Xilinx Announces Q3 Fiscal 2016 Results; Strong New Product Growth Drives 7% Sequential Sales Increase

Jan 20, 2016, 16:20 ET from Xilinx, Inc.

SAN JOSE, Calif., Jan. 20, 2016 /PRNewswire/ -- Xilinx, Inc. (Nasdaq: XLNX) today announced third quarter fiscal 2016 sales of $566 million, up 7% from the prior quarter and down 5% from the same quarter of the prior fiscal year. Third quarter fiscal 2016 net income was $131 million, or $0.49 per diluted share.

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The Xilinx Board of Directors announced a quarterly cash dividend of $0.31 per outstanding share of common stock, payable on March 16, 2016 to all stockholders of record at the close of business on March 2, 2016.

Additional third quarter comparisons are set forth in the charts below:

GAAP Results (In millions, except EPS)

Growth Rates

Q3

FY 2016

Q2

FY 2016

Q3

FY 2015

 

Q-T-Q

 

Y-T-Y

Net revenues

$566

$528

$594

7%

-5%

Operating income

$160

$153

$190

5%

-16%

Net income

$131

$127

$168

3%

-22%

Diluted earnings per share

$0.49

$0.48

$0.62

2%

-21%

"New product sales were exceptionally strong during the quarter increasing 18% sequentially, enabling Xilinx to reach the high-end of our sales guidance.  Both our 7-series and UltraScale families reached new sales records during the quarter, driven by a very broad base of end markets," said Moshe Gavrielov, Xilinx President and Chief Executive Officer.  "During the quarter we continued to execute on the delivery of our next-generation UltraScale+ family by launching public access development support for these families. This closely follows the first shipment of the Zynq UltraScale+ MPSoc last quarter, which was ahead of schedule.  The capabilities of the UltraScale+ product family, coupled with its first-mover advantage, make it uniquely suited for applications ranging from next generation ADAS and Industrial Internet-of-Things to 5G wireless." 

Net Revenues by Geography:

Percentages 

Growth Rates

Q3

FY 2016

Q2

FY 2016

Q3

FY 2015

 

Q-T-Q

 

Y-T-Y

North America

32%

30%

34%

16%

-10%

Asia Pacific

41%

40%

39%

9%

-1%

Europe

17%

20%

17%

-6%

-5%

Japan

10%

10%

10%

2%

0%

Net Revenues by End Market:

Percentages  

Growth Rates

Q3

FY 2016

Q2

FY 2016

Q3

FY 2015

 

Q-T-Q

 

Y-T-Y

Communications & Data Center

43%

41%

43%

12%

-3%

Industrial, Aerospace & Defense

41%

41%

43%

7%

-10%

Broadcast, Consumer & Automotive

16%

18%

14%

-4%

7%

Net Revenues by Product:

 Percentages

Growth Rates

Q3

FY 2016

Q2

FY 2016

Q3

FY 2015

 

Q-T-Q

 

Y-T-Y

New

47%

43%

36%

18%

28%

Mainstream

23%

25%

26%

-3%

-17%

Base

26%

28%

35%

-1%

-30%

Support

4%

4%

3%

17%

11%

Products are classified as follows:

New products: Zynq UltraScale+, Virtex and Kintex UltraScale, Virtex7, Kintex7, Artix-7, Zynq-7000, Spartan6 products

Mainstream products: Virtex-6, Virtex5, and CoolRunnerII products

Base products: Virtex4, VirtexII, VirtexE, Spartan-3 Spartan-II, CoolRunner and XC9500 products

Support products: Configuration solutions, Software & Support/Services

 

Key Statistics:

(Dollars in millions)

Q3

FY 2016

Q2

FY 2016

Q3

FY 2015

Annual Return on Equity (%)*

21

21

25

Operating Cash Flow

$290

$134

$291

Depreciation Expense

$13

$12

$14

Capital Expenditures

$6

$5

$6

Combined Inventory Days

119

137

134

Revenue Turns (%)

49

51

44

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

Highlights – December Quarter Fiscal 2016

  • After shipping the industry's first 16nm multiprocessor SoC a quarter ahead of schedule, Xilinx announced public access support for the 16nm UltraScale+ families, including the Vivado Design Suite HLx Editions, embedded software development tools, Xilinx Power Estimator and technical documentation for Zynq UltraScale+ MPSoC and Kintex UltraScale+ devices. This announcement marked the industry's first publicly available tools for 16nm devices, enabling broad market adoption.
  • Xilinx and IBM announced a strategic collaboration to accelerate data center applications. This collaboration is expected to enable higher performance and energy-efficient data center applications through Xilinx FPGA-enabled workload acceleration on IBM POWER-based systems. This follows the Company's announcement last quarter with Qualcomm Technologies, Inc. Target applications such as machine learning, network functions virtualization (NFV), genomics, high performance computing and big data analytics.
  • Xilinx announced the Spartan-7 FPGA family that will deliver I/O intensive devices for cost-sensitive applications. The new family will address connectivity requirements across a breadth of markets including automotive, consumer, industrial IoT, data center, wired and wireless communications, and portable medical solutions.

