Xilinx Tops, Shares Up - Analyst Blog


Xilinx Inc.  ( XLNX ) recently posted net income of $134.1 million or 49 cents per diluted share in the fourth quarter of fiscal 2012 compared with a net income of $127.0 million or 47 cents per share in the third quarter of fiscal 2012 and a net income of $160.1 million or 59 cents per diluted share in the year-ago quarter.

However, the result easily beats the Zacks Consensus Estimate of 41 cents per share.

California-based Xilinx Inc. designs and manufactures 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 $559.0 million, down 5% year over year, but up 9% sequentially, better than management's guidance. This was primarily due to better-than-expected business from wireless communications customers deploying LTE and 3D technology coupled with a strong rebound across-the-board in the Industrial and Other category.

New product sales increased 11% sequentially driven by sales increases from 28-, 40-, 45-nanometer and 65-nanometer products. Mainstream products declined 4% and base products increased 21% sequentially.

The growth in six of the secondary end market segments that the company serves convinces the management of a broad-based recovery. Xilinx stated that 28-nanometer product family rollout continues at a rapid pace and management is confident that this will be the most successful node in the company's history. Xilinx expects that 28-nanometer sales will exceed $10 million in the June quarter.


Gross margin increased to 66.4% from 65.8% in the prior quarter, driven by favourable customer mix and continued overall cost reduction, including better-than-expected yield improvement on newer products and better inventory supply chain management.

Operating margin increased to 29.1% from 26.8% in the previous quarter and was down from 30.8% in the year-ago quarter.

During the quarter, Xilinx generated $208 million of cash from operations and used $20 million in capital expenditures. Xilinx paid $50 million in cash dividends and increased its quarterly cash dividend by $0.03 per share to $0.22 per share.

Xilinx ended the quarter with cash, equivalents and short-term investments of $1.9 billion, up from $1.7 billion at the end of the previous quarter. Days sales outstanding decreased by 3 days to 35 days. Inventory declined by $41 million sequentially. 


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 up 1% to up 5% sequentially in the first quarter of fiscal 2013.  Sales from Europe are expected to be approximately flat, sales from Asia-Pacific expected to increase and sales from North America and Japan to be down.

Gross margin is forecasted around 65% - 66% as the company absorbs new product ramp  costs. Operating expenses in the June quarter are expected to be approximately $220 million, including approximately $2 million of amortization of acquisition-related intangibles. The majority of the sequential increase in operating expense is in R&D and related to the 28-nanometer ramp.

The better-than-expected results and upbeat guidance drove a 7.36% increase in the share price in after market hours trading to close at $36.85. The stock, earlier, gained 2.37% to close at $34.33 in regular trading.

Last week, Altera reported first quarter results, which missed estimates but guidance was in-line with expectations.

ALTERA CORP ( ALTR ): Free Stock Analysis Report
XILINX INC ( XLNX ): Free Stock Analysis Report

To read this article on Zacks.com click here.
Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: ALTR , XLNX



More from Zacks.com:

Related Videos



Most Active by Volume

  • $15.39 ▼ 0.84%
  • $124.43 ▼ 1.54%
  • $24.81 ▼ 1.23%
  • $40.655 ▼ 0.74%
  • $31.27 ▼ 0.60%
  • $8.41 ▲ 7.41%
  • $8.69 ▼ 0.80%
  • $6.01 ▲ 1.35%
As of 3/31/2015, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by BankRate.com