UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[ X ] Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the quarterly period ended January 2, 1999 or
---------------
[ ] Transition report pursuant to section 13 or 15(d) of the Securities
Exchange Act of 1934 for the transition period from _______ to _______ .
COMMISSION FILE NUMBER 0-18548
XILINX, INC.
(Exact name of registrant as specified in its charter)
DELAWARE
(State or other jurisdiction of incorporation or organization)
77-0188631
(I.R.S. Employer Identification No.)
2100 LOGIC DRIVE, SAN JOSE, CA 95124
(Address of principal executive offices) (Zip Code)
(408) 559-7778
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such requirements
for the past 90 days.
YES [ X ] NO [ ]
Class Shares Outstanding at January 2, 1999
- ----- ------------------------------------------
Common Stock, $.01 par value 144,569,000 (1)
(1) Restated for stock split - See Note 9 of Notes to Consolidated Condensed
Financial Statements.
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
<CAPTION>
XILINX, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(in thousands except per share amounts)
Three Months Ended Nine Months Ended
Jan. 2, Dec. 27, Jan. 2, Dec. 27,
1999 1997 1999 1997
--------- ---------- --------- ----------
<S> <C> <C> <C> <C>
Net revenues. . . . . . . . . . . . . . . . . $167,357 $ 148,735 $475,403 $ 459,768
Costs and expenses:
Cost of revenues . . . . . . . . . . . . 65,962 55,668 181,599 172,622
Research and development . . . . . . . . 23,036 19,536 66,399 59,424
Sales, general and administrative. . . . 33,858 32,460 97,739 96,352
--------- ---------- --------- ----------
Operating costs and expenses. . . . 122,856 107,664 345,737 328,398
--------- ---------- --------- ----------
Operating income. . . . . . . . . . . . . . . 44,501 41,071 129,666 131,370
Interest income and other . . . . . . . . . . 5,326 4,425 13,963 15,514
Interest expense. . . . . . . . . . . . . . . (3,473) (3,487) (10,530) (10,474)
--------- ---------- --------- ----------
Income before provision for taxes on income
and equity in joint venture . . . . . . . . 46,354 42,009 133,099 136,410
Provision for taxes on income . . . . . . . . 11,708 13,023 38,599 43,030
--------- ---------- --------- ----------
Income before equity in joint venture . . . . 34,646 28,986 94,500 93,380
Equity in net income (loss) of joint venture. (727) 2,614 (5,721) 2,614
--------- ---------- --------- ----------
Net income. . . . . . . . . . . . . . . . . . $ 33,919 $ 31,600 $ 88,779 $ 95,994
========= ========== ========= ==========
Net income per share:
Basic . . . . . . . . . . . . . . . . . $ 0.24 $ 0.21 $ 0.61 $ 0.65
========= ========== ========= ==========
Diluted . . . . . . . . . . . . . . . . $ 0.22 $ 0.20 $ 0.59 $ 0.60
========= ========== ========= ==========
Shares used in per share calculations: (1)
Basic. . . . . . . . . . . . . . . . . . 143,820 148,392 144,443 147,742
========= ========== ========= ==========
Diluted. . . . . . . . . . . . . . . . . 151,163 158,496 151,533 161,326
========= ========== ========= ==========
<FN>
(1) Restated for stock split - See Note 9 of Notes to Consolidated Condensed Financial
Statements.
</TABLE>
(See accompanying Notes to Consolidated Condensed Financial Statements.)
<PAGE>
<TABLE>
<CAPTION>
XILINX, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands except per share amounts)
Jan. 2, March 28,
1999 1998
----------- -----------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . $ 111,683 $ 166,861
Short-term investments. . . . . . . . . . . . . . . . . . . . . 224,040 195,326
Accounts receivable, net. . . . . . . . . . . . . . . . . . . . 80,735 60,912
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . 48,704 55,289
Advances for wafer purchases. . . . . . . . . . . . . . . . . . 46,443 72,267
Deferred income taxes and other current assets. . . . . . . . . 64,215 49,569
----------- -----------
Total current assets. . . . . . . . . . . . . . . . . . . . . . . . 575,820 600,224
Property, plant and equipment, at cost. . . . . . . . . . . . . . . 183,795 163,632
Accumulated depreciation and amortization . . . . . . . . . . . . . (88,363) (75,356)
----------- -----------
Net property, plant and equipment . . . . . . . . . . . . . . . 95,432 88,276
Long-term investments . . . . . . . . . . . . . . . . . . . . . . . 128,468 42,126
Investment in joint venture . . . . . . . . . . . . . . . . . . . . 92,300 90,872
Advances for wafer purchases. . . . . . . . . . . . . . . . . . . . 64,206 77,342
Deposits and other assets . . . . . . . . . . . . . . . . . . . . . 44,398 42,398
----------- -----------
$1,000,624 $ 941,238
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . $ 19,010 $ 20,332
Accrued payroll, interest payable and other accrued liabilities 28,152 32,735
Income taxes payable. . . . . . . . . . . . . . . . . . . . . . 23,573 16,692
Deferred income on shipments to distributors. . . . . . . . . . 68,061 55,898
----------- -----------
Total current liabilities . . . . . . . . . . . . . . . . . . . . . 138,796 125,657
Long-term debt. . . . . . . . . . . . . . . . . . . . . . . . . . . 250,000 250,000
Deferred tax liabilities. . . . . . . . . . . . . . . . . . . . . . 24,009 15,406
Stockholders' equity:
Preferred stock, $.01 par value . . . . . . . . . . . . . . . . - -
Common stock, $.01 par value. . . . . . . . . . . . . . . . . . 1,446 1,458
Additional paid-in capital. . . . . . . . . . . . . . . . . . . 88,843 118,443
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . 593,247 504,468
Treasury stock, at cost . . . . . . . . . . . . . . . . . . . . (80,222) (56,973)
Cumulative translation adjustment . . . . . . . . . . . . . . . (15,495) (17,221)
----------- -----------
Total stockholders' equity. . . . . . . . . . . . . 587,819 550,175
----------- -----------
$1,000,624 $ 941,238
=========== ===========
</TABLE>
(See accompanying Notes to Consolidated Condensed Financial Statements.)
<PAGE>
<TABLE>
<CAPTION>
XILINX, INC.
