GAAP | ||||||
Q4 | Q3 | Q4 | ||||
FY2020 | FY2020 | FY2019 | Q-T-Q | Y-T-Y | ||
Net revenues* | $756 | $723 | $828 | 5% | -9% | |
Operating income | $178 | $159 | $250 | 12% | -29% | |
Net income | $162 | $162 | $245 | 0% | -34% | |
Diluted earnings per share | $0.65 | $0.64 | $0.95 | 2% | -32% | |
Non-GAAP | ||||||
Q4 | Q3 | Q4 | ||||
FY2020 | FY2020 | FY2019 | Q-T-Q | Y-T-Y | ||
Net revenues* | $756 | $723 | $828 | 5% | -9% | |
Operating income | $218 | $174 | $259 | 25% | -16% | |
Net income | $193 | $171 | $242 | 13% | -20% | |
Diluted earnings per share | $0.78 | $0.68 | $0.94 | 15% | -17% | |
* No adjustment between GAAP and Non-GAAP |
Net Revenues by Geography: | ||||||
Percentages | Growth Rates | |||||
Q4 | Q3 | Q4 | ||||
FY2020 | FY2020 | FY2019 | Q-T-Q | Y-T-Y | ||
North America | 37% | 28% | 27% | 37% | 27% | |
Asia Pacific | 37% | 48% | 47% | -19% | -28% | |
Europe | 18% | 16% | 18% | 17% | -11% | |
Japan | 8% | 8% | 8% | 7% | -4% | |
Net Revenues by End Market: | ||||||
Percentages | Growth Rates | |||||
Q4 | Q3 | Q4 | ||||
FY2020 | FY2020 | FY2019 | Q-T-Q | Y-T-Y | ||
A&D, Industrial and TME | 50% | 40% | 39% | 30% | 15% | |
Automotive, Broadcast and Consumer | 16% | 19% | 14% | -13% | 2% | |
Wired and Wireless Group | 24% | 31% | 42% | -19% | -46% | |
Data Center Group | 10% | 9% | 5% | 14% | 77% | |
Channel | 0% | 1% | 0% | NM | NM | |
Net Revenues by Product: | ||||||
Percentages | Growth Rates | |||||
Q4 | Q3 | Q4 | ||||
FY2020 | FY2020 | FY2019 | Q-T-Q | Y-T-Y | ||
Advanced Products | 70% | 70% | 68% | 5% | -6% | |
Core Products | 30% | 30% | 32% | 3% | -14% |
Q4 | Q3 | Q4 | |
FY2020 | FY2020 | FY2019 | |
Annual Return on Equity (%)* | 31 | 31 | 34 |
Operating Cash Flow | $345 | $324 | $288 |
Depreciation Expense (including software amortization) | $29 | $26 | $22 |
Capital Expenditures (including software) | $32 | $34 | $28 |
Inventory Days (internal) | 122 | 124 | 107 |
Revenue Turns (%) | 46 | 39 | 35 |
• | The Data Center Group (DCG) delivered 22% revenue growth over fiscal 2019 driven by increased adoption with hyperscale customers across compute, networking and storage workloads. Pipeline for new opportunities in compute continues to show strong growth for video, HPC, database and fintech. Leveraging the Solarflare acquisition, Xilinx shipped Alveo U25 SmartNIC, the first internally developed SmartNIC solution, in the fiscal fourth quarter and is being evaluated by multiple customers. SmartSSD is also gaining traction with Tier-1 and Tier-2 hyperscale customers. Xilinx now has over 10,000 developers trained on Xilinx software tools, including Vitis, nearly 1,000 ISV partners and over 130 applications published for Alveo. |
• | The Wired and Wireless Group (WWG) delivered relatively flat revenues, down 1% vs. fiscal 2019, despite facing a highly challenging business environment related to trade restrictions and an industry slowdown in the ramp of 5G. Xilinx continues to maintain strong engagements with global OEMs across a variety of deployments and applications. Xilinx recently announced a strategic engagement with Samsung on a second generation 5G radio design that includes beamforming technology leveraging the 7 nm Versal platform. Adoption of Xilinx’s RFSoC products also continues to ramp with key wins for DFE applications as well as for O-RAN deployments, as recently announced with Telefónica. |
