Xilinx Reports Record Quarterly Revenues And EPS; Raises Fiscal Year 2019 Guidance

Xilinx Reports Record Quarterly Revenues And EPS; Raises Fiscal Year 2019 Guidance Jul 25, 2018

SAN JOSE, Calif., July 25, 2018 /PRNewswire/ -- Xilinx, Inc. (Nasdaq: XLNX) today announced record revenues of $684 million for the first quarter of fiscal year 2019, up 7% from the prior quarter and up 14% from first quarter of the prior fiscal year. June quarter net income was $190 million, or a record $0.74 per diluted share.

The Xilinx Board of Directors declared a quarterly cash dividend of $0.36 per outstanding share of common stock payable on August 28, 2018 to all stockholders of record at the close of business on August 8, 2018.

Additional first quarter of fiscal year 2019 comparisons are represented in the charts below. Due to the adoption of the new revenue recognition standard in the first quarter of fiscal year 2019, all prior period results have been restated to conform to the new standard:

GAAP Results

(In millions, except EPS)

Q1

FY 2019

Q4

FY 2018

Q1

FY 2018

Q-T-Q

Y-T-Y

Net revenues

$684

$638

$603

7%

14%

Operating income

$216

$163

$169

32%

28%

Net income

$190

$145

$157

31%

21%

Diluted earnings per share

$0.74

$0.56

$0.59

32%

25%

"Its great to see our efforts to accelerate growth in our core markets pay off with a record revenue and earnings quarter. During the first quarter, we posted revenues of $684 million representing 14% year over year growth. Given the strength we see across our end markets, we are raising our revenue guidance for the full year to approximately 15% growth, compared to the prior year," said Victor Peng, President and Chief Executive Officer. "We made excellent progress executing to our Data Center strategy with significant design wins with hyperscalers, training an additional 500 AWS F1 developers and completing multiple investments in our ecosystem. We also acquired DeePhi Tech, an Artificial Intelligence (AI) company with innovative Deep Neural Network (DNN) technology for the cloud and the edge."

Net Revenues by Geography:

Percentages

Growth Rates

Q1

FY 2019

Q4

FY 2018

Q1

FY 2018

Q-T-Q

Y-T-Y

North America

28%

31%

29%

(1%)

12%

Asia Pacific

45%

39%

44%

22%

15%

Europe

19%

22%

19%

(5%)

14%

Japan

8%

8%

8%

2%

12%

Net Revenues by End Market:

The table below reflects our new market classification methodology that groups businesses with similar market drivers. Also, we believe, having four primary categories below provides additional visibility compared to the prior methodology.

Percentages

Growth Rates

Q1

FY 2019

Q4

FY 2018

Q1

FY 2018

Q-T-Q

Y-T-Y

Data Center and TME

19%

25%

19%

(20%)

11%

Automotive, Broadcast and Consumer

16%

15%

17%

18%

13%

Communications

31%

31%

38%

7%

(7%)

Industrial, Aerospace & Defense

33%

35%

28%

1%

30%

Channel

1%

(6%)

(2%)

NM

NM

Net Revenues by Product:

Percentages

Growth Rates

Q1

FY 2019

Q4

FY 2018

Q1

FY 2018

Q-T-Q

Y-T-Y

Advanced Products

56%

57%

53%

6%

21%

Core Products

44%

43%

47%

9%

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)

Q1

FY 2019

Q4

FY 2018

Q1

FY 2018

Annual Return on Equity (%)*

32

19

24

Operating Cash Flow

$176

$242

$191

Depreciation Expense

$12

$12

$11

Capital Expenditures (including software)

$26

$21

$10

Combined Inventory Days

113

117

112

Revenue Turns (%)

37

33

41

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

Product and Financial Highlights Fiscal First Quarter 2019

Data Center and Test, Measurement & Emulation (TME) revenues, excluding cryptocurrency and TME, increased both sequentially and year over year. Data Center business momentum continued to strengthen with key design wins from hyperscalers globally for accelerating applications beyond FPGA as a Service (FaaS). Progress also continued on the AWS FaaS offering with the training of an additional 500 developers, bringing the cumulative number trained to date to over 900. We are on track to achieve our goal of over 1,500 developers trained by the end of the year.

Xilinx recently acquired DeePhi Tech, strengthening the Companys capabilities in AI from the cloud to the edge. DeePhi Tech is a Beijing-based technology company with industry-leading capabilities in machine learning, specializing in compression, pruning, and system-level optimizations for neural networks. DeePhi has been developing its machine learning solutions on Xilinx platforms since their inception in 2016. In addition to the DeePhi acquisition, Xilinx made multiple investments in private companies during the quarter to expand the Xilinx ecosystem across a breadth of applications including data analytics, video transcoding and network intelligence.

Highlighting the Companys continued transformation into a platform company, Zynq based revenues grew 76% year over year driven largely by a broad set of applications in Advanced Driver Assist (ADAS), Industrial, Communications, and Data Center. The Zynq SoC Platform, which includes Zynq at 28nm and both MPSoC and RFSoC at 16nm, now represents 17% of total revenues.

Xilinx announced a partnership with Daimler AG for developing a custom AI inference platform. Powered by a Xilinx automotive platform consisting of SoC devices and AI acceleration software, the scalable solution will deliver high performance, low latency and power efficient embedded AI for automotive applications. Further, the Company has cumulatively shipped more than 50 million ADAS units to OEMs and Tier 1 suppliers.

The Advanced Products categor

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