Xilinx Reports Record Annual And Quarterly Revenues
Xilinx Reports Record Annual And Quarterly Revenues
SAN JOSE, Calif., April 25, 2018 /PRNewswire/ -- Xilinx, Inc. (Nasdaq: XLNX) today announced record revenues of $2.54 billion for fiscal year 2018, up 8% from the prior fiscal year. Revenues were $673 million for the fourth quarter of fiscal year 2018, up 7% from the prior quarter and up 10% from the fourth quarter of the prior fiscal year.
Fiscal year 2018 net income was $512 million or $1.99 per diluted share. March quarter net income was $166 million, or $0.64 per diluted share. In fiscal Q3, net income was negatively impacted by approximately $183 million due to the enactment of the 2017 Tax Cuts and Jobs Act. In fiscal Q4, net income was negatively impacted by $33 million due to executive transition costs.
The Xilinx Board of Directors declared a quarterly cash dividend of $0.36 per outstanding share of common stock, an increase from the current dividend of $0.35 per share. The dividend will be payable on June 4, 2018 to all stockholders of record at the close of business on May 15, 2018.
Additional fourth quarter of fiscal year 2018 comparisons are represented in the charts below:
GAAP Results
(In millions, except EPS)
Q4 Q3 Q4 Q-T-Q Y-T-Y
FY 2018 FY 2018 FY 2017
------- ------- -------
Net revenues $673 $631 $609 7% 10%
Operating income $190 $190 $173 0% 10%
Net income $166 $12 $153 1283% 8%
Diluted earnings per share $0.64 $0.05 $0.57 1180% 12%
"Fiscal 2018 was a record year for Xilinx with revenues of $2.5 billion as we realized 8% annual growth driven by broad-based strength across multiple markets, reflecting our concerted efforts to accelerate top line growth," said Victor Peng, President and Chief Executive Officer. "During the year, we continued to build significant momentum in our data center end market and further strengthened the ecosystem. With our three-pronged strategy of data center first, accelerating growth in core markets and driving adaptive compute, Xilinx is well positioned to achieve our long-term growth objectives while delivering shareholder value."
Net Revenues by Geography:
Percentages Growth Rates
Q4 Q3 Q4 Q-T-Q Y-T-Y
FY 2018 FY 2018 FY 2017
------- ------- -------
North America 31% 31% 31% 5% 10%
Asia Pacific 39% 41% 42% 1% 2%
Europe 22% 20% 19% 20% 26%
Japan 8% 8% 8% 7% 17%
Net Revenues by End Market:
Percentages Growth Rates
Q4 Q3 Q4 Y-T-Y
FY 2018 FY 2018 FY 2017
Q-T-Q
-----
Communications & Data Center 34% 35% 41% 2% (8%)
Industrial, Aerospace & Defense 48% 47% 43% 25%
10%
Broadcast, Consumer & Automotive 18% 18% 16% 17%
7%
Net Revenues by Product:
Percentages Growth Rates
Q4 Q3 Q4 Q-T-Q Y-T-Y
FY 2018 FY 2018 FY 2017
------- ------- -------
Advanced Products 57% 56% 49% 7% 28%
Core Products 43% 44% 51% 6% (6%)
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)
Q4 Q3 Q4
FY 2018 FY 2018 FY 2017
------- ------- -------
Annual Return on Equity (%)* 21 19 24
Operating Cash Flow $217 $185 $306
Depreciation Expense $12 $11 $12
Capital Expenditures (including software) $21 $7 $20
Combined Inventory Days 112 121 121
Revenue Turns (%) 37 46 44
*Return on equity calculation:
Annualized year to date net income/
average stockholders' equity
Product and Financial Highlights - Fiscal Year 2018
-- The Advanced Products category continues to deliver strong revenue
growth during fiscal year 2018, posting an increase of 28% from the
previous year and constituting approximately 54% of total sales.
Broad-based growth was driven by the Zynq SoC platform and the
industry-leading 20nm and 16nm technology nodes. Zynq platform revenue
increased more than 60% during the year with growth driven largely by
applications in Advanced Driver Assist (ADAS), Industrial, Aerospace and
Defense, Communications, and Consumer. Revenues from the 20nm node
increased more than 50% from the previous year and the 16nm node
continued its accelerated ramp with sales more than quadrupling during
the same period.
-- The Industrial, Aerospace & Defense end market set another annual sales
record in fiscal year 2018 with revenues of approximately $1.2 billion,
an increase of 21% compared to fiscal year 2017. The growth was driven
primarily by significant strength in Aerospace & Defense and
Semiconductor Test and Emulation Applications.
-- Xilinx has established significant momentum in Data Center over the past
fiscal year, both developing the foundation for and building out a
vibrant ecosystem. The Company demonstrated significant developer
engagement on the AWS F1 instance and has trained a total of more than
400 developers, with approximately 300 of those in the March quarter
alone. Xilinx continues to invest in its SDAccel environment and
middleware libraries to make it easier for software programmers to
program Xilinx FPGAs in higher level languages using industry standard
APIs and frameworks. As an example, Xilinx recently released a Machine
Learning suite on the AWS F1 environment with support for TensorFlow.
-- Xilinx recently announced a new breakthrough product category called
Adaptive Compute Acceleration Platform (ACAP) that extends far beyond
the capabilities of an FPGA. An ACAP is a highly integrated multi-core
heterogeneous compute platform that can be changed at the hardware level
to adapt to the needs of a wide range of applications, including
Artificial Intelligence, and workloads resulting from explosive growth
of unstructured data such as database acceleration and video
transcoding.
-- During fiscal year 2018, Xilinx returned approximately $828 million to
shareholders. This included $475 million through share repurchases at an
average price of $68.30 per share and $353 million through dividends.
