Xilinx, Inc. (NASDAQ: XLNX), the leader in adaptive and
intelligent computing, today updated the range of its prior
guidance for its first quarter of fiscal 2021 ended June 27, 2020,
as set forth below:
Non-GAAP
GAAP
Adjustments
Non-GAAP
Revenues
$720M - $734M
$720M - $734M
Gross Margin
~67% - 68%
~ 1% (1)
~68% - 69%
Operating Expenses
$314M - $320M
$4M (2)
$310M - $316M
Other Expense
~$11M
~$11M
Tax Rate
~45%-47%
~34% (3)
~11%-13%
Notes regarding Non-GAAP Adjustments:
(1) Amortization of acquisition-related
intangibles (2) M&A related expenses and amortization of
acquisition-related intangibles (3) Income tax effect of Non-GAAP
adjustments, excluding a one-time charge related to impacts from a
third-party legal proceeding related to cost sharing arrangements
(see “Non-GAAP Financial Information – Income Taxes” for additional
detail)
“While we have seen some COVID-19 related impacts during the
June quarter, our business has generally performed well overall,
with stronger than expected revenues in our Wired and Wireless
Group and Data Center Group more than offsetting weaker than
expected revenues in our consumer-oriented end markets, including
automotive, broadcast, and consumer. A portion of the revenue
strength in the quarter was due to customers accelerating orders
following recent changes to the U.S. government restrictions on
sales of certain of our products to international customers,” said
Victor Peng, Xilinx’s President and Chief Executive Officer.
“Given our preliminary assessment of the expected financial
results in the June quarter, we are raising the midpoint for
revenue and narrowing our overall guidance ranges. Furthermore, we
are updating our expected tax rate for the June quarter to include
the prior and current year potential impacts of the Altera Corp. v.
Commissioner tax case, a third-party legal proceeding concerning
related-party R&D cost sharing arrangements and stock-based
compensation. The potential impact for prior years is approximately
$57 million while the impact to the fiscal 2021 expected tax rate
is an additional 1%-2%.”
“We will continue to closely monitor the business environment,
which remains dynamic. Based on our current assessment, we expect
our fiscal second quarter revenues to be, approximately, in line
with the fiscal first quarter.”
There will be no conference call associated with this press
release. Xilinx will report results for the fiscal first quarter
and provide more detailed estimates for its fiscal second quarter
during its next earnings conference call scheduled for July 30,
2020.
Non-GAAP Financial Information First quarter of fiscal
2021 business outlook include financial measures which are not
determined in accordance with the United States generally accepted
accounting principles (GAAP), as indicated. Non-GAAP measures
should not be considered as a substitute for, or superior to,
financial measures determined in accordance with GAAP. The
presentation of non-GAAP financial measures has been reconciled, in
each case, to the most directly-comparable GAAP measure, as
indicated in the accompanying tables. The Company’s calculation of
such non-GAAP measures may not be comparable to similarly-titled
measures used by other companies.
Management uses the non-GAAP financial measures disclosed herein
to evaluate the Company's financial results from continuing
operations (excluding the impact of acquisitions) and compare to
operating performance in past periods. Similarly, Management
believes presentation of these non-GAAP measures is useful to
investors because it enables investors and analysts to evaluate
operating expenses of the Company's core business, excluding the
impact of non-core business expenses such as acquisition-related
amortization and non-recurring items.
M&A related expenses: These expenses mainly consist of legal
and consulting fees associated with acquisition activities. The
Company believes these costs do not reflect its current operating
performance. Consequently, the non-GAAP adjustments exclude these
charges to facilitate an evaluation of the Company’s current
operating performance and comparisons to its past operating
performance.
Amortization of acquisition-related intangibles: Amortization of
acquisition-related intangible assets consists of amortization of
intangible assets such as developed technology acquired in
connection with business combinations. The non-GAAP adjustments
exclude these charges to facilitate an evaluation of the Company’s
current operating performance and comparisons to its past operating
performance.
