Xilinx Announces First Quarter 2017 Results; Advanced Products Grow 60% Y-T-Y, Strong Profitability

SAN JOSE, Calif., July 27, 2016 — (PRNewswire) —  Xilinx, Inc. (Nasdaq: XLNX) today announced first quarter fiscal 2017 sales of $575 million, up 1% sequentially, and up 5% from the first quarter of the prior fiscal year.  First quarter net income was $163 million, or $0.61 per diluted share.

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

The Xilinx Board of Directors declared a quarterly cash dividend of $0.33 per outstanding share of common stock payable on August 24, 2016 to all stockholders of record at the close of business on August 11, 2016. 

Additional first quarter comparisons are represented in the charts below:

GAAP Results

(In millions, except EPS) 



Q1

FY 2017

Q4

FY 2016

Q1

FY 2016


 

Q-T-Q

 

Y-T-Y

Net revenues

$575

$571

$549


1%

5%

Operating income

$186

$178

$178


5%

4%

Net income

$163

$145

$148


12%

10%

Diluted earnings per share

$0.61

$0.54

$0.55


13%

11%

"Xilinx continues to deliver on technology leadership and execution.  Sales from our 28nm product family achieved a new record during the quarter.  Momentum from our 20nm products continued to be strong, with sales easily surpassing our $30 million target.  In addition, 16nm products continued to gain exceptional customer adoption with all three Ultrascale+ product families shipping to over 100 customers in a broad base of end markets," said Moshe Gavrielov, Xilinx President and Chief Executive Officer.  "Profitability was stronger than expected during the quarter.  Gross margin of 70.7% was up from 69.2% in the prior quarter, primarily as a result of operational efficiencies and mix.  Operating margin was 32.4%, driven by better gross margin and controlled operating expenses."                                                       

Net Revenues by Geography:



Percentages 


Growth Rates


Q1

FY 2017

Q4

FY 2016

Q1

FY 2016


 

Q-T-Q

 

Y-T-Y

North America

32%

32%

34%


1%

-1%

Asia Pacific

40%

38%

36%


5%

16%

Europe

19%

21%

19%


-6%

5%

Japan

9%

9%

11%


-4%

-15%

                                                                                                           

Net Revenues by End Market:



Percentages 


Growth Rates


Q1

FY 2017

Q4

FY 2016

Q1

FY 2016


 

Q-T-Q

 

Y-T-Y

Communications & Data Center

44%

43%

38%


4%

22%

Industrial, Aerospace & Defense

39%

40%

44%


-2%

-8%

Broadcast, Consumer & Automotive

17%

17%

18%


0%

0%










                                                                                                                           

Net Revenues by Product:






Percentages  


Growth Rates


Q1

FY 2017

Q4

FY 2016

Q1

FY 2016


 

Q-T-Q

 

Y-T-Y

Advanced  Products

42%

38%

27%


10%

60%

Core Products

58%

62%

73%


-5%

-16%

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, Spartan, CoolRunner XC9500 products, configuration solutions, Software & Support/Services.

Note:   The product categories represented above have been modified to make categories more meaningful given new product introductions and the maturing of products.  For comparative purposes, we have provided supplemental information on our website at www.investor.xilinx.com that presents results based on previous classifications.

Key Statistics:

(Dollars in millions)



Q1

FY 2017

Q4

FY 2016

Q1

FY 2016





Annual Return on Equity (%)*

25

21

22





Operating Cash Flow

$339

$127

$187





Depreciation Expense

$12

$12

$13





Capital Expenditures

$21

$15

$8





Combined Inventory Days

117

102

138





Revenue Turns (%)

50

49

46


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

Product and Financial Highlights – June Quarter

  • The Advanced Products category grew to a record sales level, increasing 60% year over year. Xilinx continues to deliver on technology leadership and world–class execution.
  • Xilinx generated a record $339 million in operating cash flow during the quarter driven by improved profitability as well as lower working capital requirements. Xilinx remains committed to a healthy return of cash to stockholders in the form of dividend and share repurchase.
  • Advanced Micro Devices, ARM, Huawei, IBM, Mellanox, Qualcomm Technologies Inc., a subsidiary of Qualcomm Incorporated, and Xilinx, Inc. joined forces to bring a high-performance open acceleration framework to data centers. The companies are collaborating on the specification for the new Cache Coherent Interconnect for Accelerators (CCIX). For the first time in the industry, a single interconnect technology specification will ensure that processors using different instruction set architectures (ISA) can coherently share data with accelerators and enable efficient heterogeneous computing – significantly improving compute efficiency for servers running data center workloads.
  • Xilinx announced the expansion of its 16nm UltraScale+ product roadmap with new acceleration enhanced technologies for the Data Center. The resulting products will deliver the powerful combination of Xilinx's industry-leading 16nm FinFET+ FPGAs with integrated High-Bandwidth Memory (HBM), and support for the recently announced CCIX.

