Xilinx Reports Record Revenues In Fiscal First Quarter 2020
The Xilinx Board of Directors declared a quarterly cash dividend of
Additional first quarter of fiscal year 2020 comparisons are provided in the charts below.
Q1 2020 Financial Highlights |
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(In millions, except EPS) |
||||||||
GAAP |
||||||||
Q1 |
Q4 |
Q1 |
||||||
FY 2020 |
FY 2019 |
FY 2019 |
Q-T-Q |
Y-T-Y |
||||
Net revenues* |
$850 |
$828 |
$684 |
3% |
24% |
|||
Operating income |
$251 |
$250 |
$216 |
0% |
16% |
|||
Net income |
$241 |
$245 |
$190 |
-1% |
27% |
|||
Diluted earnings per share |
$0.94 |
$0.95 |
$0.74 |
-1% |
27% |
|||
Non-GAAP |
||||||||
Q1 |
Q4 |
Q1 |
||||||
FY 2020 |
FY 2019 |
FY 2019 |
Q-T-Q |
Y-T-Y |
||||
Net revenues* |
$850 |
$828 |
$684 |
3% |
24% |
|||
Operating income |
$260 |
$259 |
$218 |
0% |
19% |
|||
Net income |
$249 |
$242 |
$192 |
3% |
30% |
|||
Diluted earnings per share |
$0.97 |
$0.94 |
$0.75 |
3% |
29% |
|||
* No adjustment between GAAP and Non-GAAP |
"I am pleased to report that we were able to achieve the mid-point of our revenue guidance for the first fiscal quarter, despite export control restrictions that impacted shipments to one of our customers in China. We were able to generate
Net Revenues by Geography: |
|||||||
Percentages |
Growth Rates |
||||||
Q1 |
Q4 |
Q1 |
|||||
FY 2020 |
FY 2019 |
FY 2019 |
Q-T-Q |
Y-T-Y |
|||
North America |
23% |
27% |
28% |
-10% |
3% |
||
Asia Pacific |
51% |
47% |
45% |
11% |
42% |
||
Europe |
18% |
18% |
19% |
-1% |
16% |
||
Japan |
8% |
8% |
8% |
3% |
20% |
||
Net Revenues by End Market: |
|||||||
Percentages |
Growth Rates |
||||||
Q1 |
Q4 |
Q1 |
|||||
FY 2020 |
FY 2019 |
FY 2019 |
Q-T-Q |
Y-T-Y |
|||
A&D, Industrial and TME |
39% |
39% |
45% |
2% |
10% |
||
Automotive, Broadcast and Consumer |
15% |
14% |
16% |
8% |
10% |
||
Wired and Wireless Group |
41% |
42% |
31% |
2% |
66% |
||
Data Center Group |
5% |
5% |
7% |
-4% |
-13% |
||
Channel |
0% |
0% |
1% |
NM |
NM |
||
Net Revenues by Product: |
|||||||
Percentages |
Growth Rates |
||||||
Q1 |
Q4 |
Q1 |
|||||
FY 2020 |
FY 2019 |
FY 2019 |
Q-T-Q |
Y-T-Y |
|||
Advanced Products |
69% |
68% |
56% |
4% |
53% |
||
Core Products |
31% |
32% |
44% |
0% |
-13% |
Products are classified as follows:
Advanced Products: Alveo, 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 FY 2020 |
Q4 FY 2019 |
Q1 FY 2019 |
|
Annual Return on Equity (%)* |
35 |
34 |
32 |
Operating Cash Flow |
$298 |
$288 |
$176 |
Depreciation Expense (including software amortization) |
$24 |
$22 |
$15 |
Capital Expenditures (including software) |
$29 |
$28 |
$26 |
Combined Inventory Days |
112 |
112 |
113 |
Revenue Turns (%) |
24 |
35 |
37 |
*Return on equity calculation: Annualized year to date GAAP net income/average stockholders' equity |
Product and Financial Highlights – Fiscal First Quarter 2020
- The Advanced Products category increased 53% year over year and constituted approximately 69% of total revenues in the first quarter. Our 16nm node continued its accelerated ramp, with revenues increasing approximately four times year over year, primarily driven by customers in 5G as well as customers in the Data Center and Test, Measurement & Emulation end markets.
