Xilinx Announces Second Quarter 2018 Results; Eighth Consecutive Quarter Of Revenue Growth Oct 25, 2017SAN JOSE, Calif., Oct. 25, 2017 /PRNewswire/ -- Xilinx, Inc. (Nasdaq: XLNX) today announced sales of $620 million for the second quarter of fiscal year 2018, up approximately 1% from the prior quarter and up 7% from the second quarter of the prior fiscal year. This marks the eighth consecutive quarter of sales increase for the Company. September quarter net income was $168 million, or $0.65 per diluted share.
The Xilinx Board of Directors declared a quarterly cash dividend of $0.35 per outstanding share of common stock payable on December 6, 2017 to all stockholders of record at the close of business on November 15, 2017.
Additional September quarter comparisons are represented in the charts below:
GAAP Results
(In millions, except EPS)
Q2
FY 2018
Q1
FY 2018
Q2
FY 2017
Q-T-Q
Y-T-Y
Net revenues
$620
$615
$579
1%
7%
Operating income
$185
$180
$177
3%
5%
Net income
$168
$167
$164
0%
2%
Diluted earnings per share
$0.65
$0.63
$0.61
3%
7%
"Our multimarket diversification, technology leadership, and consistent execution are yielding sustainable results as we delivered our eighth consecutive quarter of revenue growth with strong profitability," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "Revenues from Advanced Products continued to be solid, increasing 21% from the same quarter a year ago, supported by accelerated growth from our highly innovative Zynq SoC platform, as well as from our industry-leading 20nm and 16nm technology nodes. At the 16nm technology node, we have shipped 34 unique products to well over 900 customers, denoting a sequential increase of 50% in the number of products and 75% increase in the number of customers."
Net Revenues by Geography:
Percentages
Growth Rates
Q2
FY 2018
Q1
FY 2018
Q2
FY 2017
Q-T-Q
Y-T-Y
North America
31%
29%
33%
8%
1%
Asia Pacific
40%
43%
38%
-7%
12%
Europe
20%
19%
20%
2%
4%
Japan
9%
9%
9%
8%
14%
Net Revenues by End Market:
Percentages
Growth Rates
Q2
FY 2018
Q1
FY 2018
Q2
FY 2017
Q-T-Q
Y-T-Y
Communications & Data Center
37%
41%
41%
-10%
-5%
Industrial, Aerospace & Defense
45%
42%
41%
7%
17%
Broadcast, Consumer & Automotive
18%
17%
18%
11%
12%
Net Revenues by Product:
Percentages
Growth Rates
Q2
FY 2018
Q1
FY 2018
Q2
FY 2017
Q-T-Q
Y-T-Y
Advanced Products
52%
52%
46%
1%
21%
Core Products
48%
48%
54%
1%
-5%
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)
Q2
FY 2018
Q1
FY 2018
Q2
FY 2017
Annual Return on Equity (%)*
27
27
25
Operating Cash Flow
$202
$191
$184
Depreciation Expense
$12
$11
$11
Capital Expenditures
$12
$10
$11
Combined Inventory Days
116
111
111
Revenue Turns (%)
53
42
55
*Return on equity calculation: Annualized net income/average stockholders equity
Product and Financial Highlights September Quarter
The Industrial, Aerospace & Defense end market set a quarterly record with revenues of $278 million, an increase of 17% from the same quarter a year ago, and constituted 45% of total Xilinx revenues. The success of this end market is a clear illustration of the robustness and diversification of the Xilinx product portfolio.
The Advanced Products category continues to deliver solid revenue growth, posting an increase of 21% from the year ago quarter. Broad-based growth was driven from the Zynq SoC platform and from the industry-leading 20nm and 16nm technology nodes. Zynq revenue increased 65% from the same quarter a year ago with growth driven largely by applications in Advanced Driver Assist (ADAS), Industrial, and Aerospace and Defense. Revenues from the 20nm node increased more than 40% from the year ago quarter and revenues from the 16nm node nearly quadrupled during the same period, reflecting broader customer and multi-market adoption.
Xilinx made several significant announcements highlighting strong momentum in its Cloud Computing market expansion opportunity. Xilinx announced availability of the software defined development environment, SDAccel, on Amazon Web Services (AWS) for use with F1 instances. In addition, Xilinx announced that Huawei has chosen the Companys high performance Virtex UltraScale+ FPGAs to power their first FaaS instance as part of a new accelerated cloud service. Lastly, Alibaba Cloud, the largest cloud service provider in China, recently announced its next generation FaaS F2 and F3 instances, based on Xilinx FPGAs.
Xilinx, ARM, Cadence and TSMC announced a collaboration to build the first Cache Coherent Interconnect for Accelerators (CCIX) test chip in TSMC 7nm FinFET process technology for delivery in year 2018. The test chip aims to provide a silicon proof point to demonstrate the capabilities of CCIX in enabling multi-core high-performance ARM CPUs working via a coherent fabric to off-chip FPGA accelerators.
Xilinx announced delivery of its Zynq UltraScale+ RFSoC family, a disruptive integration and architectural breakthrough for applications including 5G, cable and wireless backhaul. Based on Xilinxs 16nm technology, the RFSoCs integrate RF data converters for up to 50-75% system power and footprint reduction. With silicon samples already shipping to multiple customers, the early access program for this product family is now available.
Business Outlook December Quarter Fiscal Year 2018
Sales are expected to be approximately $615 - $645 million.
Gross margin is expected to be 69% to 71%.
Operating expenses are
