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Xilinx Announces Q2 Fiscal 2016 Results; Strong Profitability And New Product Growth

Oct 14, 2015

SAN JOSE, Calif., Oct. 14, 2015 /PRNewswire/ -- Xilinx, Inc. (Nasdaq: XLNX) today announced second quarter fiscal 2016 sales of $528 million, down 4% from the prior quarter and down 13% from the same quarter of the prior fiscal year. Second quarter fiscal 2016 gross margin was 70% and net income was $127 million, or $0.48 per diluted share.

Logo - http://photos.prnewswire.com/prnh/20020822/XLNXLOGO 

The Xilinx Board of Directors announced a quarterly cash dividend of $0.31 per outstanding share of common stock, payable on November 24, 2015 to all stockholders of record at the close of business on November 5, 2015.

Additional second quarter comparisons are represented in the charts below:

GAAP Results

(In millions, except EPS)






Growth Rates


Q2
FY 2016

Q1
FY 2016

Q2
FY 2015


Q-T-Q

Y-T-Y

Net revenues

$528

$549

$604


-4%

-13%

Operating income

$153

$178

$200


-14%

-23%

Net income

$127

$148

$172


-14%

-26%

Diluted earnings per share

$0.48

$0.55

$0.62


-13%

-23%

"The quarter was characterized by solid profitability and strong new product growth. Sales performed as expected with increases from wired and wireless communications offsetting expected declines from defense," said Moshe Gavrielov, Xilinx President and Chief Executive Officer.  "From a product perspective, we experienced a recovery in our 7 series products driven by exceptional strength from our Zynq®-7000 family and better-than-expected sales from our 20-nm UltraScale™ family.  In addition, I am pleased with our continued technology leadership which has allowed us to ship our 16-nm UltraScale+™ family sooner than anticipated."                                                      

Net Revenues by Geography:


Percentages  


Growth Rates


Q2

FY 2016

Q1

FY 2016

Q2

FY 2015


Q-T-Q

Y-T-Y

North America

30%

34%

32%


-17%

-19%

Asia Pacific

40%

36%

37%


6%

-7%

Europe

20%

19%

21%


1%

-17%

Japan

10%

11%

10%


-5%

-6%

 

Net Revenues by End Market:


Percentages

Growth Rates


Q2
FY 2016

Q1
FY 2016

Q2
FY 2015

Q-T-Q

Y-T-Y

Communications & Data Center

41%

38%

44%

5%

-19%

Industrial, Aerospace & Defense

41%

44%

41%

-12%

-12%

Broadcast, Consumer & Automotive

18%

18%

15%

-3%

4%

 

Net Revenues by Product:


Percentages


Growth Rates


Q2

FY 2016

Q1

FY 2016

Q2

FY 2015


 

Q-T-Q

Y-T-Y

New

43%

38%

32%


11%

20%

Mainstream

25%

25%

31%


-3%

-29%

Base

28%

34%

34%


-21%

-28%

Support

4%

3%

3%


-2%

-8%

Products are classified as follows:


New products: Virtex® and Kintex® UltraScale, Virtex7, Kintex7, Artix®-7, Zynq-7000, Spartan™6 products

Mainstream products: Virtex-6, Virtex5, and CoolRunner™II products

Base products: Virtex4, VirtexII, VirtexE, Spartan-3 Spartan-II,  CoolRunner and XC9500 products

Support products: Configuration solutions, HardWire, Software & Support/Services

 

Key Statistics:

(Dollars in millions)



Q2
FY 2016

Q1
FY 2016

Q2
FY 2015





Annual Return on Equity (%)*

21

22

25





Operating Cash Flow

$134

$183

$204





Depreciation Expense

$12

$13

$14





Capital Expenditures

$5

$8

$8





Combined Inventory Days

137

138

153





Revenue Turns (%)

51

46

48


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

Highlights – September Quarter Fiscal 2016

  • Xilinx shipped the industry's first 16nm multiprocessor SoC (MPSoC) a quarter ahead of schedule. The early release of the Zynq UltraScale+ MPSoC enables Xilinx customers to begin designing and delivering MPSoC-based systems today. Built using TSMC's 16FF+ process, this new product family enables the development of next-generation embedded vision, ADAS, I-IoT and communications systems by providing 5X system-level performance/watt and any-to-any connectivity with the security and safety required for next-generation systems.
  • Xilinx and Qualcomm Incorporated through its subsidiary, Qualcomm Technologies, Inc., announced a strategic technical collaboration to deliver industry-leading heterogeneous computing solutions with new levels of efficiency and performance through FPGA-enabled dynamic workload acceleration on Qualcomm Technologies' server platforms. The strategic collaboration is designed to span multiple product generations, ranging from card level to highly-integrated solutions. Target applications include compute acceleration, big data analytics, machine learning, storage and CloudRAN.
  • Xilinx continued to demonstrate a strong commitment to returning value to stockholders. In the September quarter, the Company repurchased $100 million of stock and paid $80 million in dividends, representing over 130% of operating cash flow generated during the quarter.

