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 January 23, 2019 |
XILINX, INC. | ||||||
Date: January 23, 2019 | By: | /s/ Lorenzo A. Flores | ||||
Lorenzo A. Flores | ||||||
Executive Vice President and Chief Financial Officer |
Exhibit No. | Description | ||
99.1 |
GAAP | ||||||||
Q3 | Q2 | Q3 | ||||||
FY 2019 | FY 2019 | FY 2018 | Q-T-Q | Y-T-Y | ||||
Net revenues* | $800 | $746 | $599 | 7% | 34% | |||
Operating income | $258 | $233 | $161 | 11% | 60% | |||
Net income (loss) | $239 | $216 | $(12) | 11% | NM | |||
Diluted earnings (loss) per share | $0.93 | $0.84 | $(0.05) | 11% | NM | |||
Non-GAAP | ||||||||
Q3 | Q2 | Q3 | ||||||
FY 2019 | FY 2019 | FY 2018 | Q-T-Q | Y-T-Y | ||||
Net revenues* | $800 | $746 | $599 | 7% | 34% | |||
Operating income | $263 | $236 | $162 | 12% | 63% | |||
Net income | $237 | $221 | $167 | 7% | 42% | |||
Diluted earnings per share | $0.92 | $0.87 | $0.65 | 6% | 42% |
Percentages | Growth Rates | |||||
Q3 FY 2019 | Q2 FY 2019 | Q3 FY 2018 | Q-T-Q | Y-T-Y | ||
North America | 28% | 28% | 31% | 9% | 24% | |
Asia Pacific | 46% | 44% | 41% | 12% | 47% | |
Europe | 18% | 20% | 20% | (5%) | 24% | |
Japan | 8% | 8% | 8% | 4% | 26% |
Percentages | Growth Rates | |||||
Q3 FY 2019 | Q2 FY 2019 | Q3 FY 2018 | Q-T-Q | Y-T-Y | ||
Data Center and TME | 21% | 21% | 25% | 5% | 14% | |
Automotive, Broadcast and Consumer | 15% | 16% | 17% | 2% | 20% | |
Communications | 35% | 35% | 33% | 8% | 41% | |
Industrial, Aerospace & Defense | 27% | 25% | 31% | 16% | 17% | |
Channel | 2% | 3% | (6%) | NM | NM |
Percentages | Growth Rates | |||||
Q3 FY 2019 | Q2 FY 2019 | Q3 FY 2018 | Q-T-Q | Y-T-Y | ||
Advanced Products | 66% | 64% | 58% | 9% | 51% | |
Core Products | 34% | 36% | 42% | 3% | 9% |
Q3 FY 2019 | Q2 FY 2019 | Q3 FY 2018 | |
Annual Return on Equity (%)* | 34 | 34 | 17 |
Operating Cash Flow | $314 | $313 | $185 |
Depreciation Expense (including software amortization) | $18 | $16 | $11 |
Capital Expenditures (including software) | $20 | $14 | $7 |
Combined Inventory Days | 109 | 100 | 124 |
Revenue Turns (%) | 40 | 48 | 43 |
• | Data Center and Test, Measurement & Emulation (TME) revenues grew 14% year over year driven primarily by the Data Center business (ex-Cryptocurrency) and TME business, which both experienced double digit growth during the quarter. Xilinx continued its strong design win momentum in Data Center across multiple applications including big data acceleration, machine learning inference, video transcoding, network acceleration and storage controllers. The Company also has won designs for SmartNIC applications with multiple hyperscalers. Further developing its platform ecosystem, the Company significantly increased the cumulative number of Xilinx community developers trained on SDAccel to over 2,250. FaaS engagement momentum continued to build with Amazon, Alibaba, Huawei and other hyperscalers. TME revenues were strong across both the Test & Measurement area and Emulation & Prototyping, reflecting strong product leadership position in those markets. |
• | Communications revenues increased 41% year over year, driven by strength in the Wireless Communications business. Wireless Communications benefitted from 5G deployment in South Korea and preparation for 5G deployment in both China and North America as well as ongoing LTE upgrades. Wireless Communications also saw continued momentum across both radio and baseband applications with OEM customers across multiple geographies. Wired business grew year over year with strength from Optical/Data Center Interconnect applications. |
• | Xilinx continued engagement momentum with several leading automotive customers during the quarter with the goal of enabling their roadmap toward automated driving. During the Xilinx Developer Forum in Frankfurt, Daimler showcased its AI solution in the new Mercedes GLE Sport Utility Vehicle that is powered by Xilinx machine learning algorithms and MPSoCs. In addition, ZF Friedrichshafen AG, a global leader and Tier-1 automotive supplier, recently announced a strategic collaboration in which Xilinx |
