Xilinx Announces Third Quarter 2017 Results; Fifth Consecutive Quarter Of Revenue Growth; EPS: $0.52

Xilinx Announces Third Quarter 2017 Results; Fifth Consecutive Quarter Of Revenue Growth; EPS: $0.52 Jan 25, 2017

SAN JOSE, Calif., Jan. 25, 2017 /PRNewswire/ -- Xilinx, Inc. (Nasdaq: XLNX) today announced third quarter fiscal 2017 sales of $586 million, up 1% sequentially, and up 3% from the third quarter of the prior fiscal year. Third quarter net income was $142 million, or $0.52 per diluted share.

The Xilinx Board of Directors declared a quarterly cash dividend of $0.33SAN JOSE, Calif., Jan. 25, 2017 /PRNewswire/ -- Xilinx, Inc. (Nasdaq: XLNX) today announced third quarter fiscal 2017 sales of $586 million, up 1% sequentially, and up 3% from the third quarter of the prior fiscal year. Third quarter net income was $142 million, or $0.52 per diluted share.

The Xilinx Board of Directors declared a quarterly cash dividend of $0.33 per outstanding share of common stock payable on February 23, 2017 to all stockholders of record at the close of business on February 8, 2017.

Additional third quarter comparisons are represented in the charts below:per outstanding share of common stock payable on February 23, 2017 to all stockholders of record at the close of business on February 8, 2017.

Additional third quarter comparisons are represented in the charts below:

GAAP Results

(In millions, except EPS)

Q3

FY 2017 Q2

FY 2017 Q3

FY 2016

Q-T-Q

Y-T-Y

Net revenues $586 $579 $566 1% 3%

Operating income $163 $177 $160 -8% 2%

Net income $142 $164 $131 -14% 8%

Diluted earnings per share $0.52 $0.61 $0.49 -15% 6%

"Xilinx delivered growth for the fifth consecutive quarter. Sales from our 16nm Ultrascale , 20nm Ultrascale, and 28nm Zynq products contributed to significant market expansion. The growth from these products was driven by a broad base of markets such as data center, automotive, test & measurement, wired and wireless communications and space," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "Our FY17 strategic increase in R&D investment continues to pay off with the recent expansion announcement of our 16nm portfolio integrating High Bandwidth Memory and Cache Coherent Interconnect technology into Ultrascale FPGAs. In addition, our 16nm execution continues unabated. We are currently shipping 12 unique products to nearly 300 customers and remain over a year ahead of the competition."

Net Revenues by Geography:

Percentages Growth Rates

Q3

FY 2017 Q2

FY 2017 Q3

FY 2016

Q-T-Q

Y-T-Y

North America 30% 33% 32% -7% -3%

Asia Pacific 43% 38% 41% 12% 9%

Europe 19% 20% 17% -4% 13%

Japan 8% 9% 10% -5% -14%

Net Revenues by End Market:

Percentages Growth Rates

Q3

FY 2017 Q2

FY 2017 Q3

FY 2016

Q-T-Q

Y-T-Y

Communications & Data Center 44% 41% 43% 7% 4%

Industrial, Aerospace & Defense 41% 41% 41% 1% 5%

Broadcast, Consumer & Automotive 15% 18% 16% -13% -2%

Net Revenues by Product:

Percentages Growth Rates

Q3

FY 2017 Q2

FY 2017 Q3

FY 2016

Q-T-Q

Y-T-Y

Advanced Products 47% 46% 37% 2% 30%

Core Products 53% 54% 63% 0% -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, Virtex E, Spartan-3, Spartan-II, XC9500, products, configuration solutions, Software & Support/Services.

Key Statistics:

(Dollars in millions)

Q3

FY 2017 Q2

FY 2017 Q3

FY 2016

Annual Return on Equity (%)* 25 25 21

Operating Cash Flow $106 $184 $292

Depreciation Expense $11 $11 $13

Capital Expenditures $20 $11 $6

Combined Inventory Days 114 111 119

Revenue Turns (%) 56 55 49

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

Product and Financial Highlights December Quarter

Xilinx introduced the Reconfigurable Acceleration Stack, with a goal to enable mainstream adoption of FPGAs in the data center. Target applications include machine learning, video transcoding and big data analytics. Designed for cloud scale applications, the stack provides the fastest path to realize up to 40x better compute efficiency with Xilinx FPGAs compared to x86 server CPUs and up to six times the compute efficiency over competitive FPGAs.

Xilinx unveiled details for new 16nm Virtex UltraScale FPGAs with HBM and CCIX technology. Containing the highest memory bandwidth available, these HBM-enabled FPGAs offer 20X higher memory bandwidth relative to a DDR4 DIMM and 4X less power per bit versus competing memory technologies. This product family is architected to support compute acceleration in the data center, high data rate Ethernet connectivity, 8K Video, and radar systems.

Xilinx announced that Amazon Web Services (AWS) is deploying Xilinx 16nm UltraScale FPGAs in the new Amazon Elastic Cloud Compute (Amazon EC2) F1 instance type, accelerating genomics, financial analytics, video processing, big data, security, and machine learning inference workloads. In addition to Amazon EC2 F1 instances, AWS also announced an FPGA Developer Amazon Machine Image which is pre-built with the development tools and scripts including Xilinxs Vivado Design Suite and Vivado license.

Business Outlook March Quarter Fiscal 2017

Sales are expected to be in the range of $590M-$620M.

Gross margin is expected to be approximately 68-70%.

Operating expenses are expected to be approximately $244 million including $1 million of amortization of acquisition-related intangibles.

Other income and expenses are expected to be a net expense of approximately $4 million.

March quarter tax rate is expected to be approximately 14%.

Conference Call

A conference call will be held today at 2:00 p.m. Pacific Time to discuss the December quarter financial results and mana

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