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8-K - 8-K - XILINX INCa8-kpressrelease1x24x18.htm


Exhibit 99.1

Investor Relations Contact:                            
Suresh Bhaskaran
Xilinx, Inc.
(408) 879-4784
ir@xilinx.com

XILINX REPORTS RECORD REVENUES
NINTH CONSECUTIVE QUARTER OF REVENUE GROWTH

SAN JOSE, CA, January 24, 2018-- Xilinx, Inc. (Nasdaq: XLNX) today announced record sales of $631 million for the third quarter of fiscal year 2018, up approximately 2% from the prior quarter and up 8% from the third quarter of the prior fiscal year. December quarter net income was $12 million, or $0.05 per diluted share. Due to the recent enactment of the Tax Cuts and Jobs Act, Xilinx incurred a tax expense of approximately $183 million in the December quarter.

The Xilinx Board of Directors declared a quarterly cash dividend of $0.35 per outstanding share of common stock payable on February 22, 2018 to all stockholders of record at the close of business on February 7, 2018.  

Additional September quarter comparisons are represented in the charts below:

GAAP Results
(In millions, except EPS)
                         
 
Q3
FY 2018
Q2
FY 2018
Q3
FY 2017
 

Q-T-Q

Y-T-Y
Net revenues
$631
$620
$586
 
2%
8%
Operating income
$190
$185
$163
 
2%
16%
Net income
$12
$168
$142
 
-93%
-92%
Diluted earnings per share
$0.05
$0.65
$0.52
 
-92%
-90%

“We delivered our ninth consecutive quarter of revenue growth with December quarter revenues establishing a new record for Xilinx and we achieved our operating margin target of 30% one quarter ahead of schedule,” said Moshe Gavrielov, Xilinx President and Chief Executive Officer. “Revenues from Advanced Products continued to be strong, increasing 30% from the same quarter a year ago and comprising 56% of company sales, supported by accelerated growth in our industry-leading 20nm and 16nm technology nodes. In addition, our 16nm portfolio continued to gain market momentum as we have cumulatively shipped 43 unique products to 1,160 customers.”






Net Revenues by Geography:    
 
Percentages
 
Growth Rates
 
Q3
FY 2018
Q2
FY 2018
Q3
FY 2017
 

Q-T-Q

Y-T-Y
North America
31%
31%
30%
 
3%
12%
Asia Pacific
41%
40%
43%
 
3%
3%
Europe
20%
20%
19%
 
2%
11%
Japan
8%
9%
8%
 
-8%
10%

Net Revenues by End Market:     
             
 
Percentages
 
Growth Rates
 
Q3
FY 2018
Q2
FY 2018
Q3
FY 2017
 

Q-T-Q

Y-T-Y
Communications & Data Center
35%
37%
44%
 
-2%
-12%
Industrial, Aerospace & Defense
47%
45%
41%
 
7%
23%
Broadcast, Consumer & Automotive
18%
18%
15%
 
-3%
24%

Net Revenues by Product:    
             
 
Percentages
 
Growth Rates
       
Q3
FY 2018
Q2
FY 2018
Q3
FY 2017
 

Q-T-Q

Y-T-Y
Advanced Products
56%
52%
47%
 
10%
30%
Core Products
44%
48%
53%
 
-7%
-12%


Products are classified as follows:

Advanced 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)

 
Q3
FY 2018
Q2
FY 2018
Q3
FY 2017
 
 
 
 
Annual Return on Equity (%)*
19
27
25
 
 
 
 
Operating Cash Flow
$185
$202
$106
 
 
 
 
Depreciation Expense
$11
$12
$11
 
 
 
 
Capital Expenditures
$7
$12
$20
 
 
 
 
Combined Inventory Days
121
116
114
 
 
 
 
Revenue Turns (%)
46
53
56

*Return on equity calculation: Annualized year to date net income/average stockholders’ equity


Product and Financial Highlights - December Quarter

The Advanced Products category continues to deliver strong revenue growth, posting an increase of 30% from the year ago quarter and constituting 56% of total sales. Broad-based growth was driven by the industry-leading 20nm and 16nm technology nodes. Revenues from the 20nm node grew significantly to a new record, increasing more than 70% from the same quarter year ago and the 16nm node continued its accelerated ramp with sales more than quadrupling during the same period, reflecting very broad-based customer adoption.

