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.
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 Q2 Q3 Q-T-Q Y-T-Y
FY 2018 FY 2018 FY 2017
------- ------- -------
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 Q2 Q3 Q-T-Q Y-T-Y
FY 2018 FY 2018 FY 2017
------- ------- -------
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 Q2 Q3 Q-T-Q Y-T-Y
FY 2018 FY 2018 FY 2017
------- ------- -------
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 Q2 Q3 Q-T-Q Y-T-Y
FY 2018 FY 2018 FY 2017
------- ------- -------
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 Q2 Q3
FY 2018 FY 2018 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 +(TM) 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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