Xilinx Inc. (XLNX) recently posted a net income of $129.8 or
$0.47 per diluted share in the first quarter of fiscal 2012, up
from a net income of $122.4 million or $0.44 per diluted share in
the previous quarter, but down from $154.4 million or $0.56 per
diluted share in the year-ago quarter. The quarter's result easily
beats the Zacks Consensus Estimate of $0.45 per share.
California-based Xilinx Inc. is engaged in designing and
manufacturing a broad range of high-performance, high-density
programmable logic devices (PLDs), such as field-programmable gate
arrays (FPGAs) and complex-programmable logic devices (CPLDs).
Total sales were $582.8 million, down 5% year over year, but up
4% sequentially, in line with management's guidance.
The growth was driven by strength in Asia Pacific, particularly
in communications applications. As expected, North America was weak
due to softness in defense and industrial, scientific and
medical.
New product sales increased 31% sequentially driven by sales
increases from 28-, 40-, 45-nanometer products. Sales of
28-nanometer products grew significantly in the quarter, surpassing
management's target of $10 million. The company now expects sales
to exceed $20 million in the September quarter. Mainstream products
declined 4% and base products increased 4% sequentially, but down
16% year over year. Base products declined 5% and 10% during the
quarter and on a year-over-year basis, respectively.
Margins
Gross margin decreased to 66.0% from 66.4% in the prior quarter
but increased from 63.7% in the year-ago quarter, primarily due to
a continued focus on yield improvement and cost reduction.
Operating margin increased to 28.2% from 26.4% in the previous
quarter, but decreased from 30.6% in the year-ago
quarter.
During the quarter, Xilinx generated $162.9 million of cash from
operations and used $8 million in capital expenditures. Xilinx paid
$58 million in cash dividends.
Xilinx ended the quarter with cash, equivalents and short-term
investments of $1.7 billion, down from $1.9 billion at the end of
the previous quarter. Days sales outstanding increased by 5 days to
35 days. Inventory declined by $12 million sequentially.
Guidance
Xilinx stated that the backlog entering into the September
quarter was down sequentially due to the completion of a last time
buy program by a customer, which negatively impacted the top-line
by $25 million. Additionally, management continues to be wary of
uncertain macro environment. Nevertheless, management expects
growth from new products. Xilinx, which competes with Altera
Corporation (ALTR), expects strong growth from 28-nanometer and
40-nanometer product families in fiscal 2013. Consequently,
Xilinx expects sales to be down 4% to 8% sequentially in the second
quarter of fiscal 2013 and sales from all geographies are projected
to decrease.
Gross margin is forecasted around 66%, consistent with the June
quarter as Xilinx continues to make progress on margin improvement
projects across its product portfolio with particular emphasis on
new product margin improvement. Operating expenses in the September
quarter are expected to be approximately $220 million, including
approximately $2 million of amortization of acquisition-related
intangibles.
The weak guidance drove a 0.97% decrease in the share price in
the after market hours trading to close at $31.70. Earlier, the
stock, gained 3.63% to close at $32.01 in regular trading.
Xilinx Inc.
(
XLNX
) recently posted a net income of $129.8 or $0.47 per diluted
share in the first quarter of fiscal 2012, up from a net income
of $122.4 million or $0.44 per diluted share in the previous
quarter, but down from $154.4 million or $0.56 per diluted share
in the year-ago quarter. The quarter's result easily beats the
Zacks Consensus Estimate of $0.45 per share.
California-based Xilinx Inc. is engaged in designing and
manufacturing a broad range of high-performance, high-density
programmable logic devices (PLDs), such as field-programmable
gate arrays (FPGAs) and complex-programmable logic devices
(CPLDs).
Total sales were $582.8 million, down 5% year over year, but
up 4% sequentially, in line with management's guidance. The
growth was driven by strength in Asia Pacific, particularly in
communications applications. As expected, North America was weak
due to softness in defense and industrial, scientific and
medical.
New product sales increased 31% sequentially driven by sales
increases from 28-, 40-, 45-nanometer products. Sales of
28-nanometer products grew significantly in the quarter,
surpassing management's target of $10 million. The company now
expects sales to exceed $20 million in the September quarter.
Mainstream products declined 4% and base products increased 4%
sequentially, but down 16% year over year. Base products declined
5% and 10% during the quarter and on a year-over-year basis,
respectively.
Margins
Gross margin decreased to 66.0% from 66.4% in the prior
quarter but increased from 63.7% in the year-ago quarter,
primarily due to a continued focus on yield improvement and cost
reduction. Operating margin increased to 28.2% from 26.4% in
the previous quarter, but decreased from 30.6% in the
year-ago quarter.
During the quarter, Xilinx generated $162.9 million of cash
from operations and used $8 million in capital expenditures.
Xilinx paid $58 million in cash dividends. Xilinx ended the
quarter with cash, equivalents and short-term investments of $1.7
billion, down from $1.9 billion at the end of the previous
quarter. Days sales outstanding increased by 5 days to 35 days.
Inventory declined by $12 million sequentially.
Guidance
Xilinx stated that the backlog entering into the September
quarter was down sequentially due to the completion of a buy
program by a customer, which negatively impacted the top line by
$25 million. Additionally, management continues to be wary of
uncertain macro environment. Nevertheless, management expects
growth from new products. Xilinx, which competes with
Altera Corporation
(
ALTR
), expects strong growth from 28-nanometer and 40-nanometer
product families in fiscal 2013. Consequently, Xilinx
expects sales to be down 4% to 8% sequentially in the second
quarter of fiscal 2013 and sales from all geographies are
projected to decrease.
Gross margin is forecasted around 66%, consistent with the
June quarter as Xilinx continues to make progress on margin
improvement projects across its product portfolio with particular
emphasis on new product margin improvement. Operating expenses in
the September quarter are expected to be approximately $220
million, including approximately $2 million of amortization of
acquisition-related intangibles.
The weak guidance drove a 0.97% decrease in the share price in
the after market hours trading to close at $31.70. Earlier, the
stock, gained 3.63% to close at $32.01 in regular trading.
ALTERA CORP (ALTR): Free Stock Analysis Report
XILINX INC (XLNX): Free Stock Analysis Report
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