Xilinx Reports Record Revenues Exceeding $3 Billion For Fiscal 2019
SAN JOSE, Calif., April 24, 2019 /PRNewswire/ -- Xilinx, Inc. (Nasdaq: XLNX) today announced record revenues of $3.06 billion for fiscal year 2019, up 24% from the prior fiscal year. Revenues were $828 million for the fourth quarter of fiscal year 2019, up 4% from the prior quarter and up 30% year over year.
GAAP net income for fiscal year 2019 was $890 million, or $3.47 per diluted share. Non-GAAP net income for fiscal year 2019 was $892 million, or $3.48 per diluted share. GAAP net income for the March quarter was $245 million, or $0.95 per diluted share. Non-GAAP net income for the March quarter was $242 million, or $0.94 per diluted share.
The Xilinx Board of Directors declared a quarterly cash dividend of $0.37 per outstanding share of common stock payable on June 3, 2019 to all stockholders of record at the close of business on May 16, 2019.
Additional fourth quarter of fiscal year 2019 comparisons are provided in the charts below. Due to the adoption of the new revenue recognition standard in the first quarter of fiscal year 2019, all 2018 results have been restated to conform with the new standard.
Q4 2019 Financial Highlights
(In millions, except EPS)
GAAP
Q4
Q3
Q4
FY 2019 FY 2019 FY 2018 Q-T-Q Y-T-Y
Net Revenues* $828 $800 $638 4% 30%
Operating income $250 $258 $163 -3% 53%
Net income $245 $239 $145 2% 68%
Diluted earnings per share $0.95 $0.93 $0.56 2% 70%
Non-GAAP
Q4
Q3
Q4
FY 2019 FY 2019 FY 2018 Q-T-Q Y-T-Y
Net Revenues* $828 $800 $638 4% 30%
Operating income $259 $263 $197 -2% 31%
Net income $242 $237 $181 2% 34%
Diluted earnings per share $0.94 $0.92 $0.70 2% 34%
* No adjustment between GAAP and Non-GAAP
"Fiscal year 2019 was truly an exceptional year for Xilinx. For the year, we exceeded $3 billion in annual revenues for the first time and posted 24% growth from last year, driven by Advanced Product revenues which grew 40% year over year. In addition, we demonstrated strong profitability by posting over 30% growth in both non-GAAP operating income and non-GAAP diluted earnings per share. We are executing to our strategy and focusing on growth across our portfolio as we continue our transformation to a platform company," said Victor Peng, president and chief executive officer, Xilinx.
Net Revenues by Geography:
Percentages Growth Rates
Q4 Q3 Q4
FY 2019 FY 2019 FY
2018 Q-T-Q Y-T-Y
---
North America 27% 28% 31% -3% 13%
Asia Pacific 47% 46% 39% 6% 56%
Europe 18% 18% 22% 7% 12%
Japan 8% 8% 8% 7% 20%
Net Revenues by End Market:
Percentages Growth Rates
Q4 Q3 Q4
FY 2019 FY 2019 FY
2018 Q-T-Q Y-T-Y
---
Communications 41% 35% 31% 23% 74%
Data Center and TME 18% 21% 25% -12% -7%
Automotive, Broadcast and Consumer 14% 15% 15% -6% 20%
Industrial, Aerospace & Defense 27% 27% 35% 2% 1%
Channel 0% 2% -6% NM NM
Net Revenues by Product:
Percentages Growth Rates
Q4 Q3 Q4
FY 2019 FY 2019 FY
2018 Q-T-Q Y-T-Y
---
Advanced Products 68% 66% 57% 8% 55%
Core Products 32% 34% 43% -4% -4%
Products are classified as follows:
Advanced Products: Alveo, 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 2019 FY 2019 FY 2018
---
Annual Return on Equity (%)* 34 34 19
Operating Cash Flow $288 $314 $242
Depreciation Expense (including
software amortization) $22 $18 $16
Capital Expenditures (including
software) $28 $20 $21
Combined Inventory Days 112 109 117
Revenue Turns (%) 35 40 33
*Return on equity calculation:
Annualized year to date GAAP net
income/average stockholders' equity
Product and Financial Highlights - Fiscal Year 2019
-- Driven by 5G, Communications revenues increased 34% compared to last
fiscal year. Wireless strength resulted from momentum across both radio
and baseband applications with OEM customers; especially due to 5G
deployment in South Korea and preparation for 5G deployment in China.
