Xilinx Reports Second Quarter Fiscal 2003 Financial Results
Thursday October 17, 4:20 pm ET
SAN JOSE, Calif., Oct. 17 /PRNewswire-FirstCall/ -- Xilinx, Inc. (Nasdaq: XLNX - News)
today announced results for the second quarter of fiscal 2003. Net income was
$38.7 million, or $0.11 per diluted share, compared with $41.0 million and $0.12
in the prior quarter.
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Quarterly Information
(In millions, except EPS)
Growth Rates
Q2 FY 2003 Q1 FY 2003 Q2 FY 2002 Q-T-Q Y-T-Y
Revenues $277.9 $289.9 $224.6 -4% 24%
Operating
income 46.6 50.1 (115.0) -7% NM
Net income
(loss) 38.7 41.0 (176.0) -6% NM
Net income
(loss)
per share $0.11 $0.12 ($0.53) -8% NM
"The September quarter was down slightly, in line with expectations. Weakness
in the communications and storage sectors was partially offset by strength in
the consumer, industrial and other category, which increased to 25% of
total Xilinx revenues, up from 20% in the prior quarter. The strength in this
category reflects customer adoption of Xilinx products in digital consumer,
industrial, medical and automotive applications," said Wim Roelandts, Xilinx's
President and Chief Executive Officer. "Additionally, Xilinx continued to
lead the 300mm wafer migration, manufacturing a higher percentage of total
wafers in this leading technology than any other semiconductor
company. In the September quarter, over 30% of total Xilinx wafers were
manufactured on 300mm, up from 5% in the prior quarter. This will enable
Xilinx to significantly reduce the cost of producing PLDs, enabling greater
expansion into the ASIC segment of the logic market. IC Insights, a market
research firm, estimates this market segment to be $14.9B in 2005."
Business Review - September Quarter FY03
-- Xilinx generated $64 million in cash flow from operations.
-- Inventory days at Xilinx and worldwide distributors were 103 and
41, respectively.
-- Accounts receivables days sales outstanding were 57.
-- Capital expenditures and depreciation were both $13 million.
Revenue by Geography:
Percentages Growth Rates
Q2 FY 2003 Q1 FY 2003 Q2 FY 2002 Q-T-Q Y-T-Y
North America 50% 53% 52% -10% 16%
Europe 22% 22% 19% 0% 48%
Japan 15% 13% 14% 9% 39%
Asia Pacific/
ROW 13% 12% 15% -2% 5%
Revenue by End Market:
Percentages Growth Rates
Q2 FY 2003 Q1 FY 2003 Q2 FY 2002 Q-T-Q Y-T-Y
Communications 58% 61% 67% -9% 7%
Storage &
Servers 17% 19% 20% -15% 5%
Consumer,
Industrial &
Other 25% 20% 13% 22% 141%
Revenue by Technology:
Percentages Growth Rates
Q2 FY 2003 Q1 FY 2003 Q2 FY 2002 Q-T-Q Y-T-Y
Advanced 54% 53% 35% -2% 93%
Mainstream 26% 26% 36% -4% -10%
Base 14% 15% 21% -8% -20%
Support 6% 6% 8% -13% -12%
-- Advanced products (180nm or less): Spartan(R)-II, Spartan-IIe,
Virtex(R)-E, Virtex-II, Virtex-II Pro(TM) and CoolRunner(R)- II
products
-- Mainstream products (220nm to 350nm): XC4000XL, XC4000XLA, XC4000XV,
SpartanXL, XC9500XL, XC9500XV, CoolRunner, Virtex products
-- Base products (500nm or greater): XC2000, XC3000, XC3100, XC4000,
XC7000, XC5200, XC9500, Spartan, XC4000E, XC4000EX products
-- Support products: Configuration solutions, HardWire(TM), Software
& Support/Services
Product Highlights - September Quarter FY03
-- In August, Xilinx began shipping the world's fastest design software
for programmable logic system design, ISE 5.1i. With multiple new
features aimed at reducing development cost and improving productivity,
ISE 5.1i software extends Xilinx's position as the leading supplier of
logic design tools in the industry. The combination of our Virtex-II
Pro FPGAs and ISE 5.1i software delivers 40% faster performance than
comparable Xilinx products a year ago.
-- Starting at $2.55 per device, the Spartan Series of FPGAs is the lowest
cost FPGA family shipping today and is the solution of choice for
high-end consumer applications such as plasma displays, set top boxes,
and digital video. Since introduction in 1998, Xilinx has shipped over
40 million units of Spartan devices. This product family is
responsible for much of the growth in the consumer, industrial and
other category.
-- The Virtex-II FPGA family continues to lead the industry in offering
the most robust and complete solution for high density, high
performance FPGA designs. Cumulative Virtex-II revenues since
introduction recently surpassed $160M with all eleven family members
shipping in volume.
Business Outlook - December Quarter FY03
-- Revenues expected to be in the $278 million to $285 million range.
-- Gross margin expected to be approximately 59%.
-- Operating expenses expected to remain flat with September quarter.
-- Other income is estimated to be $5 million.
-- Tax rate expected to be 26%.
-- Fully diluted share count will approximate 350 million shares.
