Delaware | 000-18548 | 77-0188631 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
2100 Logic Drive, San Jose, California | 95124 | |||
(Address of principal executive offices) | (Zip Code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ |
(d) | Exhibits |
Exhibit No. | Description | ||
99.1 | Press release of Xilinx, Inc. dated July 25, 2018 |
XILINX, INC. | ||||||
Date: July 25, 2018 | By: | /s/ Lorenzo A. Flores | ||||
Lorenzo A. Flores | ||||||
Executive Vice President and Chief Financial Officer |
Exhibit No. | Description | ||
99.1 |
Q1 FY 2019 | Q4 FY 2018 | Q1 FY 2018 | Q-T-Q | Y-T-Y | ||
Net revenues | $684 | $638 | $603 | 7% | 14% | |
Operating income | $216 | $163 | $169 | 32% | 28% | |
Net income | $190 | $145 | $157 | 31% | 21% | |
Diluted earnings per share | $0.74 | $0.56 | $0.59 | 32% | 25% |
Percentages | Growth Rates | |||||
Q1 FY 2019 | Q4 FY 2018 | Q1 FY 2018 | Q-T-Q | Y-T-Y | ||
North America | 28% | 31% | 29% | (1%) | 12% | |
Asia Pacific | 45% | 39% | 44% | 22% | 15% | |
Europe | 19% | 22% | 19% | (5%) | 14% | |
Japan | 8% | 8% | 8% | 2% | 12% |
Percentages | Growth Rates | |||||
Q1 FY 2019 | Q4 FY 2018 | Q1 FY 2018 | Q-T-Q | Y-T-Y | ||
Data Center and TME | 19% | 25% | 19% | (20%) | 11% | |
Automotive, Broadcast and Consumer | 16% | 15% | 17% | 18% | 13% | |
Communications | 31% | 31% | 38% | 7% | (7%) | |
Industrial, Aerospace & Defense | 33% | 35% | 28% | 1% | 30% | |
Channel | 1% | (6%) | (2%) | NM | NM |
Percentages | Growth Rates | |||||
Q1 FY 2019 | Q4 FY 2018 | Q1 FY 2018 | Q-T-Q | Y-T-Y | ||
Advanced Products | 56% | 57% | 53% | 6% | 21% | |
Core Products | 44% | 43% | 47% | 9% | 5% |
Q1 FY 2019 | Q4 FY 2018 | Q1 FY 2018 | |
Annual Return on Equity (%)* | 32 | 19 | 24 |
Operating Cash Flow | $176 | $242 | $191 |
Depreciation Expense | $12 | $12 | $11 |
Capital Expenditures (including software) | $26 | $21 | $10 |
Combined Inventory Days | 113 | 117 | 112 |
Revenue Turns (%) | 37 | 33 | 41 |
• | Data Center and Test, Measurement & Emulation (TME) revenues, excluding cryptocurrency and TME, increased both sequentially and year over year. Data Center business momentum continued to strengthen with key design wins from hyperscalers globally for accelerating applications beyond FPGA as a Service (FaaS). Progress also continued on the AWS FaaS offering with the training of an additional 500 developers, bringing the cumulative number trained to date to over 900. We are on track to achieve our goal of over 1,500 developers trained by the end of the year. |
• | Xilinx recently acquired DeePhi Tech, strengthening the Company’s capabilities in AI from the cloud to the edge. DeePhi Tech is a Beijing-based technology company with industry-leading capabilities in machine learning, specializing in compression, pruning, and system-level optimizations for neural networks. DeePhi has been developing its machine learning solutions on Xilinx platforms since their inception in 2016. In addition to the DeePhi acquisition, Xilinx made multiple investments in private companies during the quarter to expand the Xilinx ecosystem across a breadth of applications including data analytics, video transcoding and network intelligence. |
• | Highlighting the Company’s continued transformation into a platform company, Zynq based revenues grew 76% year over year driven largely by a broad set of applications in Advanced Driver Assist (ADAS), Industrial, Communications, and Data Center. The Zynq SoC Platform, which includes Zynq at 28nm and both MPSoC and RFSoC at 16nm, now represents 17% of total revenues. |
• | Xilinx announced a partnership with Daimler AG for developing a custom AI inference platform. Powered by a Xilinx automotive platform consisting of SoC devices and AI acceleration software, the scalable solution will deliver high performance, low latency and power efficient embedded AI for automotive applications. Further, the Company has cumulatively shipped more than 50 million ADAS units to OEMs and Tier 1 suppliers. |
• | The Advanced Products category in the first quarter increased 21% year over year and constituted approximately 56% of total sales. Revenues from the 20nm node increased more than 30% year over year and the 16nm node continued its accelerated ramp with sales increasing over 2.5x during the same period. |
• | Everest, the industry’s first Adaptive Compute Acceleration Platform (ACAP), has won the “Semiconductor of the Year 2018” award from Electronic Device Industry News, a Japanese news outlet. The Everest ACAP is a highly integrated multi-core heterogeneous compute platform that can be programmed at the hardware and software level. Xilinx remains on track to tape out Everest later this year. |
GAAP | Non-GAAP Adjustments | Non-GAAP | |
Revenues | $700M - $720M | - | $700M - $720M |
Gross Margin | ~ 69.5% | - | ~ 69.5% |
