Xilinx Inc. designs develops and markets complete programmable logic solutions including advanced integrated circuits software design tools predefined system functions delivered as cores of logic and field engineering support. Its programmable logic devices include field programmable gate arrays and complex programmable logic devices. These devices are standard products that its customers program to perform desired logic functions. Xilinx Inc. has a market cap of $6.11 billion; its shares were traded at around $22.19 with a P/E ratio of 20 and P/S ratio of 3.3. The dividend yield of Xilinx Inc. stocks is 2.5%. Xilinx Inc. had an annual average earning growth of 9.1% over the past 10 years.
Highlight of Business Operations:The Companys short-term and long-term investments include marketable debt securities and non-marketable equity securities. As of June 27, 2009, the Company had marketable debt securities with a fair value of $1.22 billion and non-marketable equity securities in private companies of $18.0 million (adjusted cost).
As of June 27, 2009, we had $72.6 million of deferred revenue and $22.9 million of deferred cost of goods sold recognized as a net $49.7 million of deferred income on shipments to distributors. As of March 28, 2009, we had $90.4 million of deferred revenue and $28.0 million of deferred cost of goods sold recognized as a net $62.4 million of deferred income on shipments to distributors. The deferred income on shipments to distributors that will ultimately be recognized in our consolidated statement of income will be different than the amount shown on the consolidated balance sheet due to actual price adjustments issued to the distributors when the product is sold to their end customers.
In addition, SFAS 123(R) requires us to develop an estimate of the number of stock-based awards which will be forfeited due to employee turnover. Quarterly changes in the estimated forfeiture rate have an effect on reported stock-based compensation, as the effect of adjusting the rate for all expense amortization after April 1, 2006 is recognized in the period the forfeiture estimate is changed. If the actual forfeiture rate is higher than the estimated forfeiture rate, then an adjustment is made to increase the estimated forfeiture rate, which will result in a decrease to the expense recognized in the financial statements. If the actual forfeiture rate is lower than the estimated forfeiture rate, then an adjustment is made to decrease the estimated forfeiture rate, which will result in an increase to the expense recognized in the financial statements. The effect of forfeiture adjustments in the first quarter of fiscal 2010 and 2009 reduced stock-based compensation expense by $3.4 million and $2.9 million, respectively. The expense we recognize in future periods could also differ significantly from the current period and/or our forecasts due to adjustments in the assumed forfeiture rates.
Our net revenues of $376.2 million in the first quarter of fiscal 2010 represented a 23% decrease from the comparable prior year period of $488.2 million. The year-over-year decrease in net revenues was due to lower demand arising from the current worldwide economic downturn. Total unit sales declined in the first quarter of fiscal 2010 compared with the same quarter of the prior year, slightly offset by an increase in the average selling price per unit during the same time period. No end customer accounted for more than 10% of the Companys net revenues for any of the periods presented.
Read the The complete ReportXLNX is in the portfolios of John Hussman of Hussman Economtrics Advisors, Inc., PRIMECAP Management, David Dreman of Dreman Value Management.