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| 8-K - 8-K Q2'13 EARNINGS RELEASE - XILINX INC | a8-kdocument.htm |
Exhibit 99.1
Investor Relations Contact:
Lori Owen
Xilinx, Inc.
(408) 879-6911
lori.owen@xilinx.com
XILINX ANNOUNCES Q2 FISCAL 2013 RESULTS
SAN JOSE, CA, October 17, 2012-- Xilinx, Inc. (Nasdaq: XLNX) today announced second quarter fiscal 2013 sales of $543.9 million, down 7% sequentially and down 2% from the second quarter of the prior fiscal year. Second quarter fiscal 2013 net income was $123.4 million, or $0.46 per diluted share.
The Xilinx Board of Directors announced a quarterly cash dividend of $0.22 per outstanding share of common stock, payable on November 28, 2012 to all stockholders of record at the close of business on November 7, 2012.
Additional second quarter comparisons are represented in the charts below:
GAAP Results
(In millions, except EPS)
Growth Rates | ||||||||||||||||||
Q2 FY 2013 | Q1 FY 2013 | Q2 FY 2012 | Q-T-Q | Y-T-Y | ||||||||||||||
Net revenues | $ | 543.9 | $ | 582.8 | $ | 555.2 | (7 | )% | (2 | )% | ||||||||
Operating income | $ | 148.1 | $ | 164.6 | $ | 154.8 | (10 | )% | (4 | )% | ||||||||
Net income | $ | 123.4 | $ | 129.8 | $ | 126.3 | (5 | )% | (2 | )% | ||||||||
Diluted earnings per share | $ | 0.46 | $ | 0.47 | $ | 0.47 | (2 | )% | (2 | )% | ||||||||
“Sales from our industry-leading, All Programmable 28-nm products exceeded $20 million during the quarter with sales from all five family members. Our 28-nm product portfolio is the industry's broadest; and design win activity for all five family members continues to be exceptionally strong across a broad base of end markets and applications. This is particularly impressive given the backdrop of a challenging macroeconomic environment," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "With All Programmable FPGAs, SoCs, and 3D ICs available today, leadership in performance, power and integration and unmatched productivity gains with Vivado™ Design Suite, Xilinx is unequivocally a generation ahead at 28-nm."
Net Revenues by Geography:
Percentages | Growth Rates | ||||||||||||||
Q2 FY 2013 | Q1 FY 2013 | Q2 FY 2012 | Q-T-Q | Y-T-Y | |||||||||||
North America | 28 | % | 30 | % | 29 | % | (11 | )% | (5 | )% | |||||
Asia Pacific | 36 | % | 35 | % | 31 | % | (4 | )% | 14 | % | |||||
Europe | 26 | % | 26 | % | 29 | % | (8 | )% | (13 | )% | |||||
Japan | 10 | % | 9 | % | 11 | % | — | % | (9 | )% | |||||
Net Revenues by End Market:
Percentages | Growth Rates | ||||||||||||||
Q2 FY 2013 | Q1 FY 2013 | Q2 FY 2012 | Q-T-Q | Y-T-Y | |||||||||||
Communications & Data Center | 49 | % | 45 | % | 46 | % | 3 | % | 5 | % | |||||
Industrial, Aerospace & Defense | 32 | % | 34 | % | 33 | % | (13 | )% | (8 | )% | |||||
Broadcast, Consumer & Automotive | 15 | % | 16 | % | 16 | % | (15 | )% | (5 | )% | |||||
Other | 4 | % | 5 | % | 5 | % | (24 | )% | (17 | )% | |||||
Net Revenues by Product:
Percentages | Growth Rates | ||||||||||||||
Q2 FY 2013 | Q1 FY 2013 | Q2 FY 2012 | Q-T-Q | Y-T-Y | |||||||||||
New | 20 | % | 17 | % | 11 | % | 7 | % | 81 | % | |||||
Mainstream | 47 | % | 43 | % | 49 | % | 3 | % | (5 | )% | |||||
Base | 29 | % | 36 | % | 36 | % | (24 | )% | (21 | )% | |||||
Support | 4 | % | 4 | % | 4 | % | (8 | )% | (14 | )% | |||||
Products are classified as follows:
New products: Virtex®‐7, Kintex™‐7, Zynq™-7000, Artix™ - 7, 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)
