Attached files
| file | filename |
|---|---|
| 8-K - 8-K - XILINX INC | a8-kpressrelease10x19x16.htm |
Exhibit 99.1
Investor Relations Contact:
Lori Owen
Xilinx, Inc.
(408) 879-6911
ir@xilinx.com
XILINX ANNOUNCES SECOND QUARTER 2017 RESULTS;
ADVANCED PRODUCTS REPEAT 60% YEAR-OVER-YEAR GROWTH
SAN JOSE, CA, October 19, 2016-- Xilinx, Inc. (Nasdaq: XLNX) today announced second quarter fiscal 2017 sales of $579 million, up 1% sequentially, and up 10% from the second quarter of the prior fiscal year. Second quarter net income was $164 million, or $0.61 per diluted share.
The Xilinx Board of Directors declared a quarterly cash dividend of $0.33 per outstanding share of common stock payable on November 23, 2016 to all stockholders of record at the close of business on November 8, 2016.
Additional second quarter comparisons are represented in the charts below:
GAAP Results
(In millions, except EPS)
Growth Rates | ||||||
Q2 FY 2017 | Q1 FY 2017 | Q2 FY 2016 | Q-T-Q | Y-T-Y | ||
Net revenues | $579 | $575 | $528 | 1% | 10% | |
Operating income | $177 | $186 | $153 | -5% | 15% | |
Net income | $164 | $163 | $127 | 1% | 29% | |
Diluted earnings per share | $0.61 | $0.61 | $0.48 | 0% | 27% | |
“Xilinx delivered growth for the fourth consecutive quarter. Advanced Product sales increased 10% sequentially and 61% versus the same quarter of the prior fiscal year. All three technology nodes in this category achieved new sales records. Operating profit exceeded 30% for the third consecutive quarter,” said Moshe Gavrielov, Xilinx President and Chief Executive Officer. “We remain confident in our long term growth strategy and ability to generate strong cash flows, which is the basis for our commitment to shareholder return. As a result, we are initiating a more deliberate repurchase program to complement our long-standing dividend program.”
Net Revenues by Geography:
Percentages | Growth Rates | |||||
Q2 FY 2017 | Q1 FY 2017 | Q2 FY 2016 | Q-T-Q | Y-T-Y | ||
North America | 33% | 32% | 30% | 1% | 20% | |
Asia Pacific | 38% | 40% | 40% | -3% | 6% | |
Europe | 20% | 19% | 20% | 7% | 11% | |
Japan | 9% | 9% | 10% | 3% | -7% | |
Net Revenues by End Market:
Percentages | Growth Rates | |||||
Q2 FY 2017 | Q1 FY 2017 | Q2 FY 2016 | Q-T-Q | Y-T-Y | ||
Communications & Data Center | 41% | 44% | 41% | -6% | 9% | |
Industrial, Aerospace & Defense | 41% | 39% | 41% | 7% | 11% | |
Broadcast, Consumer & Automotive | 18% | 17% | 18% | 5% | 8% | |
Net Revenues by Product:
Percentages | Growth Rates | |||||
Q2 FY 2017 | Q1 FY 2017 | Q2 FY 2016 | Q-T-Q | Y-T-Y | ||
Advanced Products | 46% | 42% | 31% | 10% | 61% | |
Core Products | 54% | 58% | 69% | -6% | -14% | |
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, Virtex‐E, Spartan-3, Spartan-II, CoolRunner, XC9500, products, configuration solutions, Software & Support/Services.
