XLNX

Question 1

XLNX Business Description

Answer 1

Develops all programmable technologies and devices, beyond hardware to software, digital to analog, and single to multiple die in 3D ICs

Fabless semiconductor company. Serves the communications & data center (41% of sales), industrial & A&D (41% of sales), and Broadcast/Consumer/Auto end markets (18% of sales)

Major customers: Cisco, Ericsson, Huawei, Samsung, Sony, Harman, Evertz, Raytheon, Agilent, General Dynamics

Programmable logic devices (PLDs) are “off the shelf” logic chips that the customer, rather than the chip manufacturer, programs to perform a specific function

XLNX has 49% share of the PLD market, with Altera at 38% and others at 13%

Question 2

Q2 2015 Earnings

Answer 2

$0.02 EPS beat driven by slightly better gross margins and cost controls as sales came in line with expectations.

By end market, Comm and Datacenters grew 5% q/q, potentially driven by wireless stabilization, while Industrial and A&D declined 12% q/q as a result of lower military spending (roll off of Joint Strike fighter)

Q3 guidance for 3-7%+ q/q growth implies revenue of $543.4-$564.5mm which is better than expectations. This includes the benefit from an extra week of sales

XLNX could be an M&A target, particularly to an Altera or other big player