SAN JOSE, Calif., Jan. 21, 2015 -- Xilinx, Inc. (Nasdaq: XLNX) today announced third quarter fiscal 2015 sales of $594 million, down 2% from the prior quarter and up 1% from the same quarter of the prior fiscal year. Third quarter fiscal 2015 net income was $168 million or $0.62 per share, including a $0.02 per diluted share benefit primarily related to the reinstatement of the R&D tax credit.
The Xilinx Board of Directors announced a quarterly cash dividend of $0.29 per outstanding share of common stock, payable on February 25, 2015 to all stockholders of record at the close of business on February 4, 2015.
Additional third quarter comparisons are represented in the charts below:
GAAP Results
(In millions, except EPS)
| | | | | Growth Rates |
| | Q3 FY 2015 | Q2 FY 2015 | Q3 FY 2014 | Q-T-Q | Y-T-Y |
| Net revenues | $593.5 | $604.3 | $586.8 | -2% | 1% |
| Operating income | $190.0 | $200.0 | $202.7 | -5% | -6% |
| Net income | $168.5 | $171.5 | $175.9 | -2% | -4% |
| Diluted earnings per share | $0.62 | $0.62 | $0.61 | 0% | 2% |
"Solid profitability during the quarter was tempered by disappointing sales from broadcast and communications end markets," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "However, I am pleased with the renewed growth of our 28nm product family, which increased nearly 20% sequentially. I expect this product family to continue to post healthy growth in 2015 driven by a broad base of applications."
Net Revenues by Geography:
| | Percentages | Growth Rates |
| | Q3 FY 2015 | Q2 FY 2015 | Q3 FY 2014 | Q-T-Q | Y-T-Y |
| North America | 34% | 32% | 29% | 4% | 18% |
| Asia Pacific | 39% | 37% | 40% | 3% | -2% |
| Europe | 17% | 21% | 22% | -18% | -16% |
| Japan | 10% | 10% | 9% | -4% | 2% |
Net Revenues by End Market:
| | Percentages | Growth Rates |
| | Q3 FY 2015 | Q2 FY 2015 | Q3 FY 2014 | Q-T-Q | Y-T-Y |
| Communications & Data Center | 41% | 41% | 44% | -3% | -7% |
| Industrial, Aerospace & Defense | 43% | 41% | 37% | 4% | 18% |
| Broadcast, Consumer & Automotive | 14% | 15% | 16% | -6% | -9% |
| Other | 2% | 3% | 3% | -41% | -39% |
Net Revenues by Product:
| | Percentages | Growth Rates |
| | Q3 FY 2015 | Q2 FY 2015 | Q3 FY 2014 | Q-T-Q | Y-T-Y |
| New | 43% | 43% | 38% | -1% | 14% |
| Mainstream | 29% | 31% | 33% | -8% | -10% |
| Base | 25% | 23% | 26% | 4% | -3% |
| Support | 3% | 3% | 3% | -2% | -1% |
Products are classified as follows:
- New products: Virtex® UltraScale™, Kintex® UltraScale, Virtex-7, Kintex7, Artix®-7, Zynq®-7000, Virtex6, Spartan®6 products
- Mainstream products: Virtex5, Spartan3 and CoolRunner™II products
- Base products: Virtex4, VirtexII, VirtexE, Virtex, Spartan-II, Spartan, CoolRunner and XC9500 products
- Support products: Configuration solutions, HardWire, Software & Support/Services
Key Statistics:
(Dollars in millions)
| | Q3 FY 2015 | Q2 FY 2015 | Q3 FY 2014 |
| Annual Return on Equity (%)* | 25 | 25 | 20 |
| Operating Cash Flow | $291 | $204 | $216 |
| Depreciation Expense | $14 | $14 | $14 |
| Capital Expenditures | $6 | $8 | $11 |
| Combined Inventory Days | 134 | 153 | 114 |
| Revenue Turns (%) | 44 | 48 | 52 |
*Return on equity calculation: Annualized net income/average stockholders' equity
Highlights - December Quarter Fiscal 2015
- Xilinx 28nm products exceeded $150 million in sales for the quarter, up nearly 20% sequentially and up over 50% from the same quarter a year ago. Sales from all product family members increased sequentially and were driven by a broad base of applications.
- Xilinx recently introduced its Kintex UltraScale devices, which are the industry's first 20nm FPGAs to move into volume production. Customers can benefit from an estimated one-year time to market advantage relative to its competition. At 20nm, Xilinx also announced that it is now shipping the industry's largest FPGA, which delivers over 4X the capacity of competitive devices and extends its high-end leadership.
- Xilinx announced the SDAccel™ development environment for OpenCL™, C, and C++, enabling up to 25X better performance/watt for data center application acceleration leveraging FPGAs. SDAccel, the newest member of the SDx™ family, combines the industry's first architecturally optimizing compiler supporting any combination of OpenCL, C, and C++ kernels, along with libraries, development boards, and the first complete CPU/GPU-like development and run-time experience for FPGAs.
- In November, Xilinx Board of Directors granted an authorization for the Company to repurchase up to $800 million of its common stock. Since fiscal 2010, the Company has repurchased over 50 million shares for approximately $1.8 billion.
Business Outlook - March Quarter Fiscal 2015
- Sales are expected to be down 2% to down 6% sequentially.
- Gross margin is expected to be approximately 68% to 69%.
- Operating expenses are expected to be approximately $227 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 270 million.
- March 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 December quarter financial results and management's outlook for the March 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 50649087. The telephonic replay will be available for two weeks following the live call.
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.
