- Record revenue of $851 million in the quarter; fiscal 2021
revenue of $3.15 billion
- Data Center Group (DCG) revenue in the quarter increased 28%
sequentially, and fiscal 2021 revenue increased 20% over the prior
year
- Wired and Wireless Group (WWG) revenue in the quarter increased
13% sequentially, driven by strength in Wireless with multiple
regions deploying 5G, partially offset by weakness in Wired
- Aerospace & Defense, Industrial and Test, Measurement &
Emulation (AIT) revenue in the quarter declined 2% sequentially,
with strong Industrial end market performance offset by an expected
decline in TME and softness in Aerospace & Defense sales
- Automotive, Broadcast and Consumer (ABC) revenue in the quarter
declined 1% sequentially, with a record quarter in the Automotive
end market offsetting seasonal declines in Broadcast and Consumer
end markets
- Fiscal fourth quarter free cash flow of $227 million,
representing 27% of revenue; fiscal 2021 free cash flow of $1.04
billion, or 33% of revenue
Xilinx, Inc. (Nasdaq: XLNX), the leader in adaptive computing,
today announced record revenues of $851 million for the fiscal
fourth quarter, up 6% over the previous quarter and an increase of
13% year over year. Fiscal 2021 revenues were $3.15 billion,
largely flat from the prior fiscal year.
GAAP net income for the fiscal fourth quarter was $188 million,
or $0.75 per diluted share. Non-GAAP net income for the quarter was
$204 million, or $0.82 per diluted share. GAAP net income for
fiscal year 2021 was $647 million, or $2.62 per diluted share.
Non-GAAP net income for fiscal year 2021 was $762 million, or $3.08
per diluted share.
Additional fourth quarter of fiscal year 2021 comparisons are
provided in the charts below.
Q4 Fiscal 2021 Financial
Highlights
(In millions, except EPS)
GAAP
Q4
Q3
Q4
FY2021
FY2021
FY2020
Q-T-Q
Y-T-Y
Net revenues*
$851
$803
$756
6%
13%
Gross margin
$570
$547
$528
4%
8%
Operating income
$200
$172
$178
16%
12%
Net income
$188
$171
$162
10%
16%
Diluted earnings per share
$0.75
$0.69
$0.65
9%
15%
Non-GAAP
Q4
Q3
Q4
FY2021
FY2021
FY2020
Q-T-Q
Y-T-Y
Net revenues*
$851
$803
$756
6%
13%
Gross margin
$579
$554
$535
5%
8%
Operating income
$228
$201
$218
13%
4%
Net income
$204
$194
$193
5%
5%
Diluted earnings per share
$0.82
$0.78
$0.78
5%
5%
* No adjustment between GAAP and
Non-GAAP
Note: Q4 FY2021 consisted of 13 weeks; Q3
FY2021 consisted of 14 weeks; Q4 FY2020 consisted of 13 weeks
“We are pleased with our fourth quarter results as we delivered
record revenues and double-digit year-over-year growth in the midst
of a challenging supply chain environment,” said Victor Peng,
Xilinx president and CEO. “Xilinx saw further improvement in demand
across a majority of our diversified end markets with key strength
in our Wireless, Data Center and Automotive markets, the pillars of
our growth strategy. Our teams have executed well and we remain
focused on continuing to meet customers’ critical needs.
“Our investment and strong execution toward our platform
strategy are paying off as we are now in full production shipments
of our 7nm Versal series, which is the culmination of a multi-year
effort and a long-term growth driver for Xilinx. We also introduced
new platforms for edge compute including Kria, an adaptive
system-on-module (SOM) platform, as well as a cost-optimized
UltraScale+ portfolio, to enable and accelerate innovation and AI
at the edge.”
