Xilinx, Inc. (Nasdaq: XLNX), the leader in adaptive and
intelligent computing, today announced revenues of $3.16 billion
for fiscal year 2020, up 3% from the prior fiscal year. Revenues
were $756 million for the fourth quarter of fiscal year 2020, up 5%
from the prior quarter and down 9% year over year.
GAAP net income for fiscal year 2020 was $793 million, or $3.11
per diluted share. Non-GAAP net income for fiscal year 2020 was
$853 million, or $3.35 per diluted share. GAAP net income for the
March quarter was $162 million, or $0.65 per diluted share.
Non-GAAP net income for the March quarter was $193 million, or
$0.78 per diluted share.
The Xilinx Board of Directors declared a quarterly cash dividend
of $0.38 per outstanding share of common stock payable on June 3,
2020 to all stockholders of record at the close of business on May
13, 2020. The declared dividend represents a 2.7% increase over the
prior quarter’s dividend and reflects Xilinx’s commitment to
growing the dividend.
Additional fourth quarter of fiscal year 2020 comparisons are
provided in the charts below.
Q4 2020 Financial Highlights
(In millions, except EPS)
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
“Despite our fiscal 2020 being uniquely challenging,
particularly related to the US trade-related restrictions with
Huawei as well as some COVID-19 impact during our Q4, we were able
to deliver another record year with revenue of $3.16 billion, a 3%
increase over fiscal 2019,” said Xilinx president and CEO Victor
Peng. “The strength and diversity of our business were reflected in
the results of our fiscal fourth quarter with strong sequential
growth in both revenue and profitability.”
“There remains a high degree of uncertainty in the global
business environment given the impact of COVID-19 which creates
challenges with visibility beyond the near term. Therefore, we
believe it is prudent to provide only quarterly guidance at this
time. We will continue to closely monitor business conditions.
Lastly, I want to thank our employees for their continued focus and
commitment in these challenging times.”
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%
Products are classified as follows:
Advanced Products: Alveo and related products,
UltraScale+, UltraScale and 7-series products.
Core Products: Virtex-6, Spartan-6, Virtex‐5,
CoolRunner‐II, Virtex-4, Virtex-II, Spartan-3, Spartan-2, XC9500
products, configuration solutions, software &
support/services.
Key Statistics:
(Dollars in Millions)
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
*Return on equity calculation: Annualized year to date GAAP net
income/average stockholders’ equity
Product and Financial Highlights - Fiscal Year 2020
- 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.
Business Outlook - Fiscal First Quarter 2021
The following guidance is based on current expectations and
estimates, and as indicated, is presented on a GAAP and non-GAAP
basis. This guidance is forward-looking and actual results may
differ materially, as a result of, among other things, the
important factors discussed and referred to at the end of this
release.
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%
Notes regarding Non-GAAP Adjustments:
(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
Conference Call
A conference call will be held today at 2:00 p.m. Pacific Time
to discuss the year-end and March quarter financial results and
management's outlook for the June quarter. The webcast and
subsequent replay will be available in the investor relations
section of the Company's web site at 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 8889854.
The telephonic replay will be available for two weeks following the
live call.
Non-GAAP Financial Information
Fiscal year 2020 and fourth quarter 2020 results and business
outlook for the June quarter include financial measures which are
not determined in accordance with the United States generally
accepted accounting principles (GAAP), as indicated. Non-GAAP
measures should not be considered as a substitute for, or superior
to, financial measures determined in accordance with GAAP. The
presentation of non-GAAP financial measures has been reconciled, in
each case, to the most directly-comparable GAAP measure, as
indicated in the accompanying tables. The Company’s calculation of
such non-GAAP measures may not be comparable to similarly-titled
measures used by other companies.
