April 22, 2015

Xilinx Announces Fiscal 2015 Results; Record 70% FY Gross Margin, 28nm FY Sales Reach $580M

SAN JOSE, Calif., April 22, 2015 /PRNewswire/ -- Xilinx, Inc. (Nasdaq: XLNX) today announced fiscal 2015 sales of $2.38 billion, flat with the prior fiscal year. Fiscal 2015 net income increased 3% to $648 million, or $2.35 per diluted share, versus fiscal 2014 net income of $630 million or $2.19 per diluted share.

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Fourth quarter fiscal 2015 sales were $567 million, down 4% sequentially and down 8% from the fourth quarter of the prior fiscal year.  Fourth quarter fiscal 2015 net income was $135 million, or $0.50 per diluted share, including a $24 million restructuring charge, or $0.08 per diluted share.

Additional fourth quarter comparisons are represented in the charts below:

GAAP Results

(In millions, except EPS)

Growth Rates


Q4

FY 2015

Q3

FY 2015

Q4

FY 2014


Q-T-Q

Y-T-Y

Net revenues

$567

$594

$618


-4%

-8%

Operating income

$159

$190

$190


-17%

-16%

Net income

$135

$168

$156


-20%

-14%

Diluted earnings per share

$0.50

$0.62

$0.53


-19%

-6%

"Sales from the 28nm product family increased significantly with broad-based growth in all end markets and all products," said Moshe Gavrielov, Xilinx President and Chief Executive Officer.  "Additionally, the Company reported a record gross margin for the fiscal year of 70%.  This is up from 69% in the prior fiscal year and is a testament to the continued focus and rigor we have placed on improving our overall profitability."     

Net Revenues by Geography:


Percentages


Growth Rates


Q4

FY 2015

Q3

FY 2015

Q4

FY 2014


Q-T-Q

Y-T-Y

North America

32%

34%

27%


-8%

10%

Asia Pacific

37%

39%

43%


-8%

-20%

Europe

21%

17%

21%


12%

-9%

Japan

10%

10%

9%


-5%

-5%

                                                                                

Net Revenues by End Market:


Percentages


Growth Rates



Q4

FY 2015

Q3

FY 2015

Q4

FY 2014


Q-T-Q

Y-T-Y


Communications & Data Center

39%

41%

49%


 

-7%

-26%



Industrial, Aerospace & Defense

42%

43%

34%


-7%

13%


Broadcast, Consumer & Automotive

17%

14%

15%


12%

6%


Other

2%

2%

2%


-12%

-31%













                                                                                                                          

Net Revenues by Product:


Percentages


Growth Rates


Q4

FY 2015

Q3

FY 2015

Q4

FY 2014


Q-T-Q

Y-T-Y

New

49%

43%

42%


8%

5%

Mainstream

29%

29%

34%


-6%

-22%

Base

19%

25%

21%


-25%

-14%

Support

3%

3%

3%


4%

-6%

Products are classified as follows:

New products: Virtex® and Kintex™ Ultrascale, Virtex7, 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)


Q4

FY 2015

Q3

FY 2015

Q4

FY 2014





Annual Return on Equity (%)*

24

25

22





Operating Cash Flow

$166

$291

$189





Depreciation Expense

$14

$14

$14





Capital Expenditures

$6

$6

$14





Combined Inventory Days

136

134

115





Revenue Turns (%)

51

44

54


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

Product and Financial Highlights - Fiscal 2015

  • During fiscal year 2015, sales from Xilinx's 28nm product portfolio, which includes the 7 series FPGAs and the Zynq-7000 families, represented more than $580 million.  This was up from approximately $380 million in the prior fiscal year.  Material contributions from all end markets and all products drove the significant sales increase.   
  • The Company continued to drive gross margin improvement, achieving a record 70% gross margin in fiscal year 2015, up from 69% in the prior fiscal year.  This improvement reflects the Company's continued discipline and focus on driving gross margin expansion across our product portfolio.  
  • During fiscal 2015, Xilinx paid its shareholders a record $306 million in dividends and repurchased 15.3 million shares for $650 million.  Additionally, Xilinx increased its quarterly dividend by $0.02 per share to $0.31 per share, the 10th consecutive year of dividend increases since initiating its first dividend in 2004.  Xilinx has returned 100% of operating cash flow to stockholders in the form of dividend and share repurchase over the past ten years.     
  • Xilinx, in close partnership with TSMC, began shipping the 20nm Ultrascale family, including the industry's only 20nm high-end family and the industry's largest FPGA, which delivers over 4X the capacity of competitive devices.  This family scales from 20nm planar through 16nm FinFET technologies and beyond, while also scaling from monolithic through 3D ICs.  Additionally, Xilinx remains on track to tape out its first 16nm device with TSMC in the June quarter.    
  • Xilinx continued to strengthen its Software Development Environments (SDx™).  SDx enables developers with little or no FPGA expertise to use high level programming languages like C, C++ and OpenCL to leverage the power of programmable hardware with industry standard processors on or off chip.  Xilinx currently offers three different environments targeting high growth opportunities in areas such as data center, software defined networks and Industrial Internet-of-things. 