“Record Q4 revenues were driven by strength in Wireless and Data
Center markets, as well as record quarters for our Industrial and
Automotive end markets, which resulted in 6% sequential and 13%
year-over-year growth,” said Brice Hill, Xilinx CFO. “Advanced
Products also grew 6% sequentially and represented 73% of total
revenue. Top line performance drove fourth quarter free cash flows
of $227 million, or 27% of revenue, reflecting our efficient
financial model.”
Net Revenues by Geography:
Percentages
Growth Rates
Q4
Q3
Q4
FY2021
FY2021
FY2020
Q-T-Q
Y-T-Y
North America
27%
30%
37%
-1%
-16%
Asia Pacific
49%
44%
37%
16%
49%
Europe
16%
19%
18%
-12%
-3%
Japan
8%
7%
8%
18%
13%
Net Revenues by End Market:
Percentages
Growth Rates
Q4
Q3
Q4
FY2021
FY2021
FY2020
Q-T-Q
Y-T-Y
A&D, Industrial and TME
41%
45%
50%
-2%
-6%
Automotive, Broadcast and
Consumer
18%
19%
16%
-1%
30%
Wired and Wireless Group
31%
29%
24%
13%
43%
Data Center Group
9%
7%
10%
28%
-5%
Channel
1%
0%
0%
NM
NM
Net Revenues by Product:
Percentages
Growth Rates
Q4
Q3
Q4
FY2021
FY2021
FY2020
Q-T-Q
Y-T-Y
Advanced Products
73%
72%
70%
6%
16%
Core Products
27%
28%
30%
6%
3%
Products are classified as follows: Advanced Products:
Alveo and related products, Versal, 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)
Q4
Q3
Q4
FY2021
FY2021
FY2020
Operating Cash Flow
$240
$360
$345
Depreciation Expense (including software
amortization)
$30
$31
$29
Capital Expenditures (including
software)
$13
$6
$32
Free Cash Flow (1)
$227
$354
$313
Inventory Days (internal)
101
115
122
Revenue Turns (%)
29
34
46
(1) Free Cash Flow = Operating Cash Flow -
Capital Expenditures (including software)
Product and Financial Highlights - Fiscal Year 2021
- Data Center Group (DCG) delivered 20% annual revenue growth
over fiscal 2020 driven by continuing adoption with hyperscale
customers across compute, networking and storage workloads. Xilinx
maintains strong engagements with hyperscalers to deliver solutions
for AI compute, video acceleration, composable networking and
computational storage. We also introduced new products and
solutions to power the data center and the edge in fiscal 2021
including new Alveo SmartNICs, real-time server appliances for
ultra-high-density video transcoding, the Samsung SmartSSD®
Computational Storage Drive, the industry’s first adaptable
computational storage platform, and the Xilinx App Store
- Wired and Wireless Group (WWG) revenues were down 14% compared
to fiscal 2020 reflecting China trade-related impacts as well as
slowdowns related to the COVID-19 pandemic. The Wireless end market
recovered in the second half of fiscal 2021 as 5G deployments
accelerated in multiple regions across a variety of technologies.
Versal is now in production with a Tier-1 OEM to enable beamforming
technology in massive MIMO applications, and continues to gain
momentum with design wins with multiple OEMs. RFSoC is in
deployment with multiple customers and Xilinx has a strong design
win pipeline with RFSoC DFE. Recent announcements with Mavenir and
Fujitsu, as well as for the T1 Telco Accelerator Card, position
Xilinx to support the emerging growth opportunities in O-RAN
- Aerospace & Defense, Industrial and Test & Measurement
(AIT) revenue grew 6% compared to fiscal 2020, driven by strength
in Industrial, Scientific & Medical (ISM) and Test, Measurement
& Emulation (TME) end markets. Zynq product penetration into
applications that have traditionally used ASSPs and ASICs have
provided significant expansion of available market
opportunities
- Automotive, Broadcast and Consumer (ABC) markets delivered 1%
annual growth despite material impacts from the COVID-19 pandemic.
