January 24, 2018

Xilinx Reports Record Revenues; Ninth Consecutive Quarter Of Revenue Growth

SAN JOSE, Calif., Jan. 24, 2018 /PRNewswire/ -- Xilinx, Inc. (Nasdaq: XLNX) today announced record sales of $631 million for the third quarter of fiscal year 2018, up approximately 2% from the prior quarter and up 8% from the third quarter of the prior fiscal year.  December quarter net income was $12 million, or $0.05 per diluted share. Due to the recent enactment of the Tax Cuts and Jobs Act, Xilinx incurred a tax expense of approximately $183 million in the December quarter.

Xilinx is the worldwide leader of programmable logic solutions. (PRNewsFoto/Xilinx)

The Xilinx Board of Directors declared a quarterly cash dividend of $0.35 per outstanding share of common stock payable on February 22, 2018 to all stockholders of record at the close of business on February 7, 2018.  

Additional December quarter comparisons are represented in the charts below:

GAAP Results

(In millions, except EPS)



Q3

FY 2018

Q2

FY 2018

Q3

FY 2017


Q-T-Q

Y-T-Y

Net revenues

$631

$620

$586


2%

8%

Operating income

$190

$185

$163


2%

16%

Net income

$12

$168

$142


-93%

-92%

Diluted earnings per share

$0.05

$0.65

$0.52


-92%

-90%

"We delivered our ninth consecutive quarter of revenue growth with December quarter revenues establishing a new record for Xilinx and we achieved our operating margin target of 30% one quarter ahead of schedule," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "Revenues from Advanced Products continued to be strong, increasing 30% from the same quarter a year ago and comprising 56% of company sales, supported by accelerated growth in our industry-leading 20nm and 16nm technology nodes. In addition, our 16nm portfolio continued to gain market momentum as we have cumulatively shipped 43 unique products to 1,160 customers."

Net Revenues by Geography:



Percentages 


Growth Rates


Q3

FY 2018

Q2

FY 2018

Q3

FY 2017


Q-T-Q

Y-T-Y

North America

31%

31%

30%


3%

12%

Asia Pacific

41%

40%

43%


3%

3%

Europe

20%

20%

19%


2%

11%

Japan

8%

9%

8%


-8%

10%

                                                                                                         

Net Revenues by End Market:



 Percentages   


Growth Rates



Q3

FY 2018

Q2

FY 2018

Q3

FY 2017


Q-T-Q

Y-T-Y


Communications & Data Center

35%

37%

44%


-2%

-12%


Industrial, Aerospace & Defense

47%

45%

41%


7%

23%


Broadcast, Consumer & Automotive

18%

18%

15%


-3%

24%


 

Net Revenues by Product:



Percentages 


Growth Rates


Q3

FY 2018

Q2

FY 2018

Q3

FY 2017


Q-T-Q

Y-T-Y

Advanced Products

56%

52%

47%


10%

30%

Core Products

44%

48%

53%


-7%

-12%

Products are classified as follows:

Advanced Products: UltraScale+, Ultrascale and 7-series products.
Core Products: Virtex-6, Spartan-6, Virtex‐5, CoolRunner‐II, Virtex-4, Virtex-II, Spartan-3, Spartan-2, XC9500 products, configuration solutions, software & support/services.

Key Statistics:

(Dollars in millions)



Q3

FY 2018

Q2

FY 2018

Q3

FY 2017





Annual Return on Equity (%)*

19

27

25





Operating Cash Flow

$185

$202

$106





Depreciation Expense

$11

$12

$11





Capital Expenditures

$7

$12

$20





Combined Inventory Days

121

116

114





Revenue Turns (%)

46

53

56


*Return on equity calculation: Annualized year to date net income/average stockholders' equity


