Profits up at Xilinx

25 Apr 2008

Xilinx has reported net revenues of US$475.8m in the financial fourth quarter of 2008, flat sequentially from the prior quarter and up 7pc compared to the same quarter a year ago.

The company, which employs over 3,000 people worldwide, including 400 at its European headquarters and R&D centre in Dublin, said fourth-quarter net income for the financial year 2008 increased 10pc to US$96.5m over a year ago. This included pre-tax charges of US$4.7m for a capital loss on a stock sale and US$2.9m related to impairment losses on equity investments.

Net year-end revenues of US$1.84bn for the 2008 financial year were flat on the prior year. Year-end net income was US$374m, up 7pc from US$350.m.

As previously announced in February, the Xilinx board of directors increased the quarterly cash dividend to US$0.14 from US$0.12 per common share, payable on 28 May to all stockholders.

“We remain keenly focused on increasing operating efficiencies and I am pleased with our progress in this area,” said Moshe Gavrielov, president and CEO. “Gross margin in the March quarter was 63.4pc – the highest we have reported in nearly four years.

“Operating margin was 24.6pc in the March quarter, up from 17.9pc in the same quarter a year ago, primarily due to improved gross margin coupled with continued expense controls.”

Xilinx designs and produces semiconductors for use in a wide range of electronic systems. The company also develops and provides the software tools necessary to programme these devices, as well as predefined system functions that customers load as software into Xilinx’s programmable logic devices.

By Niall Byrne