SAN JOSE, Calif., April 28, 2010 --Xilinx, Inc. (Nasdaq: XLNX) today announced fiscal 2010 sales of $1.83 billion, essentially flat with sales from the prior fiscal year. Fiscal 2010 net income decreased 1% to $357.5 million, or $1.29 per diluted share, versus fiscal 2009 net income of $361.7 million, or $1.31 per diluted share. Fiscal 2009 net income included a $75.0 million pre-tax gain, or $0.21 per diluted share, on the extinguishment of convertible debt.
Fourth quarter fiscal 2010 sales were $529.0 million, up 3% sequentially and up 34% from the fourth quarter of the prior fiscal year. Fourth quarter fiscal 2010 net income was $148.5 million, or $0.54 per diluted share, including previously announced pre-tax restructuring charges totaling $2.8 million, or $0.01 per diluted share. Included in the fourth quarter net income was a tax benefit of $23.2 million, or $0.08 per diluted share, primarily related to the impact of our recent favorable ruling in the Ninth Circuit Court.
The Xilinx Board of Directors announced a quarterly cash dividend of $0.16 per outstanding share of common stock, payable on June 9, 2010 to all stockholders of record at the close of business on May 19, 2010.
Additional fourth quarter comparisons are represented in the charts below:
GAAP Results (In millions, except EPS)
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| Growth Rates |
| Q4 FY 2010 | Q3 FY 2010 | Q4 FY 2009 | Q-T-Q | Y-T-Y |
| Net revenues | $529.0 | $513.3 | $395.0 | 3% | 34% |
| Operating income | $156.1 | $136.6 | $78.3 | 14% | 99% |
| Net income | $148.5 | $106.9 | $78.0 | 39% | 90% |
| Diluted earnings per share | $0.54 | $0.38 | $0.28 | 42% | 93% |
"Record quarterly sales of $529 million coupled with the highest gross and operating margins achieved in nearly six years provide strong testament to the growing acceptance of Xilinx programmable platforms as well as to our continued financial discipline," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "Gross and operating margins for the quarter were 64.9% and 29.5%, respectively, up from 62.1% and 19.8% in the same quarter a year ago." Gavrielov continued, "In the next fiscal year and beyond, I believe Xilinx is uniquely positioned to capitalize on incremental growth opportunities afforded by our 28nm leadership as well as our innovative platform-based architectures."
Net Revenues by Geography:
| Percentages | Growth Rates |
| Q4 FY 2010 | Q3 FY 2010 | Q4 FY 2009 | Q-T-Q | Y-T-Y |
| North America | 33% | 35% | 35% | -5% | 24% |
| Asia Pacific | 35% | 36% | 35% | 1% | 34% |
| Europe | 24% | 20% | 22% | 25% | 48% |
| Japan | 8% | 9% | 8% | -4% | 35% |
Net Revenues by End Market:
| Percentages | Growth Rates |
| Q4 FY 2010 | Q3 FY 2010 | Q4 FY 2009 | Q-T-Q | Y-T-Y |
| Communications | 47% | 46% | 47% | 7% | 34% |
| Industrial & Other | 30% | 32% | 32% | -4% | 27% |
| Consumer & Automotive | 15% | 15% | 14% | 5% | 47% |
| Data Processing | 8% | 7% | 7% | 7% | 42% |
Net Revenues by Product:
| Percentages | Growth Rates |
| Q4 FY 2010 | Q3 FY 2010 | Q4FY 2009 | Q-T-Q | Y-T-Y |
| New | 36% | 33% | 23% | 13% | 108% |
| Mainstream | 31% | 33% | 36% | -4% | 15% |
| Base | 28% | 29% | 36% | 0% | 7% |
| Support | 5% | 5% | 5% | 4% | 21% |
Products are classified as follows:
- New Products: Virtex-6, Virtex-5, Spartan-6, Spartan-3A and Spartan-3E product families
- Mainstream Products: Virtex-4, Spartan-3, Spartan-II and CoolRunner(TM)-II product families
- Base Products: Virtex, Virtex-E, Virtex-II, Spartan, XC4000, CoolRunner and XC9500 product families
- Support Products: Configuration products, HardWire, Software & Support/Services
Key Statistics: (Dollars in millions)
| Q4 FY 2010 | Q3 FY 2010 | Q4 FY 2009 |
| Annual Return on Equity (%)* | 18 | 14 | 18 |
| Operating Cash Flow | $104 | $185 | $61 |
| Depreciation Expense | $12 | $13 | $13 |
| Capital Expenditures | $11 | $9 | $6 |
| Combined Inventory Days | 79 | 85 | 90 |
| Revenue Turns (%) | 56 | 58 | 66 |
*Return on equity calculation: Annualized net income/average stockholders' equity
Product and Financial Highlights - Fiscal 2010
- Xilinx's 65nm Virtex-5 platform became the industry's most successful FPGA family in history generating more in quarterly sales than any other PLD family. Sales from this family nearly doubled in fiscal 2010 from the prior fiscal year due to broad-based customer acceptance in a variety of end markets including: mobile infrastructure, enterprise switching and routing, cryptography and industrial imaging.
- Xilinx introduced and commenced volume shipments of its next generation Virtex-6 and Spartan-6 FPGA platforms. The 40nm Virtex-6 platform leverages the successful Virtex-5 architecture and delivers higher performance and lower power consumption than competing FPGAs. The Spartan-6 platform marks the first time transceiver capability, high-performance PCIe and memory controllerblocks have been integrated into a 45nm low-cost FPGA fabric.
- Xilinx announced targeted design platform development kits for the Virtex-6 and Spartan-6 product families. These kits are designed to increase productivity and innovation for electronic designers in the areas of embedded processing, DSP and high speed serial connectivity and address end markets such as automotive, broadcast, consumer and industrial.
- After announcing collaboration with ARM in October, 2009, Xilinx recently unveiled a revolutionary, extensible, processing platform architecture designed to deliver unrivaled levels of system performance, flexibility and integration. This innovative, platform-based approach is expected to drive expansion into new market spaces leveraging Xilinx 28nm FPGA technology together with ARM's processor strengths and ecosystem.
- Xilinx generated over $550 million in cash and raised its dividend by $0.02 per diluted share to $0.16 per diluted share in fiscal 2010. This demonstrates not only the resilience of Xilinx's business model during a challenging economic period, but also the Company's continued commitment to returning value to shareholders. Xilinx continues to have among the highest dividend yields in the technology industry.
Business Outlook - June Quarter Fiscal 2011
- Sales are expected to be up 5% to 9% sequentially.
- Gross margin is expected to be approximately 65% plus or minus one percentage point.
- Operating expenses are expected to be approximately $182 million.
- Other income and expense is expected to be a net expense of approximately $2 million.
- Fully diluted share count is expected to be approximately 276 million.
- June quarter tax rate is expected to be approximately 21%.
Financial Tables
To read financial tables, click here
Conference Call
A conference call will be held today at 2:00 p.m. Pacific Time to discuss the fourth quarter and year-end financial 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 67509509. The telephonic replay will be available for two weeks following the live call.
About Xilinx
Xilinx is the world's leading provider of programmable platforms. For more information, visit www.xilinx.com.