Business Update - December Quarter FY03
A third quarter business update will be posted to the Xilinx Investor
Relations web site at: investor.xilinx.com after the market closes
on Tuesday, December 10, 2002. 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.
About Xilinx
Xilinx, Inc. is the worldwide leader of programmable logic solutions.
Additional information about Xilinx is available at xilinx.com.
XILINX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands except per share
amounts) (Unaudited) (Unaudited)
Three months ended Six months ended
Sep. 28, Sep. 29, Jun. 29, Sep. 28, Sep. 29,
2002 2001 2002 2002 2001
Net revenues $277,871 $224,645 $289,853 $567,724 $513,971
Cost of revenues 113,741 199,751 120,336 234,077 340,699
Research and
development 55,272 48,475 56,776 112,048 103,411
Sales, general and
administrative 58,582 55,308 58,897 117,479 120,705
Amortization of RC
goodwill and other
intangibles 3,722 10,750 3,722 7,444 21,500
Impairment of acquired
intangibles and other
assets -- 25,336 -- -- 25,336
Operating income 46,554 (114,975) 50,122 96,676 (97,680)
Write-down of
investment in UMC -- (191,852) -- -- (191,852)
Altera lawsuit
settlement -- 19,400 -- -- 19,400
Interest and other
income, net 5,770 5,302 5,291 11,061 13,676
Income (loss) before
taxes 52,324 (282,125) 55,413 107,737 (256,456)
Income tax provision
(benefit) 13,604 (106,101) 14,407 28,011 (98,914)
Net income (loss) $38,720 $(176,024) $41,006 $79,726 $(157,542)
Basic net income
(loss) per share $0.11 $(0.53) $0.12 $0.24 $(0.47)
Diluted net income
(loss) per share $0.11 $(0.53) $0.12 $0.23 $(0.47)
Common and equivalent
shares used in
computing net income
per share amounts:
Basic 337,481 333,650 336,518 336,813 332,953
Diluted 346,902 333,650 351,858 349,681 332,953
XILINX, INC.
CONDENSED CONSOLIDATED
BALANCE SHEETS (Thousands)
Sep. 28, Mar. 30,
2002 2002
(unaudited) (A)
Current assets
Cash, cash equivalents and short
term investments $596,959 $509,717
Accounts receivable, net 175,245 148,432
Inventories 128,173 79,289
Deferred income taxes and other
current assets 228,410 261,315
Total current assets 1,128,787 998,753
Property, plant and equipment, net 447,687 449,770
Long-term investments 309,372 289,727
Investment in UMC 240,707 380,362
Other Assets 225,535 216,748
Total assets $2,352,088 $2,335,360
Current liabilities
Accounts payable and accrued
liabilities $176,379 $126,059
Deferred income on shipments to
distributors 92,798 69,781
Total current liabilities 269,177 195,840
Deferred tax liabilities 178,879 235,780
Stockholders' equity
Common stock and additional paid-in
capital 731,500 723,108
Retained earnings 1,175,534 1,107,281
Treasury stock, at cost (7,433) (8,197)
Accumulated other comprehensive
income 4,431 81,548
Total stockholders' equity 1,904,032 1,903,740
Total liabilities and stockholders'
equity $2,352,088 $2,335,360
(A) Derived from audited financial statements
Xilinx, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
Six Months Ended
Sep. 28 Sep. 29
2002 2001
Cash flows from operating activities:
Net income (loss) $79,726 $(157,542)
Adjustments to reconcile net
income (loss) to net cash
provided
by operating activities:
Depreciation and
amortization 36,856 55,596
Amortization of deferred
compensation 3,668 4,974
Net gain on sale of
available-for-sale
securities (2,514) (5,066)
Impairment loss on
intangible assets 0 14,925
Impairment loss on
equipment 0 10,411
Other-than-temporary loss
on investments 0 1,911
Write-down related to UMC
investment 0 191,852
Tax benefit from exercise
of stock options 10,869 37,075
Changes in assets and liabilities:
Accounts receivable, net (26,813) 82,549
Inventories (34,484) 159,882
Prepaid expenses and other
current assets (6,832) (5,993)
Deferred income taxes (4,732) (35,906)
Other assets (343) (23,329)
Accounts payable 26,074 (75,764)
Accrued liabilities 12,750 (2,984)
Income taxes payable 21,144 (104,267)
Deferred income on
shipments to distributors 23,017 (70,376)
Total adjustments 58,660 235,490
Net cash
provided
by operating
activities 138,386 77,948
Cash flows from investing activities:
Purchases of available-for-sale
securities (686,515) (411,548)
Proceeds from sale or maturity of
available-for-sale securities 505,356 411,233
Purchases of property, plant and
equipment (24,220) (54,916)
Net cash
used in investing
activities (205,379) (55,231)
Cash flows from financing activities:
Acquisition of treasury stock (42,169) (72,982)
Proceeds from issuance of common
stock 24,773 40,119
Proceeds from sale of put options 0 2,970
Net cash
used in
financing
activities (17,396) (29,893)
Net decrease in cash and cash
equivalents (84,389) (7,176)
Cash and cash equivalents at
beginning of period 230,336 208,693
Cash and cash equivalents at end of
period $145,947 $201,517
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Source: Xilinx, Inc. |
