XLNX
$67.68
Xilinx
($.70)
(1.02%)
Earnings Details
2nd Quarter September 2017
Wednesday, October 25, 2017 4:20:00 PM
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Summary

Xilinx Reports In-line

Xilinx (XLNX) reported 2nd Quarter September 2017 earnings of $0.65 per share on revenue of $619.5 million. The consensus earnings estimate was $0.62 per share on revenue of $620.4 million. The Earnings Whisper number was $0.65 per share. Revenue grew 7.0% on a year-over-year basis.

The company said it expects third quarter revenue of $615.0 million to $645.0 million. The current consensus revenue estimate is $626.5 million for the quarter ending December 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
$0.65
Earnings Whisper
$0.65
Consensus Estimate
$0.62
Reported Revenue
$619.5 Mil
Revenue Estimate
$620.4 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Xilinx Announces Second Quarter 2018 Results; Eighth Consecutive Quarter Of Revenue Growth

Xilinx, Inc. (XLNX) today announced sales of $620 million for the second quarter of fiscal year 2018, up approximately 1% from the prior quarter and up 7% from the second quarter of the prior fiscal year. This marks the eighth consecutive quarter of sales increase for the Company. September quarter net income was $168 million, or $0.65 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 December 6, 2017 to all stockholders of record at the close of business on November 15, 2017.

Additional September quarter comparisons are represented in the charts below:

GAAP Results
(In millions, except EPS)
Q2
Q1
Q2
Q-T-Q Y-T-Y
FY 2018 FY 2018 FY 2017
Net revenues
$620
$615
$579
1%
7%
Operating income
$185
$180
$177
3%
5%
Net income
$168
$167
$164
0%
2%
Diluted earnings per share $0.65
$0.63
$0.61
3%
7%

"Our multimarket diversification, technology leadership, and consistent execution are yielding sustainable results as we delivered our eighth consecutive quarter of revenue growth with strong profitability," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "Revenues from Advanced Products continued to be solid, increasing 21% from the same quarter a year ago, supported by accelerated growth from our highly innovative Zynq SoC platform, as well as from our industry-leading 20nm and 16nm technology nodes. At the 16nm technology node, we have shipped 34 unique products to well over 900 customers, denoting a sequential increase of 50% in the number of products and 75% increase in the number of customers."

Net Revenues by Geography:
Percentages
Growth Rates
Q2
Q1
Q2
Q-T-Q
Y-T-Y
FY 2018 FY 2018 FY 2017
North America 31%
29%
33%
8%
1%
Asia Pacific
40%
43%
38%
-7%
12%
Europe
20%
19%
20%
2%
4%
Japan
9%
9%
9%
8%
14%
Net Revenues by End Market:
Percentages
Growth Rates
Q2
Q1
Q2
Q-T-Q
Y-T-Y
FY 2018 FY 2018 FY 2017
Communications & Data Center
37%
41%
41%
-10% -5%
Industrial, Aerospace & Defense
45%
42%
41%
7%
17%
Broadcast, Consumer & Automotive 18%
17%
18%
11%
12%
Net Revenues by Product:
Percentages
Growth Rates
Q2
Q1
Q2
Q-T-Q
Y-T-Y
FY 2018 FY 2018 FY 2017
Advanced Products 52%
52%
46%
1%
21%
Core Products
48%
48%
54%
1%
-5%

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)
Q2
Q1
Q2
FY 2018 FY 2018 FY 2017
Annual Return on Equity (%)* 27
27
25
Operating Cash Flow
$202
$191
$184
Depreciation Expense
$12
$11
$11
Capital Expenditures
$12
$10
$11
Combined Inventory Days
116
111
111
Revenue Turns (%)
53
42
55
*Return on equity calculation: Annualized net income/average stockholders’ equity

Product and Financial Highlights - September Quarter

The Industrial, Aerospace & Defense end market set a quarterly record with revenues of $278 million, an increase of 17% from the same quarter a year ago, and constituted 45% of total Xilinx revenues. The success of this end market is a clear illustration of the robustness and diversification of the Xilinx product portfolio.

The Advanced Products category continues to deliver solid revenue growth, posting an increase of 21% from the year ago quarter. Broad-based growth was driven from the Zynq SoC platform and from the industry-leading 20nm and 16nm technology nodes. Zynq revenue increased 65% from the same quarter a year ago with growth driven largely by applications in Advanced Driver Assist (ADAS), Industrial, and Aerospace and Defense. Revenues from the 20nm node increased more than 40% from the year ago quarter and revenues from the 16nm node nearly quadrupled during the same period, reflecting broader customer and multi-market adoption.

Xilinx made several significant announcements highlighting strong momentum in its Cloud Computing market expansion opportunity. Xilinx announced availability of the software defined development environment, SDAccel, on Amazon Web Services (AWS) for use with F1 instances. In addition, Xilinx announced that Huawei has chosen the Company’s high performance Virtex? UltraScale+(TM) FPGAs to power their first FaaS instance as part of a new accelerated cloud service. Lastly, Alibaba Cloud, the largest cloud service provider in China, recently announced its next generation FaaS F2 and F3 instances, based on Xilinx FPGAs.

