Xilinx Reports Second Quarter Fiscal Year 2021 Results

Xilinx Reports Second Quarter Fiscal Year 2021 Results Oct 21, 2020

Revenues of $767 million, exceeding the mid-point of guidance and up 5% sequentially

Record Data Center Group (DCG) revenue, with 23% sequential and 30% annual growth

Automotive, Broadcast & Consumer (ABC) revenue increased 36% sequentially, driven by Automotive market improvement

Free cash flow of $232 million, or 30% of revenue

Returned $93 million to stockholders through dividends

SAN JOSE, Calif.--(BUSINESS WIRE)-- Xilinx, Inc. (Nasdaq: XLNX), the leader in adaptive computing, today announced revenues of $767 million for the second quarter of fiscal year 2021.

GAAP net income for the quarter was $194 million, or $0.79 per diluted share. Non-GAAP net income was $203 million, or $0.82 per diluted share.

The Xilinx Board of Directors declared a quarterly cash dividend of $0.38 per outstanding share of common stock payable on December 2, 2020 to all stockholders of record at the close of business on November 11, 2020.

Additional second quarter of fiscal year 2021 comparisons are provided in the charts below.

Q2 Fiscal 2021 Financial Highlights

(In millions, except EPS)

GAAP

Q2

Q1

Q2

FY2021

FY2021

FY2020

Q-T-Q

Y-T-Y

Net revenues*

$767

$727

$833

5%

-8%

Operating income

$205

$176

$204

17%

1%

Net income

$194

$94

$227

107%

-15%

Diluted earnings per share

$0.79

$0.38

$0.89

108%

-11%

Non-GAAP

Q2

Q1

Q2

FY2021

FY2021

FY2020

Q-T-Q

Y-T-Y

Net revenues*

$767

$727

$833

5%

-8%

Operating income

$216

$187

$217

16%

0%

Net income

$203

$160

$240

27%

-15%

Diluted earnings per share

$0.82

$0.65

$0.94

26%

-13%

* No adjustment between GAAP and Non-GAAP

We are pleased with our fiscal second quarter performance, which came in above the mid-point of guidance, said Xilinx president and CEO Victor Peng. Our strong results were driven by another record quarter in our Data Center Group and Aerospace & Defense businesses, as well as improvement in our Automotive and Broadcast end markets. In addition, RFSoC sales ramped meaningfully with a tier-1 wireless OEM customer for 5G radio deployment in North America.

Our strategic transformation to an adaptive platform company continues with healthy design win momentum during the quarter. Notable customer wins included a marquee SmartNIC design win with a U.S. tier-1 hyperscaler, as well as Zynq MPSoC design wins with Subaru and Continental. We also remain on track with our Versal program ramp with a leading wireless OEM later this year.

Xilinx business continued to strengthen in fiscal Q2, buoyed by the economic recovery and increasing demand across our broad set of end markets, said Xilinx CFO Brice Hill. This drove better than expected sequential revenue growth of 5% and GAAP operating income growth of 17%, resulting in $232 million of free cash flow and $93 million in capital return to stockholders with our quarterly dividend. Our financial position is strong and we remain confident as we prepare to expand the Zynq and Versal product lines and capture additional growth opportunities.

Net Revenues by Geography:

Percentages

Growth Rates

Q2

Q1

Q2

FY2021

FY2021

FY2020

Q-T-Q

Y-T-Y

North America

29%

26%

28%

20%

-4%

Asia Pacific

48%

54%

51%

-7%

-13%

Europe

18%

13%

15%

47%

10%

Japan

5%

7%

6%

-25%

-23%

Net Revenues by End Market:

Percentages

Growth Rates

Q2

Q1

Q2

FY2021

FY2021

FY2020

Q-T-Q

Y-T-Y

A&D, Industrial and TME

44%

45%

36%

3%

11%

Automotive, Broadcast and Consumer

16%

12%

16%

36%

-8%

Wired and Wireless Group

26%

32%

38%

-13%

-36%

Data Center Group

14%

12%

10%

23%

30%

Channel

0%

-1%

0%

NM

NM

Net Revenues by Product:

Percentages

Growth Rates

Q2

Q1

Q2

FY2021

FY2021

FY2020

Q-T-Q

Y-T-Y

Advanced Products

70%

68%

74%

8%

-13%

Core Products

30%

32%

26%

-1%

6%

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)

Q2

Q1

Q2

FY2021

FY2021

FY2020

Annual Return on Equity (%) (1)

24

26

37

Operating Cash Flow

$248

$245

$224

Depreciation Expense (including software amortization)

$30

$32

$22

Capital Expenditures (including software)

$15

$15

$34

Free Cash Flow (2)

$232

$230

$190

Inventory Days (internal)

114

114

104

Revenue Turns (%)

38

31

37

(1) Return on Equity = Trailing twelve months GAAP Net Income / average Stockholders' Equity

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

Product and Financial Highlights - Fiscal Second Quarter 2021

Advanced Products were 70% of total revenue, an 8% increase Q-T-Q and 13% decrease Y-T-Y. Zynq-based revenue grew 28% Q-T-Q and declined 20% Y-T-Y, and represented 22% of total revenue. Sequential strength was driven by improvement in the Automotive end market and 5G ramp in the Wireless end market.

Subaru selected Xilinx to power the new version of its vision-based advanced driver-assistance system (ADAS), EyeSight, which will provide advanced features including adaptive cruise control, lane-keep assist, and pre-collision braking.

Xilinx announced the T1 Telco Accelerator Card for O-RAN distributed units (O-DUs) and virtual baseband units (vBBUs) in 5G networks, which enables the O-DU to deliver greater 5G performance and services while reducing overall system power consumption and cost.

LINK:	https://www.xilinx.com/news/press/2020/xilinx-reports-second-quarter-f...
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