Advanced Computing in the Age of AI | Monday, September 20, 2021

Xilinx Reports Fiscal First Quarter 2022 Results 

SAN JOSE, Calif., July 29, 2021 -- Xilinx, Inc., a leader in adaptive computing, announced record revenues of $879 million for the fiscal first quarter, up 3% over the previous quarter.

  • Record revenue of $879 million, representing 3% sequential growth and 21% annual growth, despite ongoing industry-wide supply chain challenges
  • Data Center Group (DCG) revenue in the quarter increased 14% sequentially driven by strong demand across hyperscale cloud customers and the Fintech market
  • Wired and Wireless Group (WWG) revenue was up 13% year-over-year and flat sequentially driven by continuing global 5G deployments
  • Aerospace & Defense, Industrial and Test, Measurement & Emulation (AIT) revenue declined 10% sequentially, with record Industrial end market performance offset by a decline in Aerospace & Defense sales, and a modest decline in TME
  • Automotive, Broadcast and Consumer (ABC) revenue in the quarter increased 13% sequentially, with record quarters in the Broadcast and Consumer end markets
  • Platform transformation continues with total Adaptive SoC revenue, which includes Zynq and Versal platforms, up 13% sequentially and 83% year-over-year, and representing 28% of total revenue
  • Fiscal first quarter free cash flow of $373 million, representing 42% of revenue

GAAP net income for the fiscal first quarter was $206 million, or $0.83 per diluted share. Non-GAAP net income for the quarter was $236 million, or $0.95 per diluted share.

Additional first quarter of fiscal year 2022 comparisons are provided in the charts below.

Q1 Fiscal 2022 Financial Highlights

(In millions, except EPS)

GAAP

Q1

Q4

Q1

FY2022

FY2021

FY2021

Q-T-Q

Y-T-Y

Net revenues*

$879

$851

$727

3%

21%

Gross margin

$586

$570

$494

3%

19%

Operating income

$210

$200

$176

5%

20%

Net income

$206

$188

$94

10%

120%

Diluted earnings per share

$0.83

$0.75

$0.38

11%

118%

Non-GAAP

Q1

Q4

Q1

FY2022

FY2021

FY2021

Q-T-Q

Y-T-Y

Net revenues*

$879

$851

$727

3%

21%

Gross margin

$596

$579

$501

3%

19%

Operating income

$246

$228

$187

8%

32%

Net income

$236

$204

$160

16%

47%

Diluted earnings per share

$0.95

$0.82

$0.65

16%

46%

* No adjustment between GAAP and Non-GAAP

“Xilinx delivered another record quarter as the demand for our products remains robust, despite an unprecedented and challenging supply constrained environment,” said Victor Peng, Xilinx president and CEO. “Our stellar results were driven by strength across our diversified end markets. We continue to actively manage the supply situation with our partners, including qualifying a new supplier in a key part of our supply chain, to meet strong customer demand. In addition, we continue to execute extremely well on our roadmap as we have broadened the Versal portfolio with the Versal Edge and Versal HBM series announcements. We are working every day to improve supply for our customers.”

“Record Q1 revenues were driven by strength in the Data Center end market, as well as a record quarters for our Industrial, Broadcast and Consumer end markets. This drove 3% sequential and 21% year-over-year growth,” said Brice Hill, Xilinx CFO. “Advanced Products grew 2% sequentially and 27% annually, and represented 72% of total revenue. Top line performance drove record free cash flows of $373 million, or 42% of revenue.

“While days of inventory are near historical lows due to the supply chain constraints, we expect inventory to remain relatively stable at current levels as some expected supply increases will be offset by continued strong customer demand. COVID surges in Southeast Asia during Q1 resulted in higher quarter-end shipments to distributors resulting in transitory higher channel inventory. Channel inventory levels decreased by the early part of fiscal Q2 as products shipped through to end customers, and remain lean. We are very proud of the effort and agility of our employees and partners in support of our customers.”

