XLNX
$63.11
Xilinx
($1.29)
(2.00%)
Earnings Details
4th Quarter March 2017
Wednesday, April 26, 2017 4:20:00 PM
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Summary

Xilinx Beats

Xilinx (XLNX) reported 4th Quarter March 2017 earnings of $0.57 per share on revenue of $609.5 million. The consensus earnings estimate was $0.54 per share on revenue of $606.0 million. The Earnings Whisper number was $0.56 per share. Revenue grew 6.7% on a year-over-year basis.

The company said it expects first quarter revenue of $600.0 million to $630.0 million. The current consensus revenue estimate is $612.1 million for the quarter ending June 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
$0.57
Earnings Whisper
$0.56
Consensus Estimate
$0.54
Reported Revenue
$609.5 Mil
Revenue Estimate
$606.0 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Xilinx Sales Grow For 6th Consecutive Quarter; Dividend Raised For 12th Consecutive Year

Xilinx, Inc. (XLNX) today announced March quarter and fiscal 2017 results. Sales increased 4% to $609 million in the March quarter, representing the sixth consecutive quarter of sales increase for the Company. March quarter net income was $153 million, or $0.57 per diluted share. Fiscal 2017 sales were $2.35 billion, up 6% from the prior fiscal year. Fiscal 2017 net income was $623 million, or $2.32 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, an increase from the current dividend of $0.33 per share. The quarterly dividend increase will be effective in the June quarter, payable on June 1, 2017 to all stockholders of record at the close of business on May 16, 2017.

Additional March quarter comparisons are represented in the charts below:

GAAP Results
(In millions, except EPS)
Q4
Q3
Q4
Q-T-Q Y-T-Y
FY 2017 FY 2017 FY 2016
Net revenues
$609
$586
$571
4%
7%
Operating income
$173
$163
$178
6%
-3%
Net income
$153
$142
$145
8%
6%
Diluted earnings per share $0.57
$0.52
$0.54
10%
6%

"In the March quarter, we achieved a major milestone when sales from our 28nm product family significantly surpassed $200 million, setting a PLD industry record," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "Our newest products, manufactured on the 20nm and 16nm nodes, experienced similar success during the quarter. Our 20nm products generated $60 million in sales driven by a broad base of applications. At the 16nm node, we are now shipping 14 unique products to more than 450 customers. Our execution at the 28nm, 20nm and 16nm technology nodes has enabled our ’3-peat’ leadership over the competition."

Net Revenues by Geography:
Percentages
Growth Rates
Q4
Q3
Q4
Q-T-Q
Y-T-Y
FY 2017 FY 2017 FY 2016
North America 31%
30%
32%
8%
2%
Asia Pacific
42%
43%
38%
2%
17%
Europe
19%
19%
21%
5%
1%
Japan
8%
8%
9%
0%
-7%
Net Revenues by End Market:
Percentages
Growth Rates
Q4
Q3
Q4
Q-T-QY-T-Y
FY 2017 FY 2017 FY 2016
Communications & Data Center
41%
44%
43%
-3%
1%
Industrial, Aerospace & Defense
43%
41%
40%
8%
14%
Broadcast, Consumer & Automotive 16%
15%
17%
13%
4%
Net Revenues by Product:
Percentages
Growth Rates
Q4
Q3
Q4
Q-T-Q
Y-T-Y
FY 2017 FY 2017 FY 2016
Advanced Products 49%
47%
38%
9%
36%
Core Products
51%
53%
62%
0%
-11%
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)
Q4
Q3
Q4
FY 2017 FY 2017 FY 2016
Annual Return on Equity (%)* 24
25
21
Operating Cash Flow
$306
$106
$127
Depreciation Expense
$12
$11
$12
Capital Expenditures
$20
$20
$15
Combined Inventory Days
121
114
102
Revenue Turns (%)
44
56
49
*Return on equity calculation: Annualized net income/average stockholders’ equity

Product and Financial Highlights

Xilinx’s 28nm product family significantly surpassed $200 million in sales during the March quarter, setting a PLD industry record. Introduced in 2011, the 28nm node is the broadest product family ever offered by Xilinx with innovative new products such as Zynq SoCs and 3D ICs. As a result, 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.

Xilinx and Amazon Web Services (AWS) announced the General Availability of Virtex UltraScale+ FPGAs in the Amazon Elastic Compute Cloud F1 instances. F1 provides programmable hardware acceleration with FPGAs and enables users to optimize their compute resources for the unique requirements of their workloads. F1 instances will be used to solve complex science, engineering and business problems that require high bandwidth, enhanced networking and very high compute capabilities.

The PLD Industry’s most successful All Programmable SoC, Xilinx’s Zynq family, surpassed 10% of sales in the recently ended March quarter, achieving a new record. Sales for these devices are being driven by a broad base of applications including Advanced Driver Assist, Aerospace and Defense, Industrial and Communications.

Xilinx recently announced a major expansion of the 16nm portfolio with our All Programmable RF SoC product family, a disruptive integration and architectural breakthrough for 5G wireless with RF class analog technology. This family provides a 50-75% power and footprint reduction for 5G, cable and wireless backhaul applications.

