SAN JOSE, Calif., April 23, 2014 /PRNewswire/ -- Xilinx, Inc. (Nasdaq: XLNX) today announced fiscal 2014 sales of $2.38 billion, up 10% from the prior fiscal year. Fiscal 2014 net income increased 29% to $630 million, or $2.19 per diluted share, versus fiscal 2013 net income of $488 million or $1.79 per diluted share.
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Fourth quarter fiscal 2014 sales were $618 million, up 5% sequentially and up 16% from the fourth quarter of the prior fiscal year. Fourth quarter fiscal 2014 net income was $156 million, or $0.53 per diluted share, including a $10 million loss, or $0.03 per diluted share, associated with the recent redemption of convertible notes.
Additional fourth quarter comparisons are represented in the charts below:
GAAP Results | ||||||
(In millions, except EPS) | ||||||
Growth Rates | ||||||
Q4 FY 2014 | Q3 FY 2014 | Q4 FY 2013 | Q-T-Q | Y-T-Y | ||
Net revenues | $617.8 | $586.8 | $532.2 | 5% | 16% | |
Operating income | $189.5 | $202.7 | $147.2 | -7% | 29% | |
Net income | $156.0 | $175.9 | $130.6 | -11% | 19% | |
Diluted earnings per share | $0.53 | $0.61 | $0.47 | -13% | 13% | |
"The tremendous success of our 28nm product portfolio has contributed to Xilinx PLD segment share gains for the third consecutive fiscal year," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "With March quarter sales exceeding $140 million, we have established an estimated 70% market segment share at 28nm for all of fiscal 2014, with leadership across all product families and broad adoption of our Vivado® Design Suite and UltraFast' Design Methodology. Our proven formula for success is already bearing fruit at 20nm with the UltraScale' family, which includes the PLD industry's only high-end product."
Net Revenues by Geography: | ||||||
Percentages | Growth Rates | |||||
Q4 FY 2014 | Q3 FY 2014 | Q4 FY 2013 | Q-T-Q | Y-T-Y | ||
North America | 27% | 29% | 31% | -2% | 0% | |
Asia Pacific | 43% | 40% | 34% | 12% | 48% | |
Europe | 21% | 22% | 26% | 3% | -6% | |
Japan | 9% | 9% | 9% | 2% | 16% | |
Net Revenues by End Market: | ||||||||
Percentages | Growth Rates | |||||||
Q4 FY 2014 | Q3 FY 2014 | Q4 FY 2013 | Q-T-Q | Y-T-Y | ||||
Communications & Data Center | 49% | 44% | 44% | 17% | 30% | |||
Industrial, Aerospace & Defense | 34% | 37% | 37% | -3% | 7% | |||
Broadcast, Consumer & Automotive | 15% | 16% | 17% | -4% | 2% | |||
Other | 2% | 3% | 2% | -23% | 2% | |||
Net Revenues by Product: | ||||||
Percentages | Growth Rates | |||||
Q4 FY 2014 | Q3 FY 2014 | Q4 FY 2013 | Q-T-Q | Y-T-Y | ||
New | 42% | 38% | 27% | 17% | 85% | |
Mainstream | 34% | 33% | 41% | 8% | -5% | |
Base | 21% | 26% | 28% | -16% | -16% | |
Support | 3% | 3% | 4% | 10% | 0% | |
Products are classified as follows:
New products: Kintex' Ultrascale, Virtex®-7, Kinte-7, Artix'-7, Zynq'-7000, Virtex-6, Spartan'-6 products
Mainstream products: Virtex-5, Spartan-3 and CoolRunner'-II products
Base products: Virtex-4, Virtex-II, Virtex-E, Virtex, Spartan-II, Spartan, CoolRunner and XC9500 products
Support products: Configuration solutions, HardWire, Software & Support/Services
Key Statistics: | |||
(Dollars in millions) | |||
Q4 FY 2014 | Q3 FY 2014 | Q4 FY 2013 | |
Annual Return on Equity (%)* | 22 | 20 | 17 |
Operating Cash Flow | $189 | $216 | $174 |
Depreciation Expense | $14 | $14 | $14 |
Capital Expenditures | $14 | $11 | $6 |
Combined Inventory Days | 115 | 114 | 110 |
Revenue Turns (%) | 54 | 52 | 58 |
*Return on equity calculation: Annualized net income/average stockholders' equity |
Product and Financial Highlights - Fiscal 2014
- During fiscal year 2014, sales from Xilinx's 28nm product portfolio, which includes the 7 series FPGAs and the Zynq-7000 family, surpassed $380 million with material contributions from all product families. 28nm momentum has continued to grow, driven by a wide range of applications that includes next generation LTE wireless base stations, OTN, Datacenter, industrial networking, surveillance, electronic warfare and automotive driver assist.
