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Xilinx Announces Third Quarter 2017 Results; Fifth Consecutive Quarter Of Revenue Growth; EPS: $0.52

Jan 25, 2017

SAN JOSE, Calif., Jan. 25, 2017 /PRNewswire/ -- Xilinx, Inc. (Nasdaq: XLNX) today announced third quarter fiscal 2017 sales of $586 million, up 1% sequentially, and up 3% from the third quarter of the prior fiscal year.  Third quarter net income was $142 million, or $0.52 per diluted share.

The Xilinx Board of Directors declared a quarterly cash dividend of $0.33 per outstanding share of common stock payable on February 23, 2017 to all stockholders of record at the close of business on February 8, 2017. 

Additional third quarter comparisons are represented in the charts below:

GAAP Results

(In millions, except EPS)



Q3

FY 2017

Q2

FY 2017

Q3

FY 2016


 

Q-T-Q

 

Y-T-Y

Net revenues

$586

$579

$566


1%

3%

Operating income

$163

$177

$160


-8%

2%

Net income

$142

$164

$131


-14%

8%

Diluted earnings per share

$0.52

$0.61

$0.49


-15%

6%

 

"Xilinx delivered growth for the fifth consecutive quarter.  Sales from our 16nm Ultrascale+, 20nm Ultrascale, and 28nm Zynq products contributed to significant market expansion.  The growth from these products was driven by a broad base of markets such as data center, automotive, test & measurement, wired and wireless communications and space," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "Our FY17 strategic increase in R&D investment continues to pay off with the recent expansion announcement of our 16nm portfolio integrating High Bandwidth Memory and Cache Coherent Interconnect technology into Ultrascale+ FPGAs.  In addition, our 16nm execution continues unabated.  We are currently shipping 12 unique products to nearly 300 customers and remain over a year ahead of the competition."                                                     

Net Revenues by Geography:



Percentages


Growth Rates


Q3

FY 2017

Q2

FY 2017

Q3

FY 2016


 

Q-T-Q

 

Y-T-Y

North America

30%

33%

32%


-7%

-3%

Asia Pacific

43%

38%

41%


12%

9%

Europe

19%

20%

17%


-4%

13%

Japan

8%

9%

10%


-5%

-14%

                                                                                

Net Revenues by End Market:



Percentages


Growth Rates


Q3

FY 2017

Q2

FY 2017

Q3

FY 2016


 

Q-T-Q

Y-T-Y

Communications & Data Center

44%

41%

43%


7%

4%

Industrial, Aerospace & Defense

41%

41%

41%


1%

5%

Broadcast, Consumer & Automotive

15%

18%

16%


-13%

-2%

                                                                                                             

Net Revenues by Product:



Percentages


Growth Rates


Q3

FY 2017

Q2

FY 2017

Q3

FY 2016


 

Q-T-Q

 

Y-T-Y

Advanced  Products

47%

46%

37%


2%

30%

Core Products

53%

54%

63%


0%

-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, Virtex‐E, Spartan-3, Spartan-II, XC9500, products, configuration solutions, Software & Support/Services.

 

Key Statistics:

(Dollars in millions)



Q3

FY 2017

Q2

FY 2017

Q3

FY 2016





Annual Return on Equity (%)*

25

25

21





Operating Cash Flow

$106

$184

$292





Depreciation Expense

$11

$11

$13





Capital Expenditures

$20

$11

$6





Combined Inventory Days

114

111

119





Revenue Turns (%)

56

55

49


*

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

 

Product and Financial Highlights – December Quarter

  • Xilinx introduced the Reconfigurable Acceleration Stack, with a goal to enable mainstream adoption of FPGAs in the data center. Target applications include machine learning, video transcoding and big data analytics. Designed for cloud scale applications, the stack provides the fastest path to realize up to 40x better compute efficiency with Xilinx FPGAs compared to x86 server CPUs and up to six times the compute efficiency over competitive FPGAs.
  • Xilinx unveiled details for new 16nm Virtex UltraScale+ FPGAs with HBM and CCIX technology. Containing the highest memory bandwidth available, these HBM-enabled FPGAs offer 20X higher memory bandwidth relative to a DDR4 DIMM and 4X less power per bit versus competing memory technologies. This product family is architected to support compute acceleration in the data center, high data rate Ethernet connectivity, 8K Video, and radar systems.
  • Xilinx announced that Amazon Web Services (AWS) is deploying Xilinx 16nm UltraScale+ FPGAs in the new Amazon Elastic Cloud Compute (Amazon EC2) F1 instance type, accelerating genomics, financial analytics, video processing, big data, security, and machine learning inference workloads. In addition to Amazon EC2 F1 instances, AWS also announced an FPGA Developer Amazon Machine Image which is pre-built with the development tools and scripts including Xilinx's Vivado Design Suite and Vivado license.