Net Revenues by Geography:

Percentages

Growth Rates

Q1

Q4

Q1

FY2022

FY2021

FY2021

Q-T-Q

Y-T-Y

North America

23%

27%

26%

-14%

7%

Asia Pacific

52%

49%

54%

11%

17%

Europe

15%

16%

13%

0%

44%

Japan

10%

8%

7%

22%

55%

Net Revenues by End Market:

Percentages

Growth Rates

Q1

Q4

Q1

FY2022

FY2021

FY2021

Q-T-Q

Y-T-Y

A&D, Industrial and TME

36%

41%

45%

-10%

-2%

Automotive, Broadcast and Consumer

20%

18%

12%

13%

94%

Wired and Wireless Group

30%

31%

32%

0%

13%

Data Center Group

10%

9%

12%

14%

-1%

Channel

4%

1%

-1%

NM

NM

Net Revenues by Product:

Percentages

Growth Rates

Q1

Q4

Q1

FY2022

FY2021

FY2021

Q-T-Q

Y-T-Y

Advanced Products

72%

73%

68%

2%

27%

Core Products

28%

27%

32%

7%

8%

Products are classified as follows:

Advanced Products: Versal, UltraScale+, UltraScale and 7-series product families, and production boards business composed of Alveo, Solarflare, Network, and System-On-Modules.

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

Q4

Q1

FY2022

FY2021

FY2021

Operating Cash Flow

$390

$240

$245

Depreciation Expense (including software amortization)

$32

$30

$32

Capital Expenditures (including software)

$17

$13

$15

Free Cash Flow (1)

$373

$227

$230

Inventory Days (internal)

89

101

114

Revenue Turns (%)

27

29

31

(1)

Free Cash Flow = Operating Cash Flow - Capital Expenditures (including software)

Product and Financial Highlights - Fiscal First Quarter 2022

  • Xilinx unveiled the Versal AI Edge series, designed to enable AI innovation from the edge to the endpoint with 10x greater compute density versus previous-generation adaptive SoCs. Target applications include automated driving, collaborative robotics, predictive factory and healthcare systems, and multi-mission payloads for the aerospace and defense end markets.
  • Xilinx also introduced the Versal HBM series, architected to keep up with the higher memory needs of the most compute intensive, memory bound applications for data center, wired networking, test and measurement, and aerospace and defense end markets.
  • Xilinx introduced Vivado ML Editions, the industry’s first FPGA EDA tool suite based on machine-learning optimization algorithms, as well as advanced team-based design flows, for significant design time and cost savings.
  • Xilinx released Vitis AI 1.4 featuring support for the Company’s 7nm Versal ACAPs and the 16nm-based Kria SoM providing more possibilities for users to achieve higher-performance, scalability and cloud-to-edge deployment options in AI productization.
  • Xilinx acquired Silexica, a provider of C/C++ programming and analysis tools whose SLX FPGA tool suite will be integrated with the Xilinx Vitis unified software platform to reduce the learning curve for software developers building applications on Xilinx technology.

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.

XILINX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended
July 3, 2021 April 3, 2021 June 27, 2021
Net revenues

$

878,606

$

850,987

$

726,673

Cost of revenues:
Cost of products sold

283,441

272,851

226,103

Amortization of acquisition-related intangibles

9,066

7,733

6,697

Total cost of revenues

292,507

280,584

232,800

Gross margin

586,099

570,403

493,873

Operating expenses:
Research and development

247,975

239,863

210,113

Selling, general and administrative

124,920

127,872

105,383

Amortization of acquisition-related intangibles

2,841

2,887

2,862

Total operating expenses

375,736

370,622

318,358

Operating income

210,363

199,781

175,515

Interest and other income (expense), net

1,000

(4,245

)

(12,153

)