Xilinx extended its Virtex UltraScale+ HBM family by adding 16GB HBM products which are ideally suited for workloads that process large datasets such as adaptable AI inference, database acceleration, data analytics, video transcoding, and security processing. Our 16GB HBM products are currently sampling to customers and are expected to go into production later this year.- Our Zynq-based revenues grew 68% year over year, indicating significant progress in
Xilinx's transformation into a platform company. The Zynq SoC platform, which includes Zynq at 28nm and both MPSoC and RFSoC at 16nm, now represents 23% of total revenues. Xilinx announced that it has started shipping its 7nm Versal™ AI Core series and Versal™ Prime series devices to key customers through its early access program. Versal is the industry's first adaptive compute acceleration platform (ACAP), a revolutionary new category of heterogeneous compute devices with capabilities that far exceed those of conventional CPUs, GPUs, and FPGAs.- During the first quarter,
Xilinx entered into an agreement to acquire NGCodec, a powerful, differentiated video encoding technology provider that, when paired with aXilinx acceleration platform delivers greater visual quality at lower bandwidth requirements than any other solution in the market. Twitch Interactive, anAmazon subsidiary and creator of a leading live streaming video platform, achieved 30X greater performance over CPUs with aXilinx powered solution using a VP9 encoder IP from NGCodec. The transaction closed in the first week of the second quarter. Xilinx repurchased 3.0 million shares at an average price of$105.50 per share and paid dividends of$94 million during the quarter.
Business Outlook – Fiscal Second Quarter 2020
The following guidance is based on current expectations and estimates, and as indicated, are presented on a GAAP and non-GAAP basis. This guidance is forward-looking and actual results may differ materially, as a result of, among other things, the important factors discussed and referred to at the end of this release.
GAAP |
Non-GAAP Adjustments |
Non-GAAP |
|
Revenues |
$800M - $850M |
- |
$800M - $850M |
Gross Margin |
~65%-66% |
1% (1) |
~66%-67% |
Operating Expenses |
~$326M |
$4M(2) |
~$322M |
Other Income |
~$11M |
- |
~$11M |
Tax Rate |
0% |
- |
0% |
(1) |
Amortization of acquisition related intangibles |
(2) |
M&A related expenses and amortization of acquisition related intangibles |
Conference Call
A conference call will be held today at
Non-GAAP Financial Information
Fiscal first quarter 2020 results and business outlook for the September quarter include financial measures which are not determined in accordance with
Management uses the non-GAAP financial measures disclosed herein to evaluate the Company's financial results from continuing operations (excluding the impact of acquisitions) and compare to operating performance in past periods. Similarly, Management believes presentation of these non-GAAP measures is useful to investors because it enables investors and analysts to evaluate operating expenses of the Company's core business, excluding the impact of non-core business expenses such as acquisition-related amortization and non-recurring items.
M&A related expenses: These expenses mainly consist of legal and consulting fees associated with acquisition activities. We believe these costs do not reflect the Company's current operating performance. Consequently, the non-GAAP adjustments exclude these charges to facilitate an evaluation of the Company's current operating performance and comparisons to its past operating performance.
Amortization of acquisition-related intangibles: Amortization of acquisition-related intangible assets consists of amortization of intangible assets such as developed technology acquired in connection with business combinations. The non-GAAP adjustments exclude these charges to facilitate an evaluation of the Company's current operating performance and comparisons to its past operating performance.
Income taxes: The Company excludes the income tax effects of non-GAAP adjustments reflected in Operating Expenses and Other Income, as detailed above. It also excludes U.S. tax reform related items. The Company believes excluding U.S. tax reform related items will facilitate a comparable evaluation of its current performance to its past performance. The second quarter of fiscal 2020 outlook does not reflect other tax related items which we are not able to predict without unreasonable efforts due to their inherent uncertainty.
Forward Looking Statements
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. 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, among others, customer acceptance of our new products, current global economic conditions, trade and export restrictions, 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, our ability to realize the goals contemplated by our acquisitions and strategic investments, the impact of current and future legislative and regulatory changes, the impact of new accounting pronouncements and tax laws, including the U.S. Tax Cuts and Jobs Act, and interpretations thereof, and other risk factors described in our most recent Forms 10-Q and 10-K.