Business Outlook - June Quarter Fiscal 2016

  • Sales are expected to be flat to down 4% sequentially.
  • Gross margin is expected to be 69% to 70%.
  • Operating expenses are expected to be approximately $210 million including $2 million of amortization of acquisition-related intangibles. 
  • Other income and expenses are expected to be a net expense of approximately $12 million.
  • Fully diluted share count is expected to be approximately 266 million.
  • June quarter tax rate is expected to be approximately 13% - 14%.

Conference Call

A conference call will be held today at 2:00 p.m. Pacific Time to discuss the March quarter 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 (855) 859-2056 and referencing confirmation code 98457054. 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 June quarter of fiscal 2016.  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.

#1530F

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


XILINX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In thousands, except per share amounts)


Three Months Ended


Twelve Months Ended


March 28,
2015


December 27,
2014


March 29,
2014


March 28,
2015


March 29,
2014

Net revenues

$  566,900


$        593,549


$  617,823


$ 2,377,344


$ 2,382,531

Cost of revenues

170,379


179,638


199,945


708,823


743,253

Gross margin

396,521


413,911


417,878


1,668,521


1,639,278

Operating expenses:










Research and development

131,942


133,455


127,812


525,745


492,447

Selling, general and administrative

79,198


88,076


98,087


353,670


378,607

Amortization of acquisition-related intangibles

2,370


2,371


2,462


9,537


9,887

Litigation and contingencies





9,410

Restructuring charge

24,491




24,491


Total operating expenses

238,001


223,902


228,361


913,443


890,351

Operating income

158,520


190,009


189,517


755,078


748,927

Loss on extinguishment of convertible debentures



9,848



9,848

Interest and other income (expense), net

958


(4,007)


(3,819)


(15,002)


(29,553)

Income before income taxes

159,478


186,002


175,850


740,076


709,526

Provision for income taxes

24,855


17,536


19,823


91,860


79,138

Net income

$  134,623


$        168,466


$  156,027


$    648,216


$    630,388

Net income per common share:










Basic

$        0.52


$              0.64


$        0.58


$          2.44


$          2.37

Diluted

$        0.50


$              0.62


$        0.53


$          2.35


$          2.19

Cash dividends per common share

$        0.29


$              0.29


$        0.25


$          1.16


$          1.00

Shares used in per share calculations:










Basic

260,857


262,881


268,134


265,480


266,431

Diluted

269,514


273,795


294,536


276,123


287,396

 


XILINX, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)


March 28, 2015


March 29, 2014 *


(unaudited)



ASSETS




Current assets:




Cash, cash equivalents and short-term investments

$       3,303,061


$          2,457,321

Accounts receivable, net

246,615


267,833

Inventories

231,328


233,999

Deferred tax assets and other current assets

154,046


107,994

Total current assets

3,935,050


3,067,147

Net property, plant and equipment

301,038


355,089

Long-term investments

266,902


1,190,775

Other assets

395,075


424,338

Total Assets

$       4,898,065


$          5,037,349





LIABILITIES , TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY








  Accounts payable and accrued  liabilities

$          321,082


$              369,260

  Deferred income on shipments to distributors

66,071


55,099

  Current portion of long-term debt

576,053


565,001

Total current liabilities

963,206


989,360





Long-term debt

994,839


993,870

Deferred tax liabilities

289,868


253,433

Other long-term liabilities

14,611


13,005

Temporary equity

23,947


34,999

Stockholders' equity

2,611,594


2,752,682

Total Liabilities, Temporary Equity and Stockholders' Equity

$       4,898,065


$          5,037,349


* Derived from audited financial statements

 

XILINX, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

(Unaudited)

(In thousands)


Three Months Ended


Twelve Months Ended


March 28,
2015


December 27,
2014


March 29,
2014


March 28,
2015


March 29,
2014

SELECTED CASH FLOW INFORMATION:










   Depreciation

$    14,409


$          13,711


$    13,860


$    55,266


$    55,464

   Amortization

4,092


5,048


4,980


19,648


19,808

   Stock-based compensation

19,959


29,054


25,961


99,859


94,314

   Net cash provided by operating activities

166,039


290,742


189,375


790,780


804,917

   Purchases of property, plant and equipment

5,937


6,139


14,148


29,619


44,865

   Payment of dividends to stockholders

75,608


76,172


67,042


306,158


267,343

   Repurchases of common stock

174,994


174,997


73,955


651,006


241,076

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

36,316


16,700


111,301


72,323


268,912











STOCK-BASED COMPENSATION INCLUDED IN:










   Cost of revenues

$      1,692


$            2,339


$      1,974


$      8,101


$      7,602

   Research and development

9,941


14,909


12,723


50,185


46,197

   Selling, general and administrative

7,747


11,806


11,264


40,994


40,515

   Restructuring

579




579


-

 

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

 

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SOURCE Xilinx, Inc.

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