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Xilinx Reports Record Annual And Quarterly Revenues

Apr 25, 2018

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
FY 2018

Q3
FY 2018

Q4
FY 2017

 

Q-T-Q

Y-T-Y

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
FY 2018

Q3
FY 2018

Q4
FY 2017

 

Q-T-Q

Y-T-Y

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
FY 2018

Q3
FY 2018

Q4
FY 2017

 

 

Q-T-Q

Y-T-Y

Communications & Data Center

34%

35%

41%

 

2%

(8%)

Industrial, Aerospace & Defense

48%

47%

43%

 

 

10%

25%

Broadcast, Consumer & Automotive

18%

18%

16%

 

 

7%

17%

 

Net Revenues by Product:

 

Percentages

 

Growth Rates

 

Q4
FY 2018

Q3
FY 2018

Q4
FY 2017

 

Q-T-Q

Y-T-Y

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
FY 2018

Q3
FY 2018

Q4
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 13th 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

 

 

 

SOURCE Xilinx, Inc.

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