Product and Financial Highlights - December Quarter

  • The Advanced Products category continues to deliver strong revenue growth, posting an increase of 30% from the year ago quarter and constituting 56% of total sales. Broad-based growth was driven by the industry-leading 20nm and 16nm technology nodes.  Revenues from the 20nm node grew significantly to a new record, increasing more than 70% from the same quarter year ago and the 16nm node continued its accelerated ramp with sales more than quadrupling during the same period, reflecting very broad-based customer adoption.
  • The Industrial, Aerospace & Defense end market set another quarterly record with revenues of $297 million, an increase of 23% from the same quarter a year ago, driven by significant strength in Semiconductor Test and Emulation Applications.  Xilinx's unrivaled technology leadership has been a significant driver for the record-setting revenue performance.
  • Xilinx achieved its operating margin target of 30%, one quarter ahead of schedule, while continuing investments in its technology leadership, share gains, and market expansion efforts for sustained revenue growth.  Xilinx remains committed to returning cash to shareholders and during the first nine months of the fiscal year we have returned approximately 100% of our operating cash flow back to shareholders through a combination of dividends and share repurchases.
  • Xilinx continued to demonstrate strong customer momentum in its Cloud Computing market expansion opportunity.  Market leader Alibaba recently announced plans for two generations of FPGA as a Service (FaaS) F2 and F3 using Virtex® Ultrascale +™ FPGAs.  Additionally, Amazon Web Services expanded their FaaS F1 deployment to multiple regions, including availability in its secured government cloud.

Business Outlook - March Quarter Fiscal Year 2018

  • Sales are expected to be approximately $635 - $665 million.
  • Gross margin is expected to be 69% to 71%.
  • Operating expenses are expected to increase to approximately $285 million, including a one-time charge of approximately $30 million primarily related to the CEO transition.
  • Other income is expected to be approximately $3 million.
  • March quarter tax rate is expected to be approximately 0 - 5%.

Conference Call

A conference call will be held today at 2:00 p.m. Pacific Time to discuss the December quarter financial results and management's outlook for the March quarter. The webcast and subsequent replay will be available in the investor relations section of the Company's web site at www.investor.xilinx.com.  A telephonic replay of the call may be accessed later in the day by calling (855) 859-2056 and referencing confirmation code 4886278. The telephonic replay will be available for two weeks following the live call. 

This release contains forward-looking statements and projections. Forward-looking statements and projections can often be identified by the use of forward-looking words such as "expect," "believe,"  "may," "will," "could," "anticipate," "estimate," "continue," "plan," "intend," "project" or other similar expressions.  Statements that refer to or are based on projections, uncertain events or assumptions also identify forward-looking statements.  Such forward looking statements include, but are not limited to, statements related to the semiconductor market, the growth and acceptance of our products, expected revenue growth, the demand and growth in the markets we serve, opportunity for expansion into new markets, and our expectations regarding our business outlook for the March quarter of fiscal year 2018.  Undue reliance should not be placed on such forward-looking statements and projections, which speak only as of the date they are made. We undertake no obligation to update such forward-looking statements.  Actual events and results may differ materially from those in the forward-looking statements and are subject to risks and uncertainties including customer acceptance of our new products, current global economic conditions, the health of our customers and the end markets in which they participate, our ability to forecast end customer demand, a high dependence on turns business, more customer volume discounts than expected, greater product mix changes than anticipated, fluctuations in manufacturing yields, our ability to deliver product in a timely manner, our ability to successfully manage production at multiple foundries, variability in wafer pricing, costs and liabilities associated with current and future litigation, the impact of current and future legislative and regulatory changes, and other risk factors listed in our most recent Forms 10-Q and 10-K.

About Xilinx

Xilinx is the leading provider of All Programmable FPGAs, SoCs, MPSoCs, and 3D ICs. Xilinx uniquely enables applications that are both software defined and hardware optimized - powering industry advancements in Cloud Computing, Embedded Vision, Industrial IoT, and 5G Wireless. For more information, visit www.xilinx.com.

#1804F

Xilinx, the Xilinx logo, Artix, ISE, Kintex, Spartan, Virtex, Zynq, Vivado, and other designated brands included herein are trademarks of Xilinx in the United States and other countries. All other trademarks are the property of their respective owners.

