UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (date of earliest event reported):  April 26, 2006

 

XILINX, INC.

(Exact name of registrant as specified in its charter)

 

Delaware

 

0-18548

 

77-0188631

(State or other
jurisdiction of
incorporation)

 

(Commission File
Number)

 

(IRS Employer
Identification No.)

 

 

 

 

 

2100 Logic Drive, San Jose, California

 

95124

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code:  (408) 559-7778

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 



 

Item 2.02 Results of Operations and Financial Condition

 

On April 26, 2006, Xilinx, Inc. issued a press release announcing results for both the fiscal quarter ended and the fiscal year ended April 1, 2006. A copy of this press release is furnished as Exhibit 99.1 to this report.

 

Item 8.01 Other Events

 

Through the press release issued on April 26, 2006, Xilinx also announced an increase in the quarterly dividend from $0.07 to $0.09 per common share for the first quarter of fiscal 2007.

 

Item 9.01                                             Financial Statements and Exhibits

 

(d)  Exhibits

 

Exhibit No.

 

Description

 

 

 

99.1

 

Press Release of Xilinx, Inc. dated April 26, 2006.

 

2



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

XILINX, INC.

 

 

 

 

Date: April 26, 2006

By:

/s/ Thomas R. Lavelle

 

 

 

 

Thomas R. Lavelle

 

 

 

Vice President, Secretary and General Counsel

 

3



 

EXHIBIT INDEX

 

Exhibit No.

 

Description

 

 

 

99.1

 

Press Release of Xilinx, Inc. dated April 26, 2006.

 

4


Exhibit 99.1

 

Investor Relations Contact:

Lori Owen

Xilinx, Inc.

(408) 879-6911

ir@xilinx.com

 

XILINX ANNOUNCES RECORD REVENUES AND RAISES QUARTERLY DIVIDEND;

NEW PRODUCT SALES INCREASE 18% SEQUENTIALLY.

 

SAN JOSE, CA, APRIL 26, 2006 — Xilinx, Inc. (Nasdaq: XLNX) today announced net revenues of $472.3 million in the fourth quarter of fiscal 2006, up 5% sequentially from the prior quarter and up 21% from the same quarter a year ago. Fourth quarter net income was $110.7 million, or $0.32 per diluted share, including a $4.5 million acquisition-related charge. The tax provision for the fourth quarter includes an $8.9 million, or $0.03 per diluted share, benefit related to prior year adjustments driven primarily by an over provision of state income taxes. This is compared to net income of $81.0 million or $0.23 per diluted share in the prior quarter.

 

Xilinx also announced today that the Company’s Board of Directors increased its quarterly cash dividend from $0.07 to $0.09 per outstanding share of common stock, payable on May 31, 2006 to all stockholders of record at the close of business on May 10, 2006.

 

Additional fourth quarter comparisons are represented in the chart below.

 

Quarterly Information

(In millions, except EPS)

 

 

 

 

 

 

 

 

 

Growth Rates

 

 

 

Q4 FY 2006

 

Q3 FY 2006

 

Q4 FY 2005

 

Q-T-Q

 

Y-T-Y

 

Net revenues

 

$

472.3

 

$

449.6

 

$

391.0

 

5

%

21

%

Operating income

 

$

119.4

 

$

119.8

 

$

83.1

 

0

%

44

%

Net income

 

$

110.7

 

$

81.0

 

$

67.2

 

37

%

65

%

Diluted earnings per share

 

$

0.32

 

$

0.23

 

$

0.19

 

39

%

68

%

 

“Strong European sales coupled with solid New Product growth enabled Xilinx to exit the fiscal year with record revenues,” said Wim Roelandts, Chief Executive Officer and Chairman of the Board. “European sales increased 15% sequentially and 24% versus the same quarter a year ago, driven by customers in the Communications end market. I am also pleased with the sales growth of New Products which increased 18% sequentially during the March quarter. Sales from most products in this category surpassed internal forecasts. Sales of the Virtex™-4 family were exceptionally strong during the quarter, increasing more than 70% sequentially.”

 

Business Review – March Quarter FY06

 

                  Total inventory days at Xilinx and distribution were 134 days, down from 144 days last quarter.

                  Accounts receivable days sales outstanding were 37, up from 29 in the prior quarter.

                  Capital expenditures and depreciation were $22 million and $14 million, respectively.