Q2 FY 2013 | Q1 FY 2013 | Q2 FY 2012 | ||||||||||
Annual Return on Equity (%)* | 19 | 19 | 23 | |||||||||
Operating Cash Flow | $ | 197 | $ | 163 | $ | 200 | ||||||
Depreciation Expense | $ | 14 | $ | 15 | $ | 13 | ||||||
Capital Expenditures | $ | 8 | $ | 8 | $ | 18 | ||||||
Combined Inventory Days | 109 | 99 | 126 | |||||||||
Revenue Turns (%) | 57 | 55 | 51 | |||||||||
* Return on equity calculation: Annualized net income/average stockholders' equity
Highlights - September Quarter Fiscal 2013
• | Xilinx announced the acquisition of substantially all of the assets of two companies during the quarter: Modesat Communications and PetaLogix. The acquisition of Modesat, a high performance wireless backhaul solutions provider, allows customers to retain their proprietary IP, while leveraging the backhaul solutions and the flexibility of Xilinx All Programmable FPGAs and SoC devices to achieve faster time-to-market. The acquisition of PetaLogix, an embedded Linux solutions provider, enables Xilinx to strengthen its capabilities and commitment to customers to provide the best Linux solutions possible. |
• | Xilinx remains committed to delivering stockholder value. In spite of a challenging macroeconomic environment, Xilinx generated nearly $200 million in operating cash flow during the quarter, paid $57 million in dividends to stockholders and repurchased 2.5 million shares. |
Business Outlook - December Quarter Fiscal 2013
•Sales are expected to be down 1% to down 5% sequentially.
• | Gross margin is expected to be approximately 66%. |
• | Operating expenses are expected to be approximately $224 million, including $3 million of amortization of acquisition-related intangibles. |
•Other income and expense is expected to be an expense of approximately $7 million.
•Fully diluted share count is expected to be approximately 269 million.
• | Full year fiscal 2013 tax rate is expected to be approximately 15%. |
Conference Call
A conference call will be held today at 2:00 p.m. Pacific Time to discuss the second quarter financial results and management's outlook for the December 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 30459116. 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 December quarter for fiscal 2013. 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 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.
#1279F
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 | Six Months Ended | ||||||||||||||||||
September 29, 2012 | June 30, 2012 | October 1, 2011 | September 29, 2012 | October 1, 2011 | |||||||||||||||
Net revenues | $ | 543,933 | $ | 582,784 | $ | 555,209 | $ | 1,126,717 | $ | 1,170,672 | |||||||||
Cost of revenues | 187,713 | 198,411 | 200,564 | 386,124 | 423,696 | ||||||||||||||
Gross margin | 356,220 | 384,373 | 354,645 | 740,593 | 746,976 | ||||||||||||||
Operating expenses: | |||||||||||||||||||
Research and development | 113,887 | 121,447 | 105,774 | 235,334 | 211,791 | ||||||||||||||
Selling, general and administrative | 91,928 | 96,201 | 88,681 | 188,129 | 185,077 | ||||||||||||||
Amortization of acquisition-related intangibles | 2,319 | 2,148 | 1,982 | 4,467 | 3,605 | ||||||||||||||
Restructuring charges | — | — | 3,369 | — | 3,369 | ||||||||||||||
Total operating expenses | 208,134 | 219,796 | 199,806 | 427,930 | 403,842 | ||||||||||||||
Operating income | 148,086 | 164,577 | 154,839 | 312,663 | 343,134 | ||||||||||||||