Key Statistics:
(Dollars in millions)
Q2 FY 2017 | Q1 FY 2017 | Q2 FY 2016 | |
Annual Return on Equity (%)* | 25 | 25 | 21 |
Operating Cash Flow | $184 | $339 | $140 |
Depreciation Expense | $11 | $12 | $12 |
Capital Expenditures | $11 | $21 | $5 |
Combined Inventory Days | 111 | 117 | 137 |
Revenue Turns (%) | 55 | 50 | 51 |
*Return on equity calculation: Annualized net income/average stockholders’ equity
Product and Financial Highlights - September Quarter
• | Xilinx intends to utilize the May 2016 repurchase authorization of $1 billion in a more deliberate manner over the next several quarters. This program complements the Company’s capital allocation priorities which include investing in the business and continuously growing the dividend. |
• | Xilinx recently reached a significant production milestone for the 16nm UltraScale+ portfolio ahead of schedule. Xilinx has now shipped nine unique products to nearly 200 customers in a broad base of markets including automotive, data center and communications. |
• | Xilinx announced the expansion of its cost-optimized Spartan, Artix & Zynq product families targeting a wide range of applications including Embedded Vision and Industrial IoT. Today's Embedded Vision and Industrial IoT applications need to collect, aggregate, and analyze data from a variety of sensors for actionable insights. Whether scaling a multi-sensor camera's functionality on a factory floor, or developing a smart drone with an innovative guidance system based on sensor fusion, designers can take advantage of the Xilinx FPGA and SoC portfolio for part or all of their system needs. |
• | Xilinx announced that Baidu, the leading Chinese language Internet search provider, is utilizing Xilinx FPGAs to accelerate machine learning applications in their data centers in China. The two companies are collaborating to further expand volume deployment of FPGA-based accelerated platforms. Baidu-optimized FPGA platforms are tuned for machine learning applications such as image and speech recognition. The platforms will also be leveraged in Baidu’s initiative to develop commercially viable autonomous cars. |
• | Last quarter, Xilinx joined forces with Advanced Micro Devices, ARM, Huawei, IBM, Mellanox, Qualcomm Technologies Inc., a subsidiary of Qualcomm Incorporated to bring |
a high-performance open acceleration framework, “CCIX” to data centers. Just recently this consortium announced that it has tripled its membership welcoming new members representing silicon providers and ecosystem partners in design, verification, software and systems. In addition, the member companies have aligned to the PCI Express architecture as its first transport layer specification.
Business Outlook - December Quarter Fiscal 2017
• | Sales are expected to be approximately flat sequentially. |
• | Gross margin is expected to be approximately 69%. |
• | Operating expenses are expected to be approximately $245 million including $1 million of amortization of acquisition-related intangibles. |
•Other income and expenses are expected to be a net expense of approximately $2 million.
• | December quarter tax rate is expected to be approximately 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 78782757. 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 plans to repurchase shares of Xilinx stock and our expectations regarding our business outlook for the December 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 market conditions which could impact the ability of the Company to execute the repurchase authorization in a timely manner; 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, 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.
#1641F
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 | ||||||||||||||||||
October 1, 2016 | July 2, 2016 | September 26, 2015 | October 1, 2016 | September 26, 2015 | |||||||||||||||
Net revenues | $ | 579,209 | $ | 574,981 | $ | 527,572 | $ | 1,154,190 | $ | 1,076,580 | |||||||||
Cost of revenues | 175,875 | 168,297 | 157,640 | 344,172 | 317,594 | ||||||||||||||
Gross margin | 403,334 | 406,684 | 369,932 | 810,018 | 758,986 | ||||||||||||||