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
Increase (decrease) in cash and cash equivalents
(in thousands)
Nine Months Ended
Jan. 2, Dec. 27,
1999 1997
--------- ---------
<S> <C> <C>
Cash flows from operating activities:
Net income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 88,779 $ 95,994
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization. . . . . . . . . . . . . . . . . . . . . . . . 24,643 24,822
Undistributed loss/(earnings) of joint venture . . . . . . . . . . . . . . . 5,721 (3,642)
Changes in assets and liabilities:
Accounts receivable. . . . . . . . . . . . . . . . . . . . . . . . . (19,823) 8,446
Inventories, excluding receipts against advances for wafer purchases 45,545 7,762
Deferred income taxes and other. . . . . . . . . . . . . . . . . . . (7,507) 8,114
Accounts payable, accrued liabilities and income taxes payable . . . 16,671 11,222
Deferred income on shipments to distributors . . . . . . . . . . . . 12,163 12,889
---------- ----------
Total adjustments. . . . . . . . . . . . . . . . . . . . . . 77,413 69,613
---------- ----------
Net cash provided by operating activities . . . . . . . 166,192 165,607
Cash flows from investing activities:
Purchases of available-for-sale investments . . . . . . . . . . . . . . . . . . . . . . (671,399) (281,860)
Proceeds from sale or maturity of available-for-sale investments. . . . . . . . . . . . 514,906 318,241
Purchases of held-to-maturity investments . . . . . . . . . . . . . . . . . . . . . . . (36,228) (36,136)
Proceeds from sale or maturity of held-to-maturity investments. . . . . . . . . . . . . 72,347 35,648
Advances for wafer purchases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - (60,000)
Property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (28,405) (17,947)
Investment in joint venture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,448) (67,422)
Deposit on building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - (28,351)
---------- ----------
Net cash used in investing activities. . . . . . . . . (154,227) (137,827)
Cash flows from financing activities:
Acquisition of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (108,634) (22,682)
Proceeds from issuance of common stock. . . . . . . . . . . . . . . . . . . . . . . . . 41,491 23,078
---------- ----------
Net cash (used)/provided by financing activities . . . (67,143) 396
---------- ----------
Net decrease in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . (55,178) 28,176
Cash and cash equivalents at beginning of period. . . . . . . . . . . . . . . . . . . . . . 166,861 215,903
---------- ----------
Cash and cash equivalents at end of period. . . . . . . . . . . . . . . . . . . . . . . . . $ 111,683 $ 244,079
========== ==========
Schedule of non-cash transactions:
Tax benefit from stock options. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14,124 $ 12,723
Issuance of treasury stock under employee stock plans . . . . . . . . . . . . . . . . . 85,385 20,475
Receipts against advances for wafer purchases . . . . . . . . . . . . . . . . . . . . . 38,960 -
Supplemental disclosures of cash flow information:
Interest paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,991 13,195
Income taxes paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,568 $ 26,489
</TABLE>
(See accompanying Notes to Consolidated Condensed Financial Statements.)
<PAGE>
XILINX, INC.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
1. The accompanying interim consolidated financial statements have been
prepared in conformity with generally accepted accounting principles and
should be read in conjunction with the Xilinx, Inc. (Xilinx or the Company)
consolidated financial statements for the fiscal year ended March 28, 1998.
The balance sheet at March 28, 1998 is derived from the audited financial
statements. The interim financial statements are unaudited but reflect all
adjustments which are, in the opinion of management, of a normal, recurring
nature necessary to present fairly the statements of financial position,
results of operations and cash flows for the interim periods presented. The
results for the three-month period ended January 2, 1999 are not
necessarily indicative of the results that may be expected for the fiscal
year ending April 3, 1999, the Saturday nearest March 31. The three-month
and nine-month periods ended January 2, 1999 consisted of thirteen and
forty weeks, respectively. The three-month and nine-month periods ended
December 27, 1997 consisted of thirteen and thirty-nine weeks,
respectively.
2. Inventories are stated at the lower of cost (first-in, first-out) or market
(estimated net realizable value). Inventories at January 2, 1999 and March
28, 1998 are as follows:
<TABLE>
<CAPTION>
(in thousands) Jan. 2, March 28,
1999 1998
-------- ----------
<S> <C> <C>
Raw materials. . $ 3,113 $ 5,976
Work-in-process. 24,994 24,845
Finished goods . 20,597 24,468
-------- ----------
$ 48,704 $ 55,289
======== ==========
</TABLE>
3. The computation of basic net income per share for all years presented is
derived from the information on the face of the income statement, and there
are no reconciling items in either the numerator or denominator.
Additionally, there are no reconciling items in the numerator used to
compute diluted net income per share. The total shares used in the
denominator of the diluted net income per share calculation includes 7.3
million and 7.1 million incremental common shares attributable to
outstanding options for the third quarter and first nine months of fiscal
year 1999, respectively, as compared to 10.1 million and 13.6 million in
the comparable fiscal 1998 periods, respectively.
The shares issuable upon conversion of long-term debt to equity (the
Convertible Subordinated Notes), approximately 9.8 million shares, were not
included in the calculation of diluted net income per share as their
inclusion would have had an anti-dilutive effect for all periods presented.
In addition, outstanding options to purchase approximately 1.5 million and
6.4 million shares for the third quarter and first nine months of fiscal
year 1999, respectively, and 6.8 million and 3.0 million shares in the
comparable fiscal 1998 periods, respectively, under the Company's Stock
Option Plan were not included in the treasury stock calculation to derive
diluted income per share as their inclusion would have had an anti-dilutive
effect.
4. The Company adopted the Statement of Financial Accounting Standards No. 130
(FASB 130), "Reporting Comprehensive Income" in the first quarter of fiscal
1999. FASB 130 established standards for the reporting and disclosure of
comprehensive income and its components; however, the disclosure has no
impact on the Company's consolidated results of operations, financial
position or cash flows. Comprehensive income is defined as the change in
equity of a company during a period resulting from certain transactions and
other events and circumstances, excluding transactions resulting from
investments by owners and distributions to owners. The difference between
net income and comprehensive income for Xilinx is from foreign currency
translation adjustments and unrealized gains or losses on the Company's
available-for-sale securities.
