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Xilinx Announces Q2 Fiscal 2015 Results; EPS $0.62

Oct 16, 2014

SAN JOSE, Calif., Oct. 16, 2014 /PRNewswire/ -- Xilinx, Inc. (Nasdaq: XLNX) today announced second quarter fiscal 2015 sales of $604 million, down 1% from the prior quarter and up 1% from the same quarter of the prior fiscal year.  Second quarter fiscal 2015 net income was $172 million or $0.62 per diluted share.

Xilinx is the worldwide leader of programmable logic solutions.

The Xilinx Board of Directors announced a quarterly cash dividend of $0.29 per outstanding share of common stock, payable on November 26, 2014 to all stockholders of record at the close of business on November 5, 2014.

Additional second quarter comparisons are represented in the charts below:

GAAP Results

(In millions, except EPS)







Growth Rates


Q2
FY 2015

Q1
FY 2015

Q2
FY 2014


Q-T-Q

Y-T-Y

Net revenues

$604.3

$612.6

$598.9


-1%

1%

Operating income

$200.0

$206.5

$163.8


-3%

22%

Net income

$171.5

$173.6

$141.5


-1%

21%

Diluted earnings per share

$0.62

$0.62

$0.49


0%

27%

 

"September quarter sales were in line with our guidance, but our profitability surpassed our expectations.  Operating margin was 33% in the September quarter, up from 27% in the same quarter a year ago," said Moshe Gavrielov, Xilinx President and Chief Executive Officer.  "For the December quarter, we are forecasting a strong recovery in 28nm sales driven by a broad base of applications.  We continue to target approximately $600 million in 28nm sales for fiscal year 2015, up nearly 60% from the prior fiscal year."

Net Revenues by Geography:



Percentages


Growth Rates


Q2
FY 2015

Q1
FY 2015

Q2
FY 2014


Q-T-Q

Y-T-Y

North America

32%

26%

31%


20%

3%

Asia Pacific

37%

43%

38%


-14%

-2%

Europe

21%

21%

22%


-1%

-2%

Japan

10%

10%

9%


-4%

13%

 

Net Revenues by End Market:



Percentages


Growth Rates


Q2
FY 2015

Q1
FY 2015

Q2
FY 2014


Q-T-Q

Y-T-Y

Communications & Data Center

41%

50%

43%


-19%

-4%

Industrial, Aerospace & Defense

41%

31%

38%


28%

8%

Broadcast, Consumer & Automotive

15%

16%

16%


-5%

-6%

Other

3%

3%

3%


- 4%

12%

 

Net Revenues by Product:



Percentages


Growth Rates


Q2
FY 2015

Q1
FY 2015

Q2
FY 2014


Q-T-Q

Y-T-Y

New

43%

45%

36%


-7%

21%

Mainstream

31%

34%

34%


-10%

-8%

Base

23%

18%

27%


28%

-14%

Support

3%

3%

3%


1%

-4%

 

Products are classified as follows:


New products: Virtex® Ultrascale™, Kintex® Ultrascale, 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)



Q2

FY 2015

Q1

FY 2015

Q2

FY 2014





Annual Return on Equity (%)*

25

25

19





Operating Cash Flow

$204

$130

$255





Depreciation Expense

$14

$13

$14





Capital Expenditures

$8

$9

$8





Combined Inventory Days

153

135

102





Revenue Turns (%)

48

47

54

 

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

 

Highlights – September Quarter Fiscal 2015

  • Xilinx announced its collaboration with China Mobile Research Institute for the development of virtualized 5G wireless networks in a special signing ceremony during the 5G Forum at the International Mobile Internet Conference on August 15. As 4G wireless networks are being deployed around the world, Xilinx and the world's largest wireless operator, China Mobile, are working together on virtualization advancements for next generation 5G systems to address challenges faced by wireless operators.
  • During the quarter, Xilinx repurchased 4.8 million shares of common stock for $200 million and paid $77 million in quarterly dividends. For the first half of our fiscal year, Xilinx returned $455 million to stockholders, 36% more than the Company generated in operating cash flow.

Business Outlook – December Quarter Fiscal 2015

  • Sales are expected to be flat to up 4% sequentially.
  • Gross margin is expected to be approximately 69%.
  • Operating expenses are expected to be approximately $230 million including $2.5 million of amortization of acquisition-related intangibles.
  • Other income and expenses are expected to be a net expense of approximately $6 million.
  • Fully diluted share count is expected to be approximately 272 million.
  • December 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 September 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 98130235. 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 December 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.