• | Revenues from Core Markets Group grew 6% year over year, showing the strength and stability of Xilinx’s broad and robust end markets. Aerospace & Defense, Industrial and Test & Measurement (AIT) revenue grew 5% annually, driven by solid Aerospace & Defense performance. Automotive, Broadcast and Consumer (ABC) markets delivered 8% annual growth, with strength seen in all end markets despite headwinds in fiscal fourth quarter from COVID-19 impacts. Zynq adoption remains strong in Automotive markets with broad utilization in ADAS and infotainment applications. |
• | Xilinx is committed to doing its part in fighting the COVID-19 pandemic. Xilinx has been working to support some of the largest medical suppliers in the world, such as Mindray and GE Healthcare, to supply critical technology to test and treat COVID-19, including helping to power ventilators, patient monitors, respirators and patient ICU beds. In addition, earlier this month, Xilinx donated $1.1 million for COVID-19 relief to various global and local health organizations including the World Health Organization (WHO) Solidarity Response Fund, The University of California, San Francisco (UCSF) COVID-19 Response Fund and the Silicon Valley Strong Fund. Xilinx is also matching employee contributions to various relief efforts. |
• | During fiscal year 2020, Xilinx returned approximately $1.58 billion to shareholders. This included $1.21 billion through share repurchases at an average price of $93.73 per share and $372 million through dividends. |
Non-GAAP | |||
GAAP | Adjustments | Non-GAAP | |
Revenues | $660M - $720M | — | $660M - $720M |
Gross Margin | 67% - 69% | ~ 1% (1) | 68% - 70% |
Operating Expenses | $312M - $316M | $5M (2) | $307M - $311M |
Other Expense | ~$13M | — | ~$13M |
Tax Rate | 8%-10% | ~ 1% (3) | 9%-11% |
(1) | Amortization of acquisition-related intangibles |
(2) | M&A related expenses and amortization of acquisition-related intangibles |
(3) | Income tax effect of Non-GAAP adjustments |
XILINX, INC. | |||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
March 28, 2020 | December 28, 2019 | March 30, 2019 | March 28, 2020 | March 30, 2019 | |||||||||||||||
Net revenues | $ | 756,169 | $ | 723,499 | $ | 828,361 | $ | 3,162,666 | $ | 3,059,040 | |||||||||
Cost of revenues: | |||||||||||||||||||
Cost of products sold | 221,037 | 233,324 | 269,457 | 1,025,234 | 955,868 | ||||||||||||||
Amortization of acquisition-related intangibles | 6,697 | 6,697 | — | 22,396 | — | ||||||||||||||
Total cost of revenues | 227,734 | 240,021 | 269,457 | 1,047,630 | 955,868 | ||||||||||||||
Gross margin | 528,435 | 483,478 | 558,904 | 2,115,036 | 2,103,172 | ||||||||||||||
Operating expenses: | |||||||||||||||||||
Research and development | 214,968 | 211,541 | 199,500 | 853,589 | 743,027 | ||||||||||||||
Selling, general and administrative | 103,675 | 109,612 | 107,160 | 432,308 | 398,416 | ||||||||||||||
Amortization of acquisition-related intangibles | 3,401 | 2,919 | 1,866 | 8,889 | 4,930 | ||||||||||||||
Restructuring charges | 28,362 | — | — | 28,362 | — | ||||||||||||||
Total operating expenses | 350,406 | 324,072 | 308,526 | 1,323,148 | 1,146,373 | ||||||||||||||
Operating income | 178,029 | 159,406 | 250,378 | 791,888 | 956,799 | ||||||||||||||
Interest and other income (expense), net | 11,717 | 6,437 | 9,302 | 42,096 | 11,533 | ||||||||||||||
