- Revenues of $767 million, exceeding the mid-point of guidance
and up 5% sequentially
- Record Data Center Group (DCG) revenue, with 23% sequential and
30% annual growth
- Automotive, Broadcast & Consumer (ABC) revenue increased
36% sequentially, driven by Automotive market improvement
- Free cash flow of $232 million, or 30% of revenue
- Returned $93 million to stockholders through dividends
Xilinx, Inc. (Nasdaq: XLNX), the leader in adaptive computing,
today announced revenues of $767 million for the second quarter of
fiscal year 2021.
GAAP net income for the quarter was $194 million, or $0.79 per
diluted share. Non-GAAP net income was $203 million, or $0.82 per
diluted share.
The Xilinx Board of Directors declared a quarterly cash dividend
of $0.38 per outstanding share of common stock payable on December
2, 2020 to all stockholders of record at the close of business on
November 11, 2020.
Additional second quarter of fiscal year 2021 comparisons are
provided in the charts below.
Q2 Fiscal 2021 Financial
Highlights
(In millions, except EPS)
GAAP
Q2
Q1
Q2
FY2021
FY2021
FY2020
Q-T-Q
Y-T-Y
Net revenues*
$767
$727
$833
5%
-8%
Operating income
$205
$176
$204
17%
1%
Net income
$194
$94
$227
107%
-15%
Diluted earnings per share
$0.79
$0.38
$0.89
108%
-11%
Non-GAAP
Q2
Q1
Q2
FY2021
FY2021
FY2020
Q-T-Q
Y-T-Y
Net revenues*
$767
$727
$833
5%
-8%
Operating income
$216
$187
$217
16%
0%
Net income
$203
$160
$240
27%
-15%
Diluted earnings per share
$0.82
$0.65
$0.94
26%
-13%
* No adjustment between GAAP and
Non-GAAP
“We are pleased with our fiscal second quarter performance,
which came in above the mid-point of guidance,” said Xilinx
president and CEO Victor Peng. “Our strong results were driven by
another record quarter in our Data Center Group and Aerospace &
Defense businesses, as well as improvement in our Automotive and
Broadcast end markets. In addition, RFSoC sales ramped meaningfully
with a tier-1 wireless OEM customer for 5G radio deployment in
North America.
“Our strategic transformation to an adaptive platform company
continues with healthy design win momentum during the quarter.
Notable customer wins included a marquee SmartNIC design win with a
U.S. tier-1 hyperscaler, as well as Zynq MPSoC design wins with
Subaru and Continental. We also remain on track with our Versal
program ramp with a leading wireless OEM later this year.”
“Xilinx business continued to strengthen in fiscal Q2, buoyed by
the economic recovery and increasing demand across our broad set of
end markets,” said Xilinx CFO Brice Hill. “This drove better than
expected sequential revenue growth of 5% and GAAP operating income
growth of 17%, resulting in $232 million of free cash flow and $93
million in capital return to stockholders with our quarterly
dividend. Our financial position is strong and we remain confident
as we prepare to expand the Zynq and Versal product lines and
capture additional growth opportunities.”
