XILINX, INC. SAN JOSE, Calif., Jan. 25, 2017 /PRNewswire/ -- Xilinx, Inc. (Nasdaq: XLNX) today announced third quarter fiscal 2017 sales of $586 million, up 1% sequentially, and up 3% from the third quarter of the prior fiscal year. Third quarter net income was $142 million, or $0.52 per diluted share.
The Xilinx Board of Directors declared a quarterly cash dividend of $0.33 per outstanding share of common stock payable on February 23, 2017 to all stockholders of record at the close of business on February 8, 2017.
Additional third quarter comparisons are represented in the charts below:
GAAP Results
(In millions, except EPS)
Q3 Q2 Q3
FY 2017 FY 2017 FY 2016 Q-T-Q Y-T-Y
------- ------- ------- ----- -----
Net
revenues $586 $579 $566 1% 3%
Operating
income $163 $177 $160 -8% 2%
Net
income $142 $164 $131 -14% 8%
Diluted
earnings
per
share $0.52 $0.61 $0.49 -15% 6%
"Xilinx delivered growth for the fifth consecutive quarter. Sales from our 16nm Ultrascale+, 20nm Ultrascale, and 28nm Zynq products contributed to significant market expansion. The growth from these products was driven by a broad base of markets such as data center, automotive, test & measurement, wired and wireless communications and space," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "Our FY17 strategic increase in R&D investment continues to pay off with the recent expansion announcement of our 16nm portfolio integrating High Bandwidth Memory and Cache Coherent Interconnect technology into Ultrascale+ FPGAs. In addition, our 16nm execution continues unabated. We are currently shipping 12 unique products to nearly 300 customers and remain over a year ahead of the competition."
Net Revenues by Geography:
Percentages Growth Rates
Q3 Q2 Q3
FY 2017 FY 2017 FY 2016 Q-T-Q Y-T-Y
------- ------- ------- ----- -----
North
America 30% 33% 32% -7% -3%
Asia
Pacific 43% 38% 41% 12% 9%
Europe 19% 20% 17% -4% 13%
Japan 8% 9% 10% -5% -14%
Net Revenues by End Market:
Percentages Growth Rates
Q3 Q2 Q3 Y-T-Y
FY 2017 FY 2017 FY 2016 Q-T-Q
------- ------- ------- -----
Communications
& Data
Center 44% 41% 43% 7% 4%
Industrial,
Aerospace &
Defense 41% 41% 41% 1% 5%
Broadcast,
Consumer &
Automotive 15% 18% 16% -13% -2%
Net Revenues by Product:
Percentages Growth Rates
Q3 Q2 Q3
FY 2017 FY 2017 FY 2016 Q-T-Q Y-T-Y
------- ------- ------- ----- -----
Advanced
Products 47% 46% 37% 2% 30%
Core
Products 53% 54% 63% 0% -12%
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, XC9500,
products, configuration solutions, Software & Support/Services.
Key Statistics:
(Dollars in millions)
Q3 Q2 Q3
FY 2017 FY 2017 FY 2016
------- ------- -------
Annual Return on Equity (%)* 25 25 21
Operating Cash Flow $106 $184 $292
Depreciation Expense $11 $11 $13
Capital Expenditures $20 $11 $6
Combined Inventory Days 114 111 119
Revenue Turns (%) 56 55 49
* Return on equity calculation: Annualized
net income/average stockholders'
equity
Product and Financial Highlights - December Quarter
-- Xilinx introduced the Reconfigurable Acceleration Stack, with a goal to
enable mainstream adoption of FPGAs in the data center. Target
applications include machine learning, video transcoding and big data
analytics. Designed for cloud scale applications, the stack provides the
fastest path to realize up to 40x better compute efficiency with Xilinx
FPGAs compared to x86 server CPUs and up to six times the compute
efficiency over competitive FPGAs.
-- Xilinx unveiled details for new 16nm Virtex UltraScale+ FPGAs with HBM
and CCIX technology. Containing the highest memory bandwidth available,
these HBM-enabled FPGAs offer 20X higher memory bandwidth relative to a
DDR4 DIMM and 4X less power per bit versus competing memory
technologies. This product family is architected to support compute
acceleration in the data center, high data rate Ethernet connectivity,
8K Video, and radar systems.
-- Xilinx announced that Amazon Web Services (AWS) is deploying Xilinx 16nm
UltraScale+ FPGAs in the new Amazon Elastic Cloud Compute (Amazon EC2)
F1 instance type, accelerating genomics, financial analytics, video
processing, big data, security, and machine learning inference
workloads. In addition to Amazon EC2 F1 instances, AWS also announced an
FPGA Developer Amazon Machine Image which is pre-built with the
development tools and scripts including Xilinx's Vivado Design Suite and
Vivado license.
