) 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
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%
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
), 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
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 (
): Free Stock Analysis Report
XILINX INC (
): Free Stock Analysis Report
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