Net Revenues by Geography:
Percentages
Growth Rates
Q2
Q1
Q2
FY2021
FY2021
FY2020
Q-T-Q
Y-T-Y
North America
29%
26%
28%
20%
-4%
Asia Pacific
48%
54%
51%
-7%
-13%
Europe
18%
13%
15%
47%
10%
Japan
5%
7%
6%
-25%
-23%
Net Revenues by End Market:
Percentages
Growth Rates
Q2
Q1
Q2
FY2021
FY2021
FY2020
Q-T-Q
Y-T-Y
A&D, Industrial and TME
44%
45%
36%
3%
11%
Automotive, Broadcast and
Consumer
16%
12%
16%
36%
-8%
Wired and Wireless Group
26%
32%
38%
-13%
-36%
Data Center Group
14%
12%
10%
23%
30%
Channel
0%
-1%
0%
NM
NM
Net Revenues by Product:
Percentages
Growth Rates
Q2
Q1
Q2
FY2021
FY2021
FY2020
Q-T-Q
Y-T-Y
Advanced Products
70%
68%
74%
8%
-13%
Core Products
30%
32%
26%
-1%
6%
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)
Q2
Q1
Q2
FY2021
FY2021
FY2020
Annual Return on Equity (%) (1)
24
26
37
Operating Cash Flow
$248
$245
$224
Depreciation Expense (including software
amortization)
$30
$32
$22
Capital Expenditures (including
software)
$15
$15
$34
Free Cash Flow (2)
$232
$230
$190
Inventory Days (internal)
114
114
104
Revenue Turns (%)
38
31
37
(1)
Return on Equity = Trailing twelve months
GAAP Net Income / average Stockholders’ Equity
(2)
Free Cash Flow = Operating Cash Flow -
Capital Expenditures (including software)
Product and Financial Highlights - Fiscal Second Quarter
2021
- Advanced Products were 70% of total revenue, an 8% increase
Q-T-Q and 13% decrease Y-T-Y. Zynq-based revenue grew 28% Q-T-Q and
declined 20% Y-T-Y, and represented 22% of total revenue.
Sequential strength was driven by improvement in the Automotive end
market and 5G ramp in the Wireless end market.
- Subaru selected Xilinx to power the new version of its
vision-based advanced driver-assistance system (ADAS), EyeSight,
which will provide advanced features including adaptive cruise
control, lane-keep assist, and pre-collision braking.
- Xilinx announced the T1 Telco Accelerator Card for O-RAN
distributed units (O-DUs) and virtual baseband units (vBBUs) in 5G
networks, which enables the O-DU to deliver greater 5G performance
and services while reducing overall system power consumption and
cost.
- Xilinx and Continental announced that Xilinx will power
Continental’s new Advanced Radar Sensor (ARS) 540 with the Zynq®
UltraScale+™ MPSoC platform, creating the automotive industry’s
first production-ready 4D imaging radar.
- Xilinx announced a collaboration with Spline.AI and Amazon Web
Services (AWS) that developed a X-ray classification deep-learning
model and reference design kit that demonstrates high accuracy and
low latency utilizing Vitis AI. This enables medical equipment
makers and healthcare providers to rapidly deploy trained models
for clinical and radiological inference applications, including for
pneumonia and COVID-19 detection in mobile, portable and
point-of-care devices.
Business Outlook - Fiscal Third 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 incorporates a 14-week
quarter; actual results may differ materially as a result of, among
other things, the important factors discussed and referred to at
the end of this press release.
Non-GAAP
GAAP
Adjustments
Non-GAAP
Revenues
$750M - $800M
—
$750M - $800M
Gross Margin
67.5% - 70.5%
~1% (1)
68.5% - 71.5%
Operating Expenses
$338M - $352M
~$(5M) (2)
$333M - $347M
Other Expense
$12M - $16M
—
$12M - $16M
Tax Rate
5% - 8%
~1% (3)
6% - 9%
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 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 investor.xilinx.com. A telephonic replay of
the call may be accessed later in the day by calling (800) 585-8367
and referencing confirmation code 7964802. The telephonic replay
will be available for two weeks following the live call.
Non-GAAP Financial Information
Fiscal second quarter 2021 results and business outlook for the
December 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, other than free cash flow, 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, as described below:
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.
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 other significant tax
effects of post-acquisition tax integration transactions. The
Company believes excluding post-acquisition tax integration items
will facilitate a comparable evaluation of its current performance
to its past performance. The third quarter of fiscal 2021 outlook
does not reflect other tax related items which the Company is not
able to predict without unreasonable efforts due to their inherent
uncertainty.
In addition, free cash flow, which is cash flow from operations
adjusted to exclude additions to software, property, plant, and
equipment, is used by management when assessing the Company’s
sources of liquidity, capital resources, and quality of earnings.