- The Company continued to drive gross margin improvement, achieving a record 68.8% gross margin in fiscal year 2014, up from 66.0% in the prior fiscal year. This improvement reflects the Company's continued discipline and focus on driving gross margin expansion projects across our product portfolio.
- Xilinx generated over $800 million in operating cash flow in fiscal 2014. Demonstrating a strong commitment to increase shareholder value, Xilinx paid its shareholders a record $267M in dividends and repurchased 5.2 million shares for $242 million. Xilinx recently increased its quarterly dividend by $0.04 per share to $0.29 per share. Additionally, more favorable financial market conditions and a continued strong credit rating enabled Xilinx to issue $1 billion of senior notes, using the proceeds to redeem its 2007 convertible notes.
- Xilinx, in close partnership with TSMC, shipped the industry's first 20nm device, Kintex Ultrascale, in November 2013 and we expect to ship the first Virtex Ultrascale devices during the June quarter.
- Xilinx announced the next generation Zynq UltraScale Multi-Processing SoC (MPSoC) Architecture targeted for 16nm. The UltraScale MPSoC architecture extends Xilinx's ASIC-class UltraScale FPGA and 3D IC architectures to enable heterogeneous multi-processing SoCs with the right engines for the right tasks. Xilinx will be leveraging TSMC's FinFet + process, offering the highest performance FinFet transistors in the industry.
Business Outlook - June Quarter Fiscal 2015
- Sales are expected to be up 0% to 4% sequentially.
- Gross margin is expected to be approximately 68%.
- Operating expenses are expected to be approximately $220 million including $2.5 million of amortization of acquisition-related intangibles.
- Other income and expenses are expected to be a net expense of approximately $8 million.
- Fully diluted share count is expected to be approximately 286 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 8428806. 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 2015. 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.
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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.
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Investor Relations Contact:
Lori Owen
Xilinx, Inc.
(408) 879-6911
ir@xilinx.com
© Copyright 2014 Xilinx
XILINX, INC. | |||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||
(Unaudited) | |||||||||
(In thousands, except per share amounts) | |||||||||
Three Months Ended | Twelve Months Ended | ||||||||
March 29, 2014 | December 28, 2013 | March 30, 2013 | March 29, 2014 | March 30, 2013 | |||||
Net revenues | $ 617,823 | $ 586,816 | $ 532,168 | $ 2,382,531 | $ 2,168,652 | ||||
Cost of revenues | 199,945 | 180,792 | 180,589 | 743,253 | 737,206 | ||||
Gross margin | 417,878 | 406,024 | 351,579 | 1,639,278 | 1,431,446 | ||||
Operating expenses: | |||||||||
Research and development | 127,812 | 128,092 | 111,133 | 492,447 | 475,522 | ||||
Selling, general and administrative | 98,087 | 91,794 | 90,732 | 378,607 | 365,684 | ||||
Amortization of acquisition-related intangibles | 2,462 | 2,589 | 2,487 | 9,887 | 9,508 | ||||
Litigation and contingencies | - | (19,190) | - | 9,410 | - | ||||
Total operating expenses | 228,361 | 203,285 | 204,352 | 890,351 | 850,714 | ||||
Operating income | 189,517 | 202,739 | 147,227 | 748,927 | 580,732 | ||||
Loss on extinguishment of convertible debentures | 9,848 | - | - | 9,848 | - | ||||
