Highlights -Fiscal 2009
-- During the March quarter, Xilinx began shipments of its industry-leading, next generation Virtex-6 and Spartan-6 FPGA families of products. Both product families offer significant competitive advantages in areas such as performance, power, capacity, DSP bandwidth, memory and I/O performance. Currently, over 700 customers representing approximately 1,000 projects are engaged with the Virtex-6 and Spartan-6 FPGA Early Access program. Xilinx remains the only PLD company currently shipping a 45-nm, high-volume FPGA product. -- Sales from the Virtex-5 family increased throughout fiscal 2009 in spite of the economic downturn. Exiting fiscal 2009, Virtex-5 sales represented 17% of total sales in the fourth quarter, up from 7% in the same quarter of the prior fiscal year. Virtex-5 FPGAs are finding traction in a variety of applications including next generation wireless base stations, cable infrastructure to support "on demand" usage, communications test equipment, and even electronic gaming equipment. -- Xilinx continues to have one of the most stable and resilient business models in the technology industry in terms of cash flow generation and commitment to shareholder return. In fiscal 2009, Xilinx generated $442.5 million in operating cash flow, paid $193.2 million in cash to repurchase $310.4 million (principal amount) of our convertible debentures, paid $154.5 million in cash dividends and repurchased $275.0 million of common stock. Xilinx currently has among the highest dividend yields in the technology industry.
Key Statistics: (Dollars in millions) Q4 Q3 Q4 FY 2009 FY 2009 FY 2008 ------- ------- ------- Annual Return on Equity (%)* 22 24 22 Operating Cash Flow $61 $128 $102 Depreciation Expense $13 $13 $14 Capital Expenditures $6 $11 $6 Combined Inventory Days 90 99 92 Revenue Turns (%) 66 54 60 *Return on equity calculation: Annualized net income/average stockholders' equity
Business Outlook - June Quarter Fiscal 2010
-- Sales are expected to be up 4% to down 4% sequentially. -- Gross margin is expected to be in the range of 61% to 63%. -- Operating expenses are expected to be approximately $173 million to $175 million including $11 million to $13 million in charges relating to restructuring activity announced on April 15, 2009. -- Interest and other is expected to be a net expense of approximately $3 million. -- Fully diluted share count is expected to be approximately flat with the prior quarter. -- June quarter tax rate is expected to be approximately 21%.
Conference Call
A conference call will be held today at 2:00 p.m. Pacific Time to discuss the quarter's 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 (800) 642-1687 and referencing confirmation code 92495581. The telephonic replay will be available for two weeks following the live call. The Company does not plan to provide a scheduled business update during the June quarter.
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," "may," "will," "could," "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. 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 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 the Company to generate cost and operating expense savings in an efficient and timely fashion, 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 Forms 10-K and 10-Q.
About Xilinx
Xilinx, Inc. (NASDAQ: XLNX) is the worldwide leader of programmable logic solutions. Additional information about Xilinx is available at http://www.xilinx.com.
Xilinx, the Xilinx logo, Virtex, Spartan, ISE, and other brands designated herein are trademarks of Xilinx in the United States and other countries. All other trademarks are the property of their respective owners.