Xilinx, ARM, Cadence and TSMC announced a collaboration to build the first Cache Coherent Interconnect for Accelerators (CCIX) test chip in TSMC 7nm FinFET process technology for delivery in year 2018. The test chip aims to provide a silicon proof point to demonstrate the capabilities of CCIX in enabling multi-core high-performance ARM? CPUs working via a coherent fabric to off-chip FPGA accelerators.

Xilinx announced delivery of its Zynq? UltraScale+(TM) RFSoC family, a disruptive integration and architectural breakthrough for applications including 5G, cable and wireless backhaul. Based on Xilinx’s 16nm technology, the RFSoCs integrate RF data converters for up to 50-75% system power and footprint reduction. With silicon samples already shipping to multiple customers, the early access program for this product family is now available.

Business Outlook - December Quarter Fiscal Year 2018

-- Sales are expected to be approximately $615 - $645 million.

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

-- Operating expenses are expected to increase to approximately $260 million.

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

-- December quarter tax rate is expected to be approximately 11 - 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 80382363. 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 December quarter of fiscal year 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.

#1725F

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
September 30, 2017
July 1, 2017
October 1, 2016
September 30, 2017
October 1, 2016
Net revenues
$
619,503
$
615,446
$
579,209
$
1,234,949
$
1,154,190
Cost of revenues
184,786
192,095
175,875
376,881
344,172
Gross margin
434,717
423,351
403,334
858,068
810,018
Operating expenses:
Research and development
157,985
153,051
141,814
311,036
277,939
Selling, general and administrative
91,053
89,175
83,463
180,228
166,573
Amortization of acquisition-related intangibles 510
705
1,244
1,215
2,488
Total operating expenses
249,548
242,931
226,521
492,479
447,000
Operating income
185,169
180,420
176,813
365,589
363,018
Interest and other income (expense), net
1,831
1,839
(1,151)
3,669
(5,738)
Income before income taxes
187,000
182,259
175,662
369,258
357,280
Provision for income taxes
19,468
15,014
11,470
34,481
30,039
Net income
$
167,532
$
167,245
$
164,192
$
334,777
$
327,241
Net income per common share:
Basic
$
0.68
$
0.67
$
0.65
$
1.35
$
1.29
Diluted
$
0.65
$
0.63
$
0.61
$
1.28
$
1.22
Cash dividends per common share
$
0.35
$
0.35
$
0.33
$
0.70
$
0.66
Shares used in per share calculations:
Basic
248,094
247,911
253,466
247,960
253,056
Diluted
258,217
265,797
270,373
261,739
267,885
XILINX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, 2017
April 1, 2017*
(unaudited)
ASSETS
Current assets:
Cash, cash equivalents and short-term investments $
3,560,220
$
3,321,457
Accounts receivable, net
286,855
243,915
Inventories
215,397
227,033
Other current assets
109,758
87,711
Total current assets
4,172,230
3,880,116
Net property, plant and equipment
304,118
303,825
Long-term investments
99,862
116,288
Other assets
454,640
440,303
Total Assets
$
5,030,850
$
4,740,532
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities
$
372,255
$
386,301
Deferred income on shipments to distributors
50,966
54,567
Current portion of long-term debt
--
456,328
Total current liabilities
423,221
897,196
Long-term debt
1,738,666
995,247
Deferred tax liabilities
359,323
317,639
Other long-term liabilities
23,557
21,411
Temporary equity
--
1,406
Stockholders’ equity
2,486,083
2,507,633
Total Liabilities and Stockholders’ Equity
$
5,030,850
$
4,740,532
* Derived from audited financial statements
XILINX, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)
(In thousands)
Three Months Ended
Six Months Ended
September 30, 2017
July 1, 2017
October 1, 2016
September 30, 2017
October 1, 2016
SELECTED CASH FLOW INFORMATION:
Depreciation
$
11,732
$
11,232
$
11,182
$
22,964
$
22,807
Amortization
3,432
3,729
4,001
7,161
7,714
Stock-based compensation
36,372
32,036
29,802
68,408
59,206
Net cash provided by operating activities
202,140
190,908
183,593
393,048
522,229
Purchases of property, plant and equipment
12,223
9,926
11,313
22,149
31,950
Payment of dividends to stockholders
86,957
87,303
83,878
174,260
167,477
Repurchases of common stock
170,454
67,062
99,985
237,516
200,139
Net proceeds (withholding) from issuance of
common stock to employees
(23,765)
1,070
(1,784)
(22,695)
9,513
STOCK-BASED COMPENSATION INCLUDED IN:
Cost of revenues
$
2,147
$
2,150
$
1,930
$
4,297
$
4,049
Research and development
20,096
17,466
16,529
37,562
31,649
Selling, general and administrative
14,129
12,420
11,343
26,549
23,508

Investor Relations Contact: Suresh Bhaskaran Xilinx, Inc.(408) 879-4784ir@xilinx.com

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SOURCE Xilinx, Inc.

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