XLNX-F

XILINX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In thousands, except per share amounts)






Three Months Ended


Nine Months Ended


December 30, 2017


September 30, 2017


December 31, 2016


December 30, 2017


December 31, 2016

Net revenues

$                  631,193


$                  619,503


$                  585,688


$              1,866,142


$              1,739,877

Cost of revenues

182,156


184,786


178,233


559,037


522,404

Gross margin

449,037


434,717


407,455


1,307,105


1,217,473

Operating expenses:










Research and development

166,231


157,985


159,248


477,267


437,187

Selling, general and administrative

92,753


91,053


83,780


272,981


250,353

Amortization of acquisition-related intangibles

353


510


1,455


1,568


3,943

Total operating expenses

259,337


249,548


244,483


751,816


691,483

Operating income

189,700


185,169


162,972


555,289


525,990

Interest and other income (expense), net

5,469


1,831


(392)


9,138


(6,130)

Income before income taxes

195,169


187,000


162,580


564,427


519,860

Provision for income taxes

183,224


19,468


20,734


217,705


50,773

Net income

$                    11,945


$                   167,532


$                  141,846


$                  346,722


$                  469,087

Net income per common share:










Basic

$                        0.05


$                         0.68


$                        0.57


$                        1.39


$                        1.86

Diluted

$                        0.05


$                         0.65


$                        0.52


$                        1.34


$                        1.74

Cash dividends per common share

$                        0.35


$                         0.35


$                        0.33


$                        1.05


$                        0.99

Shares used in per share calculations:










Basic

254,089


248,094


250,982


248,671


252,811

Diluted

258,108


258,217


270,781


258,995


269,182

 

XILINX, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)


December 30, 2017


April 1, 2017*


(unaudited)



ASSETS




Current assets:




  Cash, cash equivalents and short-term investments

$             3,541,576


$     3,321,457

  Accounts receivable, net

352,849


243,915

  Inventories

226,533


227,033

  Other current assets

76,925


87,711

Total current assets

4,197,883


3,880,116

Net property, plant and equipment

303,984


303,825

Long-term investments

102,375


116,288

Other assets

515,377


440,303

Total Assets

$             5,119,619


$     4,740,532









LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




  Accounts payable and accrued liabilities

$                429,421


$        386,301

  Deferred income on shipments to distributors

32,974


54,567

  Current portion of long-term debt


456,328

Total current liabilities

462,395


897,196

Long-term debt

1,730,211


995,247

Deferred tax liabilities

110


317,639

Long-term income taxes payable

531,522


4,503

Other long-term liabilities

30,747


16,908

Temporary equity


1,406

Stockholders' equity

2,364,634


2,507,633

Total Liabilities and Stockholders' Equity

$             5,119,619


$     4,740,532









* Derived from audited financial statements




 

XILINX, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

(Unaudited)

(In thousands)


Three Months Ended


Nine Months Ended


December 30, 2017


September 30, 2017


December 31, 2016


December 30, 2017


December 31, 2016


SELECTED CASH FLOW INFORMATION:











   Depreciation

$                     11,452


$                      11,732


$                     11,110


$                     34,416


$                     33,917


   Amortization

5,458


3,432


4,887


12,619


12,601


   Stock-based compensation

36,801


36,372


30,867


105,209


90,073


   Net cash provided by operating activities

184,686


202,140


105,584


577,734


627,813


   Purchases of property, plant and equipment

6,791


12,223


19,875


28,940


51,825


   Payment of dividends to stockholders

89,491


86,957


83,256


263,751


250,733


   Repurchases of common stock

73,290


170,454


213,844


310,806


413,983


   Net proceeds (withholding) from issuance of 











     common stock to employees

(2,131)


(23,765)


1,195


(24,826)


10,708













STOCK-BASED COMPENSATION INCLUDED IN:











  Cost of revenues

$                       2,188


$                        2,147


$                       1,945


$                       6,486


$                       5,994


  Research and development

20,217


20,096


17,154


57,779


48,803


  Selling, general and administrative

14,396


14,129


11,768


40,944


35,276


 

Investor Relations Contact:                                                                         
Suresh Bhaskaran
Xilinx, Inc.
(408) 879-4784
ir@xilinx.com

 

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