• | The Advanced Products category increased 51% year over year during the quarter. Revenue from 16nm products continued its strong ramp with broad-based adoption, increasing approximately 4x during the same period. Zynq-based revenues, grew approximately 80% year over year driven by a broad set of applications across multiple end markets, served in particular by MPSoC. Zynq MPSoC revenues grew over 3x compared to fiscal third quarter 2018. |
• | Extending its significant technology leadership, Xilinx taped out Versal - the industry's first Adaptive Compute Acceleration Platform (ACAP) at the end of fiscal third quarter. Built on TSMC's 7nm FinFET process technology, the Versal portfolio is the first platform to combine software programmability with domain-specific hardware acceleration and the adaptability essential for today’s rapid pace of innovation. |
GAAP | Non-GAAP Adjustments | Non-GAAP | |
Revenues | $815M - $835M | - | $815M - $835M |
Gross Margin | ~68.5% | - | ~68.5% |
Operating Expenses | ~$310M | $5M(1) | ~$305M |
Other Income | ~$4M | - | ~$4M |
Tax Rate | 6% - 8% | - | 6% - 8% |
(1) | Excludes an estimated amount of $5 million in M&A related expenses and amortization of acquisition related intangibles |
XILINX, INC. | |||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
December 29, 2018 | September 29, 2018 | December 30, 2017* | December 29, 2018 | December 30, 2017* | |||||||||||||||
Net revenues | $ | 800,057 | $ | 746,252 | $ | 598,603 | $ | 2,230,678 | $ | 1,828,832 | |||||||||
Cost of revenues | 247,903 | 231,620 | 177,969 | 686,411 | 554,478 | ||||||||||||||
Gross margin | 552,154 | 514,632 | 420,634 | 1,544,267 | 1,274,354 | ||||||||||||||
Operating expenses: | |||||||||||||||||||
Research and development | 189,329 | 183,372 | 166,231 | 543,527 | 477,267 | ||||||||||||||
Selling, general and administrative | 103,039 | 97,685 | 92,753 | 291,256 | 272,981 | ||||||||||||||
Amortization of acquisition-related intangibles | 1,866 | 839 | 353 | 3,064 | 1,568 | ||||||||||||||
Total operating expenses | 294,234 | 281,896 | 259,337 | 837,847 | 751,816 | ||||||||||||||
Operating income | 257,920 | 232,736 | 161,297 | 706,420 | 522,538 | ||||||||||||||
Interest and other income (expense), net | (1,330 | ) | 6,408 | 5,469 | 2,231 | 9,138 | |||||||||||||
Income before income taxes | 256,590 | 239,144 | 166,766 | 708,651 | 531,676 | ||||||||||||||
Provision for income taxes | 17,230 | 23,432 | 179,251 | 63,542 | 213,166 | ||||||||||||||
Net income (loss) | $ | 239,360 | $ | 215,712 | $ | (12,485 | ) | $ | 645,109 | $ | 318,510 | ||||||||
Net income (loss) per common share: | |||||||||||||||||||
Basic | $ | 0.95 | $ | 0.85 | $ | (0.05 | ) | $ | 2.55 | $ | 1.28 | ||||||||
Diluted | $ | 0.93 | $ | 0.84 | $ | (0.05 | ) | $ | 2.53 | $ | 1.23 | ||||||||
Cash dividends per common share | $ | 0.36 | $ | 0.36 | $ | 0.35 | $ | 1.08 | $ | 1.05 | |||||||||
Shares used in per share calculations: | |||||||||||||||||||
Basic | 253,060 | 252,988 | 254,089 | 252,634 | 248,671 | ||||||||||||||
Diluted | 256,374 | 255,522 | 254,089 | 255,227 | 258,995 | ||||||||||||||
* Fiscal 2018 balances have been restated to conform to the new revenue recognition standard (ASC 606). |
XILINX, INC. | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(In thousands) | |||||||
December 29, 2018 | March 31, 2018* | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash, cash equivalents and short-term investments | $ | 3,469,652 | $ | 3,447,570 | |||
Accounts receivable, net | 359,367 | 382,246 | |||||
Inventories | 283,329 | 236,077 | |||||
Other current assets | 60,004 | 88,695 | |||||
Total current assets | 4,172,352 | 4,154,588 | |||||
Net property, plant and equipment | 317,260 | 304,117 | |||||