<PAGE>
The components of comprehensive income for the three and nine month periods
ended January 2, 1999 and December 27, 1997 are as follows:
<TABLE>
<CAPTION>
Three months ended Nine months ended
(in thousands) Jan. 2, Dec. 27, Jan. 2, Dec. 27,
1999 1997 1999 1997
-------- ---------- -------- ----------
<S> <C> <C> <C> <C>
Net Income . . . . . . . . . . . . . . . . . . . . $ 33,919 $ 31,600 $ 88,779 $ 95,994
Cumulative translation adjustment. . . . . . . . . 6,221 (11,878) 1,726 (15,488)
Unrealized gain on available for sale securities,
net of tax . . . . . . . . . . . . . . . . . . . . 139 (24) 159 (49)
-------- ---------- -------- ----------
Comprehensive Income . . . . . . . . . . . . . . . $ 40,279 $ 19,698 $ 90,664 $ 80,457
======== ========== ======== ==========
</TABLE>
5. The Company is currently involved in various legal proceedings, (see Part
II, Item 1, Legal Proceedings). The legal proceedings with Altera
Corporation and Joseph Ward are of an uncertain nature and the lawsuits are
still in the pre-discovery or pre-trial stage, therefore the ultimate
outcome of these matters cannot be determined at this time. Management
believes that it has meritorious defenses to each claim and is defending
them vigorously. The foregoing is a forward-looking statement subject to
risks and uncertainties, and the ultimate outcome of this matter could
differ materially due to the uncertain nature of the litigation. In
addition, on July 31, 1998, the Lemelson Foundation Partnership (Lemelson)
filed a lawsuit in the United States District Court in Phoenix, Arizona
against the Company and twenty-five (25) other United States semiconductor
companies for infringement of certain of its patents. During the third
quarter ending January 2, 1999, the Company entered into a license
agreement with Lemelson. In response, Lemelson dismissed with prejudice all
claims against the Company. The Company believes the settlement does not
have a material adverse effect on the financial statements taken as a
whole.
6. The Company, United Microelectronics Corporation (UMC) and other parties
have entered into a joint venture to construct a wafer fabrication facility
in Taiwan, known as United Silicon Inc. (USIC). During the second quarter
of fiscal 1999, the Company invested additional equity of $5.4 million in
USIC. However, as other parties increased their equity in USIC during the
most recent investment, the Company decreased its equity ownership to 20%.
The Company will still receive up to 31.25% of the wafers produced in this
facility.
7. During the second quarter of fiscal 1999, the Company's Board of Directors
authorized another stock repurchase program whereby up to 6,000,000 shares
of its common stock may be purchased in the open market from time to time
as market and business conditions warrant. The Company has used shares
repurchased from this program and all previous stock repurchase programs to
meet the stock requirements of the Company's Stock Option and Employee
Qualified Stock Purchase plans. During the quarter ended January 2, 1999,
the Company repurchased a total of 194,000 shares of common stock for $3.2
million, and reissued 1,741,000 shares during the period for Stock Option
exercises and Stock Purchase Plan requirements. As of January 2, 1999, the
Company was holding approximately 4.2 million shares of treasury stock.
8. Subsequent to the end of the third quarter, the Company announced its
intention to redeem in full the Company's 5 % Convertible Subordinated
Notes due 2002 (Notes). On February 8, 1999, one hundred percent of the
$250 million principle amount of the Notes was converted into a total of
9.8 million shares of common stock at a price of $25.50 per share.
9. On January 18, 1999 the Company's Board of Directors approved a 2 for 1
split of the Company's Common Stock, which will be effected in the form of
a 100% stock dividend. On March 11, 1999 shareholders of record as of
February 18, 1999 will receive one additional share of Common Stock for
every share currently held. Shares, per share amounts, common stock at par
value, and additional paid-in capital have been restated to reflect the
stock split for all periods presented.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
The following discussion contains forward-looking statements, which involve
numerous risks and uncertainties. Actual results may differ materially.
Certain of these risks and uncertainties are discussed under "Factors Affecting
Future Operating Results".
RESULTS OF OPERATIONS: THIRD QUARTER AND FIRST NINE MONTHS OF FISCAL 1999
- --------------------------------------------------------------------------------
COMPARED TO THE THIRD QUARTER AND FIRST NINE MONTHS OF FISCAL 1998
- -----------------------------------------------------------------------------
REVENUES
Revenues of $167.4 million in the third quarter of fiscal 1999 represented a
12.5% increase from the comparable prior year quarter. The increase was
primarily attributable to the revenue growth of the Company's XC4000EX, XC4000XL
and XC9500 product lines. The increase was partially offset by decreased
revenues relating to the Company's mature XC4000 family as well as the XC3000
family. Revenues for the first nine months of fiscal 1999 were $475.4 million,
a 3.4% increase from the $459.8 million achieved in the prior year comparable
period. Despite the revenue growth in the third quarter and first nine months
of fiscal 1999, revenues continue to be impacted by the Asian economic
environment. The Company believes that this factor, as well as others described
in "Factors Affecting Future Operating Results," could continue to impact
revenues in the near term.
The Company currently classifies its product offerings into four categories.
The Base products consist of the Company's mature product families that are
currently manufactured on technology greater than 0.5 micron; this includes the
XC2000, XC3000, XC3100, XC4000 and XC7000 families. Revenues for Base products
represented 21.8% of total revenues in the third quarter of fiscal 1999, as
compared to 40.6% in the third quarter of fiscal 1998. Mainstream products are
currently manufactured on 0.5 micron technology and include the XC4000E,
XC4000EX, XC5200 and XC9500 product lines. Mainstream products represented
41.2% of total revenues in the third quarter of fiscal 1999 and 39.6% of total
revenues in the prior year third quarter. Advanced products include the
Company's newest technologies manufactured on 0.35 micron and smaller, which
include the XC4000XL, XC4000XV, Virtex and Spartan product lines. Advanced
products represented 25.7% and 7.8% of total revenues in the third quarter of
fiscal 1999 and 1998, respectively. The revenue increase for the Advanced
products was driven primarily from the XC4000XL and Spartan product families.
The Company's Support products make up the remainder of its product offerings
and include serial proms, HardWire, High Reliability and software. Support
products represented 11.3% and 12.0% of total revenues in the third quarter of
fiscal 1999 and 1998, respectively. The Company has historically been able to
offset much of the revenue declines of its mature technologies with increased
revenues from newer technologies, although no assurance can be given that the
Company will continue to do so in the future.
