SAN JOSE, Calif., July 25, 2018 -- 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% |
"It's 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
Business Outlook – Fiscal Q2 2019 & Fiscal Year 2019
"We are raising our revenue guidance for the full year based on strong performance across our business. Our strategy is delivering significant results and we expect momentum to continue through the fiscal year," said Lorenzo Flores, Executive Vice President and Chief Financial Officer.
The following statements are based on current expectations, and as indicated, are presented on a GAAP and non-GAAP basis. These statements are forward-looking and actual results may differ materially, as a result of, among other things, the important factors discussed at the end of this release.
Fiscal Q2 2019
| GAAP | Non-GAAP Adjustments | Non-GAAP | |
| Revenues | $700M - $720M | - | $700M - $720M |
| Gross Margin | ~ 69.5% | - | ~ 69.5% |
| Operating Expenses | $281M | $2M (1) | $279M |
| Other Income | $11M | $8M (2) | $3M |
| Tax Rate | 10% - 14% | - | 10% -14% |
Fiscal Year 2019
| GAAP | Non-GAAP Adjustments | Non-GAAP | |
| Revenues | $2,800M - $2,900M | - | $2,800M - $2,900M |
| Gross Margin | 68.5% - 70.5% | - | 68.5% - 70.5% |
| Operating Expenses | $1,147M - $1,167M | $27M (3) | $1,120M - $1,140M |
| Other Income | $18M - $23M | $8M (2) | $10M - $15M |
| Tax Rate | 10% - 14% | - | 10% - 14% |
| Diluted Share count | 256M | 256M |
Notes regarding Non-GAAP Adjustments:
(1) Excludes an estimated amount of $2 million in amortization of acquired intangibles and certain non-recurring expenses.
(2) Excludes an estimated amount of $8 million from an expected gain on an investment.
(3) Excludes an estimated amount of $27 million in amortization of acquired intangibles and certain non-recurring expenses.
About Xilinx
Xilinx develops highly flexible and adaptive processing platforms that enable rapid innovation across a variety of technologies – from the endpoint to the edge to the cloud. Xilinx is the inventor of the FPGA, hardware programmable SoCs and the ACAP, designed to deliver the most dynamic processor technology in the industry and enable the adaptable, intelligent and connected world of the future. For more information, visit www.xilinx.com.