XLNX
$54.34
Xilinx
$.85
1.59%
Earnings Details
1st Quarter June 2016
Wednesday, July 27, 2016 4:20:00 PM
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Summary

Xilinx Beats

Xilinx (XLNX) reported 1st Quarter June 2016 earnings of $0.61 per share on revenue of $575.0 million. The consensus earnings estimate was $0.55 per share on revenue of $571.1 million. The Earnings Whisper number was $0.57 per share. Revenue grew 4.7% on a year-over-year basis.

The company said it expects second quarter revenue of approximately $575.0 million. The current consensus revenue estimate is $575.7 million for the quarter ending September 30, 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
$0.57
Consensus Estimate
$0.55
Reported Revenue
$575.0 Mil
Revenue Estimate
$571.1 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

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

Xilinx, Inc. (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
Q4
Q1
Q-T-Q Y-T-Y
FY 2017 FY 2016 FY 2016
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
Q4
Q1
Q-T-Q
Y-T-Y
FY 2017 FY 2016 FY 2016
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
Q4
Q1
Q-T-QY-T-Y
FY 2017 FY 2016 FY 2016
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
Q4
Q1
Q-T-Q
Y-T-Y
FY 2017 FY 2016 FY 2016
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
Q4
Q1
FY 2017 FY 2016 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 ir@xilinx.com

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.

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