Long-term investments | 83,803 | 97,896 | |||||
Other assets | 781,349 | 503,946 | |||||
Total Assets | $ | 5,354,764 | $ | 5,060,547 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 453,018 | $ | 412,759 | |||
Current portion of long-term debt | 499,851 | 499,186 | |||||
Total current liabilities | 952,869 | 911,945 | |||||
Long-term debt | 1,221,438 | 1,214,440 | |||||
Other long-term liabilities | 543,262 | 573,809 | |||||
Stockholders' equity | 2,637,195 | 2,360,353 | |||||
Total Liabilities and Stockholders' Equity | $ | 5,354,764 | $ | 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 | Nine Months Ended | ||||||||||||||||||
December 29, 2018 | September 29, 2018 | December 30, 2017 | December 29, 2018 | December 30, 2017 | |||||||||||||||
SELECTED CASH FLOW INFORMATION: | |||||||||||||||||||
Depreciation and amortization of other intangibles | $ | 17,974 | $ | 16,048 | $ | 11,452 | $ | 49,097 | $ | 34,416 | |||||||||
Amortization - others | 7,984 | 8,144 | 5,458 | 23,461 | 12,619 | ||||||||||||||
Stock-based compensation | 38,641 | 34,945 | 36,801 | 109,194 | 105,209 | ||||||||||||||
Net cash provided by operating activities | 313,917 | 313,123 | 184,686 | 803,208 | 577,734 | ||||||||||||||
Purchases of property, plant and equipment and other intangibles | 20,270 | 14,174 | 6,791 | 60,803 | 28,940 | ||||||||||||||
Payment of dividends to stockholders | 91,108 | 91,077 | 89,491 | 272,860 | 263,751 | ||||||||||||||
Repurchases of common stock | 1,015 | 23,236 | 73,290 | 161,551 | 310,806 | ||||||||||||||
STOCK-BASED COMPENSATION INCLUDED IN: | |||||||||||||||||||
Cost of revenues | $ | 2,366 | $ | 2,249 | $ | 2,188 | $ | 6,650 | $ | 6,486 | |||||||||
Research and development | 22,352 | 20,047 | 20,217 | 63,329 | 57,779 | ||||||||||||||
Selling, general and administrative | 13,923 | 12,649 | 14,396 | 39,215 | 40,944 |
XILINX, INC. | |||||||||||||||||||
RECONCILIATIONS OF GAAP ACTUALS TO NON-GAAP ACTUALS | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
December 29, 2018 | September 29, 2018 | December 30, 2017* | December 29, 2018 | December 30, 2017* | |||||||||||||||
GAAP operating income | $ | 257,920 | $ | 232,736 | $ | 161,297 | $ | 706,420 | $ | 522,538 | |||||||||
Acquisition-related costs | 3,208 | 2,206 | — | 6,909 | — | ||||||||||||||
Amortization of acquisition-related intangibles | 1,866 | 839 | 353 | 3,064 | 1,568 | ||||||||||||||
Non-GAAP operating income | $ | 262,994 | $ | 235,781 | $ | 161,650 | $ | 716,393 | $ | 524,106 | |||||||||
GAAP net income | $ | 239,360 | $ | 215,712 | $ | (12,485 | ) | $ | 645,109 | $ | 318,510 | ||||||||
Acquisition-related costs | 3,208 | 2,206 | — | 6,909 | — | ||||||||||||||
Amortization of acquisition-related intangibles | 1,866 | 839 | 353 | 3,064 | 1,568 | ||||||||||||||
Gain from private investments | — | (6,503 | ) | — | (6,503 | ) | — | ||||||||||||
Income tax effect of changes in applicable U.S. tax laws | (6,949 | ) | 9,355 | 178,880 | 2,406 | 178,880 | |||||||||||||
Income tax effect of non-GAAP adjustments | (559 | ) | (160 | ) | — | (719 | ) | — | |||||||||||
Non-GAAP net income | $ | 236,926 | $ | 221,449 | $ | 166,748 | $ | 650,266 | $ | 498,958 | |||||||||
GAAP diluted earnings (loss) per share | $ | 0.93 | $ | 0.84 | $ | (0.05 | ) | $ | 2.53 | $ | 1.23 | ||||||||
Acquisition-related costs | 0.01 | 0.01 | — | 0.02 | — | ||||||||||||||
Amortization of acquisition-related intangibles | 0.01 | — | — | 0.01 | 0.01 | ||||||||||||||
Gain from private investments | — | (0.02 | ) | — | (0.02 | ) | — | ||||||||||||
Income tax effect of changes in applicable U.S. tax laws | (0.03 | ) | 0.04 | 0.70 | 0.01 | 0.69 | |||||||||||||
Income tax effect of non-GAAP adjustments | — | — | — | — | — | ||||||||||||||
Non-GAAP diluted EPS | $ | 0.92 | $ | 0.87 | $ | 0.65 | $ | 2.55 | $ | 1.93 | |||||||||
* Fiscal 2018 balances have been restated to conform to the new revenue recognition standard (ASC 606). |