Xilinx Announces First Quarter 2017 Results; Advanced Products Grow 60% Y-T-Y, Strong Profitability
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The Xilinx Board of Directors declared a quarterly cash dividend of
Additional first quarter comparisons are represented in the charts below:
GAAP Results (In millions, except EPS) | ||||||
Q1 FY 2017 |
Q4 FY 2016 |
Q1 FY 2016 |
Q-T-Q |
Y-T-Y | ||
Net revenues |
|
|
|
1% |
5% | |
Operating income |
|
|
|
5% |
4% | |
Net income |
|
|
|
12% |
10% | |
Diluted earnings per share |
|
|
|
13% |
11% |
"
Net Revenues by Geography: | ||||||
Percentages |
Growth Rates | |||||
Q1 FY 2017 |
Q4 FY 2016 |
Q1 FY 2016 |
Q-T-Q |
Y-T-Y | ||
|
32% |
32% |
34% |
1% |
-1% | |
|
40% |
38% |
36% |
5% |
16% | |
|
19% |
21% |
19% |
-6% |
5% | |
|
9% |
9% |
11% |
-4% |
-15% |
Net Revenues by End Market: | ||||||||
Percentages |
Growth Rates | |||||||
Q1 FY 2017 |
Q4 FY 2016 |
Q1 FY 2016 |
Q-T-Q |
Y-T-Y | ||||
|
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 FY 2017 |
Q4 FY 2016 |
Q1 FY 2016 |
Q-T-Q |
Y-T-Y | ||
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:
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 FY 2017 |
Q4 FY 2016 |
Q1 FY 2016 | |
Annual Return on Equity (%)* |
25 |
21 |
22 |
Operating Cash Flow |
|
|
|
Depreciation Expense |
|
|
|
Capital Expenditures |
|
|
|
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 -
- 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, andXilinx, 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 ofXilinx'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
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
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Investor Relations Contact:
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| |||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||
(Unaudited) | |||||
(In thousands, except per share amounts) | |||||
Three Months Ended | |||||
|
|
| |||
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 |
| |||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
(In thousands) | |||
|
| ||
(unaudited) |
|||
ASSETS |
|||
Current assets: |
|||
Cash, cash equivalents and short-term investments |
|
$ 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 |
|
$ 4,819,269 | |
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 |
|
$ 4,819,269 | |
* Derived from audited financial statements |
| |||||
SUPPLEMENTAL FINANCIAL INFORMATION | |||||
(Unaudited) | |||||
(In thousands) | |||||
Three Months Ended | |||||
|
|
| |||
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 |
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