Income before income taxes | 189,746 | 165,843 | 259,680 | 833,984 | 968,332 | ||||||||||||||
Provision for income taxes | 27,489 | 3,831 | 15,040 | 41,263 | 78,582 | ||||||||||||||
Net income | $ | 162,257 | $ | 162,012 | $ | 244,640 | $ | 792,721 | $ | 889,750 | |||||||||
Net income per common share: | |||||||||||||||||||
Basic | $ | 0.66 | $ | 0.65 | $ | 0.96 | $ | 3.15 | $ | 3.52 | |||||||||
Diluted | $ | 0.65 | $ | 0.64 | $ | 0.95 | $ | 3.11 | $ | 3.47 | |||||||||
Cash dividends per common share | $ | 0.37 | $ | 0.37 | $ | 0.36 | $ | 1.48 | $ | 1.44 | |||||||||
Shares used in per share calculations: | |||||||||||||||||||
Basic | 247,166 | 250,546 | 253,855 | 251,732 | 252,762 | ||||||||||||||
Diluted | 249,320 | 252,808 | 258,177 | 254,943 | 256,434 | ||||||||||||||
XILINX, INC. | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(In thousands) | |||||||
March 28, 2020 | March 30, 2019* | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash, cash equivalents and short-term investments | $ | 2,267,216 | $ | 3,175,684 | |||
Accounts receivable, net | 273,028 | 335,165 | |||||
Inventories | 304,340 | 315,358 | |||||
Other current assets | 64,557 | 65,771 | |||||
Total current assets | 2,909,141 | 3,891,978 | |||||
Net property, plant and equipment | 372,574 | 328,929 | |||||
Long-term investments | — | 53,433 | |||||
Other assets | 1,411,619 | 877,008 | |||||
Total assets | $ | 4,693,334 | $ | 5,151,348 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 586,421 | $ | 475,036 | |||
Current portion of long-term debt | 499,260 | — | |||||
Total current liabilities | 1,085,681 | 475,036 | |||||
Long-term debt | 747,110 | 1,234,807 | |||||
Other long-term liabilities | 545,494 | 579,996 | |||||
Stockholders' equity | 2,315,049 | 2,861,509 | |||||
Total Liabilities and Stockholders' Equity | $ | 4,693,334 | $ | 5,151,348 | |||
* Fiscal 2019 balances are derived from audited financial statements. | |||||||
XILINX, INC. | |||||||||||||||||||
SUPPLEMENTAL FINANCIAL INFORMATION | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
(In thousands) | |||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
March 28, 2020 | December 28, 2019 | March 30, 2019 | March 28, 2020 | March 30, 2019 | |||||||||||||||
SELECTED CASH FLOW INFORMATION: | |||||||||||||||||||
Depreciation and amortization of software | $ | 28,603 | $ | 26,331 | $ | 21,607 | $ | 97,485 | $ | 70,704 | |||||||||
Amortization - others | 16,282 | 17,257 | 10,195 | 60,048 | 33,656 | ||||||||||||||
Stock-based compensation | 43,991 | 50,157 | 38,748 | 186,723 | 147,942 | ||||||||||||||
Net cash provided by operating activities | 345,351 | 323,575 | 288,007 | 1,190,836 | 1,091,215 | ||||||||||||||
Purchases of property, plant, equipment and software | 32,309 | 34,138 | 28,242 | 129,289 | 89,045 | ||||||||||||||
Payment of dividends to stockholders | 91,417 | 92,931 | 91,384 | 371,793 | 364,244 | ||||||||||||||
Repayment of debt | — | — | 500,000 | — | 500,000 | ||||||||||||||
Repurchases of common stock | 470,733 | 260,939 | — | 1,208,917 | 161,551 | ||||||||||||||
Taxes paid related to net share settlement of restricted stock units, net of proceeds from issuance of common stock | (28,082 | ) | 3,565 | (23,927 | ) | 27,459 | (334 | ) | |||||||||||
STOCK-BASED COMPENSATION INCLUDED IN: | |||||||||||||||||||