The Company believes that this non-GAAP financial measure is
helpful in understanding the Company’s capital requirements and
provides an additional means to evaluate the cash flow trends of
the Company’s business.
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 December 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 ongoing COVID-19 pandemic and
related mitigation 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, changing 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, our reliance on third parties
(including distributors), 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, Inc. develops highly flexible and adaptive computing
platforms that enable rapid innovation across a variety of
technologies - from the cloud, to the edge, to the endpoint. Xilinx
is the inventor of the FPGA and Adaptive SoCs (including our
Adaptive Compute Acceleration Platform, or ACAP), designed to
deliver the most dynamic computing technology in the industry. We
collaborate with our customers to create scalable, differentiated
and intelligent solutions that enable the adaptable, intelligent
and connected world of the future. For more information, visit
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/or 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 Six Months Ended September
26,2020 June 27,2020 September 28,2019
September 26,2020 September 28,2019 Net revenues
$
766,535
$
726,673
$
833,366
$
1,493,208
$
1,682,998
Cost of revenues: Cost of products sold
218,120
226,103
287,372
444,223
570,872
Amortization of acquisition-related intangibles
6,696
6,697
5,734
13,393
9,003
Total cost of revenues
224,816
232,800
293,106
457,616
579,875
Gross margin
541,719
493,873
540,260
1,035,592
1,103,123
Operating expenses: Research and development
219,647
210,113
222,979
429,760
427,079
Selling, general and administrative
113,793
105,383
111,596
219,176
219,021
Amortization of acquisition-related intangibles
2,862
2,862
2,169
5,724
2,569
Total operating expenses
336,302
318,358
336,744
654,660
648,669
Operating income
205,417
175,515
203,516
380,932
454,454
Interest and other income (expense), net
(10,771
)
(12,153
)
12,329
(22,924
)
23,941
Income before income taxes
194,646
163,362
215,845
358,008
478,395
Provision (benefit) for income taxes
830
69,526
(11,148
)
70,356
9,943
Net income
$
193,816
$
93,836
$
226,993
$
287,652
$
468,452
Net income per common share: Basic
$
0.79
$
0.39
$
0.90
$
1.18
$
1.85
Diluted
$
0.79
$
0.38
$
0.89
$
1.17
$
1.83
Cash dividends per common share
$
0.38
$
0.38
$
0.37
$
0.76
$
0.74
Shares used in per share calculations: Basic
244,837
243,180
252,399
243,602
252,728
Diluted
246,763
245,543
255,269
245,847
256,509
XILINX, INC. CONDENSED CONSOLIDATED BALANCE
SHEETS (In thousands) September 26,2020 March
28,2020* (unaudited) ASSETS Current
assets: Cash, cash equivalents and short-term investments
$
3,095,936
$
2,267,216
Accounts receivable, net
362,497
273,028
Inventories
282,048
304,340
Other current assets
73,034
64,557
Total current assets
3,813,515
2,909,141
Net property, plant and equipment
357,480
372,574
Other assets
1,404,936
1,411,619
Total Assets
$
5,575,931
$
4,693,334
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: Accounts payable and accrued
liabilities
$
590,909
$
586,421
Current portion of long-term debt
499,662
499,260
Total current liabilities
1,090,571
1,085,681
Long-term debt
1,492,066
747,110
Other long-term liabilities
540,457
545,494
Stockholders' equity
2,452,837
2,315,049
Total Liabilities and Stockholders' Equity
$
5,575,931
$
4,693,334
* Fiscal 2020 balances are derived from audited financial
statements.