Business Outlook – March Quarter Fiscal 2016

  • Sales are expected to be approximately flat sequentially.
  • Gross margin is expected to be 68-69%.
  • Operating expenses are expected to be approximately $220 million including $1 million of amortization of acquisition-related intangibles.
  • Other income and expenses are expected to be a net expense of approximately $6 million.
  • Fully diluted share count is expected to be approximately 267 million.
  • March quarter tax rate is expected to be approximately 13-14%.

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 98854132. 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 March quarter of fiscal 2016.  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 develops All Programmable technologies and devices, beyond hardware to software, digital to analog, and single to multiple die in 3D ICs.  These industry leading devices are coupled with a next-generation design environment and IP to serve a broad range of customer needs, from programmable logic to programmable systems integration.  For more information, visit www.xilinx.com.

#1605F

Xilinx, the Xilinx logo, Artix, CoolRunner, Kintex, Spartan, Virtex, Zynq, and Vivado, are trademarks of Xilinx in the United States and other countries. All other trademarks are the property of their respective owners.

XLNX-F

Investor Relations Contact: Lori Owen Xilinx, Inc. (408) 879-6911 ir@xilinx.com

XILINX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In thousands, except per share amounts)

Three Months Ended

Nine Months Ended

January 2, 2016

September 26, 2015

December 27, 2014

January 2, 2016

December 27, 2014

Net revenues

$             566,235

$                    527,572

$                   593,549

$          1,642,815

$                1,810,445

Cost of revenues

178,514

157,640

179,638

496,108

538,445

Gross margin

387,721

369,932

413,911

1,146,707

1,272,000

Operating expenses:

Research and development

141,378

130,220

133,455

398,246

393,803

Selling, general and administrative

84,470

84,761

88,076

251,374

274,472

Amortization of acquisition-related intangibles

1,769

1,769

2,371

5,306

7,167

Total operating expenses

227,617

216,750

223,902

654,926

675,442

Operating income

160,104

153,182

190,009

491,781

596,558

Interest and other expense, net

5,053

9,213

4,007

24,793

15,960

Income before income taxes

155,051

143,969

186,002

466,988

580,598

Provision for income taxes

24,232

16,671

17,536

61,155

67,005

Net income

$             130,819

$                    127,298

$                   168,466

$             405,833

$                   513,593

Net income per common share:

Basic

$                   0.51

$                          0.49

$                         0.64

$                   1.58

$                         1.93

Diluted

$                   0.49

$                          0.48

$                         0.62

$                   1.51

$                         1.85

Cash dividends per common share

$                   0.31

$                          0.31

$                         0.29

$                   0.93

$                         0.87

Shares used in per share calculations:

Basic

256,450

257,640

262,881

257,491

266,299

Diluted

269,611

266,046

273,795

268,716

277,709

 

XILINX, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

January 2, 2016

March 28, 2015*

(unaudited)

ASSETS

Current assets:

Cash, cash equivalents and short-term investments

$        3,396,536

$         3,303,061

Accounts receivable, net

203,176

246,615

Inventories

195,969

231,328

Deferred tax assets and other current assets

212,613

154,047

Total current assets

4,008,294

3,935,051

Net property, plant and equipment

280,241

301,038

Long-term investments

224,614

266,902

Other assets

385,008

395,074

Total Assets

$        4,898,157

$         4,898,065

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable and accrued liabilities

$           301,550

$            321,082

Deferred income on shipments to distributors

47,016

66,071

Current portion of long-term debt

584,343

576,053

Total current liabilities

932,909

963,206

Convertible debentures

995,584

994,839

Deferred tax liabilities

347,995

289,868

Other long-term liabilities

16,308

14,611

Temporary equity

15,657

23,947

Stockholders' equity

2,589,704

2,611,594

Total Liabilities and Stockholders' Equity

$        4,898,157

$         4,898,065

* Derived from audited financial statements

 

XILINX, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

(Unaudited)

(In thousands)

Three Months Ended

Nine Months Ended

January 2, 2016

September 26, 2015

December 27, 2014

January 2, 2016

December 27, 2014

SELECTED CASH FLOW INFORMATION:

Depreciation

$               13,043

$                      12,472

$                     13,711

$               38,768

$                     40,857

Amortization

4,441

4,354

5,048

13,149

15,556

Stock-based compensation

31,463

26,681

29,054

84,464

79,900

Net cash provided by operating activities

290,285

133,730

290,742

607,168

624,741

Purchases of property, plant and equipment

6,118

5,362

6,139

19,169

23,682

Payment of dividends to stockholders

79,709

80,196

76,172

240,111

230,550

Repurchases of common stock

100,000

99,998

174,997

299,998

476,012

Net proceeds from issuance of common stock

to employees and excess tax benefit

8,768

2,995

16,700

34,046

36,007

STOCK-BASED COMPENSATION INCLUDED IN:

Cost of revenues

$                 2,145

$                        1,763

$                       2,339

$                 5,872

$                       6,408

Research and development

16,935

12,934

14,909

44,561

40,245

Selling, general and administrative

12,383

11,984

11,806

34,031

33,247

 

SOURCE Xilinx, Inc.



RELATED LINKS

http://www.xilinx.com