Cost of revenues | $ | 1,649 | $ | 2,961 | $ | 2,170 | $ | 10,035 | $ | 8,820 | |||||||||
Research and development | 28,857 | 31,543 | 23,099 | 114,976 | 86,428 | ||||||||||||||
Selling, general and administrative | 13,313 | 15,653 | 13,479 | 61,540 | 52,694 | ||||||||||||||
Restructuring charges | 172 | — | — | 172 | — |
XILINX, INC. | |||||||||||||||||||
RECONCILIATIONS OF GAAP ACTUALS TO NON-GAAP ACTUALS | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
March 28, 2020 | December 28, 2019 | March 30, 2019 | March 28, 2020 | March 30, 2019 | |||||||||||||||
GAAP gross margin | $ | 528,435 | $ | 483,478 | $ | 558,904 | $ | 2,115,036 | $ | 2,103,172 | |||||||||
Inventory valuation adjustment | — | 2,114 | — | 3,855 | — | ||||||||||||||
Amortization of acquisition-related intangibles | 6,697 | 6,697 | — | 22,396 | — | ||||||||||||||
Non-GAAP gross margin | $ | 535,132 | $ | 492,289 | $ | 558,904 | $ | 2,141,287 | $ | 2,103,172 | |||||||||
GAAP operating income | $ | 178,029 | $ | 159,406 | $ | 250,378 | $ | 791,888 | $ | 956,799 | |||||||||
Inventory valuation adjustment | — | 2,114 | — | 3,855 | — | ||||||||||||||
Amortization of acquisition-related intangibles | 10,098 | 9,616 | 1,866 | 31,285 | 4,930 | ||||||||||||||
Acquisition-related costs | 1,798 | 3,042 | 6,560 | 14,190 | 13,469 | ||||||||||||||
Restructuring charges | 28,362 | — | — | 28,362 | — | ||||||||||||||
Non-GAAP operating income | $ | 218,287 | $ | 174,178 | $ | 258,804 | $ | 869,580 | $ | 975,198 | |||||||||
GAAP net income | $ | 162,257 | $ | 162,012 | $ | 244,640 | $ | 792,721 | $ | 889,750 | |||||||||
Inventory valuation adjustment | — | 2,114 | — | 3,855 | — | ||||||||||||||
Amortization of acquisition-related intangibles | 10,098 | 9,616 | 1,866 | 31,285 | 4,930 | ||||||||||||||
Acquisition-related costs | 1,798 | 3,042 | 6,560 | 14,190 | 13,469 | ||||||||||||||
Restructuring charges | 28,362 | — | — | 28,362 | — | ||||||||||||||
Gain on investment related to acquisition | — | — | — | — | (6,503 | ) | |||||||||||||
Income tax effect of changes in applicable U.S. tax laws | — | — | (8,508 | ) | — | (6,100 | ) | ||||||||||||
Income tax effect of intercompany integration transactions | — | (3,697 | ) | — | (1,838 | ) | — | ||||||||||||
Income tax effect of non-GAAP adjustments | (9,137 | ) | (2,316 | ) | (2,330 | ) | (15,271 | ) | (3,050 | ) | |||||||||
Non-GAAP net income | $ | 193,378 | $ | 170,771 | $ | 242,228 | $ | 853,304 | $ | 892,496 | |||||||||
GAAP diluted EPS | $ | 0.65 | $ | 0.64 | $ | 0.95 | $ | 3.11 | $ | 3.47 | |||||||||
Inventory valuation adjustment | — | 0.01 | — | 0.02 | — | ||||||||||||||
Amortization of acquisition-related intangibles | 0.04 | 0.04 | 0.01 | 0.11 | 0.02 | ||||||||||||||
Acquisition-related costs | 0.01 | 0.01 | 0.02 | 0.06 | 0.05 | ||||||||||||||
Restructuring charges | 0.12 | — | — | 0.12 | — | ||||||||||||||
Gain on investment related to acquisition | — | — | — | — | (0.03 | ) | |||||||||||||
Income tax effect of changes in applicable U.S. tax laws | — | — | (0.03 | ) | — | (0.02 | ) | ||||||||||||
Income tax effect of intercompany integration transactions | — | (0.01 | ) | — | (0.01 | ) | — | ||||||||||||
Income tax effect of non-GAAP adjustments | (0.04 | ) | (0.01 | ) | (0.01 | ) | (0.06 | ) | (0.01 | ) | |||||||||
Non-GAAP diluted EPS | $ | 0.78 | $ | 0.68 | $ | 0.94 | $ | 3.35 | $ | 3.48 |