#1457F

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

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

XILINX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In thousands, except per share amounts)


Three Months Ended


Six Months Ended


September 27, 2014


June 28, 2014


September 28, 2013


September 27, 2014


September 28, 2013

Net revenues

$         604,262


$ 612,633


$         598,937


$      1,216,895


$      1,177,892

Cost of revenues

169,617


189,189


182,816


358,806


362,516

Gross margin

434,645


423,444


416,121


858,089


815,376

Operating expenses:










Research and development

138,335


122,013


125,002


260,348


236,543

Selling, general and administrative

93,883


92,513


96,339


186,396


188,726

Amortization of acquisition-related intangibles

2,378


2,418


2,418


4,796


4,836

Litigation and contingencies



28,600



28,600

Total operating expenses

234,596


216,944


252,359


451,540


458,705

Operating income

200,049


206,500


163,762


406,549


356,671

Interest and other expense, net

5,731


6,222


10,997


11,953


20,927

Income before income taxes

194,318


200,278


152,765


394,596


335,744

Provision for income taxes

22,802


26,667


11,304


49,469


37,260

Net income

$         171,516


$ 173,611


$         141,461


$         345,127


$         298,484

Net income per common share:










Basic

$               0.64


$       0.65


$               0.53


$               1.29


$               1.12

Diluted

$               0.62


$       0.62


$               0.49


$               1.24


$               1.05

Cash dividends per common share

$               0.29


$       0.29


$               0.25


$               0.58


$               0.50

Shares used in per share calculations:










Basic

265,942


267,648


268,478


267,098


265,350

Diluted

275,800


281,579


290,685


278,784


284,270

 


XILINX, INC.




CONDENSED CONSOLIDATED BALANCE SHEETS




(In thousands)





September 27, 2014


March 29, 2014 *


(unaudited)



ASSETS




Current assets:




  Cash, cash equivalents and short-term investments

$                 2,595,846


$             2,457,321

  Accounts receivable, net

290,629


267,833

  Inventories

262,669


233,999

  Deferred tax assets and other current assets

154,833


107,994

Total current assets

3,303,977


3,067,147

Net property, plant and equipment

345,485


355,089

Long-term investments

950,827


1,190,775

Other assets

417,013


424,338

Total Assets

$                 5,017,302


$             5,037,349





LIABILITIES , TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY




Current liabilities:




  Accounts payable and accrued  liabilities

$                    339,272


$                369,260

  Deferred income on shipments to distributors

60,850


55,099

  Current portion of long-term debt

570,527


565,001

Total current liabilities

970,649


989,360





Long-term debt

994,352


993,870

Deferred tax liabilities

295,641


253,433

Other long-term liabilities

13,226


13,005

Temporary equity

29,473


34,999

Stockholders' equity

2,713,961


2,752,682

Total Liabilities, Temporary Equity and Stockholders' Equity

$                 5,017,302


$             5,037,349


* Derived from audited financial statements

 

XILINX, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

(Unaudited)

(In thousands)


Three Months Ended


Six Months Ended


September 27, 2014


June 28, 2014


September 28, 2013


September 27, 2014


September 28, 2013

SELECTED CASH FLOW INFORMATION:










   Depreciation

$           13,678


$ 13,468


$           13,976


$           27,146


$           28,009

   Amortization

5,303


5,205


4,885


10,508


9,770

   Stock-based compensation

28,740


22,106


23,060


50,846


44,014

   Net cash provided by operating activities

203,881


130,119


254,943


334,000


399,152

   Purchases of property, plant and equipment

8,427


9,116


8,441


17,543


19,742

   Payment of dividends to stockholders

76,957


77,421


67,198


154,378


133,205

   Repurchases of common stock

199,999


101,016


69,981


301,015


69,981

   Proceeds from issuance of common stock to employees and excess tax benefit

2,452


16,855


110,925


19,307


144,882











STOCK-BASED COMPENSATION INCLUDED IN:










   Cost of revenues

$             2,077


$   1,992


$             1,858


$             4,069


$             3,662

   Research and development

14,831


10,505


11,343


25,336


21,562

   Selling, general and administrative

11,832


9,609


9,859


21,441


18,790

SOURCE Xilinx, Inc.

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