Income taxes: The Company excludes the income tax effects of
non-GAAP adjustments reflected in operating expenses and other
income, as detailed above, including a one-time charge of
approximately $57 million for the fiscal 2017 to fiscal 2020 impact
of the Supreme Court’s June 22, 2020, decision not to hear the
Altera Corp. v. Commissioner (“Altera”) case. Xilinx is not a party
to the proceedings but is subject to the findings of the case. The
Altera tax case concerns related party R&D cost sharing
arrangements and whether stock-based compensation should be
included in the pool of costs to be shared. With the Supreme
Court’s decision not to hear the Altera case, the decision of the
9th Circuit (which would apply to taxpayers such as Xilinx) that
stock-based compensation is to be included in the pool of costs to
be shared remains in place. Despite the decision in Altera, the law
remains unsettled and the Company will continue to monitor
developments and the potential effect on its consolidated financial
statements and tax filings. Please see “Note 14. Income Taxes” to
our financial statements in our Form 10-K as filed with the SEC on
May 8, 2020 for more details about the Altera case.
It also excludes the U.S. tax reform related items and other
significant tax effects of post-acquisition tax integration
transactions. The Company believes excluding the U.S. tax reform
and post-acquisition tax integration items will facilitate a
comparable evaluation of its current performance to its past
performance. The first quarter of fiscal 2021 outlook does not
reflect other tax related items which the Company is not able to
predict without unreasonable efforts due to their inherent
uncertainty.
Forward-Looking Statements This release contains
forward-looking statements and projections. Forward-looking
statements and projections can often be identified by the use of
forward-looking words such as “expect,” “believe,” “may,” “will,”
“could,” “anticipate,” “estimate,” “continue,” “plan,” “intend,”
“project” or other similar expressions. Statements that refer to or
are based on projections, uncertain events or assumptions also
identify forward-looking statements. Such forward looking
statements include, but are not limited to, statements related to
the semiconductor market, the growth and acceptance of our
products, expected revenue growth, the demand and growth in the
markets we serve, opportunity for expansion into new markets, and
our expectations regarding our business outlook for the June and
September quarters. Undue reliance should not be placed on such
forward-looking statements and projections, which speak only as of
the date they are made. We undertake no obligation to update such
forward-looking statements. Actual events and results may differ
materially from those in the forward-looking statements and are
subject to risks and uncertainties including, among others, the
impact of the COVID-19 pandemic and related containment measures
(which, in addition to presenting its own risks and uncertainties,
may also heighten the other risks and uncertainties faced by our
business and decrease our visibility into all aspects of our
business), customer acceptance of our new products, current global
economic conditions, our dependence on certain customers, trade and
export restrictions, the condition and performance of our customers
and the end markets in which they participate, our ability to
forecast end customer demand, a high dependence on turns business,
more customer volume discounts than expected, greater product mix
changes than anticipated, fluctuations in manufacturing yields, our
ability to deliver product in a timely manner, our ability to
successfully manage production at multiple foundries, variability
in wafer pricing, costs and liabilities associated with current and
future litigation, our ability to generate cost and operating
expense savings in an efficient and timely manner, our ability to
realize the goals contemplated by our acquisitions and strategic
investments, the impact of current and future legislative and
regulatory changes, the impact of new accounting pronouncements and
tax laws, including the U.S. Tax Cuts and Jobs Act, and
interpretations thereof, and other risk factors described in our
most recent Forms 10-Q and 10-K.
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.
Xilinx, the Xilinx logo, Alveo, Artix, Kintex, Spartan, Versal,
Vitis, Virtex, Vivado, Zynq, and other designated brands included
herein are trademarks of Xilinx in the United States and other
countries. All other trademarks are the property of their
respective owners.
XLNX -F
Source: Xilinx Newsroom
Category: Corporate Announcements
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200629005729/en/
Investor Relations Contact: Suresh Bhaskaran Xilinx, Inc.
(408) 879-4784 ir@xilinx.com
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