Xilinx Reports Record Revenue of $1.01 Billion in Fiscal Third Quarter

Xilinx Reports Record Revenue of $1.01 Billion in Fiscal Third Quarter Jan 26, 2022

Record revenue of $1,011 million, representing 8% sequential growth and 26% year-over-year growth, despite ongoing industry-wide supply constraints

Data Center Group (DCG) achieved record revenue with sequential growth of 28% and 81% year-over-year, driven by Compute and Networking strength

Aerospace & Defense, Industrial and Test, Measurement & Emulation (AIT) revenue was also a record, increasing 21% sequentially and 28% year-over-year, driven by record A&D revenue and continued strength in ISM and TME end markets

Automotive, Broadcast and Consumer (ABC) revenue in the quarter decreased 4% sequentially coming off a record Q2 and largely in-line with expectations; revenue increased 28% year-over-year

Wired and Wireless Group (WWG) revenue decreased 18% sequentially and increased 1% year-over-year as supply constraints had a significant impact on business in the quarter

Platform transformation continues with total Adaptive SoC revenue, which includes Zynq and Versal platforms, up 5% sequentially and 30% year-over-year, and representing 28% of total revenue

SAN JOSE, Calif.--(BUSINESS WIRE)-- Xilinx, Inc. (Nasdaq: XLNX), the leader in adaptive computing, today announced record revenues of $1,011 million for the fiscal third quarter, up 8% over the previous quarter.

GAAP net income for the fiscal third quarter was $300 million, or $1.19 per diluted share. Non-GAAP net income for the quarter was $325 million, or $1.29 per diluted share.

As permitted by the terms of the Merger Agreement between Xilinx and Advanced Micro Devices, Inc. (AMD), the Xilinx Board of Directors voted unanimously to declare a cash dividend of $0.37 per outstanding share of common stock payable on February 14, 2022 to all stockholders of record at the close of business on February 7, 2022. The dividend is conditioned upon and will only be payable if the merger has not closed on or before the record date for such dividend.

Additional third quarter of fiscal year 2022 comparisons are provided in the charts below.

Q3 Fiscal 2022 Financial Highlights

(In millions, except EPS)

GAAP

Q3

Q2

Q3

FY2022

FY2022

FY2021

Q-T-Q

Y-T-Y

Net revenues*

$1,011

$936

$803

8%

26%

Gross margin

$726

$632

$547

15%

33%

Operating income

$310

$250

$172

24%

80%

Net income

$300

$235

$171

28%

76%

Diluted earnings per share

$1.19

$0.94

$0.69

27%

73%

Non-GAAP

Q3

Q2

Q3

FY2022

FY2022

FY2021

Q-T-Q

Y-T-Y

Net revenues*

$1,011

$936

$803

8%

26%

Gross margin

$736

$644

$554

14%

33%

Operating income

$340

$288

$201

18%

69%

Net income

$325

$266

$194

22%

67%

Diluted earnings per share

$1.29

$1.06

$0.78

22%

65%

* No adjustment between GAAP and Non-GAAP

Note: Q3 and Q2 FY2022 consisted of 13 weeks; Q3 FY2021 consisted of 14 weeks

Xilinx achieved another record quarter and surpassed $1 billion in quarterly sales for the first time in the company's history, said Victor Peng, Xilinx president and CEO. While we were unable to fully satisfy customer needs, our results demonstrate our team's relentless focus and execution in supporting our customers as well as possible given the extremely tight supply conditions.

We saw broad and robust demand across our end markets with record quarters in our DCG business as well as our A&D end market. A&D record performance, combined with strong ISM and TME performance, also led to a record for total AIT, and drove stronger overall profitability. The strength in our business clearly demonstrates the successful execution of our strategy.

Record Q3 revenue was driven primarily from sequential growth in A&D, DCG and TME, leading to total sequential revenue growth of 8% and year-over-year growth of 26%, the fifth consecutive quarter of double-digit year-over-year growth, said Brice Hill, Xilinx CFO. Overall strong revenues and business mix, in addition to positive impacts from strategic venture investments, drove record earnings this quarter. Our platform strategy continues to progress as Adaptive SoC revenue grew 5% sequentially and 30% year-over-year, representing 28% of total revenue.

We saw strong free cash flow this quarter of $351 million, or 35% of revenue, reflecting our efficient cash generating business model. Please note, the increase in inventory to 106 days is primarily driven by supply cost increases and does not reflect a significant increase in unit inventory.

Net Revenues by Geography:

Percentages

Growth Rates

Q3

Q2

Q3

FY2022

FY2022

FY2021

Q-T-Q

Y-T-Y

North America

33%

26%

30%

40%

43%

Asia Pacific

40%

48%

44%

-10%

13%

Europe

18%

16%

19%

16%

18%

Japan

9%

10%

7%

-1%

53%

Net Revenues by End Market:

Percentages

Growth Rates

Q3

Q2

Q3

FY2022

FY2022

FY2021

Q-T-Q

Y-T-Y

A&D, Industrial and TME

46%

40%

45%

21%

28%

Automotive, Broadcast and Consumer

19%

22%

19%

-4%

28%

Wired and Wireless Group

23%

31%

29%

-18%

1%

Data Center Group

11%

9%

7%

28%

81%

Channel

1%

-2%

0%

NM

NM

Net Revenues by Product:

Percentages

Growth Rates

Q3

Q2

Q3

FY2022

FY2022

FY2021

Q-T-Q

Y-T-Y

Advanced Products

78%

74%

72%

14%

35%

Core Products

22%

26%

28%

-8%

3%

Products are classified as follows:

Advanced Products: Versal, UltraScale+, UltraScale and 7-series product families, and production boards business composed of Alveo, Solarflare, Network, and System-On-Modules.

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

Q2

Q3

FY2022

FY2022

FY2021

Operating Cash Flow

$362

$122

$360

Depreciation Expense (including software amortization)

$30

$31

$31

Capital Expenditures (including

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