Xilinx Reports Record Revenue in Fiscal Second Quarter 2022

  • 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.--()--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, Virtex-4, Virtex-II, Spartan-3, Spartan-2, XC9500 products, configuration solutions, software & support/services.

Key Statistics:

(Dollars in Millions)

 

 

Q2

Q1

Q2

 

FY2022

FY2022

FY2021

 

 

 

 

Operating Cash Flow

$122

$390

$248

Depreciation Expense (including software amortization)

$31

$32

$30

Capital Expenditures (including software)

$15

$17

$15

Free Cash Flow (1)

$107

$373

$232

Inventory Days (internal)

86

89

114

Revenue Turns (%)

23

27

38

(1)

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

Product and Financial Highlights - Fiscal Second Quarter 2022

  • Microsoft announced that Azure is now utilizing its NP-VM FPGA-as-a-Service infrastructure, powered by Xilinx Alveo accelerators, to dramatically improve the performance of Apache Spark on the Azure Synapse analytics platform.
  • Amazon announced the general availability of Amazon EC2 VT1 instances that feature the same Xilinx Alveo U30 media accelerator transcoding cards used in the SDK.
  • Xilinx and NEC Corporation announced a collaboration on NEC’s next generation 5G radio units, expected to be available for global deployment in 2022.
  • Xilinx announced that it has begun shipping its new Zynq RFSoC DFE in volume to multiple radio customers worldwide including a top wireless system vendor.
  • Xilinx and Motovis, a provider of embedded AI for autonomous driving, are collaborating on a solution that pairs the Xilinx Automotive Zynq system-on-chip platform and Motovis’ convolutional neural network IP to the automotive market.

Commentary on AMD Transaction

As announced on October 27, 2020, Advanced Micro Devices, Inc. (AMD) intends to acquire Xilinx in an all-stock transaction. Due to the pending acquisition, Xilinx will not hold an earnings conference call or provide forward-looking guidance. As permitted as of October 27, 2021 under the terms of the Merger Agreement between Xilinx and AMD, the Xilinx Board of Directors has declared a cash dividend of $0.37 per outstanding share of common stock. 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. Xilinx’s stock repurchase program remains suspended. The parties believe that the transaction remains on-track for regulatory approval and close by calendar year end.

Non-GAAP Financial Information

Fiscal second quarter 2022 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.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
October 2, 2021 July 3, 2021 September 26, 2020 October 2, 2021 September 26, 2020
Net revenues

$

935,770

 

$

878,606

$

766,535

 

$

1,814,376

 

$

1,493,208

 

Cost of revenues:
Cost of products sold

 

293,327

 

 

283,441

 

218,120

 

 

576,768

 

 

444,223

 

Amortization of acquisition-related intangibles

 

10,150

 

 

9,066

 

6,696

 

 

19,216

 

 

13,393

 

Total cost of revenues

 

303,477

 

 

292,507

 

224,816

 

 

595,984

 

 

457,616

 

Gross margin

 

632,293

 

 

586,099

 

541,719

 

 

1,218,392

 

 

1,035,592

 

Operating expenses:
Research and development

 

253,881

 

 

247,975

 

219,647

 

 

501,856

 

 

429,760

 

Selling, general and administrative

 

126,319

 

 

124,920

 

113,793

 

 

251,239

 

 

219,176

 

Amortization of acquisition-related intangibles

 

2,252

 

 

2,841

 

2,862

 

 

5,093

 

 

5,724

 

Total operating expenses

 

382,452

 

 

375,736

 

336,302

 

 

758,188

 

 

654,660

 

Operating income

 

249,841

 

 

210,363

 

205,417

 

 

460,204

 

 

380,932

 

Interest and other income (expense), net

 

(9,204

)

 

1,000

 

(10,771

)

 

(8,204

)

 

(22,924

)

Income before income taxes

 

240,637

 

 

211,363

 

194,646

 

 

452,000

 

 

358,008

 

Provision for income taxes

 

6,092

 

 

5,022

 

830

 

 

11,114

 

 

70,356

 

Net income

$

234,545

 

$

206,341

$

193,816

 

$

440,886

 

$

287,652

 

Net income per common share:
Basic

$

0.95

 

$

0.84

$

0.79

 

$

1.79

 

$

1.18

 

Diluted

$

0.94

 

$

0.83

$

0.79

 

$

1.77

 

$

1.17

 

Cash dividends per common share

$

-

 

$

-

$

0.38

 

$

-

 

$

0.76

 

Shares used in per share calculations:
Basic

 

247,765

 

 

245,860

 

244,837

 

 

246,344

 

 

243,602

 

Diluted

 

250,457

 

 

249,320

 

246,763

 

 

249,478

 

 

245,847

 

XILINX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
October 2, 2021 April 03, 2021*
(unaudited)
ASSETS
Current assets:
Cash, cash equivalents and short-term investments

$

3,421,227

$

3,078,899

Accounts receivable, net

 

405,040

 

285,214

Inventories

 

285,568

 

311,085

Other current assets

 

73,257

 

71,064

Total current assets

 

4,185,092

 

3,746,262

Net property, plant and equipment

 

336,183

 

345,023

Other assets

 

1,474,286

 

1,427,916

Total Assets

$

5,995,561

$

5,519,201

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

$

107,429

$

116,046

Accrued and other liabilities

$

506,757

$

508,509

Total current liabilities

 

