XLNX
$55.91
Xilinx
$.27
.49%
Earnings Details
2nd Quarter September 2016
Wednesday, October 19, 2016 4:33:00 PM
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Summary

Xilinx Beats but Guides Lower

Xilinx (XLNX) reported 2nd Quarter September 2016 earnings of $0.61 per share on revenue of $579.2 million. The consensus earnings estimate was $0.54 per share on revenue of $575.0 million. The Earnings Whisper number was $0.56 per share. Revenue grew 9.8% on a year-over-year basis.

The company said it expects third quarter revenue of approximately $579.21 million. The current consensus revenue estimate is $588.5 million for the quarter ending December 31, 2016.

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
$0.61
Earnings Whisper
$0.56
Consensus Estimate
$0.54
Reported Revenue
$579.2 Mil
Revenue Estimate
$575.0 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Xilinx Announces Second Quarter 2017 Results; Advanced Products Repeat 60% Year-Over-Year Growth

Xilinx, Inc. (XLNX) today announced second quarter fiscal 2017 sales of $579 million, up 1% sequentially, and up 10% from the second quarter of the prior fiscal year. Second quarter net income was $164 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 November 23, 2016 to all stockholders of record at the close of business on November 8, 2016.

Additional second quarter comparisons are represented in the charts below:

GAAP Results
(In millions, except EPS)
Q2
Q1
Q2
Q-T-Q Y-T-Y
FY 2017 FY 2017 FY 2016
Net revenues
$579
$575
$528
1%
10%
Operating income
$177
$186
$153
-5%
15%
Net income
$164
$163
$127
1%
29%
Diluted earnings per share $0.61
$0.61
$0.48
0%
27%

"Xilinx delivered growth for the fourth consecutive quarter. Advanced Product sales increased 10% sequentially and 61% versus the same quarter of the prior fiscal year. All three technology nodes in this category achieved new sales records. Operating profit exceeded 30% for the third consecutive quarter," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "We remain confident in our long term growth strategy and ability to generate strong cash flows, which is the basis for our commitment to shareholder return. As a result, we are initiating a more deliberate repurchase program to complement our long-standing dividend program."

Net Revenues by Geography:
Percentages
Growth Rates
Q2
Q1
Q2
Q-T-Q
Y-T-Y
FY 2017
FY 2017 FY 2016
North America 33%
32%
30%
1%
20%
Asia Pacific
38%
40%
40%
-3%
6%
Europe
20%
19%
20%
7%
11%
Japan
9%
9%
10%
3%
-7%
Net Revenues by End Market:
Percentages
Growth Rates
Q2
Q1
Q2
Q-T-QY-T-Y
FY 2017 FY 2017 FY 2016
Communications & Data Center
41%
44%
41%
-6%
9%
Industrial, Aerospace & Defense
41%
39%
41%
7%
11%
Broadcast, Consumer & Automotive 18%
17%
18%
5%
8%
Net Revenues by Product:
Percentages
Growth Rates
Q2
Q1
Q2
Q-T-Q
Y-T-Y
FY 2017 FY 2017 FY 2016
Advanced
Products
46%
42%
31%
10%
61%
Core Products
54%
58%
69%
-6%
-14%
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, CoolRunner, XC9500, products, configuration solutions, Software & Support/Services.
Key Statistics:
(Dollars in millions)
Q2
Q1
Q2
FY 2017 FY 2017 FY 2016
Annual Return on Equity (%)* 25
25
21
Operating Cash Flow
$184
$339
$140
Depreciation Expense
$11
$12
$12
Capital Expenditures
$11
$21
$5
Combined Inventory Days
111
117
137
Revenue Turns (%)
55
50
51
*Return on equity calculation: Annualized net income/average stockholders’ equity

Product and Financial Highlights - September Quarter

Xilinx intends to utilize the May 2016 repurchase authorization of $1 billion in a more deliberate manner over the next several quarters. This program complements the Company’s capital allocation priorities which include investing in the business and continuously growing the dividend.

Xilinx recently reached a significant production milestone for the 16nm UltraScale+ portfolio ahead of schedule. Xilinx has now shipped nine unique products to nearly 200 customers in a broad base of markets including automotive, data center and communications.

Xilinx announced the expansion of its cost-optimized Spartan, Artix & Zynq product families targeting a wide range of applications including Embedded Vision and Industrial IoT. Today’s Embedded Vision and Industrial IoT applications need to collect, aggregate, and analyze data from a variety of sensors for actionable insights. Whether scaling a multi-sensor camera’s functionality on a factory floor, or developing a smart drone with an innovative guidance system based on sensor fusion, designers can take advantage of the Xilinx FPGA and SoC portfolio for part or all of their system needs.

Xilinx announced that Baidu, the leading Chinese language Internet search provider, is utilizing Xilinx FPGAs to accelerate machine learning applications in their data centers in China. The two companies are collaborating to further expand volume deployment of FPGA-based accelerated platforms. Baidu-optimized FPGA platforms are tuned for machine learning applications such as image and speech recognition. The platforms will also be leveraged in Baidu’s initiative to develop commercially viable autonomous cars.