Xilinx recently introduced the reVISION stack, enabling design teams without deep hardware expertise to more easily combine machine learning and computer vision algorithms into highly responsive systems. This software stack is intended to enable new applications such as collaborative robots, drones, augmented reality, autonomous vehicles, automated surveillance and medical diagnostics.

Xilinx recently increased its quarterly dividend by $0.02 per share to $0.35 per share, effective in the June quarter of fiscal 2018, marking its 12th consecutive year of dividend increases. During fiscal 2017, Xilinx generated $934 million in operating cash flow, paid its shareholders a record $333 million in dividends and repurchased 9.8 million shares for $522 million.

Business Outlook - June Quarter Fiscal 2018

-- Sales are expected to be approximately $600 million to $630 million.

-- Gross margin is expected to be 68% to 70%.

Operating expenses are expected to be approximately $242 million including $1 million of amortization of acquisition-related intangibles.

-- Other income is expected to be approximately $1 million.

-- June quarter tax rate is expected to be approximately 12-15%.

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 73811483. 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 June 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.

#1712F

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
Twelve Months Ended
April 1, 2017
December 31, 2016
April 2, 2016
April 1, 2017
April 2, 2016
Net revenues
$
609,452
$
585,688
$
571,066
$
2,349,330
$
2,213,881
Cost of revenues
185,811
178,233
175,799
708,216
671,907
Gross margin
423,641
407,455
395,267
1,641,114
1,541,974
Operating expenses:
Research and development
164,256
159,248
135,645
601,443
533,891
Selling, general and administrative
84,797
83,780
80,277
335,150
331,652
Amortization of acquisition-related intangibles 1,184
1,455
1,244
5,127
6,550
Total operating expenses
250,237
244,483
217,166
941,720
872,093
Operating income
173,404
162,972
178,101
699,394
669,881
Interest and other expense, net
2,184
392
8,263
8,314
33,056
Income before income taxes
171,220
162,580
169,838
691,080
636,825
Provision for income taxes
17,795
20,734
24,803
68,568
85,958
Net income
$
153,425
$
141,846
$
145,035
$
622,512
$
550,867
Net income per common share:
Basic
$
0.62
$
0.57
$
0.57
$
2.47
$
2.14
Diluted
$
0.57
$
0.52
$
0.54
$
2.32
$
2.05
Cash dividends per common share
$
0.33
$
0.33
$
0.31
$
1.32
$
1.24
Shares used in per share calculations:
Basic
249,014
250,982
255,467
252,301
257,184
Diluted
267,157
270,781
268,462
268,813
268,667
XILINX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
April 1, 2017
April 2, 2016
(unaudited)
ASSETS
Current assets:
Cash, cash equivalents and short-term investments $
3,321,457
$
3,337,699
Accounts receivable, net
243,915
307,458
Inventories
227,033
178,550
Other current assets
87,711
92,951
Total current assets
3,880,116
3,916,658
Net property, plant and equipment
303,825
283,346
Long-term investments
116,288
220,807
Other assets
440,303
398,458
Total Assets
$
4,740,532
$
4,819,269
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities
$
386,301
$
307,222
Deferred income on shipments to distributors
54,567
51,758
Current portion of long-term debt
456,328
585,417
Total current liabilities
897,196
944,397
Long-term debt
995,247
993,639
Deferred tax liabilities
317,639
261,467
Other long-term liabilities
21,411
16,979
Temporary equity
1,406
12,894
Stockholders’ equity
2,507,633
2,589,893
Total Liabilities and Stockholders’ Equity
$
4,740,532
$
4,819,269
XILINX, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)
(In thousands)
Three Months Ended
Twelve Months Ended
April 1, 2017
December 31, 2016
April 2, 2016
April 1, 2017
April 2, 2016
SELECTED CASH FLOW INFORMATION:
Depreciation
$
11,506
$
11,110
$
12,060
$
45,423
$
50,828
Amortization
4,602
4,887
4,464
17,203
17,613
Stock-based compensation
32,785
30,867
27,520
122,858
111,984
Net cash provided by operating activities
306,318
105,584
126,761
934,131
746,255
Purchases of property, plant and equipment
20,226
19,875
14,835
72,051
34,004
Payment of dividends to stockholders
81,809
83,256
78,877
332,542
318,988
Repurchases of common stock
108,062
213,844
143,183
522,045
443,181
Proceeds from issuance of common stock to employees, net of withholding taxes 22,084
1,195
29,374
32,792
51,094
STOCK-BASED COMPENSATION INCLUDED IN:
Cost of revenues
$
2,020
$
1,945
$
2,105
$
8,014
$
7,977
Research and development
18,019
17,154
15,131
66,822
59,692
Selling, general and administrative
12,746
11,768
10,284
48,022
44,315

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-sales-grow-for-6th-consecutive-quarter-dividend-raised-for-12th-consecutive-year-300446508.html

SOURCE Xilinx, Inc.

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