Xilinx Announces Q2 Fiscal 2016 Results; Strong Profitability And New Product Growth

SAN JOSE, Calif., Oct. 14, 2015 /PRNewswire/ -- Xilinx, Inc. (Nasdaq: XLNX) today announced second quarter fiscal 2016 sales of $528 million, down 4% from the prior quarter and down 13% from the same quarter of the prior fiscal year. Second quarter fiscal 2016 gross margin was 70% and net income was $127 million, or $0.48 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 November 24, 2015 to all stockholders of record at the close of business on November 5, 2015.

Additional second quarter comparisons are represented in the charts below:

"The quarter was characterized by solid profitability and strong new product growth. Sales performed as expected with increases from wired and wireless communications offsetting expected declines from defense," said Moshe Gavrielov, Xilinx President and Chief Executive Officer.  "From a product perspective, we experienced a recovery in our 7 series products driven by exceptional strength from our Zynq®-7000 family and better-than-expected sales from our 20-nm UltraScale™ family.  In addition, I am pleased with our continued technology leadership which has allowed us to ship our 16-nm UltraScale+™ family sooner than anticipated."                                                      

Highlights – September Quarter Fiscal 2016

• Xilinx shipped the industry's first 16nm multiprocessor SoC (MPSoC) a quarter ahead of schedule. The early release of the Zynq UltraScale+ MPSoC enables Xilinx customers to begin designing and delivering MPSoC-based systems today. Built using TSMC's 16FF+ process, this new product family enables the development of next-generation embedded vision, ADAS, I-IoT and communications systems by providing 5X system-level performance/watt and any-to-any connectivity with the security and safety required for next-generation systems.
• Xilinx and Qualcomm Incorporated through its subsidiary, Qualcomm Technologies, Inc., announced a strategic technical collaboration to deliver industry-leading heterogeneous computing solutions with new levels of efficiency and performance through FPGA-enabled dynamic workload acceleration on Qualcomm Technologies' server platforms. The strategic collaboration is designed to span multiple product generations, ranging from card level to highly-integrated solutions. Target applications include compute acceleration, big data analytics, machine learning, storage and CloudRAN.
• Xilinx continued to demonstrate a strong commitment to returning value to stockholders. In the September quarter, the Company repurchased $100 million of stock and paid $80 million in dividends, representing over 130% of operating cash flow generated during the quarter.

Business Outlook – December Quarter Fiscal 2016

• Sales are expected to be up 3% to 7% sequentially, including the impact of the extra fiscal week in the quarter.
• Gross margin is expected to be approximately 69%.
• Operating expenses are expected to be approximately $230 million including $2 million of amortization of acquisition-related intangibles. This includes the impact of the extra fiscal week in the quarter.
• Other income and expenses are expected to be a net expense of approximately $7 million.
• Fully diluted share count is expected to be approximately 265 million.
• December quarter tax rate is expected to be approximately 12%.

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 31752292. 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 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.

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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.

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Investor Relations Contact:
Lori Owen
Xilinx, Inc.
(408) 879-6911
[email protected]

SOURCE Xilinx, Inc.

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