Business Outlook – March Quarter Fiscal 2017

  • Sales are expected to be in the range of $590M-$620M.
  • Gross margin is expected to be approximately 68-70%.
  • Operating expenses are expected to be approximately $244 million including $1 million of amortization of acquisition-related intangibles.
  • Other income and expenses are expected to be a net expense of approximately $4 million.
  • March quarter tax rate is expected to be approximately 14%.

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 34530294. 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 plans to repurchase shares of Xilinx stock and our expectations regarding our business outlook for the March quarter of fiscal 2017.  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 market conditions which could impact the ability of the Company to execute the repurchase authorization in a timely manner; 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, changing competitive dynamics due to industry consolidation, our ability to deliver product in a timely manner, 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 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.

#1703F

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 31, 2016


October 1, 2016


January 2, 2016


December 31, 2016


January 2, 2016

Net revenues

$                   585,688


$             579,209


$             566,235


$                1,739,877


$          1,642,815

Cost of revenues

178,233


175,875


178,514


522,404


496,108

Gross margin

407,455


403,334


387,721


1,217,473


1,146,707

Operating expenses:










Research and development

159,248


141,814


141,378


437,187


398,246

Selling, general and administrative

83,780


83,463


84,470


250,353


251,374

Amortization of acquisition-related intangibles

1,455


1,244


1,769


3,943


5,306

Total operating expenses

244,483


226,521


227,617


691,483


654,926

Operating income

162,972


176,813


160,104


525,990


491,781

Interest and other expense, net

392


1,151


5,053


6,130


24,793

Income before income taxes

162,580


175,662


155,051


519,860


466,988

Provision for income taxes

20,734


11,470


24,232


50,773


61,155

Net income

$                   141,846


$             164,192


$             130,819


$                   469,087


$             405,833

Net income per common share:










Basic

$                         0.57


$                   0.65


$                   0.51


$                         1.86


$                   1.58

Diluted

$                         0.52


$                   0.61


$                   0.49


$                         1.74


$                   1.51

Cash dividends per common share

$                         0.33


$                   0.33


$                   0.31


$                         0.99


$                   0.93

Shares used in per share calculations:










Basic

250,982


253,466


256,450


252,811


257,491

Diluted

270,781


270,373


269,611


269,182


268,716

 

XILINX, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)


December 31, 2016


April 2, 2016


(unaudited)



ASSETS




Current assets:




Cash, cash equivalents and short-term investments

$             3,254,135


$  3,337,699

Accounts receivable, net

340,852


307,458

Inventories

205,927


178,550

Other current assets

115,138


92,951

Total current assets

3,916,052


3,916,658

Net property, plant and equipment

301,504


283,346

Long-term investments

183,082


220,807

Other assets

435,650


398,458

Total Assets

$             4,836,288


$  4,819,269









LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable and accrued liabilities

$                361,624


$     307,222

Deferred income on shipments to distributors

53,626


51,758

Current portion of long-term debt

594,792


585,417

Total current liabilities

1,010,042


944,397

Long-term debt

994,842


993,639

Deferred tax liabilities

323,777


261,467

Other long-term liabilities

23,419


16,979

Temporary equity

4,605


12,894

Stockholders' equity

2,479,603


2,589,893

Total Liabilities and Stockholders' Equity

$             4,836,288


$  4,819,269

 

XILINX, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

(Unaudited)

(In thousands)


Three Months Ended


Nine Months Ended


December 31, 2016


October 1, 2016


January 2, 2016


December 31, 2016


January 2, 2016

SELECTED CASH FLOW INFORMATION:










   Depreciation

$                     11,110


$               11,182


$               13,043


$                     33,917


$               38,768

   Amortization

4,887


4,001


4,441


12,601


13,149

   Stock-based compensation

30,867


29,802


31,463


90,073


84,464

   Net cash provided by operating activities

105,584


183,593


292,156


627,813


619,494

   Purchases of property, plant and equipment

19,875


11,313


6,118


51,825


19,169

   Payment of dividends to stockholders

83,256


83,878


79,709


250,733


240,111

   Repurchases of common stock

213,844


99,985


100,000


413,983


299,998

   Proceeds from issuance of common stock










     to employees, net of withholding taxes

1,195


(1,784)


6,897


10,708


21,720











STOCK-BASED COMPENSATION INCLUDED IN:










  Cost of revenues

$                       1,945


$                 1,930


$                 2,145


$                       5,994


$                 5,872

  Research and development

17,154


16,529


16,935


48,803


44,561

  Selling, general and administrative

11,768


11,343


12,383


35,276


34,031

 

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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