Business Outlook – December Quarter Fiscal 2016

  • Sales are expected to be up 3% to 7% sequentially, including the impact of the extra fiscal week in the quarter.
  • Gross margin is expected to be approximately 69%.
  • Operating expenses are expected to be approximately $230 million including $2 million of amortization of acquisition-related intangibles. This includes the impact of the extra fiscal week in the quarter.
  • Other income and expenses are expected to be a net expense of approximately $7 million.
  • Fully diluted share count is expected to be approximately 265 million.
  • December quarter tax rate is expected to be approximately 12%.

Conference Call

A conference call will be held today at 2:00 p.m. Pacific Time to discuss the September quarter financial results and management's outlook for the December 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 31752292. 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 December quarter of fiscal 2016.  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, and other risk factors listed in our most recent Forms 10-Q and 10-K.

About Xilinx

Xilinx develops All Programmable technologies and devices, beyond hardware to software, digital to analog, and single to multiple die in 3D ICs.  These industry leading devices are coupled with a next-generation design environment and IP to serve a broad range of customer needs, from programmable logic to programmable systems integration.  For more information, visit www.xilinx.com.

#1558F

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


Six Months Ended


September 26,
2015


June 27,
2015


September 27,
2014


September 26,
2015


September 27,
2014

Net revenues

$          527,572


$     549,008


$          604,262


$       1,076,580


$       1,216,895

Cost of revenues

157,640


159,954


169,617


317,594


358,806

Gross margin

369,932


389,054


434,645


758,986


858,089

Operating expenses:










Research and development

130,220


126,648


138,335


256,868


260,348

Selling, general and administrative

84,761


82,143


93,883


166,904


186,396

Amortization of acquisition-related intangibles

1,769


1,769


2,378


3,538


4,796

Total operating expenses

216,750


210,560


234,596


427,310


451,540

Operating income

153,182


178,494


200,049


331,676


406,549

Interest and other expense, net

9,213


10,527


5,731


19,740


11,953

Income before income taxes

143,969


167,967


194,318


311,936


394,596

Provision for income taxes

16,671


20,252


22,802


36,923


49,469

Net income

$          127,298


$     147,715


$          171,516


$          275,013


$          345,127

Net income per common share:










Basic

$                0.49


$           0.57


$                0.64


$                1.07


$                1.29

Diluted

$                0.48


$           0.55


$                0.62


$                1.03


$                1.24

Cash dividends per common share

$                0.31


$       0.31


$                0.29


$                0.62


$                0.58

Shares used in per share calculations:










Basic

257,640


258,021


265,942


257,744


267,098

Diluted

266,046


270,730


275,800


268,070


278,784

 

XILINX, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)


September 26, 2015


March 28, 2015*


(unaudited)



ASSETS




Current assets:




Cash, cash equivalents and short-term investments

$                 3,295,784


$          3,303,061

Accounts receivable, net

282,627


246,615

Inventories

212,973


231,328

Deferred tax assets and other current assets

189,777


154,047

Total current assets

3,981,161


3,935,051

Net property, plant and equipment

287,377


301,038

Long-term investments

235,922


266,902

Other assets

385,890


395,074

Total Assets

$                 4,890,350


$          4,898,065









LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable and accrued  liabilities

$                    287,055


$             321,082

Deferred income on shipments to distributors

81,707


66,071

Current portion of long-term debt

581,580


576,053

Total current liabilities

950,342


963,206

Convertible debentures

995,333


994,839

Deferred tax liabilities

308,662


289,868

Other long-term liabilities

14,344


14,611

Temporary equity

18,420


23,947

Stockholders' equity

2,603,249


2,611,594

Total Liabilities and Stockholders' Equity

$                 4,890,350


$          4,898,065









* Derived from audited financial statements

 

XILINX, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

(Unaudited)

(In thousands)


Three Months Ended


Six Months Ended


September 26,
2015


June 27,
2015


September 27,
2014


September 26,
2015


September 27,
2014

SELECTED CASH FLOW INFORMATION:










Depreciation

$                      12,472


$                      13,253


$             13,678


$            25,725


$            27,146

Amortization

4,354


4,354


5,303


8,708


10,508

Stock-based compensation

26,681


26,320


28,740


53,001


50,846

Net cash provided by operating activities

133,730


183,153


203,881


316,883


334,000

Purchases of property, plant and equipment

5,362


7,689


8,427


13,051


17,543

Payment of dividends to stockholders

80,196


80,206


76,957


160,402


154,378

Repurchases of common stock

99,998


100,000


199,999


199,998


301,015

Net proceeds from issuance of common stock to employees and excess tax benefit

2,995


22,283


2,452


25,278


19,307











STOCK-BASED COMPENSATION INCLUDED IN:










Cost of revenues

$                        1,763


$                        1,964


$               2,077


$              3,727


$              4,069

Research and development

12,934


14,692


14,831


27,626


25,336

Selling, general and administrative

11,984


9,664


11,832


21,648


21,441

Restructuring





 

Investor Relations Contact:
Lori Owen
Xilinx, Inc.
(408) 879-6911
ir@xilinx.com

 

SOURCE Xilinx, Inc.


Worldwide Media Contacts

Silvia E. Gianelli
Phone: 408-626-4328
Email: silvia.gianelli@xilinx.com

 

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