SAN JOSE, Calif., July 22, 2015 -- Xilinx, Inc. (Nasdaq: XLNX) today announced first quarter fiscal 2016 sales of $549 million, down 3% from the prior quarter and down 10% from the same quarter of the prior fiscal year. First quarter fiscal 2016 gross margin was 71% and net income was $148 million, or $0.55 per diluted share.
The Xilinx Board of Directors announced a quarterly cash dividend of $0.31 per outstanding share of common stock, payable on August 26, 2015 to all stockholders of record at the close of business on August 6, 2015.
Additional first quarter comparisons are represented in the charts below:
GAAP Results
(In millions, except EPS)
|
|
|
| Growth Rates |
| Q1
FY 2016 | Q4
FY 2015 | Q1
FY 2015 | Q-T-Q | Y-T-Y |
| Net revenues | $549 | $567 | $613 | -3% | -10% |
| Operating income | $178 | $159 | $207 | 13% | -14% |
| Net income | $148 | $135 | $174 | 10% | -15% |
| Diluted earnings per share | $0.55 | $0.50 | $0.62 | 10% | -11% |
"The quarter was marked by strong profitability with Xilinx delivering a 71% gross margin," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "From a product perspective, technology leadership on the 20nm node is translating to sales leadership. During the quarter, sales from Xilinx's newest 20nm Ultrascale™ product family surpassed $10 million with particular strength coming from Virtex® Ultrascale, the industry's only 20nm, high-end FPGA family. In addition, sales from the Company's 28nm Zynq®-7000 platform were exceptionally strong during the quarter with primary strength from ADAS applications."
Net Revenues by Geography:
|
| Percentages | Growth Rates |
| Q1
FY 2016 | Q4
FY 2015 | Q1
FY 2015 | Q-T-Q | Y-T-Y |
| North America | 34% | 32% | 26% | 2% | 18% |
| Asia Pacific | 36% | 37% | 43% | -7% | -24% |
| Europe | 19% | 21% | 21% | -11% | -19% |
| Japan | 11% | 10% | 10% | 8% | -5% |
Net Revenues by End Market:
| Percentages | Growth Rates |
| Q1
FY 2016 | Q4
FY 2015 | Q1
FY 2015 | Q-T-Q | Y-T-Y |
| Communications & Data Center | 38% | 41% | 53% | -11% | -36% |
| Industrial, Aerospace & Defense | 44% | 42% | 31% | 3% | 27% |
| Broadcast, Consumer & Automotive | 18% | 17% | 16% | 1% | 2% |
Note: The end market categories represented above have been restated to reflect the consolidation of the Other category into Communications & Data Center. For comparative purposes, we have provided supplemental information on our website at www.investor.xilinx.com that presents results based on previous classifications.
Net Revenues by Product:
| Percentages | Growth Rates |
| Q1
FY 2016 | Q4
FY 2015 | Q1
FY 2015 | Q-T-Q | Y-T-Y |
| New | 38% | 41% | 31% | -10% | 10% |
| Mainstream | 25% | 25% | 37% | -4% | -40% |
| Base | 34% | 30% | 29% | 8% | 5% |
| Support | 3% | 4% | 3% | -8% | -4% |
Products are classified as follows:
- New products: Virtex and Kintex® Ultrascale, Virtex7, Kintex7, Artix®-7, Zynq-7000, Spartan™6 products
- Mainstream products: Virtex-6, Virtex5, and CoolRunner™II products
- Base products: Virtex4, VirtexII, VirtexE, Spartan-3 Spartan-II, CoolRunner and XC9500 products
- Support products: Configuration solutions, HardWire, Software & Support/Services
Note: The product categories represented above have been modified to make categories more meaningful given new product introductions and the maturing of products. For comparative purposes, we have provided supplemental information on our website at www.investor.xilinx.com that presents results based on previous classifications.
Key Statistics: (Dollars in millions)
| Q1
FY 2016 | Q4
FY 2015 | Q1
FY 2015 |
| Annual Return on Equity (%)* | 22 | 24 | 25 |
| Operating Cash Flow | $183 | $166 | $130 |
| Depreciation Expense | $13 | $14 | $13 |
| Capital Expenditures | $8 | $6 | $9 |
| Combined Inventory Days | 138 | 136 | 135 |
| Revenue Turns (%) | 46 | 51 | 47 |
*Return on equity calculation: Annualized net income/average stockholders' equity
Highlights - June Quarter Fiscal 2016
- Xilinx taped out the industry's first All Programmable Multi-Processor SoC (MPSoC) using TSMC's 16FF+ process. This product family targets applications in embedded vision, including ADAS, Industrial Internet of Things, and 5G wireless systems. The All Programmable Zynq UltraScale+™ MPSoC enables the development of flexible, standards-based platforms by providing 5X system level performance/watt and any-to-any connectivity with the security and safety required for next generation systems.
- Xilinx announced that it has collaborated with TSMC on the 7nm process and 3D IC technology for its next generation of All Programmable FPGAs, MPSoCs, and 3D ICs. The technology represents the fourth consecutive generation where the two companies have worked together on advanced process and CoWoS 3D stacking technology, and will become TSMC's fourth generation of FinFET technology. The collaboration will provide Xilinx a multi-node scaling advantage and build on its outstanding product, execution, and market success at 28nm, 20nm, and 16nm nodes.
- Xilinx, Inc. announced the public access release of the SDSoC™ development environment to expand the user base of Zynq® SoCs and MPSoCs to a broad community of systems and software engineers. The SDSoC development environment, a member of the SDx™ family, includes expanded library, board, and design services ecosystem support, enabling embedded C/C++ application development. This public access release also features enhancements to the integrated design environment (IDE) for ease of programming and platform development.
- Xilinx continued to demonstrate a strong commitment to returning value to stockholders. In the June quarter, the Company repurchased $100 million of stock and paid $80 million in dividends, representing nearly 100% of operating cash flow generated during the quarter.
Business Outlook - September Quarter Fiscal 2016
- Sales are expected to be down 2% to 6% sequentially.
- Gross margin is expected to be 69% to 70%.
- Operating expenses are expected to be approximately $217 million including $2 million of amortization of acquisition-related intangibles.
- Other income and expenses are expected to be a net expense of approximately $10 million.
- Fully diluted share count is expected to be approximately 268 million.
- September quarter tax rate is expected to be approximately 12%.
Financial Tables
To read financial tables, click here
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 65209454. The telephonic replay will be available for two weeks following the live call.
About Xilinx
Xilinx develops All Programmable technologies and devices, beyond hardware to software, digital to analog, and single to multiple die in 3D ICs. These industry leading devices are coupled with a next-generation design environment and IP to serve a broad range of customer needs, from programmable logic to programmable systems integration. For more information, visit www.xilinx.com.
