You can now see my notes for the Xilinx (XLNX) fiscal Q2 2014 results and analyst call.
It is a busy week for me, and analyst calls will be piling up as the earnings season gets underway, so I can't say when I will write an analysis on Xilinx for Seeking Alpha.
I don't currently own Xilinx stock.
Showing posts with label XLNX. Show all posts
Showing posts with label XLNX. Show all posts
Wednesday, October 16, 2013
Saturday, July 20, 2013
Xilinx analyst call notes available
I am resuming coverage of Xilinx (XLNX) with notes on the July 17, 2013 analyst call:
Xilinx fiscal Q1 2014 conference call
I hope to have an article up at Seeking Alpha in the next couple of days.
Xilinx fiscal Q1 2014 conference call
I hope to have an article up at Seeking Alpha in the next couple of days.
Monday, April 28, 2008
The Microchip Model
At the Xilinx analyst conference the other day [see my Xilinx analyst conference summary] one of the analysts asked if Xilinx would consider imitating "the Microchip model" and paying out higher dividends.
How the worm has turned.
Today Microchip reported on its Q1 2008 results and held its own conference [See my Microchip (MCHP) analyst conference summary]. The results were pretty good. Anyone who has followed Microchip this last year would have been worried that Q1 could be another quarter of declining revenues. Instead revenues were up sequentially 3% and up 1% from year earlier, to $260.4 million. Non-GAAP earnings per share hit a record.
The Microchip model (which in addition to knowing and having used their products attracted me to their stock) includes paying out dividends. For years Microchip management resisted doing share buy backs and instead kept increasing the dividend, at least in good times. And how Wall Street seemed to hate that. Every analyst conference included suggestions to take some (or most) of Microchip's cash and buy back stock.
What is great about Microchip, aside from their microcontroller products, is that management cares about long term investors. Such investors aren't going to sell their stock during a share buy back, nor do any short term gains from this game help them. Dividends mean revenue. You can do what you want with your dividends. Sure, you have to pay taxes on the dividends you receive, but you don't have to sell stock (and pay capital gains taxes) to get a stream of money. As far as I know, Microchip had (and has) the highest dividend payout in the semiconductor industry, where many companies pay little or no dividend.
This change of sentiment towards higher dividends may not last. Oddly, last fall the board of Microchip finally relented and set up a share buy back. They borrowed money to do it, too; I don't like that. But they are so profitable that are likely to be able to both continue to increase dividends and to pay down the debt (which is in the form of convertible debentures).
Best part of the conference? They raised the dividend yet again, to 33 cents per share per quarter.
In case it has not been perfectly clear, I own Microchip stock.
Keep diversified!
How the worm has turned.
Today Microchip reported on its Q1 2008 results and held its own conference [See my Microchip (MCHP) analyst conference summary]. The results were pretty good. Anyone who has followed Microchip this last year would have been worried that Q1 could be another quarter of declining revenues. Instead revenues were up sequentially 3% and up 1% from year earlier, to $260.4 million. Non-GAAP earnings per share hit a record.
The Microchip model (which in addition to knowing and having used their products attracted me to their stock) includes paying out dividends. For years Microchip management resisted doing share buy backs and instead kept increasing the dividend, at least in good times. And how Wall Street seemed to hate that. Every analyst conference included suggestions to take some (or most) of Microchip's cash and buy back stock.
What is great about Microchip, aside from their microcontroller products, is that management cares about long term investors. Such investors aren't going to sell their stock during a share buy back, nor do any short term gains from this game help them. Dividends mean revenue. You can do what you want with your dividends. Sure, you have to pay taxes on the dividends you receive, but you don't have to sell stock (and pay capital gains taxes) to get a stream of money. As far as I know, Microchip had (and has) the highest dividend payout in the semiconductor industry, where many companies pay little or no dividend.
This change of sentiment towards higher dividends may not last. Oddly, last fall the board of Microchip finally relented and set up a share buy back. They borrowed money to do it, too; I don't like that. But they are so profitable that are likely to be able to both continue to increase dividends and to pay down the debt (which is in the form of convertible debentures).
Best part of the conference? They raised the dividend yet again, to 33 cents per share per quarter.
In case it has not been perfectly clear, I own Microchip stock.
Keep diversified!
Monday, July 23, 2007
Xilinx Looks to Future Products
Xilinx (XLNX) has a dissappointing Q2 (fiscal Q1 2008) 2007. Revenues were up just 1% from Q1, to $445.9 million. That is down from 7% from $481.4 million year-earlier. As part of its April 25, 2007 analyst conference management had given a guidance of a 1% to 5% sequential revenue increase.
What is going on? Are programmable logic devices (PLDs) becoming less relevant? Or is one of its competitors gaining market share?
Even at the current level Xilinx is profitable. It had net income of $84.3 million, which is actually up 2% from a year earlier due to cost-cutting measures. Diluted EPS was $0.28, up 17% from year-earlier largely because of a reduced share count from share buy backs.
This time around, at the July 19 analyst conference, management guided to flat to slightly down revenues for this new quarter. Partly this is normal seasonality; Europe essentially shuts down for much of the summer.
Management said they failed to reach their expectation because of weak European demand. This is somewhat odd because other companies, and general economic indicators, have shown Europe to be doing well.
Xilinx is known for its large scale PLDs known as FPGAs and CPLDs. 45% of their revenues in fiscal Q1 were in the Communications sector. Communications spending has been eratic for years.
New products are being shipped, notably the Virtex-5 line. Management is hoping these will help gain market share as the year goes forward.
A big rival of Xilinx is Altera. They will be releasing results after the market closes today. I'll be listening to the analyst conference and posting my notes (follow this link) at OpenIcon.
It is hard to tell but PLDs compete to some extent with custom-designed chips and off-the-shelf components. If Altera sales were also weak, it might indicate at least a short-term shift.
More data:
My Xilinx page (includes links to past analyst conference summaries)
My Altera page
Xilinx Investor relations page
Altera Investor relations page
What is going on? Are programmable logic devices (PLDs) becoming less relevant? Or is one of its competitors gaining market share?
Even at the current level Xilinx is profitable. It had net income of $84.3 million, which is actually up 2% from a year earlier due to cost-cutting measures. Diluted EPS was $0.28, up 17% from year-earlier largely because of a reduced share count from share buy backs.
This time around, at the July 19 analyst conference, management guided to flat to slightly down revenues for this new quarter. Partly this is normal seasonality; Europe essentially shuts down for much of the summer.
Management said they failed to reach their expectation because of weak European demand. This is somewhat odd because other companies, and general economic indicators, have shown Europe to be doing well.
Xilinx is known for its large scale PLDs known as FPGAs and CPLDs. 45% of their revenues in fiscal Q1 were in the Communications sector. Communications spending has been eratic for years.
New products are being shipped, notably the Virtex-5 line. Management is hoping these will help gain market share as the year goes forward.
A big rival of Xilinx is Altera. They will be releasing results after the market closes today. I'll be listening to the analyst conference and posting my notes (follow this link) at OpenIcon.
It is hard to tell but PLDs compete to some extent with custom-designed chips and off-the-shelf components. If Altera sales were also weak, it might indicate at least a short-term shift.
More data:
My Xilinx page (includes links to past analyst conference summaries)
My Altera page
Xilinx Investor relations page
Altera Investor relations page
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