XLNX
$69.82
Xilinx
$.12
.17%
Earnings Details
1st Quarter June 2017
Wednesday, July 26, 2017 4:20:00 PM
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Summary

Xilinx Beats

Xilinx (XLNX) reported 1st Quarter June 2017 earnings of $0.63 per share on revenue of $615.4 million. The consensus earnings estimate was $0.60 per share on revenue of $615.6 million. The Earnings Whisper number was $0.62 per share. Revenue grew 7.0% on a year-over-year basis.

The company said it expects second quarter revenue of $605.0 million to $635.0 million. The current consensus revenue estimate is $617.7 million for the quarter ending September 30, 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
$0.63
Earnings Whisper
$0.62
Consensus Estimate
$0.60
Reported Revenue
$615.4 Mil
Revenue Estimate
$615.6 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Xilinx Sales Grow For 7th Consecutive Quarter; Advanced Product Sales Up 33% Year-Over-Year

Xilinx, Inc. (XLNX) today announced sales of $615 million for the first quarter fiscal 2018, up 1% from the prior quarter and up 7% from the first quarter of the prior fiscal year. This marks the seventh consecutive quarter of sales increase for the Company. June quarter net income was $167 million, or $0.63 per diluted share.

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The Xilinx Board of Directors declared a quarterly cash dividend of $0.35 per outstanding share of common stock payable on August 30, 2017 to all stockholders of record at the close of business on August 10, 2017.

Additional June quarter comparisons are represented in the charts below:

GAAP Results
(In millions, except EPS)
Q1
Q4
Q1
Q-T-Q Y-T-Y
FY 2018 FY 2017 FY 2017
Net revenues
$615
$609
$575
1%
7%
Operating income
$180
$173
$186
4%
-3%
Net income
$167
$153
$163
9%
3%
Diluted earnings per share $0.63
$0.57
$0.61
11%
3%

"Our focused investment in software, integration and technology leadership has driven a fundamental transformation, allowing Xilinx to expand from a supplier of FPGAs to an innovator of All Programmable devices and programming models," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "We continue to consistently execute across the board--in engineering, operations and sales while maintaining robust profitability and cash generation. Growth from Advanced Products continues to be solid, increasing 33% from the same quarter a year ago. Sales from the 28nm, 20nm and 16nm technology nodes increased during the quarter driven by multi-market strength."

Net Revenues by Geography:
Percentages
Growth Rates
Q1
Q4
Q1
Q-T-Q
Y-T-Y
FY 2018 FY 2017 FY 2017
North America 29%
31%
32%
-7%
-6%
Asia Pacific
43%
42%
40%
5%
16%
Europe
19%
19%
19%
1%
9%
Japan
9%
8%
9%
12%
9%
Net Revenues by End Market:
Percentages
Growth Rates
Q1
Q4
Q1
Q-T-QY-T-Y
FY 2018 FY 2017 FY 2017
Communications & Data Center
41%
41%
44%
1%
-1%
Industrial, Aerospace & Defense
42%
43%
39%
0%
17%
Broadcast, Consumer & Automotive 17%
16%
17%
3%
6%
Net Revenues by Product:
Percentages
Growth Rates
Q1
Q4
Q1
Q-T-Q
Y-T-Y
FY 2018 FY 2017 FY 2017
Advanced Products 52%
49%
42%
8%
33%
Core Products
48%
51%
58%
-6%
-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, Spartan-3, Spartan-2, XC9500 products, configuration solutions, software & support/Services.

Key Statistics:
(Dollars in millions)
Q1
Q4
Q1
FY 2018 FY 2017 FY 2017
Annual Return on Equity (%)* 27
24
25
Operating Cash Flow
$191
$306
$339
Depreciation Expense
$11
$12
$12
Capital Expenditures
$10
$20
$21
Combined Inventory Days
111
121
117
Revenue Turns (%)
42
44
50
*Return on equity calculation: Annualized net income/average stockholders’ equity

Product and Financial Highlights

The Company continues to experience strong growth in its 16nm Ultrascale+ product families driven by Zynq and Virtex. We are now shipping to over 530 customers, a significant increase from the prior quarter. Additionally, the disruptive RFSoC product family is now sampling to multiple customers. This product family provides a 50-75% power and footprint reduction for 5G, cable and wireless backhaul applications. In addition to RF-class technology and multi-core processing devices, Xilinx is expanding its 16nm Ultrascale+ family with integrated High-Bandwidth Memory.

