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Xilinx Announces Q1 Fiscal 2015 Results; EPS $0.62

Companies mentioned in this article: Xilinx, Inc.

SAN JOSE, Calif., July 22, 2014 /PRNewswire/ -- Xilinx, Inc. (Nasdaq: XLNX) today announced first quarter fiscal 2015 sales of $613 million, down 1% from the prior quarter and up 6% from the same quarter of the prior fiscal year. First quarter fiscal 2015 net income was $174 million or $0.62 per diluted share.

Logo - http://photos.prnewswire.com/prnh/20020822/XLNXLOGO

The Xilinx Board of Directors announced a quarterly cash dividend of $0.29 per outstanding share of common stock, payable on August 27, 2014 to all stockholders of record at the close of business on August 6, 2014.

Additional first quarter comparisons are represented in the charts below:


     GAAP
     Results

     (In
     millions,
     except
     EPS)

                                                            Growth Rates

                 Q1             Q4             Q1             Q-T-Q         Y-T-Y

               FY 2015        FY 2014        FY 2014
               -------        -------        -------

     Net
     revenues          $612.6         $617.8         $579.0             -1%        6%

     Operating
     income            $206.5         $189.5         $192.9              9%        7%

     Net
     income            $173.6         $156.0         $157.0             11%       11%

     Diluted
     earnings
     per
     share              $0.62          $0.53          $0.56             17%       11%

"June quarter revenues were impacted by weaker than anticipated sales from our defense and wireless businesses," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "However, I am pleased by our continued focus on supply chain efficiencies and cost reduction efforts, which resulted in gross and operating margins of 69.1% and 33.7%, respectively. Looking ahead to the second half of our fiscal year, I believe Xilinx is positioned to benefit from a recovery in wireless and defense programs as well as improved business conditions in wired communications and industrial applications."


    Net Revenues by
     Geography:

                    Percentages                Growth Rates

                         Q1           Q4            Q1        Q-T-Q     Y-T-Y

                      FY 2015      FY 2014       FY 2014
                      -------      -------       -------

     North
     America                   26%         27%            31%       -4%       -12%

    Asia
     Pacific                   43%         43%            36%       -2%        26%

    Europe                     21%         21%            24%        1%        -7%

    Japan                      10%          9%             9%        9%        21%


    Net Revenues by
     End Market:

                     Percentages                Growth Rates

                          Q1           Q4            Q1        Q-T-Q     Y-T-Y

                       FY 2015      FY 2014       FY 2014
                       -------      -------       -------

    Communications &
     Data Center                50%         49%            44%        1%        20%

    Industrial,
     Aerospace &
     Defense                    31%         34%            37%       -9%       -11%

    Broadcast,
     Consumer &
     Automotive                 16%         15%            16%        5%         3%

    Other                        3%          2%             3%       39%        11%


               Net Revenues by
                   Product:

                               Percentages                Growth Rates

                                    Q1          Q4             Q1        Q-T-Q      Y-T-Y

                                 FY 2015      FY 2014       FY 2014
                                 -------      -------       -------

    New                                   45%         42%            30%         6%        58%

    Mainstream                            34%         34%            36%         0%        -2%

    Base                                  18%         21%            30%       -14%       -36%

    Support                                3%          3%             4%        -9%        -9%

Products are classified as follows:

New products: Virtex® Ultrascale(TM), Kintex® Ultrascale, Kintex?7, Artix®-7, Zynq®-7000, Virtex?6, Spartan®?6 products
Mainstream products: Virtex?5, Spartan?3 and CoolRunner(TM)?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)

                                    Q1           Q4           Q1

                                 FY 2015      FY 2014      FY 2014
                                 -------      -------      -------


    Annual Return on Equity (%)*           25           22           21


    Operating Cash Flow                  $130         $189         $144


    Depreciation Expense                  $13          $14          $14


    Capital Expenditures                   $9          $14          $11


    Combined Inventory Days               135          115          105


    Revenue Turns (%)                     47           54           56

                 *Return on equity calculation:
                 Annualized net income/average
                 stockholders' equity

Highlights - June Quarter Fiscal 2015

    --  Xilinx announced the first customer shipment of the Virtex®
        UltraScale(TM) All Programmable FPGA, and the expansion of the
        industry's only 20nm high-end family. Virtex UltraScale devices provide
        unprecedented levels of performance, system integration, and bandwidth
        for a wide range of applications, such as wired communication, test and
        measurement, aerospace and defense, and data center.
    --  For the quarter, Xilinx reported a gross margin of 69.1%, up from 67.6%
        in the prior quarter and better than anticipated. The improvement in
        gross margin underscores the Company's continued commitment to driving
        cost reduction and efficiencies across the supply chain.
    --  Xilinx continued to demonstrate a strong commitment to returning value
        to stockholders. During the June quarter, the Company repurchased 2.1
        million shares of stock for $100 million and paid a record $77 million
        in quarterly dividends.

Business Outlook - September Quarter Fiscal 2015

    --  Sales are expected to be flat to down 4% sequentially.
    --  Gross margin is expected to be approximately 70%.
    --  Operating expenses are expected to be approximately $236 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 282 million.
    --  June 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 June quarter financial results and management's outlook for the September 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 59028978. 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 September quarter of fiscal 2015. 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.

