Xilinx Sales Grow For 7th Consecutive Quarter; Advanced Product Sales Up 33% Year-Over-Year

SAN JOSE, Calif., July 26, 2017 -- Xilinx, Inc. (Nasdaq: XLNX) today announced sales of $615 million for the first quarter fiscal 2018, up 1% from the prior quarter and up 7% from the first quarter of the prior fiscal year. This marks the seventh consecutive quarter of sales increase for the Company. June quarter net income was $167 million, or $0.63 per diluted share.

The Xilinx Board of Directors declared a quarterly cash dividend of $0.35 per outstanding share of common stock payable on August 30, 2017 to all stockholders of record at the close of business on August 10, 2017.

Additional June quarter comparisons are represented in the charts below:


GAAP Results
(In millions, except EPS)

	Q1 FY 2018	Q4 FY 2017	Q1 FY 2017	Q-T-Q	Y-T-Y
Net revenues	$615	$609	$575	1%	7%
Operating income	$180	$173	$186	4%	-3%
Net income	$167	$153	$163	9%	3%
Diluted earnings per share	$0.63	$0.57	$0.61	11%	3%

"Our focused investment in software, integration and technology leadership has driven a fundamental transformation, allowing Xilinx to expand from a supplier of FPGAs to an innovator of All Programmable devices and programming models," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "We continue to consistently execute across the board—in engineering, operations and sales while maintaining robust profitability and cash generation. Growth from Advanced Products continues to be solid, increasing 33% from the same quarter a year ago. Sales from the 28nm, 20nm and 16nm technology nodes increased during the quarter driven by multi-market strength."

Net Revenues by Geography:

	Percentages			Growth Rates
	Q1 FY 2018	Q4 FY 2017	Q1 FY 2017	Q-T-Q	Y-T-Y
North America	29%	31%	32%	-7%	-6%
Asia Pacific	43%	42%	40%	5%	16%
Europe	19%	19%	19%	1%	9%
Japan	9%	8%	9%	12%	9%

Net Revenues by End Market:

	Percentages			Growth Rates
	Q1 FY 2018	Q4 FY 2017	Q1 FY 2017	Q-T-Q	Y-T-Y
Communications & Data Center	41%	41%	44%	1%	-1%
Industrial, Aerospace & Defense	42%	43%	39%	0%	17%
Broadcast, Consumer & Automotive	17%	16%	17%	3%	6%

Net Revenues by Product:

	Percentages			Growth Rates
	Q1 FY 2018	Q4 FY 2017	Q1 FY 2017	Q-T-Q	Y-T-Y
Advanced Products	52%	49%	42%	8%	33%
Core Products	48%	51%	58%	-6%	-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, Spartan-3, Spartan-2, XC9500 products, configuration solutions, software & support/Services.

Key Statistics:
(Dollars in millions)

	Q1 FY 2018	Q4 FY 2017	Q1 FY 2017
Annual Return on Equity (%)*	27	24	25
Operating Cash Flow	$191	$306	$339
Depreciation Expense	$11	$12	$12
Capital Expenditures	$10	$20	$21
Combined Inventory Days	111	121	117
Revenue Turns (%)	42	44	50

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

Product and Financial Highlights

• The Company continues to experience strong growth in its 16nm Ultrascale+ product families driven by Zynq and Virtex. We are now shipping to over 530 customers, a significant increase from the prior quarter. Additionally, the disruptive RFSoC product family is now sampling to multiple customers. This product family provides a 50-75% power and footprint reduction for 5G, cable and wireless backhaul applications. In addition to RF-class technology and multi-core processing devices, Xilinx is expanding its 16nm Ultrascale+ family with integrated High-Bandwidth Memory.
• Xilinx's 28nm product family set a new PLD industry sales record during the quarter. Introduced in 2011, the 28nm node is the broadest product family ever offered by Xilinx. With exceptional execution and leadership products, this node is driving success across multi-markets as well as a much longer and more profitable sales ramp than any product in Xilinx's history.
• Baidu, a Chinese web services company, deployed Xilinx FPGA-based application acceleration services in their public cloud. The Baidu FPGA Cloud Server, a new service in Baidu Cloud, features highly efficient Xilinx FPGAs, tools, and the software needed to develop and deploy hardware-accelerated data center applications such as machine learning and data security.
• During the quarter, the company issued $750 million of fixed rate debt at a rate of 2.95% with a seven year term. Xilinx redeemed the remaining balance of $458 million on its convertible debt on June 15, 2017.

Business Outlook – September Quarter Fiscal 2018

• Sales are expected to be approximately $605 - $635 million.
• Gross margin is expected to be 69% to 71%.
• Operating expenses are expected to be approximately $253 million including $1 million of amortization of acquisition-related intangibles.
• Other income is expected to be approximately $4 million.
• September quarter tax rate is expected to be approximately 10-14%.

Conference Call

A conference call will be held today at 2:00 p.m. Pacific Time to discuss the June quarter financial results and management's outlook for the September quarter. The webcast and subsequent replay will be available in the investor relations section of the Company's web site at www.investor.xilinx.com. A telephonic replay of the call may be accessed later in the day by calling (855) 859-2056 and referencing confirmation code 34053296. The telephonic replay will be available for two weeks following the live call.

About Xilinx

Xilinx is the leading provider of All Programmable FPGAs, SoCs, MPSoCs, and 3D ICs. Xilinx uniquely enables applications that are both software defined and hardware optimized – powering industry advancements in Cloud Computing, Embedded Vision, Industrial IoT, and 5G Wireless. For more information, visit www.xilinx.com.