Xilinx Reports Fiscal First Quarter 2022 Results

Xilinx Reports Fiscal First Quarter 2022 Results Jul 28, 2021

Record revenue of $879 million, representing 3% sequential growth and 21% annual growth, despite ongoing industry-wide supply chain challenges

Data Center Group (DCG) revenue in the quarter increased 14% sequentially driven by strong demand across hyperscale cloud customers and the Fintech market

Wired and Wireless Group (WWG) revenue was up 13% year-over-year and flat sequentially driven by continuing global 5G deployments

Aerospace & Defense, Industrial and Test, Measurement & Emulation (AIT) revenue declined 10% sequentially, with record Industrial end market performance offset by a decline in Aerospace & Defense sales, and a modest decline in TME

Automotive, Broadcast and Consumer (ABC) revenue in the quarter increased 13% sequentially, with record quarters in the Broadcast and Consumer end markets

Platform transformation continues with total Adaptive SoC revenue, which includes Zynq and Versal platforms, up 13% sequentially and 83% year-over-year, and representing 28% of total revenue

Fiscal first quarter free cash flow of $373 million, representing 42% of revenue

SAN JOSE, Calif.--(BUSINESS WIRE)-- Xilinx, Inc. (Nasdaq: XLNX), the leader in adaptive computing, today announced record revenues of $879 million for the fiscal first quarter, up 3% over the previous quarter.

GAAP net income for the fiscal first quarter was $206 million, or $0.83 per diluted share. Non-GAAP net income for the quarter was $236 million, or $0.95 per diluted share.

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

Q1 Fiscal 2022 Financial Highlights

(In millions, except EPS)

GAAP

Q1

Q4

Q1

FY2022

FY2021

FY2021

Q-T-Q

Y-T-Y

Net revenues*

$879

$851

$727

3%

21%

Gross margin

$586

$570

$494

3%

19%

Operating income

$210

$200

$176

5%

20%

Net income

$206

$188

$94

10%

120%

Diluted earnings per share

$0.83

$0.75

$0.38

11%

118%

Non-GAAP

Q1

Q4

Q1

FY2022

FY2021

FY2021

Q-T-Q

Y-T-Y

Net revenues*

$879

$851

$727

3%

21%

Gross margin

$596

$579

$501

3%

19%

Operating income

$246

$228

$187

8%

32%

Net income

$236

$204

$160

16%

47%

Diluted earnings per share

$0.95

$0.82

$0.65

16%

46%

* No adjustment between GAAP and Non-GAAP

Xilinx delivered another record quarter as the demand for our products remains robust, despite an unprecedented and challenging supply constrained environment, said Victor Peng, Xilinx president and CEO. Our stellar results were driven by strength across our diversified end markets. We continue to actively manage the supply situation with our partners, including qualifying a new supplier in a key part of our supply chain, to meet strong customer demand. In addition, we continue to execute extremely well on our roadmap as we have broadened the Versal portfolio with the Versal Edge and Versal HBM series announcements. We are working every day to improve supply for our customers.

Record Q1 revenues were driven by strength in the Data Center end market, as well as a record quarters for our Industrial, Broadcast and Consumer end markets. This drove 3% sequential and 21% year-over-year growth, said Brice Hill, Xilinx CFO. Advanced Products grew 2% sequentially and 27% annually, and represented 72% of total revenue. Top line performance drove record free cash flows of $373 million, or 42% of revenue.

While days of inventory are near historical lows due to the supply chain constraints, we expect inventory to remain relatively stable at current levels as some expected supply increases will be offset by continued strong customer demand. COVID surges in Southeast Asia during Q1 resulted in higher quarter-end shipments to distributors resulting in transitory higher channel inventory. Channel inventory levels decreased by the early part of fiscal Q2 as products shipped through to end customers, and remain lean. We are very proud of the effort and agility of our employees and partners in support of our customers.

Net Revenues by Geography:

Percentages

Growth Rates

Q1

Q4

Q1

FY2022

FY2021

FY2021

Q-T-Q

Y-T-Y

North America

23%

27%

26%

-14%

7%

Asia Pacific

52%

49%

54%

11%

17%

Europe

15%

16%

13%

0%

44%

Japan

10%

8%

7%

22%

55%

Net Revenues by End Market:

Percentages

Growth Rates

Q1

Q4

Q1

FY2022

FY2021

FY2021

Q-T-Q

Y-T-Y

A&D, Industrial and TME

36%

41%

45%

-10%

-2%

Automotive, Broadcast and Consumer

20%

18%

12%

13%

94%

Wired and Wireless Group

30%

31%

32%

0%

13%

Data Center Group

10%

9%

12%

14%

-1%

Channel

4%

1%

-1%

NM

NM

Net Revenues by Product:

Percentages

Growth Rates

Q1

Q4

Q1

FY2022

FY2021

FY2021

Q-T-Q

Y-T-Y

Advanced Products

72%

73%

68%

2%

27%

Core Products

28%

27%

32%

7%

8%

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)

Q1

Q4

Q1

FY2022

FY2021

FY2021

Operating Cash Flow

$390

$240

$245

Depreciation Expense (including software amortization)

$32

$30

$32

Capital Expenditures (including software)

$17

$13

$15

Free Cash Flow (1)

$373

$227

$230

Inventory Days (internal)

89

101

114

Revenue Turns (%)

27

29

31

(1) Free Cash Flow = Operating Cash Flow - Capital Expenditures (including software)

Product and Financial Highlights - Fiscal First Quarter 2022

Xilinx unveiled the Versal AI Edge series, designed to enable AI innovation from the edge to the endpoint with 10x greater compute density versus previous-genera

LINK:	https://www.xilinx.com/news/press/2021/xilinx-reports-fiscal-first-qua...
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