387,907 404,430 Long-term investments 347,787 564,269 Other assets 337,353 348,212 ------- ------- Total Assets $2,825,515 $3,137,107 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $170,702 $228,988 Deferred income on shipments to distributors 62,364 111,678 ------ ------- Total current liabilities 233,066 340,666 Convertible debentures 690,125 999,851 Deferred tax liabilities 82,648 84,486 Other long-term liabilities 81,776 40,281 Stockholders' equity 1,737,900 1,671,823 --------- --------- Total Liabilities and Stockholders' Equity $2,825,515 $3,137,107 ========== ========== (1) Derived from audited financial statements XILINX, INC. SUPPLEMENTAL FINANCIAL INFORMATION (In thousands) Three Months Ended Year Ended ------------------ ---------- Mar. 28, Mar. 29, Dec. 27, Mar. 28, Mar. 29, 2009 2008 2008 2009 2008 ---- ---- ---- ---- ---- (Unaudited) (Unaudited) (Unaudited) (Unaudited) (1) ----------- ----------- ----------- ----------- -- SELECTED CASH FLOW INFORMATION: Depreciation $13,465 $13,876 $13,438 $55,632 $54,199 Amortization 3,312 4,219 4,120 15,885 17,756 Stock-based compensation 13,321 17,697 13,041 54,509 66,427 Net cash provided by operating activities 60,854 101,866 128,479 442,530 581,000 Purchases of property, plant and equipment (6,398) (6,238) (11,061) (39,109) (45,593) Payment of dividends to stockholders (38,552) (34,093) (38,357) (154,534) (139,974) Repurchases of common stock - (200,000) - (275,000) (550,000) Repurchases of convertible debentures (46,858) - (146,324) (193,182) - Proceeds from issuance of common stock to employees and excess tax benefit 20,259 57,677 2,992 104,638 148,071 STOCK-BASED COMPENSATION INCLUDED IN: Cost of revenues $1,375 $1,820 $1,337 $5,791 $7,605 Research and development 6,373 8,908 6,055 25,075 31,433 Selling, general and administrative 5,573 6,969 5,649 23,079 27,389 Restructuring charges - - - 564 - (1) Derived from audited financial statements

SOURCE Xilinx Public Relations

Source: PR Newswire

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