International revenues represented approximately 29% of total revenues in the
third quarter of fiscal year 1999 in comparison to approximately 38% in the
prior year quarter. International revenues are derived from customers in
Europe, Japan and Asia Pacific/Rest of World which represented approximately
20%, 5% and 4% of the Company's worldwide revenues, respectively, in the third
quarter of fiscal 1999 as compared to approximately 22%, 10% and 6% of worldwide
revenues, respectively, in the third quarter of the prior fiscal year. Japan
and Asia Pacific/Rest of World experienced revenue declines in the third quarter
of fiscal 1999 as compared to the same quarter a year ago primarily as a result
of the weaker economic environment in those regions.
GROSS MARGIN
Gross margin was $101.4 million, or 60.6% of revenues and $293.8 million or
61.8% of revenues for the third quarter and first nine months of fiscal 1999,
respectively. Gross margin for the comparable periods of fiscal 1998 were $93.1
million, or 62.6% of revenues, and $287.1 million, or 62.5% of revenues,
respectively. The decline in the third quarter gross margin percentage from the
prior year three and nine month periods was primarily a result of a
non-recurring royalty payment made pursuant to the license agreement with
Lemelson. See Note 5 of Notes To Consolidated Condensed Financial Statements.
During the third quarter of fiscal 1999, the Company continued to experience a
favorable impact of lower wafer prices from wafer suppliers, manufacturing
process technology improvements, and improved yields that offset continued
selling price reductions. The Company recognizes that ongoing price reductions
for its integrated circuits are a significant element in expanding the market
for its products. Management believes that gross margin objectives in the range
of 60% to 62% of revenues are consistent with expanding market share while
realizing acceptable returns, although there can be no assurance that future
gross margins can remain in this range.
<PAGE>
RESEARCH AND DEVELOPMENT
Research and development expenditures were $23.0 million for the third quarter
and $66.4 million for the first nine months of fiscal 1999, or 13.8% and 14.0%
of revenues, respectively. Research and development expenditures for the
comparable periods in the prior year were $19.5 million and $59.4 million, or
13.1% and 12.9% of revenues, respectively. The increase in expenditures over
the prior year periods was primarily attributable to the increased costs
associated with designing and developing new product architectures of complex,
high density devices including wafer purchases, increased labor-related costs,
and testing of new products. Specifically, additional costs are being incurred
in connection with the Company's development of its Virtex and XC4000XV
technologies and the related design software. The Company remains committed to
a significant level of research and development effort in order to continue to
maintain its technology leadership in the programmable logic marketplace.
SALES, GENERAL AND ADMINISTRATIVE
Sales, general and administrative expenses decreased as a percent of revenue to
20.2% and 20.6% for the third quarter and first nine months of fiscal 1999 as
compared to 21.8% and 21.0% for the comparable prior year periods, respectively.
Sales, general and administrative expenses were $33.9 million in the third
quarter of fiscal 1999 as compared to $32.5 million incurred in the comparable
prior year quarter, an increase of 4.3%, and were $97.7 million for the first
nine months of fiscal 1999 as compared to $96.4 million in the same periods from
the prior fiscal year, representing an increase of 1.4%. The increase in the
third quarter expenses was primarily attributable to increased marketing
expenses for new product introductions, increased sales commissions on higher
revenues from US distributors along with increased labor-related costs. The
Company remains committed to controlling administrative expenses. However, the
timing and extent of future legal costs associated with the ongoing enforcement
of the Company's intellectual property rights are not readily predictable and
may significantly increase the level of sales, general and administrative
expenses in the future.
OPERATING INCOME
Operating income of $44.5 million and $129.7 million represented 26.6% and 27.3%
of revenues in the third quarter and the first nine months of fiscal 1999,
respectively, as compared to $41.1 million and $131.4 million, or 27.6% and
28.6% of revenues, respectively, from the comparable prior year periods.
Operating income could be adversely impacted in future years by the factors
discussed throughout this report, particularly those noted in "Factors Affecting
Future Operating Results".
INTEREST AND OTHER, NET
Interest and other income for the third quarter of fiscal 1999 increased $0.9
million from the amount in the third quarter of fiscal 1998 primarily due to net
foreign exchange gains. Interest and other income decreased $1.6 million for
the first nine months of the current fiscal year over the prior years'
comparable period primarily due to separate disclosure of joint venture equity
income beginning in the third quarter of fiscal 1998. In addition, average cash
and investment balances have decreased in both the third quarter and first nine
months of fiscal 1999 as compared to the prior year periods resulting in lower
interest and other income. The amount of net interest and other income in the
future will continue to be impacted by the level of the Company's average cash
and investment balance, the remaining period of time that the Convertible debt
remains outstanding, (see Note 8 of Notes To Consolidated Condensed Financial
Statements), prevailing interest rates and foreign currency exchange rates.
PROVISION FOR INCOME TAXES
The company recorded a tax provision of $11.7 million for the third quarter of
fiscal 1999 as compared to $13.0 million in the same prior year period,
representing effective tax rates of 25.3% and 31.0%, respectively. For the
first nine months of fiscal 1999, the Company recorded a provision of $38.6
million as compared to $43.0 million for the first nine months of fiscal 1998,
representing effective tax rates of 29.0% and 31.5%, respectively. The lower
tax rate is primarily due to legislation reinstating the R&D Tax Credit through
June 30, 1999 as well as increased profits in foreign operations where the tax
rate is lower than the US rate.
<PAGE>
JOINT VENTURE EQUITY INCOME
The Company records its proportional ownership of the net income (loss) of
United Silicon Inc. (USIC), a wafer fabrication joint venture located in Taiwan,
as joint venture equity income (loss). The Company recorded $0.7 million and
$5.7 million net losses for the third quarter and the first nine months of
fiscal 1999, respectively, as compared to equity income of $2.6 million for both
the third quarter and the first nine months of fiscal 1998. The net income in
fiscal 1998 was primarily attributable to foreign exchange gains incurred on
USIC's dollar denominated investments. The fiscal 1999 net losses are a result
of the continued ramp in production of the wafer fabrication facility. Many of
the expenses associated with full foundry operations are being incurred although
the facility has not reached full production, and the Company expects that
profitability of the joint venture will occur, if at all, only after a
sufficient volume of wafer production and shipments are obtained.
