Xilinx Reports Record Revenue in Fiscal Second Quarter 2022

Xilinx Reports Record Revenue in Fiscal Second Quarter 2022 Oct 27, 2021

Record revenue of $936 million, representing 7% sequential growth and 22% annual growth amidst continuing industry-wide supply chain challenges

Aerospace & Defense, Industrial and Test, Measurement & Emulation (AIT) revenue increased 20% sequentially, with strong performance in all sub-markets led by another record performance in the Industrial end market and improvement in Aerospace & Defense business

Automotive, Broadcast and Consumer (ABC) revenue in the quarter increased 19% sequentially, with record quarters in all sub-markets, led by the Automotive end market

Wired and Wireless Group (WWG) revenue increased 9% sequentially and 42% year-over-year as robust global 5G deployments continue and strength from the Wired business

Data Center Group (DCG) revenue declined modestly, down 3% quarter-over-quarter, as Networking strength was offset by a decline in Compute

Platform transformation continues with total Adaptive SoC revenue, which includes Zynq and Versal platforms, up 9% sequentially and 56% year-over-year, and representing 29% of total revenue

SAN JOSE, Calif.--(BUSINESS WIRE)-- Xilinx, Inc. (Nasdaq: XLNX), the leader in adaptive computing, today announced record revenues of $936 million for the fiscal second quarter, up 7% over the previous quarter.

GAAP net income for the fiscal second quarter was $235 million, or $0.94 per diluted share. Non-GAAP net income for the quarter was $266 million, or $1.06 per diluted share.

As permitted as of October 27, 2021 under the terms of the Merger Agreement between Xilinx and Advanced Micro Devices, Inc. (AMD), the Xilinx Board of Directors voted unanimously to declare a cash dividend of $0.37 per outstanding share of common stock payable on November 15, 2021 to all stockholders of record at the close of business on November 8, 2021. The dividend is conditioned upon and will only be payable if the merger has not closed on or before the record date for such dividend.

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

Q2 Fiscal 2022 Financial Highlights

(In millions, except EPS)

GAAP

Q2

Q1

Q2

FY2022

FY2022

FY2021

Q-T-Q

Y-T-Y

Net revenues*

$936

$879

$767

7%

22%

Gross margin

$632

$586

$542

8%

17%

Operating income

$250

$210

$205

19%

22%

Net income

$235

$206

$194

14%

21%

Diluted earnings per share

$0.94

$0.83

$0.79

13%

19%

Non-GAAP

Q2

Q1

Q2

FY2022

FY2022

FY2021

Q-T-Q

Y-T-Y

Net revenues*

$936

$879

$767

7%

22%

Gross margin

$644

$596

$548

8%

17%

Operating income

$288

$246

$216

17%

33%

Net income

$266

$236

$203

13%

31%

Diluted earnings per share

$1.06

$0.95

$0.82

12%

29%

* No adjustment between GAAP and Non-GAAP

Xilinx delivered another record quarter despite the continuing industry-wide supply chain constraints, said Victor Peng, Xilinx president and CEO. We saw broad strength in the vast majority of our markets in the quarter, driven by record performance from the Industrial, Auto, Broadcast and Consumer end markets, as well as improvement in the Aerospace & Defense end market. Our business and operations teams have made tremendous efforts to support our customers' critical needs in what continues to be an extremely challenging supply environment. We also believe we remain on track for regulatory approval for the AMD transaction and to close by the end of the calendar year.

Industry trends continue to drive strong demand for Xilinx products. Core markets are benefiting from multiple tail winds, including the increasing requirements for advanced processing and broad digitalization trends in all industries, that are driving both increased silicon content as well as overall demand. 5G volumes remain strong, led by North America and the Asia Pacific region, across multiple products. Our engagements with hyperscalers are deepening as FPGA-as-a-Service expands to new workloads, and we continue to drive solid design win momentum in Compute, Networking and Storage.

The record quarters in Industrial, Auto, Broadcast and Consumer end markets drove total sequential growth of 7% and 22% year-over-year, said Brice Hill, Xilinx CFO. Our transformation to an adaptive platform company continues to accelerate, with Adaptive SoC sequential revenue growth of 9% and year-over-year growth of 56%. In addition, Advanced Products grew 9% sequentially and 28% year-over-year and represented 74% of total revenue.

Free cash flow of $107 million, or 11% of revenue, reflected expected normalization in working capital following exceptionally strong free cash flow in Q1. We are extremely pleased that record revenues, combined with strong gross and operating margins, drove record non-GAAP net income and non-GAAP EPS in the quarter.

Net Revenues by Geography:

Percentages

Growth Rates

Q2

Q1

Q2

FY2022

FY2022

FY2021

Q-T-Q

Y-T-Y

North America

26%

23%

29%

20%

7%

Asia Pacific

48%

52%

48%

-3%

23%

Europe

16%

15%

18%

16%

14%

Japan

10%

10%

5%

8%

124%

Net Revenues by End Market:

Percentages

Growth Rates

Q2

Q1

Q2

FY2022

FY2022

FY2021

Q-T-Q

Y-T-Y

A&D, Industrial and TME

40%

36%

44%

20%

13%

Automotive, Broadcast and Consumer

22%

20%

16%

19%

70%

Wired and Wireless Group

31%

30%

26%

9%

42%

Data Center Group

9%

10%

14%

-3%

-22%

Channel

-2%

4%

0%

NM

NM

Net Revenues by Product:

Percentages

Growth Rates

Q2

Q1

Q2

FY2022

FY2022

FY2021

Q-T-Q

Y-T-Y

Advanced Products

74%

72%

70%

9%

28%

Core Products

26%

28%

30%

0%

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, Virt

LINK:	https://www.xilinx.com/news/press/2021/xilinx-reports-record-revenue-i...
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