Management uses the non-GAAP financial measures disclosed herein
to evaluate the Company's financial results from continuing
operations (excluding the impact of acquisitions) and compare to
operating performance in past periods. Similarly, Management
believes presentation of these non-GAAP measures is useful to
investors because it enables investors and analysts to evaluate
operating expenses of the Company's core business, excluding the
impact of non-core business expenses such as acquisition-related
amortization and non-recurring items.
M&A related expenses: These expenses mainly consist of legal
and consulting fees associated with acquisition activities. The
Company believes these costs do not reflect its current operating
performance. Consequently, the non-GAAP adjustments exclude these
charges to facilitate an evaluation of the Company’s current
operating performance and comparisons to its past operating
performance.
Amortization of acquisition-related intangibles: Amortization of
acquisition-related intangible assets consists of amortization of
intangible assets such as developed technology acquired in
connection with business combinations. The non-GAAP adjustments
exclude these charges to facilitate an evaluation of the Company’s
current operating performance and comparisons to its past operating
performance.
Inventory valuation adjustment: Business combination accounting
principles require the Company to measure acquired inventory at
fair value. The fair value of inventory reflects the acquired
company’s cost of manufacturing plus a portion of the expected
profit margin. The non-GAAP adjustment to the Company’s cost of
revenues excludes the expected profit margin component that is
recorded under business combination accounting principles
associated with the Company’s acquisitions. The Company believes
the adjustment is useful to investors as an additional means to
reflect cost of revenues and gross margin trends of its
business.
Gain on investment related to acquisition: The Company excludes
the accounting gain resulting from revaluation of its prior
minority investment in DeePhi Tech. The Company believes excluding
this gain will facilitate a comparable evaluation of its current
operating performance to its past operating performance.
Income taxes: The Company excludes the income tax effects of
non-GAAP adjustments reflected in Operating expenses and Other
income, as detailed above. It also excludes U.S. tax reform related
items and other significant tax effects of post-acquisition tax
integration transactions. The Company believes excluding U.S. tax
reform and post-acquisition tax integration items will facilitate a
comparable evaluation of its current performance to its past
performance. The fourth quarter of fiscal 2020 outlook does not
reflect other tax related items which the Company is not able to
predict without unreasonable efforts due to their inherent
uncertainty.
Severance-related expenses: These expenses primarily consist of
severance-related pay and benefits in connection with the targeted
reduction in force. The Company believes excluding these charges
will facilitate a comparable evaluation of its current operating
performance to its past and future performance.
Forward-Looking Statements
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 June quarter. 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,
among others, the impact of the COVID-19 pandemic and related
containment measures (which, in addition to presenting its own
risks and uncertainties, may also heighten the other risks and
uncertainties faced by our business and decrease our visibility
into all aspects of our business), customer acceptance of our new
products, current global economic conditions, our dependence on
certain customers, trade and export restrictions, the condition and
performance 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, our ability to generate cost and operating expense
savings in an efficient and timely manner, our ability to realize
the goals contemplated by our acquisitions and strategic
investments, the impact of current and future legislative and
regulatory changes, the impact of new accounting pronouncements and
tax laws, including the U.S. Tax Cuts and Jobs Act, and
interpretations thereof, and other risk factors described in our
most recent Forms 10-Q and 10-K.
About Xilinx
Xilinx develops highly flexible and adaptive processing
platforms that enable rapid innovation across a variety of
technologies - from the endpoint to the edge to the cloud. Xilinx
is the inventor of the FPGA, hardware programmable SoCs and the
ACAP, designed to deliver the most dynamic processor technology in
the industry and enable the adaptable, intelligent and connected
world of the future. For more information, visit
www.xilinx.com.
Xilinx, the Xilinx logo, Alveo, Artix, Kintex, Spartan, Versal,
Vitis, Virtex, Vivado, Zynq, 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.
XLNX-F
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
Source: Xilinx Newsroom Category: Corporate Announcements
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200422005911/en/
Investor Relations Contact: Suresh Bhaskaran Xilinx, Inc.
(408) 879-4784 ir@xilinx.com
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