SAN JOSE, CA, OCTOBER 15, 1996 -- Xilinx, Inc. (NASDAQ:XLNX) reported that revenues and earnings declined from both the prior quarter and the year ago period. Revenues for the September-ending quarter fell to $130.6 million, a decrease of 13.1% from the $150.2 million of the immediately preceding quarter and 7.5% from the $141.2 million reported one year ago. Operating income decreased to $29.5 million, while net income fell to $21.2 million, or $0.27 per share. Excluding the impact of the $5.0 million ($0.04 per share) write-off of the XC8100 antifuse product family, operating income decreased 30% from $34.5 million from the previous quarter and net income fell 24% from $24.6 million, or $0.31 per share. Compared to the year ago period, operating income, before consideration of the write-off, declined 25% from $45.7 million, and net income fell 17% from $29.8 million, or $0.37 per share.
"The September quarter was a difficult quarter for the overall programmable logic industry and Xilinx in particular," stated Mr. Wim Roelandts, Xilinx's chief executive officer. "Xilinx revenue declined in both the domestic direct and distribution channels by approximately 14%, as well as in the international channel by nearly 12%. Revenues from our ten largest customers were down by almost $10M compared to last quarter. This revenue shortfall we believe can be attributed to several factors, including increased pressure from selected customers to reduce their own inventory, a seasonably weaker summer quarter in Europe and new customer programs that have not ramped as quickly as initially forecasted."
Revenues from all product families were down this quarter with the exception of the newest, cost-optimized XC5200 family, which comprised 6% of total revenue. "We understand the importance of new products to Xilinx future revenues. We are encouraged by the nearly 1,400 new software seats that we sold this quarter, 70% of which are versions of our new shrink-wrapped, low-cost Foundation software. We are also optimistic that our new XC9500 and XC4000EX families will provide meaningful contributions to revenues before our fiscal year end," Roelandts stated.
Net bookings for the September quarter were more than 10% below the June ending quarter. U.S. distribution resales, which were at expected levels for July and August, weakened during the end of September. "We are, however, encouraged by the stronger bookings momentum observed in the first two weeks of October," concluded Roelandts.
Certain statements in this press release are forward looking. Actual results could differ materially. Among the factors that could cause actual results to differ are the following: availability of components, the lack of visibility into our customers' programmable logic inventory levels, dependence on third party wafer suppliers, concentration of bookings and shipments at the end of the fiscal quarter, the timely availability and acceptance of new products, the impact of competitive products and pricing, and other risks listed on pages 8-11 of Xilinx's 10Q for the period ended June 29, 1996, and in other SEC filings.
Founded in 1984, Xilinx is the world's largest supplier of programmable logic solutions comprising industry leading device architectures and world class design software. Headquartered in San Jose, Calif., the company pioneered the market for field programmable gate array (FPGA) semiconductor devices that provide high integration and quick time-to-market for electronic equipment manufacturers in the computer, peripherals, telecommunications, networking, industrial control, instrumentation, and high-reliability/military markets.
| Summary Consolidated Financial Statements (Thousands except per share amounts) | |||||||||||||||||||
| (Unaudited) | Three months ended | Six months ended | |||||||||||||||||
| Sep. 28, 1996 |
Sep. 30, 1995 |
Jun. 29, 1996 |
Sep. 28, 1996 |
Sep. 30, 1995 |
|||||||||||||||
| CONSOLIDATED STATEMENT OF INCOME | |||||||||||||||||||
| Revenues | $ | 130,579 | $ | 141,212 | $ | 150,200 | $ | 280,779 | $ | 266,972 | |||||||||
| Cost of revenues | 50,658 | 51,614 | 53,325 | 103,983 | 100,120 | ||||||||||||||
| Write-off of XC8100 product family (1) | 5,000 | - | - | 5,000 | - | ||||||||||||||
| Research and development | 16,748 | 16,652 | 17,837 | 34,585 | 31,505 | ||||||||||||||
| Marketing, general and administrative | 28,709 | 27,271 | 29,548 | 58,257 | 52,237 | ||||||||||||||
| Operating income before non-recurring charges | 29,464 | 45,675 | 49,490 | 78,954 | 83,110 | ||||||||||||||
| Non-recurring charges (2) | - | - | - | - | 19,366 | ||||||||||||||
| Operating income (1) (2) | 29,464 | 45,675 | 49,490 | 78,954 | 63,744 | ||||||||||||||
| Interest and other income, net | 1,970 | 1,295 | 885 | 2,855 | 3,095 | ||||||||||||||
| Income before taxes (2) | 31,434 | 46,970 | 50,375 | 81,809 | 66,839 | ||||||||||||||
| Provision for income taxes | 10,216 | 17,144 | 17,883 | 28,099 | 31,465 | ||||||||||||||
| Net income (1) (2) | $ | 21,218 | $ | 29,826 | $ | 32,492 | $ | 53,710 | $ | 35,374 | |||||||||
| Net income per share (1) (2) | $ | .27 | $ | .37 | $ | .41 | $ | .68 | $ | .45 | |||||||||
| Weighted average common and common and common equivalent shares outstanding |
|||||||||||||||||||
(1) The results for the three month period ended September 28, 1996 include a $5.0 million write-off of the Company's XC8100 product family. Excluding the impact of the XC8100 write-off, operating income, net income and net income per share were $34.5 million, $24.6 million and $0.31 respectively for the three months ended September 28, 1996 and $84.0 million, $57.1 million and $0.72, respectively for the six month period ended September 28, 1996.
(2) The results for the six month period ended September 30, 1995 include
a $19.4 million write-off of in-process technology relating to the purchase
of NeoCAD, Inc. Excluding the impact of the write-off in-process technology,
income before taxes, net income and net income per share were $86.2
million, $54.7 million and $0.70 respectively for the three month period
ended September 30, 1995.
| Sep. 28, 1996 |
Mar. 30, 1996 |
|||||||||||||
| CONSOLIDATED BALANCE SHEET | ||||||||||||||
| Current assets | ||||||||||||||
| Cash, cash equivalents and short term investments | $ | 423,484 | $ | 377,961 | ||||||||||
| Accounts receivable | 67,375 | 79,528 | ||||||||||||
| Inventories | 63,407 | 39,238 | ||||||||||||
| Deferred income taxes and other current assets | 36,949 | 41,979 | ||||||||||||
| Total current assets | 591,215 | 538,706 | ||||||||||||
| Property, plant and equipment, net | 89,524 | 82,638 | ||||||||||||
| Restricted investments | 36,228 | 36,212 | ||||||||||||
| Investment in joint venture | 35,200 | 34,316 | ||||||||||||
| Advances for wafer purchases | 30,000 | - | ||||||||||||
| Developed technology and other assets | 27,546 | 29,008 | ||||||||||||
| Total assets | $ | 809,713 | $ | 720,880 | ||||||||||
| Current liabilities | ||||||||||||||
| Accounts payable, accrued | ||||||||||||||
| liabilities and deferred income | $ | 120,038 | $ | 101,650 | ||||||||||
| Current obligations under capital leases | 508 | 986 | ||||||||||||
| Total current liabilities | 120,546 | 102,636 | ||||||||||||
| Long-term debt | 250,000 | 250,000 | ||||||||||||
| Stockholders' equity | ||||||||||||||
| Common stock and additional paid-in capital | 117,952 | 100,739 | ||||||||||||
| Retained earnings | 321,215 | 267,505 | ||||||||||||
| Total stockholders' equity | 439,167 | 368,244 | ||||||||||||
| Total liabilities and stockholders' equity | $ | 809,713 | $ | 720,880 |