During the year, Xilinx and Samsung jointly enabled the world's first 5G
NR commercial deployment. Xilinx also expanded its breakthrough RFSoC
portfolio to the full sub-6GHz spectrum support that is required for 5G.
-- Data Center and Test, Measurement & Emulation (TME) revenues grew double
digits during fiscal year 2019, driven by the Data Center business which
grew 40%. During the fiscal year, Xilinx demonstrated strong design-win
momentum across hyperscalers, enterprise customers and partners and
increased the cumulative number of Xilinx ISV partners to over 500.
Xilinx continued to enable key Xilinx platform and Alveo partners
through its corporate venture initiatives, doubling ecosystems
investments year over year to more than 20 portfolio companies
addressing key applications in a variety of areas including data
analytics, financial computing and video streaming acceleration.
Continuing on this path, Xilinx announced today that it has entered into
a definitive agreement to acquire Solarflare Communications, a leading
provider of high-performance, low latency networking solutions for
customers spanning FinTech to cloud computing, further accelerating its
"Data Center First" strategy. This acquisition will enable Xilinx to
combine its industry leading FPGA, MPSoC and ACAP solutions with
Solarflare's high-speed network interface card (NIC) technology and
Onload application acceleration software, to enable a new converged
SmartNIC platform.
-- Xilinx Automotive business grew double digits reflecting the Company's
leading and growing position in Advanced Driver Assist Systems (ADAS).
During the fiscal year, Daimler showcased its AI solution in the new
Mercedes GLE Sport Utility Vehicle that is powered by Xilinx products.
In addition, ZF Friedrichshafen AG, a global leader and Tier-1
automotive supplier announced a strategic collaboration in which Xilinx
technology will power its highly advanced AI-based automotive control
unit to enable automated driving applications. Further, BYD in China
started mass production of front-camera ADAS technology using Xilinx
SoCs.
-- Industrial, Aerospace & Defense as well as Automotive, Broadcast and
Consumer primary end markets grew to new sales records, with each market
supported by a robust and diversified portfolio. Industrial, Aerospace &
Defense strength was driven primarily by Industrial growing double
digits. Revenues from Automotive, Broadcast and Consumer were driven by
double digit growth from each of the businesses.
Business Outlook - Fiscal First Quarter 2020
The following guidance is based on current expectations and estimates, and as indicated, are presented on a GAAP and non-GAAP basis. This guidance is forward-looking and actual results may differ materially, as a result of, among other things, the important factors discussed at the end of this release.
GAAP
Non-GAAP
Non-GAAP
Adjustments
Revenues
$835M - $865M
$835M - $865M
---
Gross
Margin ~66% ~66%
---
Operating
Expenses
~$315M
$7M (1)
~$308M
---
Other
Income
~$15M
~$15M
---
Tax
Rate 7% - 9% 7% -9%
---
Includes an estimated $7
million in M&A related
expenses and amortization of
acquisition related
(1) intangibles
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 7974619 . The telephonic replay will be available for two weeks following the live call.
Non-GAAP Financial Information
Fiscal fourth quarter 2019 results and business outlook for the June quarter include financial measures which are not determined in accordance with the United States generally accepted accounting principles (GAAP), as indicated. Non-GAAP measures should not be considered as a substitute for, or superior to, financial measures determined in accordance with GAAP. The presentation of non-GAAP financial measures has been reconciled, in each case, to the most directly-comparable GAAP measure, as indicated in the accompanying tables. The Company's calculation of such non-GAAP measures may not be comparable to similarly-titled measures used by other companies.
