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Xilinx Inc. Reports Operating Results (10-Q)

February 09, 2010 | About:
10qk

10qk

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Xilinx Inc. (XLNX) filed Quarterly Report for the period ended 2010-01-02.

Xilinx Inc. has a market cap of $6.5 billion; its shares were traded at around $23.46 with a P/E ratio of 22.1 and P/S ratio of 3.6. The dividend yield of Xilinx Inc. stocks is 2.7%. Xilinx Inc. had an annual average earning growth of 9.1% over the past 10 years.XLNX is in the portfolios of John Hussman of Hussman Economtrics Advisors, Inc., Bruce Kovner of Caxton Associates, PRIMECAP Management, David Dreman of Dreman Value Management, Jeremy Grantham of GMO LLC.

Highlight of Business Operations:

Our short-term and long-term investments include marketable debt securities and non-marketable equity securities. As of January 2, 2010, we had marketable debt securities with a fair value of $1.41 billion and non-marketable equity securities in private companies of $19.1 million (adjusted cost).

Our investments in non-marketable securities of private companies are accounted for by using the cost method. These investments are measured at fair value on a non-recurring basis when they are deemed to be other-than-temporarily impaired. In determining whether a decline in value of non-marketable equity investments in private companies has occurred and is other than temporary, an assessment is made by considering available evidence, including the general market conditions in the investee s industry, the investee s product development status and subsequent rounds of financing and the related valuation and/or our participation in such financings. We also assess the investee s ability to meet business milestones and the financial condition and near-term prospects of the individual investee, including the rate at which the investee is using its cash and the investee s need for possible additional funding at a lower valuation. The valuation methodology for determining the fair value of non-marketable equity securities is based on the factors noted above which require management judgment and are Level 3 inputs. See “Note 4. Fair Value Measurements” to our condensed consolidated financial statements, included in Part 1. “Financial Information,” for additional information. When a decline in value is deemed to be other than temporary, we recognize an impairment loss in the current period s operating results to the extent of the decline. We recorded other-than-temporary impairments for non-marketable equity securities in the first nine months of fiscal 2010 and 2009 of $3.0 million and $ 2.3 million, respectively.

As of January 2, 2010, we had $108.3 million of deferred revenue and $30.9 million of deferred cost of goods sold recognized as a net $77.4 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, we developed 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 impact of forfeiture rate estimates in the first nine months of fiscal 2010 and 2009 reduced stock-based compensation expense by $12.2 million and $12.5 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.

Net revenues of $513.3 million in the third quarter of fiscal 2010 represented a 12% increase from the comparable prior year period of $458.4 million. Net revenues for the first nine months of fiscal 2010 were $1.30 billion, down 9% from the comparable prior year period of $1.43 billion. While we have seen a recovery in our business, the worldwide economic downturn adversely impacted our revenues in the first two quarters of fiscal 2010 compared with the same period in the prior year.

Read the The complete Report

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