About
Investor Relations Contact:
(408) 879-4784
ir@xilinx.com
XILINX, INC. |
|||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
|||
(Unaudited) |
|||
(In thousands, except per share amounts) |
|||
Three Months Ended |
|||
June 29, 2019 |
March 30, 2019 |
June 30, 2018 |
|
Net revenues |
$ 849,632 |
$ 828,361 |
$ 684,370 |
Cost of revenues: |
|||
Cost of products sold |
283,500 |
269,457 |
206,888 |
Amortization of acquisition-related intangibles |
3,269 |
- |
- |
Total cost of revenues |
286,769 |
269,457 |
206,888 |
Gross margin |
562,863 |
558,904 |
477,482 |
Operating expenses: |
|||
Research and development |
204,100 |
199,500 |
170,826 |
Selling, general and administrative |
107,425 |
107,160 |
90,532 |
Amortization of acquisition-related intangibles |
400 |
1,866 |
360 |
Total operating expenses |
311,925 |
308,526 |
261,718 |
Operating income |
250,938 |
250,378 |
215,764 |
Interest and other income (expense), net |
11,612 |
9,302 |
(2,847) |
Income before income taxes |
262,550 |
259,680 |
212,917 |
Provision for income taxes |
21,091 |
15,040 |
22,879 |
Net income |
$ 241,459 |
$ 244,640 |
$ 190,038 |
Net income per common share: |
|||
Basic |
$ 0.95 |
$ 0.96 |
$ 0.75 |
Diluted |
$ 0.94 |
$ 0.95 |
$ 0.74 |
Cash dividends per common share |
$ 0.37 |
$ 0.36 |
$ 0.36 |
Shares used in per share calculations: |
|||
Basic |
253,268 |
253,855 |
252,682 |
Diluted |
257,928 |
258,177 |
255,935 |
XILINX, INC. |
||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||
(In thousands) |
||
June 29, 2019 |
March 30, 2019 |
|
(unaudited) |
||
ASSETS |
||
Current assets: |
||
Cash, cash equivalents and short-term investments |
$ 2,883,137 |
$ 3,175,684 |
Accounts receivable, net |
305,955 |
335,165 |
Inventories |
336,758 |
315,358 |
Other current assets |
63,718 |
65,771 |
Total current assets |
3,589,568 |
3,891,978 |
Net property, plant and equipment |
350,555 |
328,929 |
Long-term investments |
54,849 |
53,433 |
Other assets |
972,926 |
877,008 |
Total Assets |
$ 4,967,898 |
$ 5,151,348 |
LIABILITIES AND STOCKHOLDERS' EQUITY |
||
Current liabilities: |
||
Accounts payable and accrued liabilities |
$ 497,110 |
$ 475,036 |
Long-term debt |
1,245,263 |
1,234,807 |
Other long-term liabilities |
612,941 |
579,996 |
Stockholders' equity |
2,612,584 |
2,861,509 |
Total Liabilities and Stockholders' Equity |
$ 4,967,898 |
$ 5,151,348 |
XILINX, INC. |
|||
SUPPLEMENTAL FINANCIAL INFORMATION |
|||
(Unaudited) |
|||
(In thousands) |
|||
Three Months Ended |
|||
June 29, 2019 |
March 30, 2019 |
June 30, 2018 |
|
SELECTED CASH FLOW INFORMATION: |
|||
Depreciation and amortization of software |
$ 23,853 |
$ 21,607 |
$ 15,075 |
Amortization |
9,085 |
10,195 |
7,333 |
Stock-based compensation |
42,753 |
38,748 |
35,608 |
Net cash provided by operating activities |
298,216 |
288,007 |
176,168 |
Purchases of property, plant and equipment and software |
29,201 |
28,242 |
26,359 |
Payment of dividends to stockholders |
93,961 |
91,384 |
90,675 |
Repurchases of common stock |
444,995 |
- |
137,300 |
Repayment of debt |
- |
500,000 |
- |
STOCK-BASED COMPENSATION INCLUDED IN: |
|||
Cost of revenues |
$ 2,613 |
$ 2,170 |
$ 2,035 |
Research and development |
24,874 |
23,099 |
20,930 |
Selling, general and administrative |
15,266 |
13,479 |
12,643 |
XILINX, INC. |
|||
RECONCILIATIONS OF GAAP ACTUALS TO NON-GAAP ACTUALS |
|||
(Unaudited) |
|||
(In thousands, except per share amounts) |
|||
Three Months Ended |
|||
June 29, 2019 |
March 30, 2019 |
June 30, 2018 |
|
GAAP gross margin |
$ 562,863 |
$ 558,904 |
$ 477,482 |
Amortization of acquisition-related intangibles |
3,269 |
- |
- |
Non-GAAP gross margin |
$ 566,132 |
$ 558,904 |
$ 477,482 |
GAAP operating income |
$ 250,938 |
$ 250,378 |
$ 215,764 |
Acquisition-related costs |
5,371 |
6,560 |
1,495 |
Amortization of acquisition-related intangibles |
3,669 |
1,866 |
360 |
Non-GAAP operating income |
$ 259,978 |
$ 258,804 |
$ 217,619 |
GAAP net income |
$ 241,459 |
244,640 |
$ 190,038 |
Acquisition-related costs |
5,371 |
6,560 |
1,495 |
Amortization of acquisition-related intangibles |
3,669 |
1,866 |
360 |
Income tax effect of changes in applicable U.S. tax laws |
- |
(8,508) |
- |
Income tax effect of non-GAAP adjustments |
(1,423) |
(2,330) |
- |
Non-GAAP net income |
$ 249,076 |
$ 242,228 |
$ 191,893 |
GAAP diluted EPS |
$ 0.94 |
$ 0.95 |
$ 0.74 |
Acquisition-related costs |
0.02 |
0.02 |
0.01 |
Amortization of acquisition-related intangibles |
0.01 |
0.01 |
- |
Income tax effect of changes in applicable U.S. tax laws |
- |
(0.03) |
- |
Income tax effect of non-GAAP adjustments |
- |
(0.01) |
- |
Non-GAAP diluted EPS |
$ 0.97 |
$ 0.94 |
$ 0.75 |
XLNX-F
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