Management uses the non-GAAP financial measures disclosed herein to evaluate the Company's financial results from continuing operations (excluding the impact of acquisitions) and compare to operating performance in past periods. Similarly, Management believes presentation of these non-GAAP measures is useful to investors because it enables investors and analysts to evaluate operating expenses of the Company's core business, excluding the impact of non-core business expenses such as acquisition-related amortization and non-recurring items.
M&A related expenses: These expenses mainly consist of legal and consulting fees associated with acquisition activities. We believe these costs do not reflect the Company's current operating performance. Consequently, the non-GAAP adjustments exclude these charges to facilitate an evaluation of the Company's current operating performance and comparisons to its past operating performance.
Amortization of acquisition-related intangibles: Amortization of acquisition-related intangible assets consists of amortization of intangible assets such as developed technology acquired in connection with business combinations. The non-GAAP adjustments exclude these charges to facilitate an evaluation of the Company's current operating performance and comparisons to its past operating performance.
Gains on investment related to acquisition: The Company excludes the accounting gain resulting from revaluation of its prior minority investment in DeePhi Tech. The Company believes excluding this gain will facilitate a comparable evaluation of its current operating performance to its past operating performance.
Executive transition costs: The Company excludes the costs associated with the executive transition that took place in the fourth quarter of fiscal 2018, which primarily consisted of stock-based compensation and severance payments. The Company believes the exclusion of such costs will facilitate a comparable evaluation of its current operating performance to its past operating performance.
Income taxes: The Company excludes the income tax effects of non-GAAP adjustments reflected in Operating Expenses and Other Income, as detailed above. It also excludes U.S. tax reform related items. The Company believes excluding U.S. tax reform related items will facilitate a comparable evaluation of its current performance to its past performance. The first quarter of fiscal 2020 outlook does not reflect other tax related items which we are not able to predict without unreasonable efforts due to their inherent uncertainty.
Forward Looking Statements
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. 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, among others, 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, our ability to realize the goals contemplated by our acquisitions and strategic investments, 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 described 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.
Xilinx, the Xilinx logo, Artix, ISE, Kintex, Spartan, Virtex, Zynq, Vivado, Alveo, Versal 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 30, 2019
December 29, 2018
March 31, 2018*
March 30, 2019
March 31, 2018*
---
Net revenues $828,361 $800,057 $638,191 $3,059,040 $2,467,023
Cost of revenues 269,457 247,903 188,941 955,868 743,419
Gross margin 558,904 552,154 449,250 2,103,172 1,723,604
Operating expenses:
Research and development 199,500 189,329 162,483 743,027 639,750
Selling, general and
administrative 107,160 103,039 89,348 398,416 362,329
Amortization of
acquisition-related
intangibles 1,866 1,866 584 4,930 2,152
Executive transition costs - 33,351 33,351
Total operating expenses 308,526 294,234 285,766 1,146,373 1,037,582
Operating income 250,378 257,920 163,484 956,799 686,022
Interest and other income
(expense), net 9,302 (1,330) (3,781) 11,533 5,357
Income before income taxes 259,680 256,590 159,703 968,332 691,379
Provision for income taxes 15,040 17,230 14,232 78,582 227,398
Net income $244,640 239,360 $145,471 $889,750 $463,981
===
Net income per common share:
Basic $0.96 $0.95 $0.57 $3.52 $1.86
===
Diluted $0.95 $0.93 $0.56 $3.47 $1.80
===
Cash dividends per common
share $0.36 $0.36 $0.35 $1.44 $1.40
===
Shares used in per share calculations:
Basic 253,855 253,060 254,559 252,762 249,595
Diluted 258,177 256,374 257,916 256,434 257,960
* Fiscal 2018 balances have
been restated to conform to
the new revenue recognition
standard (ASC 606).