The Industrial, Aerospace & Defense end market set another quarterly record with revenues of $297 million, an increase of 23% from the same quarter a year ago, driven by significant strength in Semiconductor Test and Emulation Applications. Xilinx’s unrivaled technology leadership has been a significant driver for the record-setting revenue performance.

Xilinx achieved its operating margin target of 30%, one quarter ahead of schedule, while continuing investments in its technology leadership, share gains, and market expansion efforts for sustained revenue growth. Xilinx remains committed to returning cash to shareholders and during the first nine months of the fiscal year we have returned approximately 100% of our operating cash flow back to shareholders through a combination of dividends and share repurchases.

Xilinx continued to demonstrate strong customer momentum in its Cloud Computing market expansion opportunity. Market leader Alibaba recently announced plans for two generations of FPGA as a Service (FaaS) F2 and F3 using Virtex® Ultrascale +™





FPGAs. Additionally, Amazon Web Services expanded their FaaS F1 deployment to multiple regions, including availability in its secured government cloud.

Business Outlook - March Quarter Fiscal Year 2018

Sales are expected to be approximately $635 - $665 million.
Gross margin is expected to be 69% to 71%.
Operating expenses are expected to increase to approximately $285 million, including a one-time charge of approximately $30 million primarily related to executive transition.
Other income is expected to be approximately $3 million.
March quarter tax rate is expected to be approximately 0 - 5%.

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 4886278. 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 year 2018. 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, the impact of current and future legislative and regulatory changes, and other risk factors listed in our most recent Forms 10-Q and 10-K.


About Xilinx

Xilinx is the leading provider of All Programmable FPGAs, SoCs, MPSoCs, and 3D ICs. Xilinx uniquely enables applications that are both software defined and hardware optimized - powering





industry advancements in Cloud Computing, Embedded Vision, Industrial IoT, and 5G Wireless. For more information, visit www.xilinx.com.
 
#1804F

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.

XLNX-F








XILINX, INC.
 
 
 
 
 
 
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
 
 
 
 
 
 
 
 
 
(In thousands, except per share amounts)
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
December 30, 2017
 
September 30, 2017
 
December 31, 2016
 
December 30, 2017
 
December 31, 2016
Net revenues
$
631,193

 
$
619,503

 
$
585,688

 
$
1,866,142

 
$
1,739,877

Cost of revenues
182,156

 
184,786

 
178,233

 
559,037

 
522,404

Gross margin
449,037

 
434,717

 
407,455

 
1,307,105

 
1,217,473

Operating expenses:
 
 
 
 
 
 
 
 
 
Research and development
166,231

 
157,985

 
159,248

 
477,267

 
437,187

Selling, general and administrative
92,753

 
91,053

 
83,780

 
272,981

 
250,353

Amortization of acquisition-related intangibles
353

 
510

 
1,455

 
1,568

 
3,943

Total operating expenses
259,337

 
249,548

 
244,483

 
751,816

 
691,483

Operating income
189,700

 
185,169

 
162,972

 
555,289

 
525,990

Interest and other income (expense), net
5,469

 
1,831

 
(392
)
 
9,138

 
(6,130
)
Income before income taxes
195,169

 
187,000

 
162,580

 
564,427

 
519,860

Provision for income taxes
183,224

 
19,468

 
20,734

 
217,705

 
50,773

Net income
$
11,945

 
$
167,532

 
$
141,846

 
$
346,722

 
$
469,087

Net income per common share:
 