The Automotive end market recovered strongly in the second half of
fiscal 2021 with consecutive quarters of record revenue in Q3 and
Q4 despite ongoing supply chain challenges. Xilinx platforms
continue to be adopted by leading global OEMs and manufacturers for
ADAS applications, including Continental for a 4-D imaging radar
and Subaru to power its new-generation EyeSight ADAS system
- Xilinx introduced new solutions for the edge, including the new
Kria adaptive system-on-module (SOM) platform for accelerating AI
applications at the edge, and a cost-optimized UltraScale+
portfolio, for ultra-compact, high-performance edge compute
- Strong adoption momentum continues for the Vitis software
development platform with over 76,000 downloads and another 23,000
estimated downloads for Vitis AI development environment for
accelerating AI inference. In addition, over 20,000 developers have
been trained on Xilinx software tools, and more than 1,000 ISV
partners have published over 200 applications across all Xilinx
powered adaptive platforms including cloud, Alveo and SmartSSD
Commentary on AMD Transaction
As announced on October 27, 2020, Advanced Micro Devices, Inc.
(AMD) intends to acquire Xilinx in an all-stock transaction valued
at $35 billion. Due to the pending acquisition, Xilinx will not
hold an earnings conference call or provide forward-looking
guidance. Also, pursuant to the terms of the Merger Agreement
between the Company and AMD, Xilinx has suspended its quarterly
dividend as well as its open market stock repurchase program.
Non-GAAP Financial Information
Fiscal year 2021 and fourth quarter 2021 results 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.
Xilinx’s (the Company) 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, other than free cash flow, 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, as described below:
M&A related expenses: These expenses mainly consist of
legal, advisory and consulting fees associated with acquisition
activities, and also include fees and retention compensation
related to the Company’s acquisition by AMD. The Company believes
these costs do not reflect its current 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. It also excludes other significant tax
effects of post-acquisition tax integration transactions. The
Company believes excluding post-acquisition tax integration items
will facilitate a comparable evaluation of its current performance
to its past performance.
In addition, free cash flow, which is cash flow from operations
adjusted to exclude additions to software, property, plant, and
equipment, is used by management when assessing the Company’s
sources of liquidity, capital resources, and quality of earnings.
The Company believes that this non-GAAP financial measure is
helpful in understanding the Company’s capital requirements and
provides an additional means to evaluate the cash flow trends of
the Company’s business.
Forward-Looking Statements
This release contains forward-looking statements, which 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
uncertain events or assumptions also identify forward-looking
statements. Such forward-looking statements include, but are not
limited to, statements related to our proposed acquisition by AMD,
the semiconductor market, the growth and acceptance of our
products, expected revenue growth, the demand and growth in the
markets we serve, and opportunity for expansion into new markets.
Undue reliance should not be placed on such forward-looking
statements, 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 ongoing
COVID-19 pandemic and related mitigation 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);
closing of the proposed transaction with AMD on anticipated timing
(including the risk that the conditions to the transaction are not
satisfied on a timely basis or at all or the failure of the
transaction to close for any other reason) and terms (including
obtaining the anticipated tax treatment, regulatory approvals,
required consents or authorizations); unanticipated difficulties or
expenditures relating to the transaction; the response of business
partners and retention as a result of the announcement and pendency
of the transaction; the diversion of management time on
transaction-related matters; customer acceptance of our new
products; changing 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; our reliance on third parties
(including distributors); variability in wafer pricing; costs and
liabilities associated with current and future litigation
(including litigation relating to the proposed transaction with
AMD); 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
and subsequent filings with the U.S. Securities and Exchange
Commission.
About Xilinx
Xilinx, Inc. develops highly flexible and adaptive computing
platforms that enable rapid innovation across a variety of
technologies - from the cloud, to the edge, to the endpoint. Xilinx
is the inventor of the FPGA and Adaptive SoCs (including our
Adaptive Compute Acceleration Platform, or ACAP), designed to
deliver the most dynamic computing technology in the industry. We
collaborate with our customers to create scalable, differentiated
and intelligent solutions that enable the adaptable, intelligent
and connected world of the future. For more information, visit
xilinx.com.