HEDGING
Through fiscal year 1998, the Company's purchases of processed silicon wafers
from Japanese suppliers were denominated in yen. Beginning in fiscal 1999, most
wafers purchased from Japanese suppliers have been denominated in US dollars.
The Company continues to invoice Japanese customers in yen, resulting in a net
yen exposure. The Company is currently using hedging instruments to limit its
net yen related exposure. The use of hedging instruments has not had a material
impact on the Company's results of operations during fiscal 1999. In addition,
the Company does not expect that hedging instruments outstanding as of January
2, 1999, will have a material impact on the Company's future results of
operations, although there can be no assurance of this.
INFLATION
To date, the effects of inflation upon the Company's financial results have not
been significant.
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES
- ---------------------------------------------------------
The Company's financial condition at January 2, 1999 remained strong. Total
current assets exceeded total current liabilities by 4.1 times, compared to 4.8
times at March 28, 1998. Since its inception, the Company has used a
combination of equity and debt financing and cash flow from operations to
support on-going business activities, fund acquisitions and make investments in
complementary technologies, obtain facilities and capital equipment and finance
inventory and accounts receivable.
The Company continued to generate positive cash flows from operations during the
first nine months of fiscal 1999. As of January 2, 1999, the Company had cash,
cash equivalents and short-term investments of $335.7 million and working
capital of $437.0 million. Cash generated by operations of $166.2 million for
the first nine months of fiscal 1999 was consistent with the $165.6 million
generated from the first nine months of fiscal 1998. Increases in cash
generated by operations resulted primarily from a decrease in cash spent on
inventory as inventory receipts continue to be received against advances for
wafer purchases and were offset by the cash flow impact of an increase in
accounts receivable and an increase in deferred income taxes and other. The
$19.8 million, or 32.5% increase in accounts receivable was primarily a result
of the Company's continued efforts to move domestic distributors to longer
payment terms in exchange for elimination of prompt payment discounts. As of
January 2, 1999, two domestic distributors had switched over to the new terms.
Cash flows used for investing activities during the nine months ended January 2,
1999, included net investment purchases of $120.4 million, $28.4 million for
property, plant and equipment, and an additional $5.4 million equity investment
in the USIC joint venture. During the first nine months of fiscal 1998,
investing activities included an equity investment of $67.4 million in the USIC
joint venture, a $60.0 million advance to Seiko Epson for wafer purchases, and
$17.9 million of property, plant and equipment acquisitions along with a
building deposit of $28.4 million, which were partially offset by the net
maturities of $35.9 million in short-term investments.
Net cash flows used by financing activities were $67.1 million in the first nine
months of fiscal 1999, as the acquisition of treasury stock during the period of
$108.6 million was only partially offset by proceeds received from the issuance
of common stock under employee stock plans of $41.5 million. For the comparable
fiscal 1998 period, financing activities included $23.1 million in proceeds from
employee stock plans, which were almost completely offset by the acquisition of
treasury stock during the period of $22.7 million.
<PAGE>
Stockholders' equity increased by $37.6 million during the first nine month of
fiscal 1999, principally as a result of the $88.8 million in net income for the
nine months ended January 2, 1999. In addition, the proceeds from the issuance
of common stock under employee stock plans of $41.5 million and related tax
benefits from stock options of $14.1 million contributed to the increase, which
was partially offset by the $108.6 million of activity under the Company's stock
buyback programs whereby approximately 5.5 million shares were purchased during
the nine months ended January 2, 1999.
The Company has available credit line facilities for up to $46.2 million of
which $6.2 million is intended to meet occasional working capital requirements
for the Company's wholly owned Irish subsidiary. At January 2, 1999, no
borrowings were outstanding under the lines of credit.
The Company anticipates that existing sources of liquidity and cash flow from
operations will be sufficient to satisfy the Company's cash needs for the
foreseeable future. The Company will continue to evaluate opportunities to
obtain additional wafer capacity, procure additional capital equipment and
facilities, develop new products, and acquire businesses, products or
technologies that would complement the Company's businesses and may use
available cash or other sources of funding for such purposes.
FACTORS AFFECTING FUTURE OPERATING RESULTS
- ----------------------------------------------
The semiconductor industry is characterized by rapid technological change,
intense competitive pressure and cyclical market patterns characterized by
diminished product demand, limited visibility of demand for products further out
than three to nine months, accelerated erosion of average selling prices and
overcapacity. The Company's results of operations are affected by a wide
variety of factors, including general economic conditions, conditions relating
to technology companies, conditions specific to the semiconductor industry,
decreases in average selling prices over the life of any particular product, the
timing of new product introductions (by the Company, its competitors and
others), the ability to manufacture sufficient quantities of a given product in
a timely manner, the timely implementation of new manufacturing technologies,
the ability to safeguard patents and intellectual property from competitors, and
the impact of new technologies resulting in rapid escalation of demand for some
products in the face of equally steep decline in demand for others. Market
demand for the Company's products, particularly for those most recently
introduced, can be difficult to predict, especially in light of customers'
demands to shorten product lead times and minimize inventory levels.
Unpredictable market demand could lead to revenue volatility if the Company were
unable to provide sufficient quantities of specified products in a given
quarter. In addition, any difficulty in achieving targeted wafer production
yields could adversely impact the Company's financial condition and results of
operations. The Company attempts to identify changes in market conditions as
soon as possible; however, the dynamics of the market make prediction of and
timely reaction to such events difficult. Due to the foregoing and other
factors, past results, including those described in this report, are much less
reliable predictors of the future than is the case in many older, more stable
and less dynamic industries. Based on the factors noted herein, the Company may
experience substantial period-to-period fluctuations in future operating
results.
The Company's future success depends in large part on the continued service of
its key technical, sales, marketing and management personnel and on its ability
to continue to attract and retain qualified employees. Particularly important
are those highly skilled design, process, software and test engineers involved
in the manufacture of existing products and the development of new products and
processes. The competition for such personnel is intense, and the loss of key
employees could have a material adverse effect on the Company's financial
condition and results of operations.
Sales and operations outside of the United States subject the Company to risks
associated with conducting business in foreign economic and regulatory
environments. The Company's financial condition and results of operations could
be adversely impacted by unfavorable economic conditions in countries in which
it does significant business and by changes in foreign currency exchange rates
affecting those countries. Specifically, the Company has sales and operations
in Asian markets, including Southeast Asia and Japan. The recent instability in
these financial markets has adversely impacted revenues and may continue to
adversely impact revenues in those markets in several ways, including reduced
access to sources of capital needed by customers to make purchases and increased
exchange rate differentials that may adversely effect the customer's ability to
purchase or the Company's ability to sell at competitive prices. In addition,
the instability may increase credit risks as the recent weakening of certain
Asian currencies may impair customers' ability to repay existing obligations.