Interest and other expense, net | 10,003 | 9,672 | 8,598 | 19,675 | 16,409 | ||||||||||||||
Income before income taxes | 138,083 | 154,905 | 146,241 | 292,988 | 326,725 | ||||||||||||||
Provision for income taxes | 14,646 | 25,074 | 19,955 | 39,720 | 46,065 | ||||||||||||||
Net income | $ | 123,437 | $ | 129,831 | $ | 126,286 | $ | 253,268 | $ | 280,660 | |||||||||
Net income per common share: | |||||||||||||||||||
Basic | $ | 0.47 | $ | 0.49 | $ | 0.48 | $ | 0.97 | $ | 1.06 | |||||||||
Diluted | $ | 0.46 | $ | 0.47 | $ | 0.47 | $ | 0.93 | $ | 1.03 | |||||||||
Cash dividends per common share | $ | 0.22 | $ | 0.22 | $ | 0.19 | $ | 0.44 | $ | 0.38 | |||||||||
Shares used in per share calculations: | |||||||||||||||||||
Basic | 260,605 | 263,055 | 264,006 | 262,143 | 264,853 | ||||||||||||||
Diluted | 270,265 | 273,820 | 267,927 | 272,182 | 273,009 | ||||||||||||||
XILINX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 29, 2012 | March 31, 2012 * | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash, cash equivalents and short-term investments | $ | 1,706,457 | $ | 1,917,627 | |||
Accounts receivable, net | 222,269 | 214,965 | |||||
Inventories | 204,067 | 204,866 | |||||
Deferred tax assets and other current assets | 117,265 | 112,851 | |||||
Total current assets | 2,250,058 | 2,450,309 | |||||
Net property, plant and equipment | 382,206 | 394,982 | |||||
Long-term investments | 1,497,394 | 1,209,228 | |||||
Other assets | 418,976 | 409,603 | |||||
Total Assets | $ | 4,548,634 | $ | 4,464,122 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 294,689 | $ | 275,774 | |||
Deferred income on shipments to distributors | 47,967 | 67,002 | |||||
Total current liabilities | 342,656 | 342,776 | |||||
Convertible debentures | 915,109 | 906,569 | |||||
Deferred tax liabilities | 499,709 | 463,045 | |||||
Other long-term liabilities | 39,469 | 44,047 | |||||
Stockholders' equity | 2,751,691 | 2,707,685 | |||||
Total Liabilities and Stockholders' Equity | $ | 4,548,634 | $ | 4,464,122 | |||
* | Derived from audited financial statements |
XILINX, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)
(In thousands)
Three Months Ended | Six Months Ended | ||||||||||||||||||
September 29, 2012 | June 30, 2012 | October 1, 2011 | September 29, 2012 | October 1, 2011 | |||||||||||||||
SELECTED CASH FLOW INFORMATION: | |||||||||||||||||||
Depreciation | $ | 14,151 | $ | 14,603 | $ | 13,396 | $ | 28,754 | $ | 27,094 | |||||||||
Amortization | 4,188 | 4,267 | 4,326 | 8,455 | 8,036 | ||||||||||||||
Stock-based compensation | 19,246 | 17,608 | 16,899 | 36,854 | 30,666 | ||||||||||||||
Net cash provided by operating activities | 197,370 | 162,946 | 199,584 | 360,316 | 437,278 | ||||||||||||||
Purchases of property, plant and equipment | 7,636 | 8,342 | 17,628 | 15,978 | 31,417 | ||||||||||||||
Payment of dividends to stockholders | 57,255 | 58,066 | 50,348 | 115,321 | 100,804 | ||||||||||||||
Repurchases of common stock | 87,441 | 90,707 | 111,537 | 178,148 | 177,191 | ||||||||||||||
Proceeds from issuance of common stock to employees and excess tax benefit | 28,627 | 9,027 | 28,369 | 37,654 | 59,819 | ||||||||||||||
STOCK-BASED COMPENSATION INCLUDED IN: | |||||||||||||||||||
Cost of revenues | $ | 1,473 | $ | 1,728 | $ | 1,284 | $ | 3,201 | $ | 2,594 | |||||||||
Research and development | 9,404 | 8,623 | 8,103 | 18,027 | 14,590 | ||||||||||||||
Selling, general and administrative | 8,369 | 7,257 | 7,512 | 15,626 | 13,482 | ||||||||||||||