614,186

 

624,555

Long-term debt

 

1,493,311

 

1,492,688

Other long-term liabilities

 

492,519

 

514,997

Stockholders' equity

 

3,395,545

 

2,886,961

Total Liabilities and Stockholders' Equity

$

5,995,561

$

5,519,201

 
* Fiscal 2021 balances are derived from audited financial statements.
XILINX, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)
(In thousands)
Three Months Ended Six Months Ended
October 2, 2021 July 3, 2021 September 26, 2020 October 2, 2021 September 26, 2020
SELECTED CASH FLOW INFORMATION:
Depreciation and amortization of software

$

30,908

$

32,192

$

30,249

$

63,100

$

61,998

Amortization - others

 

18,565

 

17,946

 

15,316

 

36,511

 

30,375

Stock-based compensation

 

69,720

 

67,609

 

58,439

 

137,329

 

108,822

Net cash provided by operating activities

 

122,117

 

389,897

 

247,583

 

512,014

 

493,054

Purchases of property, plant and equipment and software

 

14,959

 

17,186

 

15,331

 

32,145

 

30,792

Payment of dividends to stockholders

 

-

 

-

 

93,105

 

-

 

185,519

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

 

59,344

 

3,796

 

30,072

 

63,140

 

33,311

 
 
STOCK-BASED COMPENSATION INCLUDED IN:
Cost of revenues

 

3,797

$

3,610

$

2,963

$

7,407

$

5,684

Research and development

 

42,273

 

41,462

 

36,110

 

83,735

 

66,479

Selling, general and administrative

 

23,650

 

22,537

 

19,366

 

46,187

 

36,659

XILINX, INC.
RECONCILIATIONS OF GAAP ACTUALS TO NON-GAAP ACTUALS
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
October 2, 2021 July 3, 2021 September 26, 2020 October 2, 2021 September 26, 2020
GAAP gross margin

$

632,293

 

$

586,099

 

$

541,719

 

$

1,218,392

 

$

1,035,592

 

M&A related expenses

 

1,249

 

 

933

 

 

-

 

 

2,182

 

 

-

 

Amortization of acquisition-related intangibles

 

10,150

 

 

9,066

 

 

6,696

 

 

19,216

 

 

13,393

 

Non-GAAP gross margin

$

643,692

 

$

596,098

 

$

548,415

 

$

1,239,790

 

$

1,048,985

 

 
GAAP operating income

$

249,841

 

$

210,363

 

$

205,417

 

$

460,204

 

$

380,932

 

Amortization of acquisition-related intangibles

 

12,402

 

 

11,907

 

 

9,558

 

 

24,309

 

 

19,117

 

M&A related expenses

 

25,905

 

 

23,757

 

 

1,506

 

 

49,662

 

 

3,069

 

Non-GAAP operating income

$

288,148

 

$

246,027

 

$

216,481

 

$

534,175

 

$

403,118

 

 
GAAP net income

$

234,545

 

 

206,341

 

$

193,816

 

$

440,886

 

$

287,652

 

Amortization of acquisition-related intangibles

 

12,402

 

 

11,907

 

 

9,558

 

 

24,309

 

 

19,117

 

M&A related expenses

 

25,905

 

 

23,757

 

 

1,506

 

 

49,662

 

 

3,069

 

Income tax effect of tax-related items

 

-

 

 

-

 

 

-

 

 

-

 

 

56,801

 

Income tax effect of non-GAAP adjustments

 

(7,021

)

 

(6,259

)

 

(1,470

)

 

(13,280

)

 

(3,060

)

Non-GAAP net income

$

265,831

 

$

235,746

 

$

203,410

 

$

501,577

 

$

363,579

 

 
GAAP diluted EPS

$

0.94

 

$

0.83

 

$

0.79

 

$

1.77

 

$

1.17

 

Amortization of acquisition-related intangibles

 

0.05

 

 

0.05

 

 

0.03

 

 

0.10

 

 

0.08

 

Acquisition-related costs

 

0.10

 

 

0.10

 

 

0.01

 

 

0.20

 

 

0.01

 

Income tax effect of tax-related items

 

-

 

 

-

 

 

-

 

 

-

 

 

0.23

 

Income tax effect of non-GAAP adjustments

 

(0.03

)

 

(0.03

)

 

(0.01

)

 

(0.05

)

 

(0.01

)

Non-GAAP diluted EPS

$

1.06

 

$

0.95

 

$

0.82

 

$

2.02

 

$

1.48

 

 
GAAP cash flow from operations

$

122,117

 

$

389,897

 

$

247,583

 

$

512,014

 

$

493,054

 

Capital expenditures (including software)

 

(14,959

)

 

(17,186

)

 

(15,331

)

 

(32,145

)

 

(30,792

)

Free cash flow

$

107,158

 

$

372,711

 

$

232,252

 

$

479,869

 

$

462,262

 

XLNX-F
Source: Xilinx Newsroom
Category: Corporate Announcements

Contacts

Investor Relations Contact:
Suresh Bhaskaran
Xilinx, Inc.
(408) 879-4784
ir@xilinx.com

Release Summary

XILINX REPORTS RECORD REVENUE IN FISCAL SECOND QUARTER 2022

Contacts

Investor Relations Contact:
Suresh Bhaskaran
Xilinx, Inc.
(408) 879-4784
ir@xilinx.com