Depending on the situation in Asia in coming quarters, any or all of these
factors could adversely impact the Company's financial condition and results of
operations in the near future.
<PAGE>
Also, the Company's financial condition and results of operations are becoming
increasingly dependent on a global economy. The increased instability in
worldwide economic environments could lead to a contraction of capital spending.
Additionally, risks include government regulation of exports, tariffs and other
potential trade barriers, reduced protection for intellectual property rights in
some countries, and generally longer receivable collection periods. The
Company's business is also subject to the risks associated with the imposition
of legislation and regulations relating specifically to the import or export of
semiconductor products. The Company cannot predict whether quotas, duties,
taxes or other charges or restrictions will be imposed by the United States or
other countries upon the importation or exportation of the Company's products in
the future or what, if any, effect such actions would have on the Company's
financial condition and results of operations.
In order to expand international sales and service, the Company will need to
maintain and expand existing foreign operations or establish new foreign
operations. This entails hiring additional personnel and maintaining or
expanding existing relationships with international distributors and sales
representatives. This will require significant management attention and
financial resources and could adversely affect the Company's financial condition
and results of operations. There can be no assurance that the Company will be
successful in its maintenance or expansion of existing foreign operations, in
its establishment of new foreign operations or in its efforts to maintain or
expand its relationships with international distributors or sales
representatives.
Many of the Company's operations are centered in an area of California that has
been seismically active. Should there be a major earthquake in this area, the
Company's operations may be disrupted resulting in the inability of the Company
to manufacture or ship products in a timely manner, thereby materially adversely
affecting the Company's financial condition and results of operations.
In addition, the securities of many high technology companies have historically
been subject to extreme price and volume fluctuations, which may adversely
affect the market price of the Company's common stock.
DEPENDENCE UPON INDEPENDENT MANUFACTURERS AND SUBCONTRACTORS
The Company does not manufacture the wafers used for its products. During the
past several years, most of the Company's wafers have been manufactured by Seiko
Epson Corporation (Seiko Epson) and UMC with recent wafers also manufactured by
USIC. The Company has depended upon these suppliers and others to produce
wafers with competitive performance and cost attributes, including transitioning
to advanced manufacturing process technologies, producing wafers at acceptable
yields, and delivering them to the Company in a timely manner. While the
timeliness, yield and quality of wafer deliveries have met the Company's
requirements to date, there can be no assurance that the Company's wafer
suppliers will not experience future manufacturing problems, including delays in
the realization of advanced manufacturing process technologies. Additionally,
disruption of operations at these foundries for any reason, including natural
disasters such as fires or earthquakes as well as disrupted access to adequate
supplies of electricity, natural gas or water could cause delays in shipments of
the Company's products, and could have a material adverse effect on the
Company's results of operations. The Company is also dependent on
subcontractors to provide semiconductor assembly services. Any prolonged
inability to obtain wafers or assembly services with competitive performance and
cost attributes, adequate yields or timely deliveries from these manufacturers
and subcontractors, or any other circumstance that would require the Company to
seek alternative sources of supply, could delay shipments, and have a material
adverse effect on the Company's financial condition and results of operations.
The Company's growth will depend in large part on the Company's ability to
obtain increased wafer fabrication capacity and assembly services from suppliers
which are cost effective. In order to secure additional wafer capacity, the
Company from time to time considers alternatives, including, without limitation,
equity investments in, or loans, deposits, or other financial commitments to,
independent wafer manufacturers to secure production capacity, or the use of
contracts which commit the Company to purchase specified quantities of wafers
over extended periods. Although the Company is currently able to obtain wafers
from existing suppliers in a timely manner, the Company has at times been
unable, and may in the future be unable, to fully satisfy customer demand
because of production constraints, including the ability of suppliers and
subcontractors to provide materials and services in satisfaction of customer
delivery dates, as well as the ability of the Company to process products for
shipment. In addition, a significant increase in general industry demand or any
interruption of supply could reduce the Company's supply of wafers or increase
the Company's cost of such wafers. Such events could have a material adverse
affect on the Company's financial condition and results of operations.
<PAGE>
DEPENDENCE ON NEW PRODUCTS
The Company's future success depends in large part on its ability to develop and
introduce on a timely basis new products which address customer requirements and
compete effectively on the basis of price, functionality and performance. The
success of new product introductions is dependent upon several factors,
including timely completion of new product designs, the ability to utilize
advanced manufacturing process technologies, achievement of acceptable yields,
availability of supporting software design tools, utilization of predefined
cores of logic and market acceptance. No assurance can be given that the
Company's product development efforts will be successful or that its new
products will achieve market acceptance. Revenues relating to some of the
Company's mature products are expected to continue to decline in the future. As
a result, the Company will be increasingly dependent on revenues derived from
newer products. In addition, the average selling price for any particular
product tends to decrease rapidly over the product's life. To offset such
decreases, the Company relies primarily on obtaining yield improvements and
corresponding cost reductions in the manufacture of existing products and on
introducing new products which incorporate advanced features and other
price/performance factors such that higher average selling prices and higher
margins are achievable relative to mature product lines. To the extent that
such cost reductions and new product introductions do not occur in a timely
manner, or the Company's products do not achieve market acceptance at prices
with higher margins, the Company's financial condition and results of operations
could be materially adversely affected.
COMPETITION
The Company's field programmable gate arrays (FPGAs) and complex programmable
logic devices (CPLDs) compete in the programmable logic marketplace, with a
substantial majority of the Company's revenues derived from its FPGA product
families. The industries in which the Company competes are intensely
competitive and are characterized by rapid technological change, rapid product
obsolescence and continuous price erosion. The Company expects significantly
increased competition both from existing competitors and from companies that may
enter its market.
Xilinx believes that important competitive factors in the programmable logic
market include price, product performance and reliability, adaptability of
products to specific applications, ease of use and functionality of software
design tools, functionality of predefined cores of logic and the ability to
provide timely customer service and support. The Company's strategy for
expansion in the programmable logic market includes continued introduction of
new product architectures which address high volume, low cost applications as
well as high performance, leading edge density applications and continued price
reductions proportionate with the ability to lower the cost of manufacture for
established products. However, there can be no assurance that the Company will
be successful in achieving these strategies.