Business Outlook – September Quarter Fiscal 2017

  • Sales are expected to be approximately flat sequentially.
  • Gross margin is expected to be approximately 70%.
  • Operating expenses are expected to be approximately $230 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 .
  • Fully diluted share count is expected to be approximately 266 million.
  • September 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 June quarter financial results and management's outlook for the September 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 32174654. 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 September 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 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, 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 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 .

#1632F

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:
Lori Owen
Xilinx, Inc.
(408) 879-6911
Email Contact

 

XILINX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In thousands, except per share amounts)


Three Months Ended


July 2, 2016


April 2, 2016


June 27, 2015

Net revenues

$      574,981


$        571,066


$          549,008

Cost of revenues

168,297


175,799


159,954

Gross margin

406,684


395,267


389,054

Operating expenses:






Research and development

136,125


135,645


126,648

Selling, general and administrative

83,110


80,277


82,143

Amortization of acquisition-related intangibles

1,244


1,244


1,769

Total operating expenses

220,479


217,166


210,560

Operating income

186,205


178,101


178,494

Interest and other expense, net

4,587


8,263


10,527

Income before income taxes

181,618


169,838


167,967

Provision for income taxes

18,569


24,803


20,252

Net income

$      163,049


$        145,035


$          147,715

Net income per common share:






Basic

$            0.64


$              0.57


$                0.57

Diluted

$            0.61


$              0.54


$                0.55

Cash dividends per common share

$            0.33


$              0.31


$                0.31

Shares used in per share calculations:






Basic

252,901


255,467


258,021

Diluted

266,206


268,462


270,730

 

XILINX, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)


July 2, 2016


April 2, 2016*


(unaudited)



ASSETS




Current assets:




Cash, cash equivalents and short-term investments

$ 3,517,978


$     3,337,699

Accounts receivable, net

217,014


307,458

Inventories

195,282


178,550

Other current assets

91,426


92,951

Total current assets

4,021,700


3,916,658

Net property, plant and equipment

292,358


283,346

Long-term investments

209,015


220,807

Other assets

403,402


398,458

Total Assets

$ 4,926,475


$     4,819,269









LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable and accrued liabilities

$    391,286


$        307,222

Deferred income on shipments to distributors

71,536


51,758

Current portion of long-term debt

588,542


585,417

Total current liabilities

1,051,364


944,397

Long-term debt

994,039


993,639

Deferred tax liabilities

263,413


261,467

Other long-term liabilities

17,856


16,979

Temporary equity

10,131


12,894

Stockholders' equity

2,589,672


2,589,893

Total Liabilities and Stockholders' Equity

$ 4,926,475


$     4,819,269









* Derived from audited financial statements




 

XILINX, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

(Unaudited)

(In thousands)


Three Months Ended


July 2, 2016


April 2, 2016


June 27, 2015

SELECTED CASH FLOW INFORMATION:






   Depreciation

$        11,625


$          12,060


$            13,253

   Amortization

3,713


4,464


4,354

   Stock-based compensation

29,404


27,520


26,320

   Net cash provided by operating activities

338,636


126,761


186,992

   Purchases of property, plant and equipment

20,637


14,835


7,689

   Payment of dividends to stockholders

83,599


78,877


80,206

   Repurchases of common stock

100,154


143,183


100,000

   Proceeds from issuance of common stock






     to employees, net of withholding taxes

11,297


29,374


18,444







STOCK-BASED COMPENSATION INCLUDED IN:






  Cost of revenues

$          2,119


$            2,105


$              1,964

  Research and development

15,120


15,131


14,692

  Selling, general and administrative

12,165


10,284


9,664

 

To view the original version on PR Newswire, visit: http://www.prnewswire.com/news-releases/xilinx-announces-first-quarter-2017-results-advanced-products-grow-60-y-t-y-strong-profitability-300305077.html

SOURCE Xilinx, Inc.

Contact:
Xilinx, Inc.
Web: http://www.xilinx.com




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