Operating expenses: | |||||||||||||||||||
Research and development | 141,814 | 136,125 | 130,220 | 277,939 | 256,868 | ||||||||||||||
Selling, general and administrative | 83,463 | 83,110 | 84,761 | 166,573 | 166,904 | ||||||||||||||
Amortization of acquisition-related intangibles | 1,244 | 1,244 | 1,769 | 2,488 | 3,538 | ||||||||||||||
Total operating expenses | 226,521 | 220,479 | 216,750 | 447,000 | 427,310 | ||||||||||||||
Operating income | 176,813 | 186,205 | 153,182 | 363,018 | 331,676 | ||||||||||||||
Interest and other expense, net | 1,151 | 4,587 | 9,213 | 5,738 | 19,740 | ||||||||||||||
Income before income taxes | 175,662 | 181,618 | 143,969 | 357,280 | 311,936 | ||||||||||||||
Provision for income taxes | 11,470 | 18,569 | 16,671 | 30,039 | 36,923 | ||||||||||||||
Net income | $ | 164,192 | $ | 163,049 | $ | 127,298 | $ | 327,241 | $ | 275,013 | |||||||||
Net income per common share: | |||||||||||||||||||
Basic | $ | 0.65 | $ | 0.64 | $ | 0.49 | $ | 1.29 | $ | 1.07 | |||||||||
Diluted | $ | 0.61 | $ | 0.61 | $ | 0.48 | $ | 1.22 | $ | 1.03 | |||||||||
Cash dividends per common share | $ | 0.33 | $ | 0.33 | $ | 0.31 | $ | 0.66 | $ | 0.62 | |||||||||
Shares used in per share calculations: | |||||||||||||||||||
Basic | 253,466 | 252,901 | 257,640 | 253,056 | 257,744 | ||||||||||||||
Diluted | 270,373 | 266,206 | 266,046 | 267,885 | 268,070 | ||||||||||||||
XILINX, INC. | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(In thousands) | |||||||
October 1, 2016 | April 2, 2016 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash, cash equivalents and short-term investments | $ | 3,489,828 | $ | 3,337,699 | |||
Accounts receivable, net | 227,758 | 307,458 | |||||
Inventories | 196,922 | 178,550 | |||||
Other current assets | 104,686 | 92,951 | |||||
Total current assets | 4,019,194 | 3,916,658 | |||||
Net property, plant and equipment | 292,488 | 283,346 | |||||
Long-term investments | 198,545 | 220,807 | |||||
Other assets | 435,493 | 398,458 | |||||
Total Assets | $ | 4,945,720 | $ | 4,819,269 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 348,748 | $ | 307,222 | |||
Deferred income on shipments to distributors | 57,404 | 51,758 | |||||
Current portion of long-term debt | 591,667 | 585,417 | |||||
Total current liabilities | 997,819 | 944,397 | |||||
Long-term debt | 994,439 | 993,639 | |||||
Deferred tax liabilities | 294,875 | 261,467 | |||||
Other long-term liabilities | 26,072 | 16,979 | |||||
Temporary equity | 7,368 | 12,894 | |||||
Stockholders' equity | 2,625,147 | 2,589,893 | |||||
Total Liabilities and Stockholders' Equity | $ | 4,945,720 | $ | 4,819,269 | |||
XILINX, INC. | |||||||||||||||||||
SUPPLEMENTAL FINANCIAL INFORMATION | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
(In thousands) | |||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||
October 1, 2016 | July 2, 2016 | September 26, 2015 | October 1, 2016 | September 26, 2015 | |||||||||||||||
SELECTED CASH FLOW INFORMATION: | |||||||||||||||||||
Depreciation | $ | 11,182 | $ | 11,625 | $ | 12,472 | $ | 22,807 | $ | 25,725 | |||||||||
Amortization | 4,001 | 3,713 | 4,354 | 7,714 | 8,708 | ||||||||||||||
Stock-based compensation | 29,802 | 29,404 | 26,681 | 59,206 | 53,001 | ||||||||||||||
Net cash provided by operating activities | 183,593 | 338,636 | 140,346 | 522,229 | 327,338 | ||||||||||||||
Purchases of property, plant and equipment | 11,313 | 20,637 | 5,362 | 31,950 | 13,051 | ||||||||||||||
Payment of dividends to stockholders | 83,878 | 83,599 | 80,196 | 167,477 | 160,402 | ||||||||||||||
Repurchases of common stock | 99,985 | 100,154 | 99,998 | 200,139 | 199,998 | ||||||||||||||
Proceeds from issuance of common stock | |||||||||||||||||||
to employees, net of withholding taxes | (1,784 | ) | 11,297 | (3,621 | ) | 9,513 | 14,823 | ||||||||||||
STOCK-BASED COMPENSATION INCLUDED IN: | |||||||||||||||||||
Cost of revenues | $ | 1,930 | $ | 2,119 | $ | 1,763 | $ | 4,049 | $ | 3,727 | |||||||||
Research and development | 16,529 | 15,120 | 12,934 | 31,649 | 27,626 | ||||||||||||||
Selling, general and administrative | 11,343 | 12,165 | 11,984 | 23,508 | 21,648 | ||||||||||||||