The Company's major sources of competition fall into four main categories: the
manufacturers of custom CMOS gate arrays, providers of high density programmable
logic products characterized by FPGA-type architectures, providers of high
speed, low density CPLDs and other providers of new or emerging programmable
logic products. The Company competes with custom gate array manufacturers on
the basis of lower design costs, shorter development schedules and reduced
inventory risks. The primary attributes of custom gate arrays are high density,
high speed and low production costs in high volumes. The Company continues to
develop lower cost architectures intended to narrow the gap between current
custom gate array production costs (in high volumes) and PLD production costs.
The Company competes with high density programmable logic suppliers on the basis
of performance, voltage, the ability to deliver complete solutions to customers,
and customer support, taking advantage of the primary characteristics of
flexible, high speed implementation and quick time-to-market capabilities of the
Company's PLD product offerings. Competition among CPLD suppliers is based
primarily on price, performance, design, software utility and the ability to
deliver complete solutions to customers. In addition, the Company competes with
manufacturers of new or emerging programmable logic products on the basis of
price, performance, customer support, software utility and the ability to
deliver complete solutions to customers. Some of the Company's current or
potential competitors have substantially greater financial, manufacturing,
marketing and technical resources than Xilinx. To the extent that such efforts
to compete are not successful, the Company's financial condition and results of
operations could be materially adversely affected.
<PAGE>
INTELLECTUAL PROPERTY
The Company relies upon patent, trademark, trade secret and copyright law to
protect its intellectual property. There can be no assurance that such
intellectual property rights can be successfully asserted in the future or will
not be invalidated, circumvented or challenged. From time to time, third
parties, including competitors of the Company, have asserted patent, copyright
and other intellectual property rights to technologies that are important to the
Company. There can be no assurance that third parties will not assert
infringement claims against the Company in the future, that assertions by third
parties will not result in costly litigation or that the Company would prevail
in such litigation or be able to license any valid and infringed patents from
third parties on commercially reasonable terms. Litigation, regardless of its
outcome, could result in substantial cost and diversion of resources of the
Company. Any infringement claim or other litigation against or by the Company
could materially adversely affect the Company's financial condition and results
of operations.
COMPUTER INFORMATION SYSTEMS
In order to compete effectively in an industry characterized by rapid
technological change, intense competitive pressure and cyclical market patterns,
the Company continually evaluates its computer information systems. As a
result, the Company has recently implemented computer information systems or
system enhancements relating to its semiconductor manufacturing, software
manufacturing and financial applications. In addition, the Company is in the
process of implementing a computer information system relating to its order
entry application. The Company currently expects that this system will be
implemented by the middle of calendar 1999. The time period for implementation
of this system represents a forward-looking statement subject to risks and
uncertainties and actual results may differ materially from those described
above due to a number of risk factors. These risk factors include, but are not
limited to, the complexity of the conversion process and the new system itself,
the transfer of data from the old to new system and the need for employee
training in connection with adopting the new system. Implementation of the new
system could potentially require the Company to be without certain capabilities
critical to normal business operation (including processing customer orders and
shipping product) for a period of time until the new system is operational. In
addition, the Company could encounter problems after implementation of the
system. There can be no assurance that these risks would not have a material
adverse impact on the Company's financial condition and results of operations.
As is the case with most other companies using computer information systems in
their operations, the Company is currently working to resolve the potential
impact of the Year 2000 on the processing of date-sensitive information by the
Company's computerized information systems, as well as the vendor and customer
date-sensitive computerized information electronically transferred to the
Company. The Year 2000 issue is the result of computer programs being written
using two digits, rather than four, to define the applicable Year. Any of the
Company's systems that have time-sensitive software may recognize the year "00"
as 1900 rather than the year 2000, which could result in miscalculations,
classification errors or system failures.
The Company has performed a thorough review of its internal use software and
hardware applications and software products in order to identify those
applications and products that are not Year 2000 compliant. Currently the
Company's Year 2000 efforts have been focused on implementing the upgrades for
the software and hardware applications identified in the review as well as
assessing its outside suppliers and other critical business partners. The
Company believes that its internal computer system implementation or enhancement
efforts principally conducted to improve competitive and operating efficiencies,
as described above, will also address some of the Company's internal Year 2000
compliance issues. Additional internal information systems are also currently
being upgraded. Electronic data interchange modifications have been completed
that are intended to ensure all dates are handled properly, although there can
be no assurance of this. With regard to all information technology hardware,
including desktops, networking and telecom equipment, and servers, the Company
has completed its assessment, has begun to make the necessary upgrades and
expects to complete the upgrades by mid calendar 1999, although there can be no
assurance of this.
The Company believes that its latest software release, version M1.5, is Year
2000 compliant, including the Japanese version, although there can be no
assurance of this. However, some of the Company's customers are running
product versions that are not Year 2000 compliant. The Company has been
encouraging such customers to migrate to the current product version.
<PAGE>
The Company plans to take several steps to minimize any Year 2000 effects such
as miscalculations, classification errors or system failures. Internal
preparedness includes specific steps that will be taken in anticipation of the
Year 2000 as well as relying on a contingency plan currently being developed
which includes manual workarounds, attention to inventory levels, efforts to
ensure that the order entry application being replaced is Year 2000 compliant in
case of a delay in implementation of the new application, the ability to utilize
both the San Jose and Ireland manufacturing facilities for shipment and having
multiple vendors who can provide critical wafer, assembly and test products and
services.
The time periods provided above represent forward-looking statements subject to
risks and uncertainties and actual results may differ materially from those
described above due to a number of risk factors. These factors include, but are
not limited to, the complexity of identifying potential Year 2000 issues, the
ability to allocate and/or obtain qualified resources to resolve Year 2000
issues, the ability to work effectively with vendors and other critical business
partners and the Company's effectiveness at encouraging customers to migrate
towards its current software product version. There can be no assurance that
the Company will be able to successfully, in a timely manner, modify all systems
and products to comply with Year 2000 requirements, which could have a material
adverse effect on the Company's financial condition and results of operations.
