EX-99.1 2 exhibit991pressrelease10-2.htm EXHIBIT 99.1 Exhibit


Exhibit 99.1

Investor Relations Contact:                            
Suresh Bhaskaran
Xilinx, Inc.
(408) 879-4784
ir@xilinx.com

XILINX ANNOUNCES SECOND QUARTER 2018 RESULTS
EIGHTH CONSECUTIVE QUARTER OF REVENUE GROWTH

SAN JOSE, CA, October 25, 2017-- Xilinx, Inc. (Nasdaq: XLNX) today announced sales of $620 million for the second quarter of fiscal year 2018, up approximately 1% from the prior quarter and up 7% from the second quarter of the prior fiscal year. This marks the eighth consecutive quarter of sales increase for the Company. September quarter net income was $168 million, or $0.65 per diluted share.

The Xilinx Board of Directors declared a quarterly cash dividend of $0.35 per outstanding share of common stock payable on December 6, 2017 to all stockholders of record at the close of business on November 15, 2017.  

Additional September quarter comparisons are represented in the charts below:

GAAP Results
(In millions, except EPS)
                         
 
Q2
FY 2018
Q1
FY 2018
Q2
FY 2017
 

Q-T-Q

Y-T-Y
Net revenues
$620
$615
$579
 
1%
7%
Operating income
$185
$180
$177
 
3%
5%
Net income
$168
$167
$164
 
0%
2%
Diluted earnings per share
$0.65
$0.63
$0.61
 
3%
7%

“Our multimarket diversification, technology leadership, and consistent execution are yielding sustainable results as we delivered our eighth consecutive quarter of revenue growth with strong profitability,” said Moshe Gavrielov, Xilinx President and Chief Executive Officer. “Revenues from Advanced Products continued to be solid, increasing 21% from the same quarter a year ago, supported by accelerated growth from our highly innovative Zynq SoC platform, as well as from our industry-leading 20nm and 16nm technology nodes. At the 16nm technology node, we have shipped 34 unique products to well over 900 customers, denoting a sequential increase of 50% in the number of products and 75% increase in the number of customers.”






Net Revenues by Geography:    
 
Percentages
 
Growth Rates
 
Q2
FY 2018
Q1
FY 2018
Q2
FY 2017
 

Q-T-Q

Y-T-Y
North America
31%
29%
33%
 
8%
1%
Asia Pacific
40%
43%
38%
 
-7%
12%
Europe
20%
19%
20%
 
2%
4%
Japan
9%
9%
9%
 
8%
14%

Net Revenues by End Market:     
             
 
Percentages
 
Growth Rates
 
Q2
FY 2018
Q1
FY 2018
Q2
FY 2017
 

Q-T-Q

Y-T-Y
Communications & Data Center
37%
41%
41%
 
-10%
-5%
Industrial, Aerospace & Defense
45%
42%
41%
 
7%
17%
Broadcast, Consumer & Automotive
18%
17%
18%
 
11%
12%

Net Revenues by Product:    
             
 
Percentages
 
Growth Rates
       
Q2
FY 2018
Q1
FY 2018
Q2
FY 2017
 

Q-T-Q

Y-T-Y
Advanced Products
52%
52%
46%
 
1%
21%
Core Products
48%
48%
54%
 
1%
-5%


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)

 
Q2
FY 2018
Q1
FY 2018
Q2
FY 2017
 
 
 
 
Annual Return on Equity (%)*
27
27
25
 
 
 
 
Operating Cash Flow
$202
$191
$184
 
 
 
 
Depreciation Expense
$12
$11
$11
 
 
 
 
Capital Expenditures
$12
$10
$11
 
 
 
 
Combined Inventory Days
116
111
111
 
 
 
 
Revenue Turns (%)
53
42
55

*Return on equity calculation: Annualized net income/average stockholders’ equity


Product and Financial Highlights - September Quarter

The Industrial, Aerospace & Defense end market set a quarterly record with revenues of $278 million, an increase of 17% from the same quarter a year ago, and constituted 45% of total Xilinx revenues. The success of this end market is a clear illustration of the robustness and diversification of the Xilinx product portfolio.

The Advanced Products category continues to deliver solid revenue growth, posting an increase of 21% from the year ago quarter. Broad-based growth was driven from the Zynq SoC platform and from the industry-leading 20nm and 16nm technology nodes. Zynq revenue increased 65% from the same quarter a year ago with growth driven largely by applications in Advanced Driver Assist (ADAS), Industrial, and Aerospace and Defense. Revenues from the 20nm node increased more than 40% from the year ago quarter and revenues from the 16nm node nearly quadrupled during the same period, reflecting broader customer and multi-market adoption.

Xilinx made several significant announcements highlighting strong momentum in its Cloud Computing market expansion opportunity. Xilinx announced availability of the software defined development environment, SDAccel, on Amazon Web Services (AWS) for use with F1 instances. In addition, Xilinx announced that Huawei has chosen the Company’s high performance Virtex® UltraScale+™ FPGAs to power their first FaaS instance as part of a new accelerated cloud service. Lastly, Alibaba Cloud, the largest cloud service provider in China, recently announced its next generation FaaS F2 and F3 instances, based on Xilinx FPGAs.

Xilinx, ARM, Cadence and TSMC announced a collaboration to build the first Cache Coherent Interconnect for Accelerators (CCIX) test chip in TSMC 7nm FinFET process





technology for delivery in year 2018. The test chip aims to provide a silicon proof point to demonstrate the capabilities of CCIX in enabling multi-core high-performance ARM® CPUs working via a coherent fabric to off-chip FPGA accelerators.