Operating Expenses | $281M | $2M (1) | $279M |
Other Income | $11M | $8M (2) | $3M |
Tax Rate | 10% - 14% | - | 10% - 14% |
GAAP | Non-GAAP Adjustments | Non-GAAP | |
Revenues | $2,800M - $2,900M | - | $2,800M - $2,900M |
Gross Margin | 68.5% - 70.5% | - | 68.5% - 70.5% |
Operating Expenses | $1,147M - $1,167M | $27M (3) | $1,120M - $1,140M |
Other Income | $18M - $23M | $8M (2) | $10M - $15M |
Tax Rate | 10% - 14% | - | 10% - 14% |
Diluted Share count | 256M | 256M |
(1) | Excludes an estimated amount of $2 million in amortization of acquired intangibles and certain non-recurring expenses. |
(2) | Excludes an estimated amount of $8 million from an expected gain on an investment. |
(3) | Excludes an estimated amount of $27 million in amortization of acquired intangibles and certain non-recurring expenses. |
XILINX, INC. | |||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||
(Unaudited) | |||||||||||
(In thousands, except per share amounts) | |||||||||||
Three Months Ended | |||||||||||
June 30, 2018 | March 31, 2018* | July 1, 2017* | |||||||||
Net revenues | $ | 684,370 | $ | 638,191 | $ | 602,810 | |||||
Cost of revenues | 206,888 | 188,941 | 190,824 | ||||||||
Gross margin | 477,482 | 449,250 | 411,986 | ||||||||
Operating expenses: | |||||||||||
Research and development | 170,826 | 162,483 | 153,051 | ||||||||
Selling, general and administrative | 90,532 | 89,348 | 89,175 | ||||||||
Amortization of acquisition-related intangibles | 360 | 584 | 705 | ||||||||
Executive transition costs | — | 33,351 | — | ||||||||
Total operating expenses | 261,718 | 285,766 | 242,931 | ||||||||
Operating income | 215,764 | 163,484 | 169,055 | ||||||||
Interest and other income (expense), net | (2,847 | ) | (3,781 | ) | 1,839 | ||||||
Income before income taxes | 212,917 | 159,703 | 170,894 | ||||||||
Provision for income taxes | 22,879 | 14,232 | 13,650 | ||||||||
Net income | $ | 190,038 | $ | 145,471 | $ | 157,244 | |||||
Net income per common share: | |||||||||||
Basic | $ | 0.75 | $ | 0.57 | $ | 0.63 | |||||
Diluted | $ | 0.74 | $ | 0.56 | $ | 0.59 | |||||
Cash dividends per common share | $ | 0.36 | $ | 0.35 | $ | 0.35 | |||||
Shares used in per share calculations: | |||||||||||
Basic | 252,682 | 254,559 | 247,911 | ||||||||
Diluted | 255,935 | 257,916 | 265,797 | ||||||||
* Fiscal 2018 balances have been restated to conform to the new revenue recognition standard (ASC 606). |
XILINX, INC. | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(In thousands) | |||||||
June 30, 2018 | March 31, 2018* | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash, cash equivalents and short-term investments | $ | 3,364,198 | $ | 3,447,570 | |||
Accounts receivable, net | 456,898 | 382,246 | |||||
Inventories | 247,001 | 236,077 | |||||
Other current assets | 57,448 | 88,695 | |||||
Total current assets | 4,125,545 | 4,154,588 | |||||
Net property, plant and equipment | 312,084 | 304,117 | |||||
Long-term investments | 91,700 | 97,896 | |||||
Other assets | 525,863 | 503,946 | |||||
Total Assets | $ | 5,055,192 | $ | 5,060,547 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 443,192 | $ | 412,759 | |||
Current portion of long-term debt | 499,407 | 499,186 | |||||
Total current liabilities | 942,599 | 911,945 | |||||
Long-term debt | 1,207,387 | 1,214,440 | |||||
Other long-term liabilities | 586,568 | 573,809 | |||||
Stockholders' equity | 2,318,638 | 2,360,353 | |||||
Total Liabilities and Stockholders' Equity | $ | 5,055,192 | $ | 5,060,547 | |||
* Fiscal 2018 balances have been restated to conform to the new revenue recognition standard (ASC 606). |
XILINX, INC. | |||||||||||
SUPPLEMENTAL FINANCIAL INFORMATION | |||||||||||
(Unaudited) | |||||||||||
(In thousands) | |||||||||||
Three Months Ended | |||||||||||
June 30, 2018 | March 31, 2018 | July 1, 2017 | |||||||||
SELECTED CASH FLOW INFORMATION: | |||||||||||
Depreciation and amortization of other intangibles | 15,075 | $ | 15,756 | 11,232 | |||||||
Amortization - others | 7,333 | 33,963 | 3,729 | ||||||||
Stock-based compensation | 35,608 | 48,606 | 32,036 | ||||||||
Net cash provided by operating activities | 176,168 | 242,293 | 190,908 | ||||||||
Purchases of property, plant and equipment and other intangibles | 26,359 | 20,978 | 9,926 | ||||||||
Payment of dividends to stockholders | 90,675 | 89,302 | 87,303 | ||||||||
Repurchases of common stock | 137,300 | 163,448 | 67,062 | ||||||||
Proceeds from issuance of common stock | |||||||||||
to employees, net of withholding taxes | (5,281 | ) | 11,889 | 1,070 | |||||||
STOCK-BASED COMPENSATION INCLUDED IN: | |||||||||||
Cost of revenues | $ | 2,035 | $ | 2,006 | $ | 2,150 | |||||
Research and development | 20,930 | 19,011 | 17,466 | ||||||||
Selling, general and administrative | 12,643 | 10,968 | 12,420 | ||||||||
Executive transition costs | — | 16,621 | — |