Xilinx Reports Fiscal Fourth Quarter and Fiscal Year 2020 Results

Xilinx Reports Fiscal Fourth Quarter and Fiscal Year 2020 Results Apr 22, 2020

SAN JOSE, Calif.--(BUSINESS WIRE)-- Xilinx, Inc. (Nasdaq: XLNX), the leader in adaptive and intelligent computing, today announced revenues of $3.16 billion for fiscal year 2020, up 3% from the prior fiscal year. Revenues were $756 million for the fourth quarter of fiscal year 2020, up 5% from the prior quarter and down 9% year over year.

GAAP net income for fiscal year 2020 was $793 million, or $3.11 per diluted share. Non-GAAP net income for fiscal year 2020 was $853 million, or $3.35 per diluted share. GAAP net income for the March quarter was $162 million, or $0.65 per diluted share. Non-GAAP net income for the March quarter was $193 million, or $0.78 per diluted share.

The Xilinx Board of Directors declared a quarterly cash dividend of $0.38 per outstanding share of common stock payable on June 3, 2020 to all stockholders of record at the close of business on May 13, 2020. The declared dividend represents a 2.7% increase over the prior quarter's dividend and reflects Xilinx's commitment to growing the dividend.

Additional fourth quarter of fiscal year 2020 comparisons are provided in the charts below.

Q4 2020 Financial Highlights

(In millions, except EPS)

GAAP

Q4

Q3

Q4

FY2020

FY2020

FY2019

Q-T-Q

Y-T-Y

Net revenues*

$756

$723

$828

5%

-9%

Operating income

$178

$159

$250

12%

-29%

Net income

$162

$162

$245

0%

-34%

Diluted earnings per share

$0.65

$0.64

$0.95

2%

-32%

Non-GAAP

Q4

Q3

Q4

FY2020

FY2020

FY2019

Q-T-Q

Y-T-Y

Net revenues*

$756

$723

$828

5%

-9%

Operating income

$218

$174

$259

25%

-16%

Net income

$193

$171

$242

13%

-20%

Diluted earnings per share

$0.78

$0.68

$0.94

15%

-17%

* No adjustment between GAAP and Non-GAAP

Despite our fiscal 2020 being uniquely challenging, particularly related to the US trade-related restrictions with Huawei as well as some COVID-19 impact during our Q4, we were able to deliver another record year with revenue of $3.16 billion, a 3% increase over fiscal 2019, said Xilinx president and CEO Victor Peng. The strength and diversity of our business were reflected in the results of our fiscal fourth quarter with strong sequential growth in both revenue and profitability.

There remains a high degree of uncertainty in the global business environment given the impact of COVID-19 which creates challenges with visibility beyond the near term. Therefore, we believe it is prudent to provide only quarterly guidance at this time. We will continue to closely monitor business conditions. Lastly, I want to thank our employees for their continued focus and commitment in these challenging times.

Net Revenues by Geography:

Percentages

Growth Rates

Q4

Q3

Q4

FY2020

FY2020

FY2019

Q-T-Q

Y-T-Y

North America

37%

28%

27%

37%

27%

Asia Pacific

37%

48%

47%

-19%

-28%

Europe

18%

16%

18%

17%

-11%

Japan

8%

8%

8%

7%

-4%

Net Revenues by End Market:

Percentages

Growth Rates

Q4

Q3

Q4

FY2020

FY2020

FY2019

Q-T-Q

Y-T-Y

A&D, Industrial and TME

50%

40%

39%

30%

15%

Automotive, Broadcast and Consumer

16%

19%

14%

-13%

2%

Wired and Wireless Group

24%

31%

42%

-19%

-46%

Data Center Group

10%

9%

5%

14%

77%

Channel

0%

1%

0%

NM

NM

Net Revenues by Product:

Percentages

Growth Rates

Q4

Q3

Q4

FY2020

FY2020

FY2019

Q-T-Q

Y-T-Y

Advanced Products

70%

70%

68%

5%

-6%

Core Products

30%

30%

32%

3%

-14%

Products are classified as follows:

Advanced Products: Alveo and related 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)

Q4

Q3

Q4

FY2020

FY2020

FY2019

Annual Return on Equity (%)*

31

31

34

Operating Cash Flow

$345

$324

$288

Depreciation Expense (including software amortization)

$29

$26

$22

Capital Expenditures (including software)

$32

$34

$28

Inventory Days (internal)

122

124

107

Revenue Turns (%)

46

39

35

*Return on equity calculation: Annualized year to date GAAP net income/average stockholders' equity

Product and Financial Highlights - Fiscal Year 2020

The Data Center Group (DCG) delivered 22% revenue growth over fiscal 2019 driven by increased adoption with hyperscale customers across compute, networking and storage workloads. Pipeline for new opportunities in compute continues to show strong growth for video, HPC, database and fintech. Leveraging the Solarflare acquisition, Xilinx shipped Alveo U25 SmartNIC, the first internally developed SmartNIC solution, in the fiscal fourth quarter and is being evaluated by multiple customers. SmartSSD is also gaining traction with Tier-1 and Tier-2 hyperscale customers. Xilinx now has over 10,000 developers trained on Xilinx software tools, including Vitis, nearly 1,000 ISV partners and over 130 applications published for Alveo.

The Wired and Wireless Group (WWG) delivered relatively flat revenues, down 1% vs. fiscal 2019, despite facing a highly challenging business environment related to trade restrictions and an industry slowdown in the ramp of 5G. Xilinx continues to maintain strong engagements with global OEMs across a variety of deployments and applications. Xilinx recently announced a strategic engagement with Samsung on a second generation 5G radio design that includes beamforming technology leveraging the 7 nm Versal platform. Adoption of Xilinx's RFSoC products also continues to ramp with key wins for DFE application

LINK:	https://www.xilinx.com/news/press/2020/xilinx-reports-fiscal-fourth-qu...
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