 
 
 
 
 
 
 
 
Basic
$
0.05

 
$
0.68

 
$
0.57

 
$
1.39

 
$
1.86

Diluted
$
0.05

 
$
0.65

 
$
0.52

 
$
1.34

 
$
1.74

Cash dividends per common share
$
0.35

 
$
0.35

 
$
0.33

 
$
1.05

 
$
0.99

Shares used in per share calculations:
 
 
 
 
 
 
 
 
 
Basic
254,089

 
248,094

 
250,982

 
248,671

 
252,811

Diluted
258,108

 
258,217

 
270,781

 
258,995

 
269,182







XILINX, INC.
 
 
 
CONDENSED CONSOLIDATED BALANCE SHEETS
 
 
 
(In thousands)
 
 
 
 
December 30, 2017
 
April 1, 2017*
 
(unaudited)
 
 
ASSETS
 
 
 
Current assets:
 
 
 
  Cash, cash equivalents and short-term investments
$
3,541,576

 
$
3,321,457

  Accounts receivable, net
348,464

 
243,915

  Inventories
226,533

 
227,033

  Other current assets
81,310

 
87,711

Total current assets
4,197,883

 
3,880,116

Net property, plant and equipment
303,984

 
303,825

Long-term investments
102,375

 
116,288

Other assets
515,377

 
440,303

Total Assets
$
5,119,619

 
$
4,740,532

 
 
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
Current liabilities:
 
 
 
  Accounts payable and accrued liabilities
$
429,421

 
$
386,301

  Deferred income on shipments to distributors
32,974

 
54,567

  Current portion of long-term debt

 
456,328

Total current liabilities
462,395

 
897,196

Long-term debt
1,730,211

 
995,247

Deferred tax liabilities
110

 
317,639

Long-term income taxes payable
531,522

 
4,503

Other long-term liabilities
30,747

 
16,908

Temporary equity

 
1,406

Stockholders' equity
2,364,634

 
2,507,633

Total Liabilities and Stockholders' Equity
$
5,119,619

 
$
4,740,532

 
 
 
 
* Derived from audited financial statements
 
 
 
 
 
 
 





XILINX, INC.
 
 
 
 
 
 
 
 
 
SUPPLEMENTAL FINANCIAL INFORMATION
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
(In thousands)
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
December 30, 2017
 
September 30, 2017
 
December 31, 2016
 
December 30, 2017
 
December 31, 2016
SELECTED CASH FLOW INFORMATION:
 
 
 
 
 
 
 
 
 
  Depreciation
$
11,452

 
$
11,732

 
$
11,110

 
$
34,416

 
$
33,917

  Amortization
5,458

 
3,432

 
4,887

 
12,619

 
12,601

  Stock-based compensation
36,801

 
36,372

 
30,867

 
105,209

 
90,073

  Net cash provided by operating activities
184,686

 
202,140

 
105,584

 
577,734

 
627,813

  Purchases of property, plant and equipment
6,791

 
12,223

 
19,875

 
28,940

 
51,825

  Payment of dividends to stockholders
89,491

 
86,957

 
83,256

 
263,751

 
250,733

  Repurchases of common stock
73,290

 
170,454

 
213,844

 
310,806

 
413,983

  Net proceeds (withholding) from issuance
 
 
 
 
 
 
 
 
 
    of common stock to employees
(2,131
)
 
(23,765
)
 
1,195

 
(24,826
)
 
10,708

 
 
 
 
 
 
 
 
 
 
STOCK-BASED COMPENSATION INCLUDED IN:
 
 
 
 
 
 
 
 
Cost of revenues
$
2,188

 
$
2,147

 
$
1,945

 
$
6,486

 
$
5,994

Research and development
20,217

 
20,096

 
17,154

 
57,779

 
48,803

Selling, general and administrative
14,396

 
14,129

 
11,768

 
40,944

 
35,276