XLNX
$58.99
Xilinx
$.05
.08%
Earnings Details
3rd Quarter December 2016
Wednesday, January 25, 2017 4:20:00 PM
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Summary

Xilinx Beats

Xilinx (XLNX) reported 3rd Quarter December 2016 earnings of $0.52 per share on revenue of $585.7 million. The consensus earnings estimate was $0.49 per share on revenue of $579.3 million. The Earnings Whisper number was $0.51 per share. Revenue grew 3.4% on a year-over-year basis.

The company said it expects fourth quarter revenue of $590.0 million to $620.0 million. The current consensus revenue estimate is $610.3 million for the quarter ending March 31, 2017.

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
$0.52
Earnings Whisper
$0.51
Consensus Estimate
$0.49
Reported Revenue
$585.7 Mil
Revenue Estimate
$579.3 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

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

Xilinx, Inc. (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.

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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
Q2
Q3
Q-T-Q Y-T-Y
FY 2017 FY 2017 FY 2016
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
Q2
Q3
Q-T-Q
Y-T-Y
FY 2017 FY 2017 FY 2016
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
Q2
Q3
Q-T-Q Y-T-Y
FY 2017 FY 2017 FY 2016
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
Q2
Q3
Q-T-Q
Y-T-Y
FY 2017 FY 2017 FY 2016
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
Q2
Q3
FY 2017 FY 2017 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 OwenXilinx, Inc.(408) 879-6911ir@xilinx.com

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/xilinx-announces-third-quarter-2017-results-fifth-consecutive-quarter-of-revenue-growth-eps-052-300396839.html

SOURCE Xilinx, Inc.

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