If the Company was to discontinue its Year 2000 preparedness at this time, the
Company would not be able to ensure all internal networks and desktops were
operational, nor ensure third party vendors were able to meet the Company's
inventory demands or send information electronically. In addition, disruptions
to the economy generally resulting from the Year 2000 issues could also
materially adversely impact the Company. The Company could be subject to
litigation for computer system failures such as equipment shutdown or failure to
properly date business records. The amount of potential liability and lost
revenue cannot be reasonably estimated at this time.
The costs directed solely towards Year 2000 compliance are not incremental to
the Company, but represent a reallocation of existing resources. To date the
Company has incurred less than $1.0 million on efforts directed solely towards
Year 2000 compliance and expects to incur a total of less than $2.0 million when
the process has been completed, although there can be no assurance that this
will be the case. Although the costs of addressing potential problems are not
currently expected to have a material adverse impact on the Company's financial
position, results of operations or cash flows in future periods, if the Company,
its customers or vendors are unable to resolve such processing issues on a
timely, cost-effective basis, the Company's financial condition and results of
operations could be adversely affected.
EURO CURRENCY
Effective January 1, 1999 11 member countries of the European Union established
fixed conversion rates between their existing sovereign currencies and the Euro
and adopted the Euro as their common legal currency. During the three year
transition, the Euro will be available for non-cash transactions and legacy
currencies will remain legal tender. The Company is continuing to address the
Euro impact on its business including the ability to handle the conversion in
the accounting and other information systems, ability of foreign banks to report
on dual currencies, the legal and contractual implications of contracts, and
reviewing pricing strategies. The Company expects that any additional
modifications to its operations and systems will be completed on a timely basis
and does not believe the conversion will have a material adverse impact on the
Company's operations. However, there can be no assurance that the Company will
be able to successfully modify all systems and contracts to comply with Euro
requirements on a timely basis.
LITIGATION
The Company is currently engaged in several lawsuits. See "Legal Proceedings"
in Part II.
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
On June 7, 1993, the Company filed suit against Altera Corporation (Altera) in
the United States District Court for the Northern District of California for
infringement of certain of the Company's patents. Subsequently, Altera filed
suit against the Company, alleging that certain of the Company's products
infringe certain Altera patents. Fact and expert discovery have been completed
in both cases, which have been consolidated. On April 20, 1995, Altera filed an
additional suit against the Company in the Federal District Court in Delaware,
alleging that the Company's XC5200 family infringes an Altera patent. The
Company answered the Delaware suit denying that the XC5200 family infringes the
patent in suit, asserting certain affirmative defenses and counterclaiming that
the Altera Max 9000 family infringes certain of the Company's patents. The
Delaware suit was transferred to the United States District Court for the
Northern District of California and is also before the same judge. On October
25, 1998, both Altera and the Company filed motions with the Court for summary
judgement with respect to certain of the issues pending in the litigation.
On July 22, 1998, Altera and Joseph Ward, a former Xilinx employee, filed suit
against the Company in Superior Court in Santa Clara County, California, arising
out of the Company's efforts to prevent disclosure of certain Company
confidential information. Altera's suit requests declaratory relief and claims
the Company engages in unfair business practices and interference with
contractual relations. On September 10, 1998 the Company filed cross claims
against Altera and Ward for unfair competition and breach of contract, among
other claims, in the California action. On October 20, 1998, Altera and Ward
filed crossclaims against the Company for malicious prosecution of civil action
and defamation.
The ultimate outcome of these matters cannot be determined at this time.
Management believes that it has meritorious defenses to such claims and is
defending them vigorously. The foregoing is a forward-looking statement subject
to risks and uncertainties, and the future outcome of these matters could differ
materially due to the uncertain nature of each legal proceeding and because the
lawsuits are still in the pre-discovery or pre-trial stages.
On July 31, 1998, the Lemelson Foundation Partnership (Lemelson) filed a lawsuit
in the United States District Court in Phoenix, Arizona against the Company and
twenty-five (25) other United States semiconductor companies for infringement of
certain of its patents. During the third quarter ending January 2, 1999, the
Company entered into a license agreement with Lemelson. In response, Lemelson
dismissed with prejudice all claims against the Company.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits None
(b) Reports on Form 8-K None
<PAGE>
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 thereunto duly authorized.
XILINX, INC.
-------------
Date February 10, 1999 /s/ Kris Chellam
------------------- -------------------------------------
Kris Chellam
Senior Vice President of Finance and
Chief Financial Officer
(as principal accounting and financial
officer and on behalf of Registrant)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary information extracted from Xilinx, Inc.'s
CONSOLIDATED STATEMENTS OF INCOME AND CONSOIDATED BALANCE SHEETS and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1000
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 9-MOS
<FISCAL-YEAR-END> APR-03-1999 APR-03-1999
<PERIOD-START> OCT-04-1998 MAR-29-1998
<PERIOD-END> JAN-02-1999 JAN-02-1999
<CASH> 111,683 111,683
<SECURITIES> 224,040 224,040
<RECEIVABLES> 89,066 89,066
<ALLOWANCES> 8,331 8,331
<INVENTORY> 48,704 48,704
<CURRENT-ASSETS> 575,820 575,820
<PP&E> 183,795 183,795
<DEPRECIATION> 88,363 88,363
<TOTAL-ASSETS> 1,000,624 1,000,624
<CURRENT-LIABILITIES> 138,796 138,796
<BONDS> 250,000 250,000
0 0
0 0
<COMMON> 1,446 <F2> 1,446 <F2>
<OTHER-SE> 586,373 <F2> 586,373 <F2>
<TOTAL-LIABILITY-AND-EQUITY> 1,000,624 1,000,624
<SALES> 167,357 475,403
<TOTAL-REVENUES> 167,357 475,403
<CGS> 65,962 181,599
<TOTAL-COSTS> 65,962 181,599
<OTHER-EXPENSES> 56,894 164,138
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 3,473 10,530
<INCOME-PRETAX> 46,354 133,099
<INCOME-TAX> 11,708 38,599
<INCOME-CONTINUING> 33,919 88,779
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 33,919 88,779
<EPS-PRIMARY> 0.24 <F1> <F2> 0.61 <F1> <F2>
<EPS-DILUTED> 0.22 <F2> 0.59 <F2>
<FN>
<F1> Represents basic earnings per share.
<F2> Restated for 2 for 1 stock split.
</TABLE>