 



 

Net revenues by Geography:

 

 

 

Percentages

 

 

 

 

 

Q4
FY 2006

 

Q3
FY 2006

 

Q4
FY 2005

 

Growth Rates

 

Q-T-Q

 

Y-T-Y

North America

 

41

%

43

%

40

%

0

%

23

%

Europe

 

22

%

20

%

21

%

15

%

24

%

Japan

 

14

%

14

%

14

%

4

%

23

%

Asia Pacific/ROW

 

23

%

23

%

25

%

7

%

13

%

 

Net revenues by End Market:

 

 

 

Percentages

 

 

 

 

 

Q4
FY 2006

 

Q3
FY 2006

 

Q4
FY 2005

 

Growth Rates

 

Q-T-Q

 

Y-T-Y

Communications

 

48

%

48

%

47

%

5

%

23

%

Storage & Servers

 

10

%

11

%

17

%

0

%

-28

%

Consumer & Automotive

 

15

%

14

%

14

%

14

%

31

%

Industrial & Other

 

27

%

27

%

22

%

3

%

47

%

 

Net revenues by Product*:

 

 

 

Percentages

 

 

 

 

 

Q4
FY 2006

 

Q3
FY 2006

 

Q4
FY 2005

 

Growth Rates

 

Q-T-Q

 

Y-T-Y

New

 

37

%

33

%

22

%

18

%

99

%

Mainstream

 

43

%

47

%

54

%

-5

%

-4

%

Base

 

14

%

14

%

17

%

8

%

1

%

Support

 

6

%

6

%

7

%

4

%

5

%

 


*Products are classified as follows:

 

New products: Virtex-4, Virtex-II Pro, Spartan™-IIE, Spartan-3™, Spartan-3E, Easypathä and CoolRunner™- II products

Mainstream products: Virtex-II, Spartan™-II, Spartan-XL, CoolRunner, Virtex-E and Virtex products

Base products: XC3000, XC3100, XC4000, XC4000XL, XC4000XLA, XC4000XV, XC4000E, XC4000EX, XC5200, XC9500, XC9500XL, XC9500XV and Spartan products

Support products: Configuration solutions, HardWire, Software & Support/Services

 

Highlights – Fiscal Year 2006:

 

                        Introduced in September 2004, the Virtex-4 family of FPGAs now generates more in 90nm sales than any other PLD family. Strong design win activity from broad-based end markets drove significant sales growth from all three domain-optimized platforms in fiscal 2006. Virtex-4 FPGAs were named Ultimate Product of the Year at the EE Times Annual Creativity in Electronics (ACE) 2006 Award Gala, which recognized the electronics engineering industry’s most innovative companies and breakthrough technologies.

 

                        For the 8th consecutive year, sales from the Xilinx Spartan Series increased as a percentage of total sales representing a record 24% of total net revenues in fiscal year 2006, up from 21% last year and up from 8% five years ago. The success of the Spartan series is reflected in increased sales exposure to high-volume applications such as consumer, automotive and high-volume networking as well as in the total number of Spartan customers which has increased by almost 60% over the last five years. While

 

2



 

the Virtex-4 family claims 90nm FPGA sales leadership, the Spartan-3 family maintains leadership in number of 90nm units shipped.

 

                        Fiscal 2006 marked the 5th consecutive year of market segment share gains for Xilinx CPLDs. Currently, Xilinx estimates its share of the CPLD segment to be over 28%, up from 12% five years ago. Market segment share gains and record CPLD sales are primarily due to the success of the Xilinx low-power CoolRunner Series, which has made significant advances into the portable applications space, most notably handheld devices.

 

                        In March 2006, Xilinx demonstrated first silicon of its new 65nm generation Virtex FPGA family and has started delivering software and engineering samples to early access customers.

 

                        Xilinx unveiled a strategy and set of product roadmaps to address the $2 billion high-performance DSP market, including XtremeDSP™ solutions that accelerate the development of multimedia, video and imaging systems. Additionally, Xilinx strengthened its commitment to FPGA-based DSP system design with the acquisition of AccelChip, Inc., a provider of DSP design tools.

 

                        In December 2005, Xilinx announced the 8.1i release of its popular Integrated Software Environment (ISE™) design tool suite with enhanced physical synthesis capabilities to improve performance and timing closure for both the Virtex-4 and Spartan-3 architectures. Earlier in the year, Xilinx introduced version 4.00 of its MicroBlaze™ soft processor, which enables embedded developers to accelerate system performance by as much as 120 times over software emulation.

 

Business Outlook – June Quarter FY07

 

                  Revenues expected to be up 1% - 5% sequentially.

                  Gross margin expected to be approximately 62.5%, including approximately $4 million of stock-based compensation charges.

                  Operating expenses will include approximately $23 million of stock-based compensation charges. Including those charges, R&D and SG&A expense are expected to be approximately $196 million.

                  Other income expected to be approximately $13 million.

                  Tax rate is expected to be approximately 23%.