Last quarter, Xilinx joined forces with Advanced Micro Devices, ARM, Huawei, IBM, Mellanox, and Qualcomm Technologies Inc., a subsidiary of Qualcomm Incorporated, to bring a high-performance open acceleration framework, "CCIX" to data centers. Just recently this consortium announced that it has tripled its membership welcoming new members representing silicon providers and ecosystem partners in design, verification, software and systems. In addition, the member companies have aligned to the PCI Express architecture as its first transport layer specification.

Business Outlook - December Quarter Fiscal 2017

-- Sales are expected to be approximately flat sequentially.

-- Gross margin is expected to be approximately 69%.

Operating expenses are expected to be approximately $245 million including $1 million of amortization of acquisition-related intangibles.

-- Other income and expenses are expected to be a net expense of approximately $2 million.

-- December 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 September quarter financial results and management’s outlook for the December 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 78782757. 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 December 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.

#1641F

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
Six Months Ended
October 1, 2016
July 2, 2016
September 26, 2015
October 1, 2016
September 26, 2015
Net revenues
$
579,209
$
574,981
$
527,572
$
1,154,190
$
1,076,580
Cost of revenues
175,875
168,297
157,640
344,172
317,594
Gross margin
403,334
406,684
369,932
810,018
758,986
Operating expenses:
Research and development
141,814
136,125
130,220
277,939
256,868
Selling, general and administrative
83,463
83,110
84,761
166,573
166,904
Amortization of acquisition-related intangibles 1,244
1,244
1,769
2,488
3,538
Total operating expenses
226,521
220,479
216,750
447,000
427,310
Operating income
176,813
186,205
153,182
363,018
331,676
Interest and other expense, net
1,151
4,587
9,213
5,738
19,740
Income before income taxes
175,662
181,618
143,969
357,280
311,936
Provision for income taxes
11,470
18,569
16,671
30,039
36,923
Net income
$
164,192
$
163,049
$
127,298
$
327,241
$
275,013
Net income per common share:
Basic
$
0.65
$
0.64
$
0.49
$
1.29
$
1.07
Diluted
$
0.61
$
0.61
$
0.48
$
1.22
$
1.03
Cash dividends per common share
$
0.33
$
0.33
$
0.31
$
0.66
$
0.62
Shares used in per share calculations:
Basic
253,466
252,901
257,640
253,056
257,744
Diluted
270,373
266,206
266,046
267,885
268,070
XILINX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
October 1, 2016
April 2, 2016
(unaudited)
ASSETS
Current assets:
Cash, cash equivalents and short-term investments $
3,489,828
$
3,337,699
Accounts receivable, net
227,758
307,458
Inventories
196,922
178,550
Other current assets
104,686
92,951
Total current assets
4,019,194
3,916,658
Net property, plant and equipment
292,488
283,346
Long-term investments
198,545
220,807
Other assets
435,493
398,458
Total Assets
$
4,945,720
$
4,819,269
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities
$
348,748
$
307,222
Deferred income on shipments to distributors
57,404
51,758
Current portion of long-term debt
591,667
585,417
Total current liabilities
997,819
944,397
Long-term debt
994,439
993,639
Deferred tax liabilities
294,875
261,467
Other long-term liabilities
26,072
16,979
Temporary equity
7,368
12,894
Stockholders’ equity
2,625,147
2,589,893
Total Liabilities and Stockholders’ Equity
$
4,945,720
$
4,819,269
XILINX, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)
(In thousands)
Three Months Ended
Six Months Ended
October 1, 2016
July 2, 2016
September 26, 2015
October 1, 2016
September 26, 2015
SELECTED CASH FLOW INFORMATION:
Depreciation
$
11,182
$
11,625
$
12,472
$
22,807
$
25,725
Amortization
4,001
3,713
4,354
7,714
8,708
Stock-based compensation
29,802
29,404
26,681
59,206
53,001
Net cash provided by operating activities
183,593
338,636
140,346
522,229
327,338
Purchases of property, plant and equipment 11,313
20,637
5,362
31,950
13,051
Payment of dividends to stockholders
83,878
83,599
80,196
167,477
160,402
Repurchases of common stock
99,985
100,154
99,998
200,139
199,998
Proceeds from issuance of common stock
to employees, net of withholding taxes
(1,784)
11,297
(3,621)
9,513
14,823
STOCK-BASED COMPENSATION INCLUDED IN:
Cost of revenues
$
1,930
$
2,119
$
1,763
$
4,049
$
3,727
Research and development
16,529
15,120
12,934
31,649
27,626
Selling, general and administrative
11,343
12,165
11,984
23,508
21,648

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-second-quarter-2017-results-advanced-products-repeat-60-year-over-year-growth-300347917.html

SOURCE Xilinx, Inc.

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