Xilinx recently increased its quarterly dividend by $0.01 per share to
$0.36 per share, effective in the June quarter of fiscal year 2019,
marking its 13(th) consecutive year of dividend increases.
Business Outlook - June Quarter Fiscal Year 2019
-- Sales are expected to be approximately $660 - $690 million.
-- Gross margin is expected to be 69% to 71%.
-- Operating expenses are expected to be approximately $260 million
-- Other income is expected to be approximately $3 million.
-- June quarter tax rate is expected to be approximately 10% -14%
Conference Call
A conference call will be held today at 2:00 p.m. Pacific Time to discuss the March quarter financial results and management's outlook for the June 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 9477513. 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 June quarter of fiscal year 2019. 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, the impact of new accounting pronouncements and tax laws, including the U.S. Tax Cuts and Jobs Act, and interpretations thereof, and other risk factors listed in our most recent Forms 10-Q and 10-K.
About Xilinx
Xilinx develops highly flexible and adaptive processing platforms that enable rapid innovation across a variety of technologies - from the endpoint to the edge to the cloud. Xilinx is the inventor of the FPGA, hardware programmable SoCs and the ACAP, designed to deliver the most dynamic processor technology in the industry and enable the adaptable, intelligent and connected world of the future. For more information, visit www.xilinx.com.
#1810F
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
Investor Relations Contact:
Suresh Bhaskaran
Xilinx, Inc.
(408) 879-4784
ir@xilinx.com
XILINX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
------------------ -------------------
March 31, 2018 December 30, 2017 April 1, 2017 March 31, 2018 April 1, 2017
-------------- ----------------- ------------- -------------- -------------
Net revenues $672,862 $631,193 $609,452 $2,539,004 $2,349,330
Cost of revenues 197,331 182,156 185,811 756,368 708,216
------- ------- ------- -------
Gross margin 475,531 449,037 423,641 1,782,636 1,641,114
------- ------- ------- --------- ---------
Operating expenses:
Research and development 162,483 166,231 164,256 639,750 601,443
Selling, general and
administrative 89,348 92,753 84,797 362,329 335,150
Amortization of
acquisition-related
intangibles 584 353 1,184 2,152 5,127
Executive transition costs 33,351 - - 33,351 -
------ --- ---
Total operating expenses 285,766 259,337 250,237 1,037,582 941,720
------- ------- ------- --------- -------
Operating income 189,765 189,700 173,404 745,054 699,394
Interest and other income
(expense), net (3,781) 5,469 (2,184) 5,357 (8,314)
------ ----- ------ ----- ------
Income before income taxes 185,984 195,169 171,220 750,411 691,080
Provision for income taxes 20,325 183,224 17,795 238,030 68,568
------ ------ ------- ------
Net income $165,659 $11,945 $153,425 $512,381 $622,512
======== ======= ======== ======== ========
Net income per common share:
Basic $0.65 $0.05 $0.62 $2.05 $2.47
===== ===== ===== ===== =====
Diluted $0.64 $0.05 $0.57 $1.99 $2.32
===== ===== ===== ===== =====
Cash dividends per common
share $0.35 $0.35 $0.33 $1.40 $1.32
===== ===== ===== ===== =====
Shares used in per share calculations:
Basic 254,559 254,089 249,014 249,595 252,301
======= ======= ======= ======= =======
Diluted 257,916 258,108 267,157 257,960 268,813
======= ======= ======= ======= =======
XILINX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
March 31, 2018 April 1, 2017*
-------------- -------------
(unaudited)
ASSETS
Current assets:
Cash, cash equivalents and short-term investments $3,447,570 $3,321,457
Accounts receivable, net 372,144 243,915
Inventories 236,077 227,033
Other current assets 88,695 87,711
Total current assets 4,144,486 3,880,116
Net property, plant and equipment 304,117 303,825
Long-term investments 97,896 116,288
Other assets 509,188 440,303
Total assets $5,055,687 $4,740,532
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $412,851 $386,301
Deferred income on shipments to distributors 25,166 54,567
Current portion of long-term debt 499,186 456,328
Total current liabilities 937,203 897,196
Long-term debt 1,214,440 995,247
Deferred tax liabilities 75 317,639
Other long-term liabilities 573,734 21,411
Temporary equity - 1,406
Stockholders' equity 2,330,235 2,507,633
Total Liabilities and Stockholders' Equity $5,055,687 $4,740,532
========== ==========
* Derived from audited
financial statements
XILINX, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)
(In thousands)
Three Months Ended Twelve Months Ended
------------------
March 31, 2018 December 30, 2017 April 1, 2017 March 31, 2018 April 1, 2017
-------------- ----------------- ------------- -------------- -------------
SELECTED CASH FLOW INFORMATION:
Depreciation $12,022 $11,452 $11,506 $46,438 $45,423
Amortization 13,128 5,458 4,602 25,747 17,203
Stock-based compensation 48,606 36,801 32,785 153,815 122,858
Net cash provided by
operating activities 217,724 184,686 306,318 795,458 934,131
Purchases of property,
plant and equipment and
other intangibles 20,978 6,791 20,226 49,918 72,051
Payment of dividends to
stockholders 89,302 89,491 81,809 353,053 332,542
Repurchases of common stock 163,448 73,290 108,062 474,254 522,045
Net proceeds (withholding) from issuance of common
stock to employees 11,889 (2,131) 22,084 (12,937) 32,792
STOCK-BASED COMPENSATION INCLUDED IN:
Cost of revenues $2,006 $2,188 $2,020 $8,492 $8,014
Research and development 19,011 20,217 18,019 76,790 66,822
Selling, general and
administrative 10,968 14,396 12,746 51,912 48,022
Executive transition costs 16,621 - - 16,621 -
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SOURCE Xilinx, Inc.