Xilinx, the Xilinx logo, Alveo, Artix, Kintex, Spartan, Versal,
Vitis, Virtex, Vivado, Zynq, Kria and other designated brands
included herein are trademarks of Xilinx in the United States
and/or other countries. All other trademarks are the property of
their respective owners.
XILINX, INC. CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) (In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
April 3, 2021
January 2, 2021
March 28, 2020
April 3, 2021
March 28, 2020
Net revenues
$
850,987
$
803,404
$
756,169
$
3,147,599
$
3,162,666
Cost of revenues: Cost of products sold
272,851
249,529
221,037
966,604
1,025,234
Amortization of acquisition-related intangibles
7,733
6,875
6,697
28,000
22,396
Total cost of revenues
280,584
256,404
227,734
994,604
1,047,630
Gross margin
570,403
547,000
528,435
2,152,995
2,115,036
Operating expenses: Research and development
239,863
235,018
214,968
904,639
853,589
Selling, general and administrative
127,872
136,701
103,675
483,749
432,308
Amortization of acquisition-related intangibles
2,887
2,856
3,401
11,468
8,889
Restructuring charges
-
-
28,362
-
28,362
Total operating expenses
370,622
374,575
350,406
1,399,856
1,323,148
Operating income
199,781
172,425
178,029
753,139
791,888
Interest and other income (expense), net
(4,245
)
3,709
11,717
(23,461
)
42,096
Income before income taxes
195,536
176,134
189,746
729,678
833,984
Provision for income taxes
7,652
5,162
27,489
83,170
41,263
Net income
$
187,884
$
170,972
$
162,257
$
646,508
$
792,721
Net income per common share: Basic
$
0.76
$
0.70
$
0.66
$
2.65
$
3.15
Diluted
$
0.75
$
0.69
$
0.65
$
2.62
$
3.11
Cash dividends per common share
$
-
$
0.38
$
0.37
$
1.14
$
1.48
Shares used in per share calculations: Basic
245,774
245,145
247,166
244,257
251,732
Diluted
249,030
248,148
249,320
247,229
254,943
XILINX, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
April 3, 2021
March 28, 2020*
(unaudited) ASSETS Current assets: Cash, cash
equivalents and short-term investments
$
3,078,899
$
2,267,216
Accounts receivable, net
285,214
273,028
Inventories
311,085
304,340
Other current assets
71,064
64,557
Total current assets
3,746,262
2,909,141
Net property, plant and equipment
345,023
372,574
Other assets
1,427,916
1,411,619
Total assets
$
5,519,201
$
4,693,334
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: Accounts payable and accrued
liabilities
$
624,555
$
586,421
Current portion of long-term debt
-
499,260
Total current liabilities
624,555
1,085,681
Long-term debt
1,492,688
747,110
Other long-term liabilities
514,997
545,494
Stockholders' equity
2,886,961
2,315,049
Total Liabilities and Stockholders' Equity
$
5,519,201
$
4,693,334
* Fiscal 2020 balances are derived from audited financial
statements.
