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Xilinx Announces First Quarter Fiscal 2008 Results; Operating Income Increases 23% Sequentially
SAN JOSE, Calif., July 19 /PRNewswire-FirstCall/ -- Xilinx, Inc. (Nasdaq: XLNX) today announced net revenues of $445.9 million in the first quarter of fiscal 2008, up 1% sequentially from the prior quarter and down 7% compared to the same quarter a year ago. First quarter net income was $84.3 million, or $0.28 per diluted share.
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The Xilinx Board of Directors declared a quarterly cash dividend of $0.12 per outstanding share of common stock, payable on September 5, 2007 to all stockholders of record at the close of business on August 15, 2007.
Sales from all geographies were in line with expectations with the exception of Europe. Weaker than anticipated European sales were driven primarily by customers in the Industrial and Data Processing Categories. Sales from Asia Pacific reached a record 29% of total sales, driven primarily by sales to communications customers in the region. New Product sales, which were slow in the prior quarter, increased 17% sequentially and represented 28% of total sales, up from 24% in the prior quarter. Sales from the Company's Virtex™-5 FPGAs posted the strongest growth within this category.
"While sales growth was slightly lower than originally anticipated, I am pleased with our progress during the quarter in the areas of expense reduction and inventory management," said Wim Roelandts, Xilinx chief executive officer. "Expense controls contributed in part to an operating margin of 22% for the quarter, up from 18% in the prior quarter. Xilinx inventory days decreased 16 days to 79 days--the lowest level in over three years and a direct result of focused supply chain management."
Highlights -- June Quarter Fiscal 2008: -- Xilinx continued to strengthen its 65-nm leadership and is now shipping on schedule all Virtex-5 LX, LXT and SXT devices. Additionally, Xilinx has produced working silicon for its FXT product, expected to be introduced later this fiscal year. -- Xilinx began shipping the low-cost Spartan-DSP series targeting applications such as video surveillance and wireless. This family offers lower power and higher performance at the lowest cost points in the FPGA industry versus competing DSP solutions. -- The Company recently introduced Integrated Software Environment (ISE(TM)) WebPACK(TM) 9.2i which offers software support for the Company's Virtex-5 FPGAs in addition to the latest Spartan-3A DSP platform FPGA. Also, following the successful launch of the PCI Express solution kit last quarter, Xilinx introduced two additional solution kits for gigabit Ethernet applications and memory interfaces. Solution kits simplify and accelerate broad adoption of advanced technologies by mainstream PLD designers. Business Outlook -- September Quarter Fiscal 2008 -- Revenues are expected to be flat to down slightly sequentially. -- Gross margin is expected to be between 62% and 63%. -- Operating expenses are expected to be up approximately 2% sequentially. -- Other income including interest expense is expected to be approximately $16 million. -- Tax rate is expected to be approximately 21%. -- Fully diluted share count is expected to be approximately flat at 303 million shares. Business Update -- September Quarter Fiscal 2008
The Company expects to issue a second quarter business update press release after the market closes on Thursday, September 6, 2007. Financial guidance to the investment community will be limited to the points mentioned in the business update document. Please sign up for a push email alert, which is available from our investor relations web site at http://www.investor.xilinx.com.
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 "may," "will," "could," "should," "expect," "believe," "anticipate," "estimate," "continue," "plan," "intend," "project" or other similar words. Undue reliance should not be placed on such forward-looking statements and projections, which speak only as of the date they are made. Actual events and results may differ materially from those in the forward-looking statements and are subject to risks and uncertainties including the general health of global economies as well as of the semiconductor industry, the health of our end markets and our customers' customers, our ability to forecast end customer demand, customer acceptance of our new products, the ability of our customers to manage their inventories, 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 Form 10-K.
Xilinx, Inc. (Nasdaq: XLNX) is the worldwide leader of programmable logic solutions. Additional information about Xilinx is available at http://www.xilinx.com.
SOURCE Xilinx, Inc. 07/19/2007
CONTACT: Investor Relations, Lori Owen of Xilinx, Inc., +1-408-879-6911, email@example.com
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