Business Outlook - March Quarter Fiscal 2017
-- Sales are expected to be in the range of $590M-$620M.
-- Gross margin is expected to be approximately 68-70%.
-- Operating expenses are expected to be approximately $244 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.
-- March 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 December quarter financial results and management's outlook for the March 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 34530294. 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 March 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.
#1703F
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 Nine Months Ended
------------------ -----------------
December 31, 2016 October 1, 2016 January 2, 2016 December 31, 2016 January 2, 2016
----------------- --------------- --------------- ----------------- ---------------
Net revenues $585,688 $579,209 $566,235 $1,739,877 $1,642,815
Cost of revenues 178,233 175,875 178,514 522,404 496,108
------- ------- ------- ------- -------
Gross margin 407,455 403,334 387,721 1,217,473 1,146,707
------- ------- ------- --------- ---------
Operating expenses:
Research and development 159,248 141,814 141,378 437,187 398,246
Selling, general and
administrative 83,780 83,463 84,470 250,353 251,374
Amortization of acquisition-
related intangibles 1,455 1,244 1,769 3,943 5,306
Total operating expenses 244,483 226,521 227,617 691,483 654,926
------- ------- ------- ------- -------
Operating income 162,972 176,813 160,104 525,990 491,781
Interest and other expense,
net 392 1,151 5,053 6,130 24,793
--- ----- ----- ----- ------
Income before income taxes 162,580 175,662 155,051 519,860 466,988
Provision for income taxes 20,734 11,470 24,232 50,773 61,155
------ ------ ------ ------ ------
Net income $141,846 $164,192 $130,819 $469,087 $405,833
======== ======== ======== ======== ========
Net income per common share:
Basic $0.57 $0.65 $0.51 $1.86 $1.58
===== ===== ===== ===== =====
Diluted $0.52 $0.61 $0.49 $1.74 $1.51
===== ===== ===== ===== =====
Cash dividends per common
share $0.33 $0.33 $0.31 $0.99 $0.93
===== ===== ===== ===== =====
Shares used in per share calculations:
Basic 250,982 253,466 256,450 252,811 257,491
======= ======= ======= ======= =======
Diluted 270,781 270,373 269,611 269,182 268,716
======= ======= ======= ======= =======
XILINX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, 2016 April 2, 2016
----------------- -------------
(unaudited)
ASSETS
Current assets:
Cash, cash
equivalents and
short-term
investments $3,254,135 $3,337,699
Accounts
receivable, net 340,852 307,458
Inventories 205,927 178,550
Other current
assets 115,138 92,951
Total current
assets 3,916,052 3,916,658
Net property,
plant and
equipment 301,504 283,346
Long-term
investments 183,082 220,807
Other assets 435,650 398,458
Total Assets $4,836,288 $4,819,269
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
and accrued
liabilities $361,624 $307,222
Deferred income
on shipments to
distributors 53,626 51,758
Current portion
of long-term
debt 594,792 585,417
------- -------
Total current
liabilities 1,010,042 944,397
Long-term debt 994,842 993,639
Deferred tax
liabilities 323,777 261,467
Other long-term
liabilities 23,419 16,979
Temporary equity 4,605 12,894
Stockholders'
equity 2,479,603 2,589,893
Total
Liabilities and
Stockholders'
Equity $4,836,288 $4,819,269
========== ==========
XILINX, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)
(In thousands)
Three Months Ended Nine Months Ended
------------------ -----------------
December 31, 2016 October 1, 2016 January 2, 2016 December 31, 2016 January 2, 2016
----------------- --------------- --------------- ----------------- ---------------
SELECTED CASH FLOW INFORMATION:
Depreciation $11,110 $11,182 $13,043 $33,917 $38,768
Amortization 4,887 4,001 4,441 12,601 13,149
Stock-based compensation 30,867 29,802 31,463 90,073 84,464
Net cash provided by
operating activities 105,584 183,593 292,156 627,813 619,494
Purchases of property,
plant and equipment 19,875 11,313 6,118 51,825 19,169
Payment of dividends to
stockholders 83,256 83,878 79,709 250,733 240,111
Repurchases of common stock 213,844 99,985 100,000 413,983 299,998
Proceeds from issuance of common stock
to employees, net of
withholding taxes 1,195 (1,784) 6,897 10,708 21,720
STOCK-BASED COMPENSATION INCLUDED IN:
Cost of revenues $1,945 $1,930 $2,145 $5,994 $5,872
Research and development 17,154 16,529 16,935 48,803 44,561
Selling, general and
administrative 11,768 11,343 12,383 35,276 34,031
Investor Relations Contact:
Lori Owen
Xilinx, Inc.
(408) 879-6911
ir@xilinx.com
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SOURCE Xilinx, Inc.