                  Fully diluted share count expected to decrease to approximately 348 million shares.

 

Business Update – June Quarter FY07

 

A first quarter business update will be issued in the form of a press release after the market closes on Thursday, June 8, 2006. 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 at http://www.investor.xilinx.com.

 

This release contains forward-looking statements and projections. 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

 

3



 

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 our customers to manage their inventories, a high dependence on turns business, higher-than-anticipated product delinquencies, 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 secure meaningful wafer capacity from our suppliers, our ability to secure adequate test, packaging and assembly capacity from our suppliers, our ability to successfully manage production at multiple foundries, variability in wafer pricing, and other risk factors listed in our most recent Form 10-K.

 

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.

 

—30—

 

#0650

 

4



 

XILINX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts)

 

 

 

Three Months Ended

 

Year Ended

 

 

 

Apr. 01,
2006

 

Apr. 02,
2005

 

Dec. 31,
2005

 

Apr. 01,
2006

 

Apr. 02,
2005

 

 

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(1)

 

Net revenues

 

$

472,337

 

$

390,977

 

$

449,605

 

$

1,726,250

 

$

1,573,233

 

Cost of revenues

 

178,193

 

152,001

 

166,476

 

657,119

 

576,284

 

Gross margin

 

294,144

 

238,976

 

283,129

 

1,069,131

 

996,949

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

86,396

 

80,034

 

81,073

 

326,126

 

307,448

 

Selling, general and administrative

 

81,888

 

74,063

 

80,683

 

316,302

 

303,595

 

Amortization of acquisition-related intangibles

 

1,929

 

1,750

 

1,536

 

6,976

 

6,668

 

Litigation settlements and contingencies

 

 

 

 

3,165

 

 

Write-off of acquired in-process research and development

 

4,500

 

 

 

4,500

 

7,198

 

Total operating expenses

 

174,713

 

155,847

 

163,292

 

657,069

 

624,909

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

119,431

 

83,129

 

119,837

 

412,062

 

372,040

 

Impairment loss on investments

 

(1,418

)

 

 

(1,418

)

(3,099

)

Interest income and other, net

 

9,762

 

9,628

 

10,943

 

45,958

 

31,603

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

127,775

 

92,757

 

130,780

 

456,602

 

400,544

 

Provision for income taxes

 

17,034

 

25,552

 

49,811

 

102,453

 

87,821

 

Net income

 

$

110,741

 

$

67,205

 

$

80,969

 

$

354,149

 

$

312,723

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per common share

 

$

0.32

 

$

0.19

 

$

0.23

 

$

1.01

 

$

0.90

 

Diluted net income per common share

 

$

0.32

 

$

0.19

 

$

0.23

 

$

1.00

 

$

0.87

 

Cash dividends declared per common share

 

$

0.07

 

$

0.05

 

$

0.07

 

$

0.28

 

$

0.20

 

 

 

 

 

 

 

 

 

 

 

 

 

Common and equivalent shares used in computing net income per share amounts:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

344,683

 

349,795

 

348,203

 

349,026

 

347,810

 

Diluted

 

350,241

 

358,460

 

353,237

 

355,065

 

358,230

 

 


(1) Derived from audited financial statements

 



 

XILINX, INC.

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

 

Apr. 1,
2006

 

Apr. 2,
2005

 

 

 

(Unaudited)

 

(1)

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

Current assets

 

 

 

 

 

Cash, cash equivalents and short-term investments

 

$

984,917

 

$

861,558

 

Investment in United Microelectronics Corporation, current portion

 

37,285

 

 

Accounts receivable, net

 

194,205

 

213,459

 

Inventories

 

201,029

 

185,722

 

Deferred tax assets and other current assets

 

230,812

 

205,625

 

Total current assets

 

1,648,248

 

1,466,364

 

Net property, plant and equipment

 

358,257

 

344,516

 

Long-term investments

 

616,296

 

766,596

 

Investment in United Microelectronics Corporation, net of current portion

 

239,209

 

246,110

 

Other assets

 

311,537

 

215,610

 

Total Assets

 

$

3,173,547

 

$

3,039,196

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable and accrued  liabilities

 

$

218,466

 

$

195,883

 

Deferred income on shipments to distributors

 

126,558

 

102,511

 

Total current liabilities

 

345,024

 

298,394

 

Deferred tax liabilities

 

92,153

 

67,294

 

Other long-term liabilities

 

7,485

 

 

Stockholders’ equity

 

2,728,885

 

2,673,508

 

Total Liabilities and Stockholders’ Equity

 

$

3,173,547

 

$

3,039,196

 

 


(1) Derived from audited financial statements