XILINX, INC. SUPPLEMENTAL FINANCIAL
INFORMATION (Unaudited) (In thousands)
Three Months Ended
Twelve Months Ended
April 3, 2021
January 2, 2021
March 28, 2020
April 3, 2021
March 28, 2020
SELECTED CASH FLOW INFORMATION: Depreciation and
amortization of software
$
29,616
$
30,818
$
28,603
$
122,432
$
97,485
Amortization - others
16,574
17,133
16,282
64,082
60,048
Stock-based compensation
71,077
66,331
43,991
246,230
186,723
Net cash provided by operating activities
240,030
360,137
345,351
1,093,221
1,190,836
Purchases of property, plant, equipment and software
12,864
6,009
32,309
49,665
129,289
Payment of dividends to stockholders
-
93,155
91,417
278,674
371,793
Repayment of debt
500,000
-
-
500,000
-
Repurchases of common stock
-
-
470,733
53,682
1,208,917
Taxes paid related to net share settlement of restricted stock
units, net of proceeds from issuance of common stock
(29,400
)
4,560
(28,082
)
8,471
27,459
STOCK-BASED COMPENSATION INCLUDED IN: Cost of
revenues
$
3,616
$
3,465
$
1,649
$
12,765
$
10,035
Research and development
43,564
40,228
28,857
150,271
114,976
Selling, general and administrative
23,897
22,638
13,313
83,194
61,540
Restructuring charges
-
-
172
-
172
XILINX, INC. RECONCILIATIONS OF GAAP ACTUALS TO NON-GAAP
ACTUALS (Unaudited) (In thousands, except per share
amounts)
Three Months Ended
Twelve Months Ended
April 3, 2021
January 2, 2021
March 28, 2020
April 3, 2021
March 28, 2020
GAAP gross margin
$
570,403
$
547,000
$
528,435
$
2,152,995
$
2,115,036
Inventory valuation adjustment
-
-
-
-
3,855
Amortization of acquisition-related intangibles
7,733
6,875
6,697
28,000
22,396
M&A related expenses
842
114
-
957
-
Non-GAAP gross margin
$
578,978
$
553,989
$
535,132
$
2,181,952
$
2,141,287
GAAP operating income
$
199,781
$
172,425
$
178,029
$
753,139
$
791,888
Inventory valuation adjustment
-
-
-
-
3,855
Amortization of acquisition-related intangibles
10,620
9,731
10,098
39,468
31,285
M&A related expenses
17,220
19,150
1,798
39,440
14,190
Restructuring charges
-
-
28,362
-
28,362
Non-GAAP operating income
$
227,621
$
201,306
$
218,287
$
832,047
$
869,580
GAAP net income
$
187,884
$
170,972
$
162,257
$
646,508
$
792,721
Inventory valuation adjustment
-
-
-
-
3,855
Amortization of acquisition-related intangibles
10,620
9,731
10,098
39,468
31,285
M&A related expenses
17,220
19,150
1,798
39,440
14,190
Restructuring charges
-
-
28,362
-
28,362
Income tax effect of intercompany integration transactions
-
-
-
-
(1,838
)
Income tax effect of tax-related items
(6,776
)
(528
)
-
49,497
-
Income tax effect of non-GAAP adjustments
(5,006
)
(5,100
)
(9,137
)
(13,167
)
(15,271
)
Non-GAAP net income
$
203,942
$
194,225
$
193,378
$
761,746
$
853,304
GAAP diluted EPS
$
0.75
$
0.69
$
0.65
$
2.62
$
3.11
Inventory valuation adjustment
-
-
-
-
0.02
Amortization of acquisition-related intangibles
0.04
0.04
0.04
0.16
0.11
M&A related expenses
0.08
0.07
0.01
0.15
0.06
Restructuring charges
-
-
0.12
-
0.12
Income tax effect of intercompany integration transactions
-
-
-
-
(0.01
)
Income tax effect of tax-related items
(0.03
)
-
-
0.20
-
Income tax effect of non-GAAP adjustments
(0.02
)
(0.02
)
(0.04
)
(0.05
)
(0.06
)
Non-GAAP diluted EPS
$
0.82
$
0.78
$
0.78
$
3.08
$
3.35
GAAP cash flow from operations
$
240,030
$
360,137
$
345,351
$
1,093,221
$
1,190,836
Capital expenditures (including software)
(12,864
)
(6,009
)
(32,309
)
(49,665
)
(129,289
)
Free cash flow
$
227,166
$
354,128
$
313,042
$
1,043,556
$
1,061,547
XLNX-F
Source: Xilinx Newsroom
Category: Corporate Announcements
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210504006183/en/
Investor Relations Contact: Suresh Bhaskaran Xilinx, Inc.
(408) 879-4784
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