Xilinx announced delivery of its Zynq® UltraScale+™ RFSoC family, a disruptive integration and architectural breakthrough for applications including 5G, cable and wireless backhaul. Based on Xilinx’s 16nm technology, the RFSoCs integrate RF data converters for up to 50-75% system power and footprint reduction. With silicon samples already shipping to multiple customers, the early access program for this product family is now available.

Business Outlook - December Quarter Fiscal Year 2018

Sales are expected to be approximately $615 - $645 million.
Gross margin is expected to be 69% to 71%.
Operating expenses are expected to increase to approximately $260 million.
Other income is expected to be approximately $4 million.
December quarter tax rate is expected to be approximately 11 - 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 80382363. 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 December quarter of fiscal year 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.
 
#1725F

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
 
September 30, 2017
 
July 1, 2017
 
October 1, 2016
 
September 30, 2017
 
October 1, 2016
Net revenues
$
619,503

 
$
615,446

 
$
579,209

 
$
1,234,949

 
$
1,154,190

Cost of revenues
184,786

 
192,095

 
175,875

 
376,881

 
344,172

Gross margin
434,717

 
423,351

 
403,334

 
858,068

 
810,018

Operating expenses:
 
 
 
 
 
 
 
 
 
Research and development
157,985

 
153,051

 
141,814

 
311,036

 
277,939

Selling, general and administrative
91,053

 
89,175

 
83,463

 
180,228

 
166,573

Amortization of acquisition-related intangibles
510

 
705

 
1,244

 
1,215

 
2,488

Total operating expenses
249,548

 
242,931

 
226,521

 
492,479

 
447,000

Operating income
185,169

 
180,420

 
176,813

 
365,589

 
363,018

Interest and other income (expense), net
1,831

 
1,839

 
(1,151
)
 
3,669

 
(5,738
)
Income before income taxes
187,000

 
182,259

 
175,662

 
369,258

 
357,280

Provision for income taxes
19,468

 
15,014

 
11,470

 
34,481

 
30,039

Net income
$
167,532

 
$
167,245

 
$
164,192

 
$
334,777

 
$
327,241

Net income per common share:
 
 
 
 
 
 
 
 
 
Basic
$
0.68

 
$
0.67

 
$
0.65

 
$
1.35

 
$
1.29

Diluted
$
0.65

 
$
0.63

 
$
0.61

 
$
1.28

 
$
1.22

Cash dividends per common share
$
0.35

 
$
0.35

 
$
0.33

 
$
0.70

 
$
0.66

Shares used in per share calculations:
 
 
 
 
 
 
 
 
 
Basic
248,094

 
247,911

 
253,466

 
247,960

 
253,056

Diluted
258,217

 
265,797

 
270,373

 
261,739

 
267,885







XILINX, INC.
 
 
 
CONDENSED CONSOLIDATED BALANCE SHEETS
 
 
 
(In thousands)
 
 
 
 
September 30, 2017
 
April 1, 2017*
 
(unaudited)
 
 
ASSETS
 
 
 
Current assets:
 
 
 
  Cash, cash equivalents and short-term investments
$
3,560,220

 
$
3,321,457

  Accounts receivable, net
286,855

 
243,915

  Inventories
215,397

 
227,033

  Other current assets
109,758

 
87,711

Total current assets
4,172,230

 
3,880,116

Net property, plant and equipment
304,118

 
303,825

Long-term investments
99,862

 
116,288

Other assets
454,640

 
440,303

Total Assets
$
5,030,850

 
$
4,740,532

 
 
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
Current liabilities:
 
 
 
  Accounts payable and accrued liabilities
$
372,255

 
$
386,301

  Deferred income on shipments to distributors
50,966

 
54,567

  Current portion of long-term debt

 
456,328

Total current liabilities
423,221

 
897,196

Long-term debt
1,738,666

 
995,247

Deferred tax liabilities
359,323

 
317,639

Other long-term liabilities
23,557

 
21,411

Temporary equity

 
1,406

Stockholders' equity
2,486,083

 
2,507,633

Total Liabilities and Stockholders' Equity
$
5,030,850

 
$
4,740,532

 
 
 
 
* Derived from audited financial statements
 
 
 
 
 
 
 





XILINX, INC.
 
 
 
 
 
 
 
 
 
SUPPLEMENTAL FINANCIAL INFORMATION
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
(In thousands)
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
September 30, 2017
 
July 1, 2017
 
October 1, 2016
 
September 30, 2017
 
October 1, 2016
SELECTED CASH FLOW INFORMATION:
 
 
 
 
 
 
 
 
 
  Depreciation
$
11,732

 
$
11,232

 
$
11,182

 
$
22,964

 
$
22,807

  Amortization
3,432

 
3,729

 
4,001

 
7,161

 
7,714

  Stock-based compensation
36,372

 
32,036

 
29,802

 
68,408

 
59,206

  Net cash provided by operating activities
202,140

 
190,908

 
183,593

 
393,048

 
522,229

  Purchases of property, plant and equipment
12,223

 
9,926

 
11,313

 
22,149

 
31,950

  Payment of dividends to stockholders
86,957

 
87,303

 
83,878

 
174,260

 
167,477

  Repurchases of common stock
170,454

 
67,062

 
99,985

 
237,516

 
200,139

  Net proceeds (withholding) from issuance of
 
 
 
 
 
 
 
 
 
    common stock to employees
(23,765
)
 
1,070

 
(1,784
)
 
(22,695
)
 
9,513

 
 
 
 
 
 
 
 
 
 
STOCK-BASED COMPENSATION INCLUDED IN:
 
 
 
 
 
 
 
 
Cost of revenues
$
2,147

 
$
2,150

 
$
1,930

 
$
4,297

 
$
4,049

Research and development
20,096

 
17,466

 
16,529

 
37,562

 
31,649

Selling, general and administrative
14,129

 
12,420

 
11,343

 
26,549

 
23,508