Interest and other expense, net | 3,819 | 4,807 | 8,902 | 29,553 | 33,726 | ||||
Income before income taxes | 175,850 | 197,932 | 138,325 | 709,526 | 547,006 | ||||
Provision for income taxes | 19,823 | 22,055 | 7,705 | 79,138 | 59,470 | ||||
Net income | $ 156,027 | $ 175,877 | $ 130,620 | $ 630,388 | $ 487,536 | ||||
Net income per common share: | |||||||||
Basic | $ 0.58 | $ 0.66 | $ 0.50 | $ 2.37 | $ 1.86 | ||||
Diluted | $ 0.53 | $ 0.61 | $ 0.47 | $ 2.19 | $ 1.79 | ||||
Cash dividends per common share | $ 0.25 | $ 0.25 | $ 0.22 | $ 1.00 | $ 0.88 | ||||
Shares used in per share calculations: | |||||||||
Basic | 268,134 | 267,780 | 263,035 | 266,431 | 261,652 | ||||
Diluted | 294,536 | 288,195 | 277,090 | 287,396 | 272,573 | ||||
XILINX, INC. | |||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
(In thousands) | |||
March 29, 2014 | March 30, 2013 * | ||
(unaudited) | |||
ASSETS | |||
Current assets: | |||
Cash, cash equivalents and short-term investments | $ 2,457,321 | $ 1,714,745 | |
Accounts receivable, net | 267,833 | 229,175 | |
Inventories | 233,999 | 201,250 | |
Deferred tax assets and other current assets | 107,994 | 152,469 | |
Total current assets | 3,067,147 | 2,297,639 | |
Net property, plant and equipment | 355,089 | 365,687 | |
Long-term investments | 1,190,775 | 1,651,033 | |
Other assets | 424,338 | 415,092 | |
Total Assets | $ 5,037,349 | $ 4,729,451 | |
LIABILITIES , TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable and accrued liabilities | $ 369,260 | $ 333,379 | |
Deferred income on shipments to distributors | 55,099 | 53,358 | |
Deferred tax liabilities | - | 51 | |
Current portion of long-term debt | 565,001 | - | |
Total current liabilities | 989,360 | 386,788 | |
Long-term debt | 993,870 | 922,666 | |
Deferred tax liabilities | 253,433 | 415,442 | |
Other long-term liabilities | 13,005 | 41,259 | |
Temporary equity | 34,999 | - | |
Stockholders' equity | 2,752,682 | 2,963,296 | |
Total Liabilities, Temporary Equity and Stockholders' Equity | $ 5,037,349 | $ 4,729,451 | |
* Derived from audited financial statements | |||
XILINX, INC. | |||||||||
SUPPLEMENTAL FINANCIAL INFORMATION | |||||||||
(Unaudited) | |||||||||
(In thousands) | |||||||||
Three Months Ended | Twelve Months Ended | ||||||||
March 29, 2014 | December 28, 2013 | March 30, 2013 | March 29, 2014 | March 30, 2013 | |||||
SELECTED CASH FLOW INFORMATION: | |||||||||
Depreciation | $ 13,860 | $ 13,595 | $ 13,893 | $ 55,464 | $ 56,327 | ||||
Amortization | 4,980 | 5,058 | 4,355 | 19,808 | 17,233 | ||||
Stock-based compensation | 25,961 | 24,339 | 21,246 | 94,314 | 77,862 | ||||
Net cash provided by operating activities | 189,375 | 216,390 | 173,653 | 804,917 | 656,537 | ||||
Purchases of property, plant and equipment | 14,148 | 10,975 | 6,212 | 44,865 | 30,265 | ||||
Payment of dividends to stockholders | 67,042 | 67,096 | 57,822 | 267,343 | 230,469 | ||||
Repurchases of common stock | 73,955 | 97,140 | - | 241,076 | 197,689 | ||||
Proceeds from issuance of common stock to employees and excess tax benefit | 111,301 | 12,729 | 59,671 | 268,912 | 117,872 | ||||
STOCK-BASED COMPENSATION INCLUDED IN: | |||||||||
Cost of revenues | $ 1,974 | $ 1,966 | $ 1,638 | $ 7,602 | $ 6,356 | ||||
Research and development | 12,723 | 11,912 | 10,256 | 46,197 | 37,937 | ||||
Selling, general and administrative | 11,264 | 10,461 | 9,352 | 40,515 | 33,569 | ||||
SOURCE Xilinx, Inc.
