XLNX
$105.42
Xilinx
($2.93)
(2.70%)
Earnings Details
4th Quarter March 2019
Wednesday, April 24, 2019 4:20:00 PM
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Summary

Xilinx Misses

Xilinx (XLNX) reported 4th Quarter March 2019 earnings of $0.94 per share on revenue of $828.4 million. The consensus earnings estimate was $0.96 per share on revenue of $825.6 million. The Earnings Whisper number was $0.97 per share. Revenue grew 23.1% on a year-over-year basis.

The company said it expects first quarter revenue of $835.0 million to $865.0 million. The current consensus revenue estimate is $828.5 million for the quarter ending June 30, 2019.

Xilinx Inc designs, develops and markets programmable platforms, including integrated circuits, software design tools and predefined system functions delivered as intellectual property cores.

Results
Reported Earnings
$0.94
Earnings Whisper
$0.97
Consensus Estimate
$0.96
Reported Revenue
$828.4 Mil
Revenue Estimate
$825.6 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

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.

Xilinx logo (PRNewsFoto/Xilinx) (PRNewsfoto/Xilinx, Inc.)

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

FY 2019

Q3

FY 2019

Q4

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
Adjustments

Non-GAAP

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%



(1)

Includes an estimated $7 million in M&A related expenses and amortization of acquisition related 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).

 

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SOURCE Xilinx, Inc.