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

Apr 26, 2017

SAN JOSE, Calif., April 26, 2017 /PRNewswire/ -- Xilinx, Inc. (Nasdaq: 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. 

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

FY 2017

Q3

FY 2017

Q4

FY 2016

 

Q-T-Q

Y-T-Y

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

FY 2017

Q3

FY 2017

Q4

FY 2016

 

Q-T-Q

Y-T-Y

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

FY 2017

Q3

FY 2017

Q4

FY 2016

 

Q-T-Q

Y-T-Y

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

FY 2017

Q3

FY 2017

Q4

FY 2016

 

Q-T-Q

Y-T-Y

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

FY 2017

Q3

FY 2017

Q4

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 Owen
Xilinx, Inc.
(408) 879-6911
ir@xilinx.com

 

 

SOURCE Xilinx, Inc.