XILINX, INC. SUPPLEMENTAL FINANCIAL
INFORMATION (Unaudited) (In thousands) Three
Months Ended Six Months Ended September 26,2020
June 27,2020 September 28,2019 September
26,2020 September 28,2019 SELECTED CASH FLOW
INFORMATION: Depreciation and amortization of software
$
30,249
$
31,749
$
22,438
$
61,998
$
42,551
Amortization - others
15,316
15,059
12,965
30,375
22,050
Stock-based compensation
58,439
50,383
49,822
108,822
92,575
Net cash provided by operating activities
247,583
245,471
223,694
493,054
521,910
Purchases of property, plant and equipment and software
15,331
15,461
33,641
30,792
62,842
Payment of dividends to stockholders
93,105
92,414
93,484
185,519
187,445
Repurchases of common stock
-
53,682
32,250
53,682
477,245
Taxes paid related to net share settlement of restricted stock
units, net of proceeds from issuance of common stock
30,072
3,239
47,857
33,311
51,976
STOCK-BASED COMPENSATION INCLUDED IN: Cost of
revenues
$
2,963
$
2,721
$
2,812
$
5,684
$
5,425
Research and development
36,110
30,369
29,702
66,479
54,576
Selling, general and administrative
19,366
17,293
17,308
36,659
32,574
XILINX, INC. RECONCILIATIONS OF GAAP ACTUALS TO
NON-GAAP ACTUALS (Unaudited) (In thousands, except
per share amounts) Three Months Ended Six Months
Ended
September 26, 2020
June 27, 2020
September 28, 2019
September 26, 2020
September 28, 2019
GAAP gross margin
$
541,719
$
493,873
$
540,260
$
1,035,592
$
1,103,123
Inventory valuation adjustment
-
-
1,741
-
1,741
Amortization of acquisition-related intangibles
6,696
6,697
5,734
13,393
9,003
Non-GAAP gross margin
$
548,415
$
500,570
$
547,735
$
1,048,985
$
1,113,867
GAAP operating income
$
205,417
$
175,515
$
203,516
$
380,932
$
454,454
Inventory valuation adjustment
-
-
1,741
-
1,741
Amortization of acquisition-related intangibles
9,558
9,559
7,903
19,117
11,572
Acquisition-related costs
1,506
1,563
3,979
3,069
9,350
Non-GAAP operating income
$
216,481
$
186,637
$
217,139
$
403,118
$
477,117
GAAP net income
$
193,816
$
93,836
$
226,993
$
287,652
$
468,452
Inventory valuation adjustment
-
-
1,741
-
1,741
Amortization of acquisition-related intangibles
9,558
9,559
7,903
19,117
11,572
Acquisition-related costs
1,506
1,563
3,979
3,069
9,350
Income tax effect of tax-related items
-
56,801
-
56,801
-
Income tax effect of non-GAAP adjustments
(1,470
)
(1,590
)
(536
)
(3,060
)
(1,959
)
Non-GAAP net income
$
203,410
$
160,169
$
240,080
$
363,579
$
489,156
GAAP diluted EPS
$
0.79
$
0.38
$
0.89
$
1.17
$
1.83
Inventory valuation adjustment
-
-
-
-
-
Amortization of acquisition-related intangibles
0.03
0.04
0.03
0.08
0.05
Acquisition-related costs
0.01
0.01
0.02
0.01
0.04
Income tax effect of tax-related items
-
0.23
-
0.23
-
Income tax effect of non-GAAP adjustments
(0.01
)
(0.01
)
-
(0.01
)
(0.01
)
Non-GAAP diluted EPS
$
0.82
$
0.65
$
0.94
$
1.48
$
1.91
GAAP cash flow from operations
$
247,583
$
245,471
$
223,694
$
493,054
$
521,910
Capital expenditures (including software)
(15,331
)
(15,461
)
(33,641
)
(30,792
)
(62,842
)
Free cash flow
$
232,252
$
230,010
$
190,053
$
462,262
$
459,068
Source: Xilinx Newsroom Category: Corporate Announcements
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201021005883/en/
Investor Relations Contact: Suresh Bhaskaran Xilinx, Inc.
(408) 879-4784 ir@xilinx.com
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