#1438F

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

Investor Relations Contact:
Lori Owen
Xilinx, Inc.
(408) 879-6911
ir@xilinx.com


    XILINX, INC.

    CONDENSED CONSOLIDATED STATEMENTS OF
     INCOME

    (Unaudited)

    (In thousands, except per share amounts)

                                               Three Months Ended
                                             ------------------

                                              June 28,            March 29,          June 29,
                                                          2014                  2014              2013
                                                          ----                  ----              ----

    Net revenues                                      $612,633              $617,823          $578,955

    Cost of
     revenues                                          189,189               199,945           179,700
                                                       -------               -------           -------

    Gross margin                                       423,444               417,878           399,255
                                                       -------               -------           -------

    Operating expenses:

    Research and
     development                                       122,013               127,812           111,541

    Selling,
     general and
     administrative                                     92,513                98,087            92,387

    Amortization
     of
     acquisition-
     related
     intangibles                                         2,418                 2,462             2,418
                                                         -----                 -----             -----

    Total
     operating
     expenses                                          216,944               228,361           206,346
                                                       -------               -------           -------

    Operating
     income                                            206,500               189,517           192,909

    Loss on
     extinguishment
     of
     convertible
     debentures                                              -                9,848                 -

    Interest and
     other
     expense,
     net                                                 6,222                 3,819             9,930
                                                         -----                 -----             -----

    Income
     before
     income
     taxes                                             200,278               175,850           182,979

    Provision
     for income
     taxes                                              26,667                19,823            25,956
                                                        ------                ------            ------

    Net income                                        $173,611              $156,027          $157,023
                                                      ========              ========          ========

    Net income per common share:

    Basic                                                $0.65                 $0.58             $0.59
                                                         =====                 =====             =====

    Diluted                                              $0.62                 $0.53             $0.56
                                                         =====                 =====             =====

    Cash
     dividends
     per common
     share                                               $0.29                 $0.25             $0.25
                                                         =====                 =====             =====

    Shares used in per share
     calculations:

    Basic                                              267,648               268,134           264,153
                                                       =======               =======           =======

    Diluted                                            281,579               294,536           280,291
                                                       =======               =======           =======


    XILINX, INC.

    CONDENSED
     CONSOLIDATED BALANCE
     SHEETS

    (In thousands)

                            June 28, 2014         March 29, 2014 *
                            -------------          ---------------

                             (unaudited)

    ASSETS

    Current assets:

      Cash, cash
       equivalents and
       short-term
       investments                     $2,485,206              $2,457,321

      Accounts receivable,
       net                                281,335                 267,833

      Inventories                         256,791                 233,999

      Deferred tax assets
       and other current
       assets                             145,367                 107,994
                                          -------                 -------

    Total current assets                3,168,699               3,067,147

    Net property, plant
     and equipment                        350,736                 355,089

    Long-term investments               1,109,645               1,190,775

    Other assets                          425,139                 424,338

    Total Assets                       $5,054,219              $5,037,349
                                       ==========              ==========


    LIABILITIES ,
     TEMPORARY EQUITY AND
     STOCKHOLDERS' EQUITY

    Current liabilities:

      Accounts payable and
       accrued  liabilities              $296,825                $369,260

      Deferred income on
       shipments to
       distributors                        69,258                  55,099

      Current portion of
       long-term debt                     567,765                 565,001
                                          -------                 -------

    Total current
     liabilities                          933,848                 989,360


    Long-term debt                        994,110                 993,870

    Deferred tax
     liabilities                          283,492                 253,433

    Other long-term
     liabilities                           13,169                  13,005

    Temporary equity                       32,236                  34,999

    Stockholders' equity                2,797,364               2,752,682

    Total Liabilities,
     Temporary Equity and
     Stockholders' Equity              $5,054,219              $5,037,349
                                       ==========              ==========


    * Derived from
     audited financial
     statements


    XILINX, INC.

    SUPPLEMENTAL FINANCIAL INFORMATION

    (Unaudited)

    (In thousands)

                                           Three Months Ended
                                           ------------------

                                          June 28,            March 29,         June 29,
                                                        2014               2014             2013
                                                        ----               ----             ----

    SELECTED CASH FLOW INFORMATION:

    Depreciation                                     $13,468            $13,860          $14,033

    Amortization                                       5,205              4,980            4,885

    Stock-based
     compensation                                     22,106             25,961           20,954

    Net cash
     provided by
     operating
     activities                                      130,119            189,375          144,209

    Purchases of
     property,
     plant and
     equipment                                         9,116             14,148           11,301

    Payment of
     dividends to
     stockholders                                     77,421             67,042           66,007

    Repurchases of
     common stock                                    101,016             73,955                -

    Proceeds from
     issuance of
     common stock
     to employees
     and excess
     tax benefit                                      16,855            111,301           33,957


    STOCK-BASED COMPENSATION INCLUDED IN:

    Cost of
     revenues                                         $1,992             $1,974           $1,804

    Research and
     development                                      10,505             12,723           10,219

    Selling,
     general and
     administrative                                    9,609             11,264            8,931

SOURCE Xilinx, Inc.