Xilinx Inc XLNX
Q1 2014 Earnings Call Transcript

Transcript Call Date 07/17/2013

Operator: Good afternoon. My name is Jay, and I will be your conference operator today. I would like to welcome everyone to the Xilinx Q1 Fiscal Year 2014 Earnings Release Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Please limit your questions to one to ensure that management has adequate time to speak to everyone.

I would now like to turn the call over to (Rick Mushe). Thank you. Mr. Mushe, you may begin.

Rick Mushe - IR: Thank you, and good afternoon. With me are Moshe Gavrielov, CEO; and Jon Olson, CFO. We'll provide a financial and business review of the June quarter and then we'll open the call for questions.

Let me remind everyone that during our conference call today, we may make projections or other forward-looking statements regarding future events or the future financial performance of the Company. We wish to caution you that such statements are predictions based on information that is currently available and that actual results may differ materially.

We refer you to documents that Company files with the SEC, including our 10-Ks, 10-Qs, and 8-Ks. These documents contain and identify important risk factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements. This conference call is open to all and is being webcast live. It can be accessed from our Xilinx's Investor Relations' website.

Let me now turn the call over to Jon Olson.

Jon Olson - SVP and CFO: Thank you, Rick. In the June quarter Xilinx sales were $579 million up 9% sequentially and better than forecasted. Most of the sales upside was related to better than expected growth in wired communications with aerospace and defense sales also stronger than expected.

Sales from all geographies were up sequentially.

Gross margin was higher than guided and a record 69% for the quarter roughly half of the gross margin upside is related to the results of margin expansion programs which are yielding benefits faster than previously anticipated.

The other half of the upside is product mix related. Operating expenses of $206 million included the amortization were in line with guidance. We were able to offset higher variable sales and profit related expense with overall spending reductions. Operating margin was 33% the highest since Q2 of fiscal year '11.

New product sales drove most of the incremental sales growth during the quarter increasing 24% sequentially. 28-nanometer sales exceeded $50 million again surpassing our forecast. Sales from this family were driven by all five family members with Kintex family remaining the largest contributor.

Our 40, 45-nanometer node also posted double-digit sales increase with strong growth from both Virtex-6 and Spartan-6. Mainstream product decreased during the quarter and base products increased as a result of strength in specific aerospace and defense programs, as well as accelerated sales associated with a previously discussed foundry line closure.

Read our Earnings Call Transcript disclaimer.
Add a Comment
E-mail me new replies.