Income before income taxes

211,363

195,536

163,362

Provision for income taxes

5,022

7,652

69,526

Net income

$

206,341

$

187,884

$

93,836

Net income per common share:
Basic

$

0.84

$

0.76

$

0.39

Diluted

$

0.83

$

0.75

$

0.38

Cash dividends per common share

$

$

$

0.38

Shares used in per share calculations:
Basic

245,860

245,774

243,180

Diluted

249,320

249,030

245,543

XILINX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
July 3, 2021 April 3, 2021
(unaudited)
ASSETS
Current assets:
Cash, cash equivalents and short-term investments

$

3,389,631

$

3,078,899

Accounts receivable, net

233,887

285,214

Inventories

287,043

311,085

Other current assets

75,848

71,064

Total current assets

3,986,409

3,746,262

Net property, plant and equipment

343,993

345,023

Other assets

1,521,781

1,427,916

Total Assets

$

5,852,183

$

5,519,201

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities

$

714,896

$

624,555

Total current liabilities

714,896

624,555

Long-term debt

1,492,999

1,492,688

Other long-term liabilities

524,684

514,997

Stockholders' equity

3,119,604

2,886,961

Total Liabilities and Stockholders' Equity

$

5,852,183

$

5,519,201

* Fiscal 2021 balances are derived from audited financial statements.
XILINX, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)
(In thousands)
Three Months Ended
July 3, 2021 April 3, 2021 June 27, 2021
SELECTED CASH FLOW INFORMATION:
Depreciation and amortization of software

$

32,192

$

29,616

$

31,749

Amortization - others

17,946

16,574

15,059

Stock-based compensation

67,609

71,077

50,383

Net cash provided by operating activities

389,897

240,030

245,471

Purchases of property, plant and equipment and software

17,186

12,864

15,461

Payment of dividends to stockholders

92,414

Repayment of debt

500,000

Repurchases of common stock

53,682

Taxes paid related to net share settlement of restricted stock units, net of proceeds from issuance of common stock

3,796

(29,400

)

3,239

STOCK-BASED COMPENSATION INCLUDED IN:
Cost of revenues

$

3,610

$

3,616

$

2,721

Research and development

41,462

43,564

30,369

Selling, general and administrative

22,537

23,897

17,293

XILINX, INC.
RECONCILIATIONS OF GAAP ACTUALS TO NON-GAAP ACTUALS
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended
July 3, 2021 April 3, 2021 June 27, 2021
GAAP gross margin

$

586,099

$

570,403

$

493,873

Amortization of acquisition-related intangibles

9,066

7,733

6,697

M&A related expenses

933

842

Non-GAAP gross margin

$

596,098

$

578,978

$

500,570

GAAP operating income

$

210,363

$

199,781

$

175,515

Amortization of acquisition-related intangibles

11,907

10,620

9,559

M&A related expenses

23,757

17,220

1,563

Non-GAAP operating income

$

246,027

$

227,621

$

186,637

GAAP net income

$

206,341

$

187,884

$

93,836

Amortization of acquisition-related intangibles

11,907

10,620

9,559

M&A related expenses

23,757

17,220

1,563

Income tax effect of tax-related items

(6,776

)

56,801

Income tax effect of non-GAAP adjustments

(6,259

)

(5,006

)

(1,590

)

Non-GAAP net income

$

235,746

$

203,942

$

160,169

GAAP diluted EPS

$

0.83

$

0.75

$

0.38

Amortization of acquisition-related intangibles

0.05

0.04

0.04

M&A related expenses

0.10

0.08

0.01

Income tax effect of tax-related items

(0.03

)

0.23

Income tax effect of non-GAAP adjustments

(0.03

)

(0.02

)

(0.01

)

Non-GAAP diluted EPS

$

0.95

$

0.82

$

0.65

GAAP cash flow from operations

$

389,897

$

240,030

$

245,471

Capital expenditures (including software)

(17,186

)

(12,864

)

(15,461

)

Free cash flow

$

372,711

$

227,166

$

230,010

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.

Click here for the full announcement.


Source: Xilinx

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