Xilinx’s 28nm product family set a new PLD industry sales record during the quarter. Introduced in 2011, the 28nm node is the broadest product family ever offered by Xilinx. With exceptional execution and leadership products, this node is driving success across multi-markets as well as a much longer and more profitable sales ramp than any product in Xilinx’s history.

Baidu, a Chinese web services company, deployed Xilinx FPGA-based application acceleration services in their public cloud. The Baidu FPGA Cloud Server, a new service in Baidu Cloud, features highly efficient Xilinx FPGAs, tools, and the software needed to develop and deploy hardware-accelerated data center applications such as machine learning and data security.

During the quarter, the company issued $750 million of fixed rate debt at a rate of 2.95% with a seven year term. Xilinx redeemed the remaining balance of $458 million on its convertible debt on June 15, 2017.

Business Outlook - September Quarter Fiscal 2018

-- Sales are expected to be approximately $605 - $635 million.

-- Gross margin is expected to be 69% to 71%.

Operating expenses are expected to be approximately $253 million including $1 million of amortization of acquisition-related intangibles.

-- Other income is expected to be approximately $4 million.

-- September 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 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 34053296. 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 2018. 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, 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.

#1719F

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
July 1, 2017
April 1, 2017
July 2, 2016
Net revenues
$
615,446
$
609,452
$
574,981
Cost of revenues
192,095
185,811
168,297
Gross margin
423,351
423,641
406,684
Operating expenses:
Research and development
153,051
164,256
136,125
Selling, general and administrative
89,175
84,797
83,110
Amortization of acquisition-related intangibles 705
1,184
1,244
Total operating expenses
242,931
250,237
220,479
Operating income
180,420
173,404
186,205
Interest and other income (expense), net
1,839
(2,184)
(4,587)
Income before income taxes
182,259
171,220
181,618
Provision for income taxes
15,014
17,795
18,569
Net income
$
167,245
$
153,425
$
163,049
Net income per common share:
Basic
$
0.67
$
0.62
$
0.64
Diluted
$
0.63
$
0.57
$
0.61
Cash dividends per common share
$
0.35
$
0.33
$
0.33
Shares used in per share calculations:
Basic
247,911
249,014
252,901
Diluted
265,797
267,157
266,206
XILINX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
July 1, 2017
April 1, 2017
(unaudited)
ASSETS
Current assets:
Cash, cash equivalents and short-term investments $ 3,647,562
$
3,321,457
Accounts receivable, net
268,257
243,915
Inventories
215,210
227,033
Other current assets
96,879
87,711
Total current assets
4,227,908
3,880,116
Net property, plant and equipment
303,210
303,825
Long-term investments
106,862
116,288
Other assets
449,082
440,303
Total Assets
$ 5,087,062
$
4,740,532
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities
$
396,083
$
386,301
Deferred income on shipments to distributors
43,750
54,567
Current portion of long-term debt
--
456,328
Total current liabilities
439,833
897,196
Long-term debt
1,737,410
995,247
Deferred tax liabilities
346,566
317,639
Other long-term liabilities
24,986
21,411
Temporary equity
--
1,406
Stockholders’ equity
2,538,267
2,507,633
Total Liabilities and Stockholders’ Equity
$ 5,087,062
$
4,740,532
XILINX, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)
(In thousands)
Three Months Ended
July 1, 2017
April 1, 2017
July 2, 2016
SELECTED CASH FLOW INFORMATION:
Depreciation
$
11,232
$
11,506
$
11,625
Amortization
3,729
4,602
3,713
Stock-based compensation
32,036
32,785
29,404
Net cash provided by operating activities
190,908
306,318
338,636
Purchases of property, plant and equipment 9,926
20,226
20,637
Payment of dividends to stockholders
87,303
81,809
83,599
Repurchases of common stock
67,062
108,062
100,154
Proceeds from issuance of common stock
to employees, net of withholding taxes
1,070
22,084
11,297
STOCK-BASED COMPENSATION INCLUDED IN:
Cost of revenues
$
2,150
$
2,020
$
2,119
Research and development
17,466
18,019
15,120
Selling, general and administrative
12,420
12,746
12,165

Investor Relations Contact: Lori OwenXilinx, Inc.(408) 879-6911ir@xilinx.com

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