XILINX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 30, 2019
March 31, 2018*
---
(unaudited)
ASSETS
Current assets:
Cash, cash equivalents and
short-term investments $3,175,684 $3,447,570
Accounts receivable, net 335,165 382,246
Inventories 315,358 236,077
Other current assets 65,771 88,695
Total current assets 3,891,978 4,154,588
Net property, plant and
equipment 328,929 304,117
Long-term investments 53,433 97,896
Other assets 877,008 503,946
Total assets $5,151,348 $5,060,547
===
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $475,036 $412,759
Current portion of long-term
debt - 499,186
Total current liabilities 475,036 911,945
Long-term debt 1,234,807 1,214,440
Other long-term liabilities 579,996 573,809
Stockholders' equity 2,861,509 2,360,353
Total Liabilities and
Stockholders' Equity $5,151,348 $5,060,547
===
* Fiscal 2018 balances have
been restated to conform to
the new revenue recognition
standard (ASC 606).
XILINX, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)
(In thousands)
Three Months Ended Twelve Months Ended
---
March 30, 2019
December 29, 2018
March 31, 2018
March 30, 2019
March 31, 2018
---
SELECTED CASH FLOW INFORMATION:
Depreciation and
amortization of software $21,607 $17,974 $15,756 $70,704 $50,172
Amortization 10,195 7,984 33,963 33,656 46,582
Stock-based compensation 38,748 38,641 48,606 147,942 153,815
Net cash provided by
operating activities 288,007 313,917 242,293 1,091,215 820,027
Purchases of property, plant
,equipment and software 28,242 20,270 20,978 89,045 49,918
Payment of dividends to
stockholders 91,384 91,108 89,302 364,244 353,053
Repayment of debt 500,000 500,000 457,918
Repurchases of common stock - 1,015 163,448 161,551 474,254
STOCK-BASED COMPENSATION INCLUDED IN:
Cost of revenues $2,170 $2,366 $2,006 $8,820 $8,492
Research and development 23,099 22,352 19,011 86,428 76,790
Selling, general and
administrative 13,479 13,923 10,968 52,694 51,912
Executive transition costs - 16,621 16,621
XILINX, INC.
RECONCILIATIONS OF GAAP ACTUALS TO NON-GAAP ACTUALS
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
---
March 30, 2019
December 29, 2018
March 31, 2018*
March 30, 2019
March 31, 2018*
---
GAAP operating
income $250,378 $257,920 $163,484 $956,799 $686,022
Acquisition-
related costs 6,560 3,208 13,469 -
Amortization of
acquisition-
related
intangibles 1,866 1,866 584 4,930 2,152
Executive
transition costs - 33,351 33,351
Non-GAAP
operating income $258,804 $262,994 $197,419 $975,198 $721,525
===
GAAP net income $244,640 $239,360 $145,471 $889,750 $463,981
Acquisition-
related costs 6,560 3,208 13,469 -
Amortization of
acquisition-
related
intangibles 1,866 1,866 584 4,930 2,152
Executive
transition costs - 33,351 33,351
Gain from private
investments - (6,503)
Income tax effect
of changes in
applicable U.S.
tax laws (8,508) (6,949) 11,623 (6,100) 190,503
Income tax effect
of non-GAAP
adjustments (2,330) (559) (10,045) (3,050) (10,045)
Non-GAAP net
income $242,228 $236,926 $180,984 $892,496 $679,942
===
GAAP diluted EPS $0.95 $0.93 $0.56 $3.47 $1.80
Acquisition-
related costs 0.02 0.01 0.05 -
Amortization of
acquisition-
related
intangibles 0.01 0.01 0.02 0.01
Executive
transition costs - 0.13 0.13
Gain from private
investments - (0.03)
Income tax effect
of changes in
applicable U.S.
tax laws (0.03) (0.03) 0.05 (0.02) 0.74
Income tax effect
of non-GAAP
adjustments (0.01) (0.04) (0.01) (0.04)
Non-GAAP diluted
EPS $0.94 $0.92 $0.70 $3.48 $2.64
===
* Fiscal 2018 balances have
been restated to conform to
the new revenue recognition
standard (ASC 606).
View original content to download multimedia:http://www.prnewswire.com/news-releases/xilinx-reports-record-revenues-exceeding-3-billion-for-fiscal-2019-300837761.html
SOURCE Xilinx, Inc.
